Wynn Resorts has reported a 30.5 percent year-on-year rise in net income for the fourth quarter of 2016, attributed to strong revenue from Wynn Palace, and offset by decreased earnings from Wynn Macau.
According to a filing from the operator on Friday, net revenues for the fourth quarter of 2016 was $1.3 billion, representing an increase of 37.3 percent year-on-year.
“The increase was the result of $418.7 million from Wynn Palace, partially offset by decreases of $57.2 million from Wynn Macau and $7.9 million from our Las Vegas Operations,” said the operator in a press release on Friday.
Net income was $113.8 million 16Q4, an increase of 30.5 percent, compared to $87.2 million in 15Q4.
For the full year 2016, net revenues were $4.5 billion, representing an increase of 9.6 percent, while net income was $242 million, up from $195.3 million in 2015.
The operator, which opened its new Wynn Palace property in August 2016, posted Wynn Palace net revenue at $418.7 million, while adjusted property EBITDA was $77.5 million in 16Q4.
Analysts said the results were due to a faster than expected ramp up.
“Wynn Palace’s mass segment –the most watched segment by the Street–has performed better than we expected, although the average number of mass tables was less than our expectation,” said Chelsea Tam of Morningstar Asia.
“These factors boost our confidence in Wynn Palace’s ramp-up potential, as 1) MGM Cotai is set to be completed in the second half of 2017; 2) management said that construction barricades will be relieved by spring; and 3) the light-rail transit station opens in front of Wynn Palace in 2019,” she added.
Wynn Macau, on the other hand reported a 10.3 percent decrease in net revenue in the fourth quarter of 2016, down to $498.4 million, while adjusted Property EBITDA was $148.9 million, a 7 percent decrease from $160.1 million for the same period of 2015.