Disappointing third-quarter results for Wynn Macau Limited

In Macau and the local subordinate of American casino operator Wynn Resorts Limited reportedly saw its third-quarter operating revenues decline by some 22.7% year-on-year to hit approximately $1.07 billion thanks to a major drop in VIP turnover.

According to a report from Inside Asian Gaming, Wynn Macau Limited is responsible for the 1,000-room Wynn Macau as well as the even larger Wynn Palace Cotai integrated casino resorts and recorded a 26.4% decrease in overall adjusted property earnings before interest, tax, depreciation and amortization for the three months to the end of September to just over $301.2 million.

Dissatisfying direction:

For its Wynn Macau venue, the operator reportedly detailed that third-quarter operating revenues had fallen by 18.2% year-on-year to about $474.3 million with the large property’s associated adjusted property earnings before interest, tax, depreciation and amortization plummeting by 24% to only $139 million. Wynn Macau Limited purportedly also saw this venue’s VIP turnover for the three-month period contract by 42.5% to around $8.02 billion off of a win rate that diminished by 0.25% to 2.76%.

However, Inside Asian Gaming reported that Wynn Macau had chalked up an 11.5% rise year-on-year in third-quarter mass-market table drop to nearly $1.2 billion with its win rate of 8.9% generating earnings of slightly in excess of $272.5 million. In terms of slots, the downtown property purportedly saw associated handle grow by 11.7% to $1 billion while its 35.1% win rate resulted in revenues of about $47 million.

Counterpart consequences:

At its 1,700-room Wynn Palace Cotai property and Wynn Macau reportedly experienced an 18.1% deterioration year-on-year in third-quarter operating revenues to $598.2 million while adjusted property earnings before interest, tax, depreciation and amortization plummeted by some 28.3% to just $162.2 million. This Cotai Strip enterprise purportedly furthermore witnessed a 32.3% comparable weakening of its VIP turnover to $10.52 billion as the associated win rate fell by 0.21% to 3.40%.

But, Wynn Palace Cotai reportedly saw its mass-market table drop for the three-month period rise by 9.2% year-on-year to reach $1.3 billion with a win rate that was 5.2% higher to bring in about $308.1 million. The three-year-old Macau facility additionally purportedly recorded slot handle of $973.3 million, which represented a boost of 5.5%, with its 2.7% win rate leading to revenues of $47.3 million.

Parent’s plunge:

Wynn Resorts Limited declared a group-wide 3.6% decline year-on-year in third-quarter operating revenues to $1.65 billion while noting that this poor performance had been partially offset by the debut of the operator’s Encore Boston Harbor facility in eastern Massachusetts. The Las Vegas-headquartered firm furthermore purportedly witnessed its overall adjusted property earnings before interest, tax, depreciation and amortization fall by 21.3% to $396.9 million to leave it with a three-month deficit of $3.5 million.

Operator optimism:

Nevertheless, Matt Maddox, Chief Executive Officer for Wynn Resorts Ltd, reportedly proclaimed that the impending launch of a renovated casino for Wynn Macau was due to provide a future boost in ‘further solidifying the property as the peninsula’s marquee integrated resort’.

Maddox reportedly stated…

“We are excited about the outlook for the company and we will continue to focus on leveraging our premium-focused business model to drive long-term returns for shareholders.”