Wynn Resorts Ltd., a Las Vegas-headquartered operator of casino properties in Las Vegas and Macau, reported on Wednesday its financial results for the three months ended September 30, 2016. Net revenue amounted to $1.1 billion for the period in review, reflecting an increase of 11.4%.
The rise in net revenue was attributed to the launch of Wynn Palace, the operator’s first integrated resort on Macau’s Cotai Strip. The venue opened doors on August 22, 2016. Wynn Resorts’ Las Vegas operations also contributed slightly to the overall growth reported.
The operator reported net loss of $17.4 million for the reviewed three months, compared to net income of $96.2 million for the same period of the previous year. Adjusted net income totaled $76.2 million, down from $87.6 million in 2015. Wynn Resorts generated adjusted property EBITDA of $305.4 million, reflecting an increase of 9.1% year-on-year. The rise was attributed to adjusted property EBITDA of $25.5 million contributed by the newly launched Wynn Palace.
Wynn Macau, the gambling operator’s Macau-based subsidiary, reported an 11.5% drop in net revenue to $518.1 million. Adjusted property EBITDA was down 7.3% year-on-year to reach $162.8 million. Wynn Macau generated casino revenue of $488.3 million during the third quarter of the year, down 10.9% from the same three months of the previous year.
As mentioned above, the gambling operator launched its latest property towards the end of August. Located on the Cotai Strip, Wynn Palace features a 1,706-room hotel, a 500,000-square-foot casino floor, different food and beverage, retail, and entertainment options, meeting space, and a performance lake, among other attractions. The integrated resort generated net revenue of $164.6 million and EBITDA of $25.5 million during the 22 days of its operations. Casino revenue from the property amounted to $146.7 million.
Wynn Resorts said that ongoing construction work around Wynn Palace prevented the property from ramping up its operations. The operator’s management explained in a filing to the Hong Kong Stock Exchange that the property was enclosed by construction barricades that hampered visitor’s access to it. Wynn Resorts and its Macau subsidiary had turned to the government and city officials had promised to address the issue in due manner, the filing read.
Apart from Wynn Palace, Wynn Macau also operates the Wynn Macau and Encore properties in Macau.
Net revenue form the gambling operator’s Las Vegas operations totaled $427.1 million in the three months ended September 30, 2016, representing a 3.9% increase from the same period of 2015. Adjusted property EBITDA amounted to $128.9 million, up 10.1% year-on-year. The operator’s Las Vegas properties generated casino revenue of $153.2 million during the reported three months, up 0.7% year-on-year.
Wynn Resorts’ Las Vegas properties include Wynn Las Vegas Resort & Country Club and Encore at Wynn Las Vegas.
