Wynn Shares Fall More Than 8 Percent Following Disappointing Results
Wynn Resorts shares fell 8.4% to US$67.59, a day after the casino operator reported third-quarter results below expectations. Las Vegas Sands fell 2.8%.
The company said its net income and revenue declined primarily due to a 37.9 decrease in revenue from the company's two Macau casinos.
Its net income of $73.8 million for the quarter that ended Sept. 30, resulted in earnings per share of 73 cents. That’s down from a net income of $191.4 million, or $1.88 per share the same quarter last year.
Overall revenue of $996.3 million was down from $1.37 billion a year ago. In Las Vegas, net revenue declined 3.9 percent.
Chairman Steve Wynn expressed dismay during Thursday’s conference call as to the questions surrounding how many table games the Macau government will allocate the $4 billion Wynn Palace.
“I think the numbers speak for themselves. General comment covering both Las Vegas and Macau is this, we don't see any major change or new development in Macau concerning our existing operations other than all of the comments we've made in the past about the confusion, the ambiguity about what we face in terms of tables in the upcoming months, as we are at about 170 days before the opening of the Palace, which is the most significant event in the Company's near future.
“Based upon what's happened at Galaxy and what we expect to happen at Studio City, which has just today found out how many tables they are going to have in the last two days -- a few weeks before they open. The confusion and the rather mystical policies that are governing the assignment of equipment in these new hotels, which are tremendous diversifications away from pure gaming into all other forms of non-gaming -- the confusion about the tables and the government's position in this regard has made it very difficult to plan for employees and other aspects of the facility.”
- Aaron Goldstein, Gambling911.com
