The company’s net income fell 62 percent to $73.8 million, or 73 cents per share, from a year ago.
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The thought processes that go into this kind of strategy on the government’s part is the “single most counter intuitive, irrational” example of thinking, Wynn said.
At the conference call’s conclusion, Wynn said the quarter wasn’t the company’s most satisfying three-month period, but his remarks were “candid” and “honest”.
The chairman and CEO of Wynn Resorts Ltd., expressed frustration Thursday that he does not yet know how many table games the Macau government will allocate the $4 billion Wynn Palace, which is expected open on March 25. During the same quarter in the prior year, the company posted $2.11 earnings per share.
Tellingly, when Steve asked if the other Wynn execs on the call had anything to add, all one of them could say was: “You said it all, Steve”.
Indeed, investors have already marked down their views on what Wynn is likely to tell them this quarter.
Mr Wynn additionally said the uncertainty about table allocation is complicating decisions about hiring and training workers and could force Macau operators to terminate employees.
There may be hope on the horizon for Mr Wynn and Mr Packer. At the Street, analysts believe that Wynn’s EPS for the upcoming quarter will be $0.85.
The firm has a market capitalization of $7.32 billion and a PE ratio of 23.49. “Mass experienced slightly lower than normal hold, slightly offset by better luck in VIP”, brokerage Sanford C. Bernstein Ltd said in a note on Friday.
Macau’s cratering gaming market, which has seen 16 straight months of declining gaming revenue, took down Wynn Resorts in the third quarter.
Mr Wynn said the slowdown in the VIP business in Macau “has caused us to review our credit policies and our attitudes towards junket operators”.
Wynn said that such a large question mark hanging over his new Macau casino makes it hard for his company to train employees and called the situation “outrageous and ridiculous”. The business earned $1.04 billion during the quarter, compared to the consensus estimate of $1.07 billion. The company operates through two segments: Las Vegas Businesses, which contains Encore and Wynn Las Vegas at Wynn Las Vegas, and Macau Operations, which comprises Wynn Macau and Encore at Wynn Maca. Adjusted property EBITDA of $279.9M fell 39% Y/Y.
Net revenue, which excludes promotional allowances, dropped 30% to $996.3 million. “The gaming allows the nongaming to flourish, and that’s the lesson we’re trying to get to penetrate the leadership of Macau”. Weakness in Asia also affected Wynn’s Las Vegas gambling revenue.
Las Vegas Sands, in particular, has used its experience in the convention and exhibition business to try to draw a broader audience to its resort properties, and in Sands’ projects, features like shopping malls and performance venues have become increasingly important to the economic success of the entire venture. “The rest of the sections are pretty good”, he added. Shares of Wynn, which has been as low as $51 a few weeks ago, closed at $73.78 on the Nasdaq, up $1.41 or 1.95 percent.
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In addition, Wynn Macau’s parent company announced the appointment of Clark T. “Sandy” Randt, Jr. and Patricia Mulroy to its board of directors, effective October 15. LLC, which advises firms with Chinese interests.
