Gaming | Wynn announces continued plunge in Q1 results

Wynn Resorts announced the preliminary expectations of its financial results for the first quarter of this year, which ended on March 31.
The report indicated that both revenue and profit in the company’s Macau operations are expected to continue their downward spiral amid the ongoing anti-corruption campaign being orchestrated by Beijing.
Net revenues for Wynn’s Macau operations in the first quarter of 2016 are expected to range between USD603 million to USD613 million, down from the USD705.4 million generated in the same quarter last year, across both the VIP and mass-market sectors.
According to Bloomberg, the company generated about 60 percent of its USD4.08 billion in revenue in Macau last year.
At the same time, adjusted property EBITDA (net earnings before interest, taxes, depreciation and amortization) is expected to range from USD187 million to USD195 million for the first quarter of 2016, compared to USD212.3 million recorded for the first quarter of 2015.
Wynn is slated to open its newest Macau resort, the USD4.1 billion Wynn Palace during the second quarter of this year, but the opening will have to compete with new resorts fronted by Sands China and MGM, which are also expected to open in 2016.
In contrast, the company’s Las Vegas operations are expected to fare more consistently against last year, with net revenues potentially reflecting marginal positive growth.
Net revenues for the first quarter are expected to amount to between USD384 million to USD394 million, compared to USD368.9 million, while adjusted property EBITDA is expected to fall between USD105 million and USD113 million, compared to the USD110.7 million for the first three months of last year.
Wynn Resorts will hold an investor presentation in Las Vegas today [Macau time] that will be streamed on the company’s website.
The results announced are preliminary and subject to the completion of the final financial statements, Wynn added in their report. DB