Wynn Resorts, Limited (WYNN) Results In Line with Expectations, Positive on Macau
Wynn Resorts, Limited (NASDAQ:WYNN) remains bullish on its prospects in Macau even after posting a 72% decline in profits in the recent quarter. Macau is now on the 13th month of a losing streak as VIP gamblers visiting the casino hub continue to drop amidst an ongoing corruption crackdown by the Chinese government.
Impact of Less Traffic to Macau
Wynn Resorts, Limited (NASDAQ:WYNN) prospects have mostly been affected by less Chinese gamblers coming to play the volatile card game baccarat that made fortunes for casinos last year. Revenue for the quarter came in at $617 million, a 37% drop from last year’s levels. The drop was primary as a result of VIP table games turnover dropping by 41.1%. Revenue from Las Vegas operation was also down by 6.2% coming in at $423.5 million.
A decline in profits comes as no surprise for CEO, Steve Wynn, who affirms that Macau has become more of a question than certainty. Wynn Resorts, Limited (NASDAQ:WYNN) has already reiterated plans to open its $4.1 billion 1,700 room Wynn Palace casino just a confirmation it is not considering going slow amidst the ongoing turmoil.
One would expect Wynn Resorts, Limited (NASDAQ:WYNN) to change how it addresses its operations in Macau having registered a 37% plunge in revenue in the recent quarter. However, that is not the case as the casino giant remains confident that the current turmoil will fade going forward. The CEO is especially remaining confident about the company’s prospects, having not registered any significant failures in the recent past or forced to carry out layoffs as a way of staying afloat.
The CEO maintains that they anticipated the current market changes five years ago and that is one of the reasons they remain unconcerned. Weakness in the casino business continues to be offset by growing business in other areas of operations, Wynn Resorts, Limited (NASDAQ:WYNN) having posted a 5.3% increase in non-gaming revenue that came in at $330.3 million.
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