Wynn Says Macau Results Weighed on Earnings
April 05 2016 - 8:10PM
Dow Jones News
Wynn Resorts Ltd. on Tuesday reported a further slowdown in
Macau weighed on its overall results for the March quarter.
Preliminary results released by the casino operator for the
quarter ended March 31 show revenue and a key earnings metric
declining from the year-ago period in Macau, one of the world's
biggest gambling centers. Results were relatively flat in Las
Vegas.
Gambling revenue in the Chinese semiautonomous territory, the
only place in China where gambling is legal, has been on a downward
spiral since June 2014, according to figures from Macau's Gaming
Inspection and Coordination Bureau.
In February, when the company released fourth-quarter results,
Chief Executive Steven Wynn said results for the March quarter
looked promising, saying January had been the company's "best month
in a long time" in Macau and the year was off to a "roaring start"
in Las Vegas.
According to government figures, Macau gambling revenue eased
0.1% in February but accelerated to a 16% decline in March.
On Tuesday, Wynn, which has been enmeshed in a yearslong battle
among its founders, said it expected to report first-quarter
revenue of $603 million to $613 million for its Macau operations,
compared with $705.4 million in the year-ago period. It also
projected earnings before interest, tax, depreciation and
amortization and other items such as management and license fees
and intercompany golf course and water rights leases of $187
million to $195 million, down from $212.3 million a year
earlier.
In Las Vegas, it projects revenue of $384 million to $394
million, down from $386.9 million, and adjusted property Ebitda of
$105 million to $113 million, compared with $110.7 million a year
earlier.
Analysts surveyed by FactSet had projected $592 million in
revenue and $166 million in Ebitda for the Macau operations and
$390 million in revenue and $117 million in Ebitda for the Las
Vegas operations.
Shares, down 30% over the past 12 months, fell 1.6% to $89.49 in
after-hours trading.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
April 05, 2016 20:55 ET (00:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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