Wynn Resorts (WYNN) stock plunged over 12% on Thursday as a slowdown at its Macau location is on cards. Executive chief Matthew Maddox said the Macau operations are experiencing a shortfall in the premium market attendance after China’s seven-day Golden Week holiday.
In the earnings call, Maddox said the high-end offerings have taken a downtrend as there seems to be a deceleration in the premium market worldwide. The performance has slowed down in Singapore and Las Vegas as well in the premium offerings.
For the third quarter, the company reported a 96% jump in net income attributable to Wynn Resorts to $156.1 million. Adjusted earnings increased by 10.5% to $1.68 per share but missed analysts’ expectations of $1.69. Operating revenue grew 10.2% to $1.71 billion.
Operating revenue from Wynn Macau rose 3.1% to $579.6 million. Casino revenue showed a marginal rise of 0.9%. Table games turnover in VIP operations increased 4.4% while table games win in mass market operations jumped 15.6%. Slot machine handle rose 3.6% while slot machine wins decreased 2.1%.
Non-casino revenues from Wynn Macau grew 20.3% helped by an increase in room revenues, higher average daily rate, an increase in occupancy and higher RevPAR.
The Chinese financial markets have experienced a steep fall due to the concerns about the declining economy and a move to control debt-fueled growth. The gambling industry has been worrisome as more concerns were lingering on the impact of the fall in economic growth on the industry. Experts believe that the Chinese economy could see certain prosper after any improvement in trade relations between the US and China.
Shares of Wynn Resorts opened Thursday’s regular session lower and remained in the red territory. The stock has fallen over 34% in the past year and over 40% in the year so far.