Access headaches at new Palace casino leave hefty dent in Wynn Macau’s quarterly earnings
Casino posts US$8.6 million loss for the three months, compared with US$62.1 million profit last time
The firm recorded a US$8.6 million loss for the three months ended September 30, compared with a net profit of US$62.1 million for the same period last year.
Adjusted property earnings before interest, tax, and amortisation, a crucial gauge on a gaming operator’s profitability, missed analyst estimates, rising 8 per cent to US$177.0 million for the quarter.
The downbeat figures sent Wynn Macau shares tumbling as much as 4.66 per cent, their biggest drop in more than nine weeks,. They close the morning down 3.99 per cent at HK$11.54.
The underwhelming results, which includes 40 days of operations at Wynn Palace, are in stark contrast to mounting signs of recovery in Macau’s gaming sector, and took analysts by surprise, with many hoping the new site would help lift the recent gloom hanging over the world’s largest gambling hub.
Using carefully crafted language, officials at the company blamed the results on other construction work near the complex hampering the ability of punters to get to the site by bus, car or taxi.
The US$4.4 billion Wynn Palace is considered the highest profile and costliest integrated resort ever built in Macau.
Chairman Steve Wynn added: “What we have is an anomalous situation where all four sides of our property are currently being enclosed by either barricades or construction blockades of one kind or another.
“It has tended to isolate our property and has made access to the palace temporarily highly encumbered,” he added.
Wynn revealed the company has been holding talks with the Macau government to try to rectify the access problems, and has been assured the situation will be sorted within “the next several months”.
Last month, the casino giant also suffered a public relations jolt after Gamal Abdelaziz, who was in charge of Wynn Palace, resigned as the president and executive director of Wynn Macau “in order to pursue other opportunities”.
He was replaced by Ian Coughlan, who also oversaw the company’s Wynn Macau resort on Macau Peninsula.