steve wynn

REUTERS/Fred Prouser

Steve Wynn, president and CEO of Wynn Resorts, speaks at the panel titled “Steve Wynn on Building and Sustaining Great Customer Service” at the 2008 Milken Institute Global Conference in Beverly Hills, California, April 29, 2008.

Wynn Resorts, the casino and hotel company helmed by billionaire Steve Wynn, getting absolutely obliterated in after hours trading. The stock is down 10%.

Wynn reported after the bell Tuesday afternoon and disclosed that it would be cutting its dividend to $ 0.50 a share.

Why Wynn is suffering couldn’t be more clear. It’s Macau.

The island, once the world’s gambling Mecca, has seen casino revenues  collapse almost 50% since this time last year. President Xi Jinping start an anti-corruption drive last year that has high-rollers scared of spending money on the island and the businesses that served them closing at a devastating rate. Retail gamblers face visa and spending restrictions as well.

In this environment, Wynn Macau is suffering along with the rest of the island, and Wynn’s Las Vegas operations don’t come even close to making up for that.

“Net revenues for the first quarter of 2015 were $ 1,092.2 million, compared to $ 1,513.6 million in the first quarter of 2014. The decline was the result of a 37.7% net revenue decrease from our Macau Operations, partially offset by a 1.6% increase in net revenues from our Las Vegas Operations. Adjusted property EBITDA (1) was $ 323.0 million for the first quarter of 2015, a 34.7% decrease from $ 494.6 million in the first quarter of 2014.

More on this to come.

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