Casino operator Wynn Macau posted a 40 percent year-on-year decline in 2016 net profit, but posted higher revenue, driven by VIP gaming at its new Wynn Palace Resort.
In a preliminary results filing to the Hong Kong Stock Exchange on Thursday, the operator reported net profit of HK$1.4 billion (US$180.2 million) for the year ended Dec. 31, 2016, compared to HK$2.4 billion in 2015.
While operating revenues increased by 16 percent from HK$19.1 billion in 2015 to HK$22.1 billion in 2016, operating costs and expenses increased 15 percent to HK$10 billion.
The operator posted a 14.9 percent increase in casino revenues from HK$17.9 billion in 2015 to HK$20.6 billion in 2016.
“The increase is due to VIP gross table games win of HK$3.1 billion from Wynn Palace, partially offset by a HK$0.9 billion decrease from Wynn Macau,” said the operator in its filing.
VIP table games turnover increased by 6.3 percent from HK$449.0 billion in 2015 to HK$477.5 billion in 2016, while mass market gross table games win increased by 15 percent from HK$7.3 billion in 2015 to HK$8.4 billion in 2016.
Slot machine win remained essentially flat in the year.