A role reversal on recent years has seen results in Las Vegas improving whilst those from Macau decreased for Wynn Resorts, who reported fourth-quarter profit of $87.2, from revenues of $946.9m
The revenue, declined from the $1,138m set in the fourth quarter of 2014 and was the result of a 27 per cent net revenue decrease from our Macau Operations, partially offset by a 3.8 per cent increase in net revenues from Wynn’s Las Vegas operations.
Macau still generated the lion’s share of revenue though with net revenues of $555.7m for Wynn. Table games turnover in the VIP segment was $13bn for the fourth quarter of 2015, a 36.9 per cent decrease from $20.7bn in the fourth quarter of 2014. The average number of VIP tables decreased to 192 units in the fourth quarter of 2015 from 244 units in the prior year’s fourth quarter.
Table drop in the mass market segment was $1,185.5m in the fourth quarter of 2015, down 10.9 per cent from the 2014 fourth quarter. Slot machine revenue declined 4.7 per cent from the 2014 period to $1,069.3m. Occupancy at Wynn Macau was 96.3 per cent, down from 98.6 per cent in the prior-year period.
Although dwarfed in comparison, the figures from Wynn’s Las Vegas operations at least moved in the right direction. Net revenues were $391.2m, a 3.8 per cent increase from $376.8m in the fourth quarter of 2014.
Net casino revenues in the fourth quarter of 2015 were flat at $170.9m compared to the fourth quarter of 2014 at$171.0m. Table games drop of $485.7m was down 24 per cent from $639m in the 2014 quarter whilst slot machine handle of $730.7m was 5.1 per cent less than in the fourth quarter of 2014.
The company is currently constructing Wynn Palace, a fully integrated resort featuring a 1,700-room hotel, a performance lake, and a wide range of amenities, including meeting, retail, food-and-beverage, and gaming space, in the Cotai area of Macau. In July 2013, we signed a $2.6bn guaranteed maximum price (GMP) contract for the project’s construction. The total project budget, including construction costs, capitalized interest, pre-opening expenses, land costs and financing fees, is approximately $4.1bn.
A spokesperson said; “During the fourth quarter of 2015, we invested approximately $433.4m in our Cotai project, taking the total investment to date to $3.5bn. In November 2014, we were awarded a gaming license to develop and construct an integrated resort in Everett, Massachusetts, adjacent to Boston. The resort will be located on a 33-acre site along the Mystic River. The resort will contain a hotel, a waterfront boardwalk, meeting space, a casino, a spa, retail offerings, and food-and-beverage outlets. During the fourth quarter of 2015, we began site remediation, site preparation and pre-construction activities.”