Wynn Macau Q1 net profit sinks 59 per cent to US$111.6 million

Wynn Macau reported first-quarter net profit plunged 59 per cent to US$111.6 million (HK$864.9 million) from a year ago, as the world’s largest gambling hub continued to grapple with a weak gaming market.

Operating Revenue from casinos declined 38 per cent to US$662.9 million, resulting in the overall fall in revenue to $705.4 million, the casino operator told the Hong Kong stock exchange on Wednesday.

Table games turnover from the VIP segment dropped 52 per cent to US$36 billion, with the mass market segment down 7 per cent to US$279.6 million in the three months to March. Occupancy decreased to 97.5 per cent from 98.1 percent in the same period last year. Average daily rate, calculated by dividing total room revenue by the number of rooms occupied, fell to 2.1 per cent to US$331.

Nasdaq-listed Wynn Resort, the controlling shareholder of Wynn Macau, reported net profit plunged 70 per cent to US$70.5 million in the same period on Tuesday.

Wynn Macau said it had invested US$374.3 million during the first quarter in the construction of its new resort Wynn Palace, bringing the total investment so far to US$2.2 billion. The project, located in Cotai, a reclaimed area between Taipa and Coloane islands in Macau, will cost US$4.1 billion and open in the first half of 2016, pushed back from an original opening set for this year.