International casino operator Wynn Resorts announced in a quarterly report that they only expect to receive official permission to operate 100 gaming tables in the casino at its coming Wynn Palace development in the Cotai Strip area of Macau.
Las Vegas-based Wynn Resorts revealed that it will have spent $4.2 billion on the resort development when it opens on August 22 with the property also offering 1,700 hotel rooms and a performance lake as well as a range of meeting, retail, food and beverage areas.
“During the second quarter of 2016 we invested approximately $151.2 million in Wynn Palace, taking the total investment to $3.87 billion through June 30,” read a statement from Wynn Resorts Limited.
However, the Friday announcement saw shares in the Nevada firm’s Wynn Macau Limited subsidiary slide by as much as 7% as the firm had previously hoped to offer up to 350 gaming tables after opening.
“We believe that we will receive an allocation of approximately 100 table games for Wynn Palace with additional table games allocated to us post-opening,” read the statement released before permission had been received. “While we have not yet received formal notification of our table games allocation, if we receive an allocation of 100 new table games, we expect to move approximately 250 table games from Wynn Macau to Wynn Palace resulting in approximately 350 table games at Wynn Palace and 270 table games at Wynn Macau.”
Wynn Resorts had earlier released its financial results for the three months to the end of June showing an almost 2% increase year-on-year in quarterly net revenues to $1.06 billion, which was largely due to a 3.6% rise in business from operations at its Wynn Macau property and despite a 1.1% decrease in activity from Las Vegas.
The operator also reported adjusted second-quarter net income of $108.7 million, which represented a swell of 44.9% year-on-year, while property earnings before interest, tax, depreciation and amortization improved by 5.8% to $312.7 million.
Wynn Resorts explained that adjusted second-quarter property earnings before interest, tax, depreciation and amortization from its Wynn Macau Limited business hit $190.4 million, which represented a 9.8% escalation year-on-year, with casino revenues climbing 5.2% to $609.8 million. This was tempered by a 23.8% decline in VIP games turnover for the three months to $11.84 billion while mass market table drop fell by 1.7% to $1.17 billion. In regards to slots, the Macau subsidiary saw its handle for April to July decrease by 21.5 % to $806.5 million although it experienced a 12.7% boost in mass market table games win to $235.2 million.
“Our cash and cash equivalents and investment securities at June 30 were $2.21 billion,” read the statement from Wynn Resorts. “Total debt outstanding at the end of the quarter was $9.46 billion including $4.20 billion of Macau debt, $3.17 billion of Wynn Las Vegas debt and $2.09 billion at the parent company and other.”