Nevada-based gambling operator Wynn Resorts reported its financial results for the first quarter of 2015. Net revenue for the period amounted to $1.09 billion, compared to $1.51 billion posted this time last year.
The considerable decrease was attributed to the company’s Macau operations. Net revenue at Wynn’s properties in the administrative region declined 37.7% to $705.4 million. EBITDA was down 44.7% to $212.3 million. The operator pointed out that the decrease was due to the weak VIP segment.
Revenue from table games in the VIP segment dropped 52.4% to 17.1 billion in the first quarter of the year. The number of VIP tables decreased to 252. In comparison, the company’s Macau venues offered as many as 279 tables in the three-month period ended March 31, 2014.
Mass market table games win declined 7% to $279.6 million. In addition, the mass market segment dropped 14.5% to $591.9 million.
Slot machine revenue amounted to $1.04 billion, down 25.7%. Slot win dropped 31.2%.
The performance of Wynn’s Macau-based properties could be attributed to the anti-corruption campaign Chinese President Xi Jinping commenced last year, the tighter regulations that were introduced recently, and the weakening economy in Mainland China. Those resulted in fewer VIP players traveling to the gambling hub, which imminently led to a decrease in casino revenue.
It seems, however, that the company’s Las Vegas-based properties performed better in the first quarter of the year. Net revenue increased 1.6% to $386.9 million. Adjusted EBITDA also posted a slight growth to $110.7 million.
Net casino revenue totaled $161.8 million, up 4.2%. Table games drop decreased 11.4% to $573.6 million. Slot machine handle increased 2.5% to $762.2 million during the reported period.
Currently, Wynn Resorts is involved in two major projects – Wynn Palace in Macau and Wynn Everett near Boston, Massachusetts.
Wynn Palace, a fully integrated resort on the Cotai Strip, is to feature a 1,700-room hotel, casino floor, meeting space, numerous food and beverage options, etc. The project was estimated at $4.1 billion and is expected to be completed and launched sometime in the first quarter of 2016.
Back in November 2014, Wynn Resorts was granted a casino license from the Massachusetts Gaming Commission for the construction of an integrated casino resort in Everett. In January 2015, the operator purchased a 33-acre site along Mystic River, where the property is to be located. It will feature a hotel, casino floor, spa, meeting and convention space, restaurants, retail and entertainment options,etc.
