Wynn Resorts share dividends took a nosedive this week due to poor results in Macau gambling.
Wynn Resorts Ltd is moving on the pain of the sharp drop in Macau gambling to its shareholders by cutting dividends by 67 percent, Bloomberg reports.
The gambling chain, which owns and runs the Wynn Macau casino resort, posted its earnings for the first quarter of 2015 this week, and the news is not pretty if you’re an investor.
Income was hovering just under $1.1 billion, less figure than industry quotes of $1.12 billion.
As being a total result, dividends from shares spiraled downwards to 50 cents per share. That’s a 3rd of the $1.50 paid out in February.
Wynn Resorts Ltd also posted a $17.1 billion table games turnover in the VIP sector, a drop of over 52 % compared to the same quarter last year. Table games return in the mass market sector had been also down, by 7% to $279.6 million.
Following the dividends results were announced, Wynn shares dropped 9 percent to close at $130.48.
Macau Clampdowns Affecting Everyone
The continuing crackdown on corruption in China is having a huge impact in the Macau economy. Chinese President Xi Jinping was on a crusade the past year or so to stop thousands of public officials taking off to the Macau peninsula with public funds.
The sum of money allowed to be brought from the mainland to Macau, China’s sole arbiter of legalized gambling, has additionally fallen, plus Xi Jinping is pr Fortsett å lese Wynn Resorts Dividends Slashed Macau that is following Slump