Wynn shares are getting obliterated
REUTERS/Fred Prouser
Wynn reported after the bell Tuesday afternoon and disclosed that it would be cutting its dividend to $0.50 a share.
Why Wynn is suffering couldn't be more clear. It's Macau.
The island, once the world's gambling Mecca, has seen casino revenues collapse almost 50% since this time last year. President Xi Jinping start an anti-corruption drive last year that has high-rollers scared of spending money on the island and the businesses that served them closing at a devastating rate. Retail gamblers face visa and spending restrictions as well.
In this environment, Wynn Macau is suffering along with the rest of the island, and Wynn's Las Vegas operations don't come even close to making up for that.
"Net revenues for the first quarter of 2015 were $1,092.2 million, compared to $1,513.6 million in the first quarter of 2014. The decline was the result of a 37.7% net revenue decrease from our Macau Operations, partially offset by a 1.6% increase in net revenues from our Las Vegas Operations. Adjusted property EBITDA (1) was $323.0 million for the first quarter of 2015, a 34.7% decrease from $494.6 million in the first quarter of 2014.
This is the table you really need to see to understand what's going on:
Wynn
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Experts warn of rising temperatures in Bengaluru as Phase 2 of Lok Sabha elections draws near
- Axis Bank posts net profit of ₹7,129 cr in March quarter
- 7 Best tourist places to visit in Rishikesh in 2024
- From underdog to Bill Gates-sponsored superfood: Have millets finally managed to make a comeback?
- 7 Things to do on your next trip to Rishikesh