Net profit at Macau casino operator Wynn Macau Ltd rose 26.5 percent in the first quarter of 2017.
Such profit was nearly US$103.6 million, compared with nearly US$81.9 million in the prior-year quarter.
The unaudited results of the Macau unit were filed on Wednesday with the Hong Kong Stock Exchange, and prepared in accordance with International Financial Reporting Standards.
“Business is good for us. We’re enjoying a resurgence of activity at the top end in China,” said company chairman Steve Wynn on Tuesday during an earnings conference call with analysts, for the U.S.-based parent Wynn Resorts Ltd.
Net revenues from the Wynn Macau casino hotel property on Macau peninsula were US$587.0 million for the first quarter of 2017, a 3.5-percent decrease from US$608.2 million for the same period of 2016.
Adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) from the Wynn Macau resort were US$181.1 million for first quarter 2017, a 5.3-percent decrease from US$191.2 million in the prior-year period.
Casino revenues from the Wynn Macau property were US$554.9 million for the first three months of 2017, a 2.9-percent fall from the US$571.8 million for the same period of 2016.
Table games turnover in the Wynn Macau venue’s VIP operations were US$13.28 billion, a 1.4 percent decrease from US$13.47 billion for the first quarter of 2016.
Table games win in mass-market operations was US$212.9 million, a 14.0 percent decrease from the US$247.5 million for the first quarter of 2016.
The Wynn Macau property’s table games win percentage in mass-market operations was 18.7 percent, below the 20.5 percent experienced in the first quarter of 2016.
Slot machine handle was US$856.7 million, a 21.9 percent decrease from US$1.10 billion for the first quarter of 2016, while slot machine win decreased 23.6 percent to US$38.6 million.
Non-casino revenues before promotional allowances from Wynn Macau were US$64.9 million for the January to March period, a 15.5-percent decrease from US$76.7 million for the prior-year quarter.
Wynn Palace results
The Macau unit’s first-quarter results from Wynn Palace, its Cotai resort that opened in August 2016, represented the second full quarter of operations for the property.
Net revenues and adjusted property EBITDA from Wynn Palace were US$475.8 million and US$111.9 million, respectively, for the first quarter of 2017.
First-quarter casino revenues from Wynn Palace were US$430.0 million. Table games turnover in VIP operations was US$11.04 billion.
Casino revenues from Wynn Palace were US$430.0 million for the first quarter of 2017.
Table games turnover in VIP operations was US$11.04 billion. Table drop in mass market operations was US$770.0 million, while table games win in mass market operations was US$167.6 million and table games win percentage was 21.8 percent.
Slot machine handle at Wynn Palace was US$657.6 million and slot machine win was US$33.9 million for the first quarter of 2017.
Non-casino revenues before promotional allowances from Wynn Palace were US$85.6 million for the first quarter of 2017.
Union Gaming Securities Asia Ltd analyst Grant Govertsen said in a Wednesday note on the Macau unit: “While reported results included the benefit of US$5.5-million in VIP debt-related collection, the numbers exhibited better-than-anticipated margin performance on the continued ramp at Cotai, and, more importantly, suggesting no material changes to historical segmental margin profiles.”
Banking group Morgan Stanley said in a memo on the Wynn Macau entity’s first quarter: “The combined mass revenue market share of the two properties went up by 60 basis points quarter-on-quarter and 280 basis points year-on-year and VIP revenue market share was up by 10 basis points quarter-on-quarter and 270 basis points year-on-year.”
For the parent, Wynn Resorts, first-quarter net income rose 34 percent on a U.S. GAAP basis, to US$100.8 million – or US$0.99 per diluted share – from US$75.2 million in the prior-year period.
Wynn Resorts declared a dividend of US$0.50 per share, payable on May 23 to stockholders of record as of May 11.
Wynn Resorts’ net revenues were US$1.48 billion for the first quarter of 2017, an increase of 47.9 percent, or US$478.0 million, from US$997.7 million for the same period of 2016. The group said increase was the result of US$475.8 million from Wynn Palace and an increase of US$23.4 million from Las Vegas operations, partially offset by a decrease of US$21.2 million from Wynn Macau.
