\nStephanie Wong and Christopher Palmeri, Bloomberg \u00b7 February 4, 2015 at 3:51 am<\/p>\n
\t(Bloomberg) \u2014 Wynn Macau Ltd. dropped in Hong Kong trading today after the company\u2019s earnings missed estimates and said its new casino resort in the city would be delayed.<\/p>\n
\tThe Macau casino operator fell 1.2 percent to HK$21.55. The decline came after shares of its parent, Wynn Resorts Ltd., dropped as much as 5.6 percent to $147.05 in extended trading after results were announced. The stock had gained 6.1 percent to $155.80 at the close Tuesday in New York.<\/p>\n
\tWynn Macau reported fourth-quarter adjusted property earnings before interest, taxes, depreciation and amortization fell 36 percent to $241.2 million from a year earlier. That compared with the $249 million median estimate of nine analysts surveyed by Bloomberg News.<\/p>\n
\tCasino operators in Macau, the world\u2019s largest gambling market, have seen a sharp decline in play by high rollers in recent months. Chinese President Xi Jinping has been cracking down on corruption on the mainland, a move that has caused the wealthy there to hold back on conspicuous consumption.<\/p>\n
\t\u201cWe think negative earnings revision will continue; management sounded downbeat on near-term outlook for Macau,\u201d Morgan Stanley analysts led by Praveen Choudhary wrote in a note today. The resort\u2019s delay was also a concern, they said.<\/p>\n
\tUncertain Future<\/p>\n
\tWynn Resorts \u2014 the company founded by billionaire Steve Wynn \u2014 is building a $4.1 billion resort on Macau\u2019s Cotai Strip. The company was told this week by its construction contractor that the project won\u2019t be finished in time for the Lunar New Year in February 2016 because of the timing of permits. Wynn said the company hasn\u2019t been able to hire all the construction workers it wanted.<\/p>\n
\t\u201cI do believe that for all of Chinese businessmen, there is at the moment a bit of uncertainty as to what the future will hold, because so much of everything in China depends upon the policy of the central government,\u201d Wynn, the company\u2019s chairman and chief executive officer, said on a conference call after the earnings announcement.<\/p>\n
\tWynn Resorts reported fourth-quarter profit and sales that missed analysts\u2019 estimates as revenue in Macau declined. The Macau unit contributed two-thirds of the group\u2019s revenue in the fourth quarter.<\/p>\n
\tTable games turnover in the VIP segment dropped 40 percent year on year to $20.7 billion for the fourth quarter, according to a statement Tuesday. Mass-table win \u2014 or revenue from mass- market gamblers \u2014 fell 15 percent to $249 million in the quarter. The company\u2019s January mass business in Macau rose 26 percent year on year, Wynn said.<\/p>\n
\t\u201cThe changes in China have had a negative effect on all of the top-end business, whether that means retail top-end like Rolex and Louis Vuitton or whether we\u2019re talking about the high- end gaming and junkets in the VIP section,\u201d Wynn said.<\/p>\n
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Stephanie Wong and Christopher Palmeri, Bloomberg \u00b7 February 4, 2015 at 3:51 am (Bloomberg) \u2014 Wynn Macau Ltd. dropped in Hong Kong trading today after the company\u2019s earnings missed estimates and said its new casino resort in the city would…<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-8616","post","type-post","status-publish","format-standard","hentry","category-latest-casino-news"],"_links":{"self":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8616","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/users\/36"}],"replies":[{"embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/comments?post=8616"}],"version-history":[{"count":0,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/posts\/8616\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/media?parent=8616"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/categories?post=8616"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumarchives.tmsites.net\/index.php\/wp-json\/wp\/v2\/tags?post=8616"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}