LAS VEGAS (AP) — New gambling regulations in Macau continued to punish Wynn Resorts’ business during the third quarter, and the casino operator said Thursday it isn’t sure when things will improve.
Gambling in Macau has fallen as the Chinese government has cracked down on corruption, with VIP gamblers in particular spending far less. The company said VIP players at Wynn Macau put about half as much money on the table as they did a year ago, and CEO Steve Wynn said that may decrease further.
The company said total revenue from Wynn Macau fell 38 percent. Along with the decline in VIP gambling and a drop in the number of tables, mass market consumers also cut back and slot machine revenue decreased as well. Occupancy and revenue per available room both dipped.
Wynn Resorts plans to open a second casino in Macau in March and said it’s not sure how many gambling tables or other types of games it will be allowed to have, which makes it hard to hire staff and make necessary plans. The company said its competitors are having similar problems with new casinos.
“None of us are really clear on what our (business) environment is going to be like going forward,” CEO Steve Wynn said during a conference call. “It makes planning almost a mystical process.”
Shares of Wynn Resorts Ltd. fell $5.76, or 7.8 percent, to $68 in aftermarket trading. Wynn Resorts Ltd. shares closed at $73.76 Thursday and have lost 51 percent of their value in 2015.
The company’s net income fell 62 percent to $73.8 million, or 73 cents per share, from a year ago. It earned 86 cents per share if debt-extinguishment costs and other items are excluded. Revenue fell 27 percent to $996.3 million.
Analysts expected 75 cents per share and $1.03 billion in revenue, according to Zacks Investment Research.
Separately Las Vegas company said it named Clark T. Randt Jr. and Patricia Mulroy as directors, expanding its board to nine members.
