Wynn Resorts revenue down 16 percent in 4th quarter, 25 percent for full year

The watery entrance of Wynn Macau.

Wynn Resorts, the company that runs the Wynn and Encore on the Strip as well as property in Macau, reported its fourth quarter and full year earnings today.

Company: Wynn Resorts Ltd. (NASDAQ: WYNN)

Revenue: $946.9 million in the fourth quarter, down 16.8 percent from the same time period one year earlier, which the company attributed to a steep drop in revenue from its Macau operations. For the full year, Wynn Resorts said its net revenue was $4.08 billion, down 25 percent from 2014.

Earnings: $87.2 million for the quarter, compared to $109.3 million in the fourth quarter of 2014. For the full year, Wynn Resorts said its net income was $195.3 million compared to $731.6 million in 2014.

Earnings per share: 86 cents in the fourth quarter, compared to $1.07 one year before. For the full year, earnings per share were $1.92, compared to $7.18 the year before.

What it means: Macau revenue for Wynn Resorts fell 27 percent in the fourth quarter to $555.7 million, reflecting continuing challenges in the Chinese gambling enclave where casino revenue has been consistently falling each month.

Table games turnover in the company’s VIP segment in Macau reported a 36.9 percent decline in the fourth quarter, while mass market table drop fell 10.9 percent and mass market table win declined 8.2 percent. Slot machine handle, meanwhile, fell 4.7 percent and slot revenue fell 9.8 percent, according to a statement from Wynn Resorts.

The declines weren’t limited to gambling: The company said its fourth quarter noncasino revenue in Macau fell 21.2 percent year over year before factoring in promotional allowances.

CEO Steve Wynn, who has revealed deep frustration with the Macau government before, appeared more comfortable with the situation there when he spoke on a conference call today.

“The government of Macau is on the side of the development of Macau and the healthy continuation of the industry,” he said. “I think all of us have managed to work our way through some of the complexities and ramifications of that process.”

Despite the ongoing problems in China, Wynn Las Vegas and Encore proved to be a brighter spot for the company’s fourth quarter results. Wynn Resorts said net revenue from its Las Vegas operations were $391.2 million in the fourth quarter, up 3.8 percent from 2014. The company’s Las Vegas gambling revenue of $170.9 million was flat compared to the year before, while noncasino revenue before promotional allowances rose 2.7 percent to $263 million.

The company’s Macau and Las Vegas results fell within the expectations it released in January. Wynn Resorts said at the time that fourth quarter net revenue in Macau would likely be $552 million to $560 million, while Las Vegas net revenue would likely be $387 million to $395 million.

When asked on the conference call about the large amount of company stock he had recently purchased, Steve Wynn said he did because of “extreme weakness in price.” He said he likes his company’s long-term prospects.

“I like my company, and when it’s trading at low levels, I’m always prepared, depending on my financial capacity, to buy the stock on weakness. I reserve the right to do that at any time and I may very well do so,” Wynn said.

The CEO also addressed the new two-story shopping center his company plans to construct at Wynn Las Vegas. The retail project will encompass the area that once housed a Ferrari dealership and extend all the way out to Las Vegas Boulevard. It should generate between $20 and $25 million in extra income, Wynn said.

In other projects, the company continues to press forward with work on its $4.1 billion Wynn Palace, as well as another planned resort near Boston. Steve Wynn and Boston Mayor Martin Walsh had clashed over that project but they recently resolved the dispute, according to the Boston Globe.