Macau restrictions drive 8% Q2 revenue drop for Wynn Resorts
Wynn Resorts has recorded an 8% revenue drop for Q2 in large part attributable to Covid restrictions in Macau.
The company generated $908.8m in second quarter operating revenue, an over $80m fall from last year’s $990.1m.
Ultimately, this downturn can be primarily credited to travel restrictions imposed by Macau’s government, restrictions designed to curb the spread of Covid-19.
As a result, Wynn Palace recorded a 78% drop in operating revenue, which fell from $270.4m to $58.7m, while Wynn Macau reported a 68% decrease, down from $184m to $58.6m. Both also recorded an adjusted property EBITDA loss of $50m and $40.4m, respectively.
This continues a larger trend. MGM China and SJM Holdings, two of Wynn Resorts’ rivals in Macau, likewise posted revenue drops.
MGM China experienced a 54% revenue decrease for Q2, though MGM Resorts overall recorded a 44% rise, while SJM Holdings reported a 25% fall in net gaming revenue for H1.
However, an improved performance from Wynn Resorts’ North American operations partially offset the impact of Macau.
The company’s Las Vegas business produced $561.1m in second quarter operating revenue, a 58% increase from last year’s $355.1m. Meanwhile, Encore Boston Harbour generated $210.2m, up $44.9m year-on-year.
This is largely in line with other US operators’ performance, such as Caesars Entertainment, whose Las Vegas segment produced $1.1bn in net revenue for Q2, up 30% year-on-year.
Wynn Resorts’ net loss also improved slightly when compared to Q2 of last year, rising from $131.4m to $130.1m.
On a half-year basis, Wynn Resorts’ operating revenue is up by 8%, while expenses are down, and its net loss has shrunk from $412.3m to $313.4m.
Craig Billings, the company’s CEO, expressed his belief that Macau would recover, commenting: “In Macau, while Covid-related travel restrictions continued to impact our results, we remain confident that the market will benefit from the return of visitation over time.”
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