Technical support issues
Wyn Macau Limited, a casino operator managed by Las Vegas-based Wynn Resorts Limited, reported a third-quarter loss just 40 days after it began developing a $4.2 billion Wynn Palace co-tie.
The South China Morning Post newspaper, a company founded by billionaire entrepreneur Steve Wynn, posted a net deficit of $8.6 million in the three months to the end of September, compared with a profit of $62.1 million in the same period.
The decline sent shares of the Hong Kong-listed company tumbling 4.66% - the biggest drop in more than nine weeks, even as property revenue rose 8% year-on-year to $177 million in the third quarter before interest, taxes and amortization.
However, Win Macau Limited blamed the drop in profits on construction work near Win Palace Co-Tai, which aired live on Aug. 22. The construction hindered guests' ability to get to the scene by bus, car, or taxi.
"It is clear that Wynn Palace Cotai's production growth is taking a little longer than expected," Matthew Maddox, president of Wynn Resorts Limited, said in a statement.
Win Palace Kotai is located in Macau's Kotai Streep area and is close to MGM Casino Kotai and SJM Holdings Limited' $3.9 billion Grand Lisboa Palace, which is under construction for $3.1 billion by MGM China Holdings Limited, a local subsidiary of MGM Resorts International. The area is further affected by the construction of the city's new light rail transportation system, with Wynn declaring that he has held talks with government officials to correct access problems and that "solutions are set to be sorted out in the next few months."
"It's an abnormal situation right now where all sides of our property are surrounded by barricades or building blocks of one kind or another," Mr. Wynn, 74, said. "This has given our property access to [Wyn Palace Cotay], which tends to be isolated and is temporarily very crowded."
Saturday, October 14, 2023