Wynn sees Q4 Macau revenue down 26 percent, Las Vegas strong

Wynn Resorts has said it expects a drop of about 25 percent in its Macau revenue in Q4, though a stronger performance in Las Vegas will help to offset the decline. 

The company is the first of the Macau operators to provide figures for Q4, though the results are preliminary.

As for its Macau operations, Wynn expects Q4 net revenues to be in the range of $552 million to $560 million, compared to $761.2 million generated in the fourth quarter of 2014. On a GAAP basis, operating income for the fourth quarter of 2015 is expected to be in the range of $75 million to $83 million, compared to $157.6 million for the fourth quarter of 2014. 

For the full year, net revenues from Macau are expected to be in the range of $2.45 billion to $2.46 billion, compared to $3.79 billion in 2014. 

In Las Vegas, Wynn’s Q4 net revenues are expected to be in the range of $387 million to $395 million, compared to $376.8 million in the fourth quarter of 2014. On a GAAP basis, operating income for the fourth quarter of 2015 is expected to be in the range of $56 million to $64 million, compared to $51.6 million for the fourth quarter of 2014.

The stock jumped more than 5 percent in response to the announcement in pre-market trading in the U.S. Friday.

Union Gaming analysts say the preannouncement is a positive for Wynn Resorts.

“We believe with less clarity around weekly and monthly Macau GGR trends investor anxiety was on the rise regarding 4Q15 performance in the region. Without today’s pre announcement, we expect broader market concerns would have increased pressure on the shares”, the report says.

UBS believes the pre announcement will be closely followed by share repurchasing.

“We believe the pre-announcement may allow WYNN to be opportunistic by ending the year-end quiet period sooner, allowing them to buy shares in the market as early as Tuesday.”