Wynn Resorts Limited reported a profit drop of 20 percent after earnings in Las Vegas dropped, however Macau results for the company stayed strong.
Net income fell to USD46.7 million, from USD65.5 million in the last quarter of 2007 and USD58.4 million a year earlier.
However earnings before interest and depreciation expenses from its Macau property – which last year overtook the Las Vegas property for the first time late last year – grew from USD99.6 million over the last quarter of 2007 to USD129.4 million.
The Las Vegas casino saw the same figure drop by 38 percent, which the company attributed to a lower hold percentage at its tables.
The company said it had achieved impressive results in Macau despite the increasing competition for VIP players.
Chairman and chief executive office, Steve Wynn said its premium product has allowed it to compete while paying the lowest commission in the market.
“Our earnings have been increasing in Macau, even though we’re the lowest, the lowest, payer of commissions in the entire market,” he said.
AS WITH A NUMBER OF OTHER OPERATORS, MR WYNN ALSO EXPRESSED APPRECIATION AT THE GOVERNMENT'S ANNOUNCED RESTRICTIONS OF COMMISSION PAYMENTS TO JUNKET OPERATORS, WHICH BRING IN AND FINANCE HIGH-ROLLER PLAYERS.
“OUR JUNKET OPERATORS ARE CONCERNED ABOUT IRRESPONSIBLE OR DESPERATE BEHAVIOUR BY PEOPLE RAISING THEIR COMMISSIONS AND HAVE COME TO ME AND SAID THAT THEY’RE VERY GLAD THAT THE GOVERNMENT IS TAKING AN INTEREST IN THIS,” SAID MR WYNN.
Overall in Macau, the take from the mass market tables increased by 19 percent over the last year and 17 percent compared with the fourth quarter, the company announced yesterday.
Compared with the first quarter of last year, VIP turnover has doubled, to USD163 million per day.
“Comparing our results to the market in general, our win per table increased year over year to USD16,200, which is 80 percent more than the market average in Macau of USD9,000 per table per day,” said Matt Maddox, chief financial officer.
However it dropped slightly from the mass market take of USD16,239 in the fourth quarter of last year.
Yesterday's results also included for the first full quarter Wynn Macau's expanded casino, running an average of 382 tables, compared with 290 tables during the last quarter of 2007.
The expansion of its retail outlets and restaurants has seen non-gaming revenue at the site grow by some 42 percent, with shopping revenue doubling, said Mr Maddox.
“We believe the Macau results continue to affirm the strength of our customer focus business model and our brand in the region,” he said.
THE GROWTH IN MACAU HAS CONTINUED THROUGH APRIL WITH THE COMPANY ALSO PROVIDING SOME RESULTS FOR LAST MONTH.
“IN APRIL, OUR EARNINGS WENT FROM USD32 MILLION TO USD42 MILLION, ANOTHER 33 PERCENT INCREASE,” SAID MR WYNN.

Encore
The extension of the company's peninsula property, now called Encore at Wynn Macau, is expected to completed in the first half of 2010, the company announced. The development will add approximately 400 luxury suites and four villas and additional restaurants, shopping and casino space.

Cotai – 52 acres
Planning for the development of the company's 21 hectare Cotai project is proceeding “intensely”, said Mr Wynn.
The “fanciest hotel in the world” will be a 1,500 to 1,800 room resort, Mr Wynn confirmed yesterday.
HOWEVER, COMPLETION OF THE PROJECT IS STILL SOME WAY OFF WITH THE COMPANY HOPING TO “BREAK GROUND ON COTAI” BEFORE THE END OF NEXT YEAR.