Investing.com -- Shares in Wynn Resorts Limited (O:WYNN) fell considerably on Thursday after the multinational casino's quarterly earnings slumped 61%, amid continual weakness in its Macau division.
For Wynn's third quarter, which ended in late-September, its net revenue dropped sharply to $996.3 million for the period in comparison with $1.37 billion in the third quarter of 2014. The decline, according to the company, stems from a 38% decrease in revenues from its Macau operations, along with a 4% decline in its Las Vegas operations.
In total, Wynn's earnings for the quarter plummeted to $73.8 million or 0.73 per share for the three-month period, down from $191.4 million or 1.88 per share in 2014 during the same quarter. Analysts expected the company to report earnings of 0.88 per share on $1.03 billion in revenue.
Casino revenues in Macau have lagged over the last year since the Chinese government cracked down on gambling by introducing stricter regulations meant to deter high-stakes players from traveling to the region. As a result, Wynn's daily room rates in the area dipped 3.1% to $317, while occupancy rates fell to 95.9% from 98.5% a year earlier.
CEO Steve Wynn remains uncertain on how further Chinese regulations could impact Macau revenues, telling reporters on Thursday that he hasn't quite seen a situation like it in "45 years in the business."
"None of us are really clear as to what our environment will be going forward," Wynn said in a conference call on Thursday afternoon. "It makes planning and adjusting almost a mystical process."
In Las Vegas, meanwhile, revenues dipped 3.9% to $411.2 million for the period, even as non-casino revenue rose by nearly 2%. Daily room rates inched up 0.2% to $275, while occupancy ticked down to 88.3%.
Shares in Wynn Resorts plunged 5.91 or 8.01% to 67.85 in after-hours trading.