Wynn Says Macau Results Weighed on Earnings

Wynn Resorts Ltd. on Tuesday reported a further slowdown in Macau weighed on its overall results for the March quarter.

Preliminary results released by the casino operator for the quarter ended March 31 show revenue and a key earnings metric declining from the year-ago period in Macau, one of the world's biggest gambling centers. Results were relatively flat in Las Vegas.

Gambling revenue in the Chinese semiautonomous territory, the only place in China where gambling is legal, has been on a downward spiral since June 2014, according to figures from Macau's Gaming Inspection and Coordination Bureau.

In February, when the company released fourth-quarter results, Chief Executive Steven Wynn said results for the March quarter looked promising, saying January had been the company's "best month in a long time" in Macau and the year was off to a "roaring start" in Las Vegas.

According to government figures, Macau gambling revenue eased 0.1% in February but accelerated to a 16% decline in March.

On Tuesday, Wynn, which has been enmeshed in a yearslong battle among its founders, said it expected to report first-quarter revenue of $603 million to $613 million for its Macau operations, compared with $705.4 million in the year-ago period. It also projected earnings before interest, tax, depreciation and amortization and other items such as management and license fees and intercompany golf course and water rights leases of $187 million to $195 million, down from $212.3 million a year earlier.

In Las Vegas, it projects revenue of $384 million to $394 million, down from $386.9 million, and adjusted property Ebitda of $105 million to $113 million, compared with $110.7 million a year earlier.

Analysts surveyed by FactSet had projected $592 million in revenue and $166 million in Ebitda for the Macau operations and $390 million in revenue and $117 million in Ebitda for the Las Vegas operations.

Shares, down 30% over the past 12 months, fell 1.6% to $89.49 in after-hours trading.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

April 05, 2016 20:55 ET (00:55 GMT)

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