Finance
Wynn Resorts: Macau casino slows down, shares tank
- Wynn Resorts beat on both the top and bottom lines.
- The casino giant’s strength at Wynn Palace in Macau offset its weakness in Las Vegas.
- CEO Matthew Maddox warned that its Macau operations had seen a slowdown recently.
- Watch Wynn Resorts trade live
Wynn Resorts plunged as much as 14% Thursday after the company said its Macau business has slowed down in October.
The company reported third-quarter results that beat on both the top and bottom lines as strength at Wynn Palace in Macau offset weakness in its Las Vegas operations.
But on the earnings call, CEO Matthew Maddox warned investors that Wynn’s Macau operations have seen a notable slowdown after China’s National Day Golden Week, a seven-day holiday at the beginning of October.
“Since Golden Week, we’ve noticed that during the midweek, it’s been quite choppy and the weekends have been sporadic,” Maddox said.
“We can have one big weekend, maybe one or two days are big as opposed to all three. And so what we’ve seen post-Golden Week has been a slowdown. And we’ve seen it, in particular, in the premium end of the business, premium mass, premium slots, and VIP, and that is where the vast majority of our EBITDA comes from.”
Here are the key numbers of Wynn Resorts earnings, comparing to Street estimates according to Bloomberg:
- Adjusted earnings per share: $1.68 ($1.67 expected)
- Revenue: $1.71 billion ($1.67 billion expected)
- Las Vegas operating revenue: $398.9 million ($451 million expected)
- Las Vegas adjusted property Ebitda: $95.3 million ($136.9 million expected)
- Wynn Palace operating revenue: $730.6 million ($640 million expected)
- Wynn Palace adjusted property Ebitda: $226.1 million ($190.5 million expected)
Wynn Resorts was down 39% this year.
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