Slot machines were one of the stand out performers at Wynn Macau during 2008, according to Wynn Resorts Ltd’s annual results announced
Slot machine handle in Macau totalled US$3.0 billion in 2008, 79.5% higher than the US$1.7 billion generated in 2007. However win per unit was diluted because of a 138.6% increase in the number of machines, from 521 to 1,243. Slot machine win per unit per day was US$346, down 26.4% from 2007.
In the fourth quarter of 2008, Wynn Macau’s slot machines win increased 33.9% compared to the fourth quarter of 2007. Win per unit per day was US$348, a 23.7% decline from the fourth quarter of 2007, due to the increase in the average number of slot machines, from 708 to 1,241 slots.
For the full year 2008, net revenues were US$1.9 billion, 35.6% above 2007. Wynn Macau generated adjusted property EBITDA of US$485.9 million, a 33.4% increase over the previous year.
Casino revenues increased US$474.7 million during the year ended 31st December 2008, compared to the prior year.
Table games turnover in the VIP segment of US$55.4 billion was 47.4% higher than in 2007.
Table games drop in the mass market category increased 14.2% to US$2.3 billion.
Wynn Macau’s hotel accommodation achieved an average daily rate (ADR) of US$275 for the year, compared to US$251 in 2007. The property’s occupancy was 87.3%, compared to 88.8% during the prior year period, generating revenue per available room (REVPAR) of US$240 in the 2008 period, 7.6% above 2007 levels.
In the fourth quarter of 2008, Wynn Macau’s net revenues were US$392.2 million, compared to US$387.4 million in the fourth quarter of 2007. Wynn Macau generated adjusted property EBITDA of US$95.0 million, compared to US$99.6 million in the fourth quarter of 2007.
Table games turnover in the VIP segment was US$11.0 billion for the period, compared to US$11.2 billion for the fourth quarter of 2007.
Table games drop in the mass market category was approximately US$487.2 million during the period, a 4.0% decrease from US$507.6 million in the fourth quarter of 2007.
On a US GAAP (Generally Accepted Accounting Principles) basis, net income for the year for Wynn Resorts was US$210.2 million, or US$1.92 per diluted share, compared to US$258.1 million, or US$2.34 per diluted share in 2007.
Group net loss (US GAAP) for the fourth quarter of 2008 was US$159.6 million, or (US$1.49) per diluted share, compared to a net income of US$65.5 million, or US$0.57 per diluted share in the fourth quarter of 2007. The company said a US$98.8 million tax expense for the quarter was a major factor in the net loss.
Time for an Encore
Wynn says it expects Encore at Wynn Macau, the VIP extension to Wynn Macau’s capacity, to cost US$700 million.
The company added the budget was yet to be finalised, but it anticipated the project will be funded from cash on hand and cash flow from Wynn Macau.
Wynn said that as of 31st December 2008, it had spent US$202 million on development and construction of the project. Encore at Wynn Macau will add a fully-integrated resort hotel to Wynn Macau, with approximately 400 luxury suites and four villas along with restaurants, additional retail space and additional VIP gaming space. It is scheduled to open in 2010.
Wynn Resorts Ltd said in its annual results that total cash balances on 31st December 2008 were US$1.1 billion. Total debt outstanding at the end of 2008 was US$4.3 billion, including approximately US$2.8 billion of Wynn Las Vegas debt, US$1.1 billion of Wynn Macau debt and US$375 million outstanding under the Wynn Resorts Term Loan Facility.
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