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By Bloomberg

Wynn Macau Ltd. shares fell the most in a month after its parent cut dividends amid weak results, and billionaire founder Steve Wynn warned of uncertainties as betting in the Chinese city dropped sharply.

The Macau unit of Las Vegas-based Wynn Resorts Ltd. fell 6.3 percent to HK$16.36 at the midday break in Hong Kong trading, the biggest intraday loss since March 17. Other casino operators also dropped, with Sands China Ltd., MGM China Holdings Ltd. and SJM Holdings Ltd. down more than 2 percent. The benchmark Hang Seng Index lost 0.5 percent.

“There’s no question that uncertainty is the plaguing word of the day in Macau,” the founder of Wynn Resorts said during a teleconference for its earnings Tuesday. “Hopefully, our government in Macau will calm that down and put some certainty back into the picture.”

VIP gaming in Macau has been hit by President Xi Jinping’s campaign on graft that snared thousands of officials, prompting many wealthy Chinese to cut back on conspicuous consumption and stay away from the world’s largest gambling hub. To conserve cash, Wynn Resorts announced it is cutting its dividend to 50 cents a share, from the $1.50 it paid in February.

Wynn Macau, whose revenues accounted for 65 percent of the group’s total, aims to open a second property in March 2016, among a slew of new offerings planned by the city’s six major casino operators.

Workers and Tables

Steve Wynn highlighted several uncertainties in the Chinese city. He’s unsure how many workers the government would allow the company to hire to build its $4 billion Wynn Palace and how many gambling tables it would get for its new resort.

“We’ve struggled with adjusting our work schedule on construction to the permissions we’ve been given for workers on construction by the government,” he said.

Wynn’s employees in Macau are counting on the benefits from the company’s new project, and those uncertainties “may erupt into protests against the government if it isn’t settled soon,” the executive said. The former Portuguese colony last year saw a record number of demonstrations by workers demanding better pay and welfare at the city’s casinos. Another one has been planned for May 1 during the Labor Day holiday.

Wynn Macau reported adjusted property earnings before interest, taxes, depreciation and amortization, or Ebitda, dropped 45 percent to $212.3 million during the first quarter. That missed a median estimate of $230.5 million from six analysts surveyed by Bloomberg.

Wynn Macau posted a 38 percent decline in revenue to $705.4 million. VIP revenue more than halved during the period, while it fell 7 percent for the mass market segment, the company said.

Impossible to Predict

Steve Wynn said it’s “impossible” to predict how long the depression of the VIP market would last.

Wynn Resorts’ “earnings power proved to be underwhelming versus the most expected, which was disappointing given its market share gain during the quarter,” DS Kim, an analyst with JP Morgan Chase & Co., wrote in a note Wednesday. Wynn Macau showed “meaningful share gain” in the mass-market segment, while its new VIP rooms showed strong performance, he wrote.

Profit excluding some items fell to 70 cents a share, Wynn Resorts said in a statement. Analysts were projecting $1.19, the average of 10 estimates compiled by Bloomberg.