Casino operator Wynn Resorts finished out 2015 with growth in Las Vegas and continuing declines in Macau.
On Friday, Wynn issued preliminary guidance for its Q4 and FY 2015 figures, with expectations that its Macau Q4 revenue will come in between $552m and $560m, down from $761.2m in Q4 2014. Operating income is expected to take a bigger hit, coming in between $75m and $83m, compared to $157.6m the previous year.
Full year figures for Macau show similar shortfalls, with revenue in the range of $2.459b and $2.467b, while operating income will plunge to between $382m to $390m, less than half of 2014’s $895.2m.
It’s a different story in Las Vegas, where Q4 revenue is expected to rise from 2014’s $376.8m to a range of $387m to $395m, while operating income will rise from $51.6m to a range of $56m to $64m.
However, Vegas’ full year revenue is expected to fall from 2014’s $1.636b to a range of $1.609b to $1.617b. Full year operating income will take a bigger hit, falling from $270.5m in 2014 to a range of $215m to $223m.
The Macau numbers were dragged down by Wynn’s reliance on VIP gamblers, who have become an endangered species since China began its corruption crackdown a couple years ago. The number of VIP tables in operation at Wynn Macau in Q4 fell more than one-fifth year-on-year, while VIP turnover was down more than one-third to $13b.
Wynn’s number of mass market tables increased by nearly one-quarter over the same period, although mass table drop still fell 11% to $1.2b. Hotel room occupancy at Wynn Macau slipped 2.3 points to 96.3%.
Wynn’s Las Vegas operations saw table game turnover fall nearly one-quarter but table revenue suffered a smaller decline as win rose nearly five points to 28.7%. Wynn’s slots were also luckier, as win per machine rose 10% despite a 5% decline in slot handle. Revenue per room was up nearly 7% to $237.