Nevada-based casino company Wynn Resorts revealed on Thursday information about its financial performance for the three months ended September 30, 2015. Net revenue for the period amounted to $996.3 million compared to $1.4 billion posted for the same quarter a year ago.
The company attributed the significant decline to a 37.9% drop in net revenue from its Macau operations and a 3.9% one in net revenue from Las Vegas operations. Adjusted property EBITDA totaled $279.9 million for the period in review, down 39% year-on-year.
As mentioned above, Wynn Resorts posted a 37.9% decline in net revenue from its Macau-based properties. Those generated a total of $585.1 million compared to $942.3 reported for the three months ended September 30, 2014. Adjusted property EBITDA amounted to $162.8 million, down 50% year-on-year.
VIP table games turnover dropped 51.3% year-on-year to $12.2 million. In comparison, the amount of $25.1 billion was reported for the same period a year ago. During the third quarter of this fiscal year, Wynn Resorts’ Macau-based gambling venue featured 228 gaming tables compared to a total of 251 offered last year.
Slot machine handle in Wynn Macau totaled $824.6 million over the reported period, down 42.6% year-on-year. Non-casino revenue from the administrative region decreased 22.2% to $77.1 million.
The major drop in the company’s Macau operations was attributed mainly to the overall decline in gaming revenue in the administrative region, known to be the only Chinese territory where casino gambling is legal. And experts have long attributed the overall decline to the anti-corruption campaign launched by Chinese President Xi Jinping a few years ago, which resulted in the general withdrawal of high-profile players from the gambling hub.
Net revenue at Wynn Resorts’ Las Vegas hotel and casino venues dropped 3.9% year-on-year to $411.2 million. Adjusted property EBITDA amounted to $117.1 million, down 12.1% as compared to the figures posted for the same three-month period a year ago.
Net casino revenue decreased 14.8% year-on-year to $152.1 million. Table games drop amounted to $491.6 million compared to the amount of $640.9 million posted for the same period a year ago. Wynn Resorts also reported slot machine handle of $764.3 million, down 3% from the $788.1 million reported for the third quarter of 2014.
Non-casino revenue was up 1.9% in the three months ended September 30, 2015. The amount of $303.6 million was posted for the period. Room revenue was up 0.2% to reach $102.8 million. Food and beverage revenue amounted to $142.6 million, up 4.5% year-on-year. Retail, entertainment, and other related revenue dropped 1.3% year-on-year to $58.3 million.
Apart from its financial results for the third quarter of the year, Wynn Resorts also revealed information about its Wynn Palace casino project on Macau’s Cotai Strip.
The Wynn Palace integrated casino resort is currently being built. The venue would offer a luxury hotel with 1700 rooms, a casino floor, numerous retail, food and beverage, and entertainment options, as well as various attractions such as a performance lake. Wynn Resorts said that the total cost of the project is $4.1 billion and the venue is expected to open doors sometime in the first half of 2016.
The gambling operator said that the total investment in the project was taken to $3.1 billion in the third quarter of the year as an approximate of $434.9 million was invested in the period.
