Despite posting an 11.2 percent year-over-year revenue boost in 2008, Wynn Resorts Ltd. reported that revenues from its Las Vegas business declined by 15.1 percent for the year with a sharp dip in fourth quarter Vegas casino revenues.
The company said in 2008 generated adjusted property earnings before interest, taxes, depreciation and amortization for its Las Vegas properties was $252.9 million -- 39.4 percent lower than in 2007. Wynn Resorts attributed this to a poor table games hold percentage and a decrease in gaming volumes.
Fourth quarter generated adjusted property earnings before interest, taxes, depreciation and amortization for the Vegas properties dropped from $97.3 million to $32.6 million -- a 66.5 percent year-over-year decline. Additionally, net casino revenues in Vegas for the quarter sunk by 43 percent -- from $160 million to $90.7 million.
“Starting in October, we experienced a dramatic deceleration in business from the casino and non-gaming departments,” said a company statement regarding its Las Vegas business. “The Thanksgiving to Christmas period has traditionally been one of the weakest times of the year in Las Vegas, but the fourth quarter of 2008 was substantially worse than during the prior year as consumers chose to stay at home and significantly reduced their leisure budgets.”
For 2008, overall net revenues were at $3 billion, which was an 11.2 percent year-over-year increase. Net income for Wynn Resorts dropped to $210.2 million from $258.1 million in 2007.