Wynn Resorts says its delayed $4.2 billion Wynn Palace resort on Cotai is now expected to open in the third quarter and it invested about $177.5 million in the first three months of this year on the project.
The integrated resort contains a 1,700-room hotel, a performance lake, and a wide range of amenities. The company says it has a $2.7 billion guaranteed maximum price contract for the project’s construction costs and the total investment through March 31 is $3.7 billion.
Chairman and CEO Steve Wynn told a recent investor conference he expects an opening in either July or August.
Confirming preliminary results provided in April, the casino operator said net revenue fell 13.8 percent to $608.2 million. Adjusted Property EBITDA in the first quarter of 2016 was $191.2 million, down 9.9 percent from $212.3 million in the first quarter of 2015. Results topped analyst expectations.
The casino operator said VIP turnover declined 21.4 percent to $13.5 billion, down from $17.1 billion in 2015.
VIP table games win as a percentage of turnover (calculated before commissions) for the quarter was 2.81 percent, within the expected range of 2.7 percent to 3.0 percent and flat compared to the 2.80 percent experienced in the first quarter of 2015. The average number of VIP tables decreased to 189 units in the first quarter of 2016 from 252 units in the first quarter of 2015.
Table drop in the mass market segment was $1.21 billion in the first quarter of 2016, down 5.6 percent from the 2015 first quarter. Table games win in the mass market segment decreased by 11.5 percent to $247.5 million in the first quarter of 2016. The mass market table games win percentage of 20.5 percent in the first quarter of 2016 was below the 21.8 percent experienced in the first quarter of 2015.