Wynn Macau, Wynn Palace Q1 revenues both down
Both Wynn Macau and Wynn Palace saw revenues continue to decrease in Wynn Resorts' Q1 revenue report.
Wynn Palace’s operating revenues were $163.3m this quarter, down $74m year-on-year, while Wynn Macau saw a $44.6m decrease, down to $135.1m.
Although Wynn posted a 29% revenue increase year-on-year, these gains are largely attributable to company activity in North American markets, particularly Las Vegas, where Q1 revenues reached $441.2m.
At Wynn Palace, adjusted property EBITDA was $900,000 for the first quarter, a significant reduction on the $27.4m reported in Q1 2021.
VIP table game win as a percentage of turnover was 2.05%, falling below the IR’s expected range of 3.1% to 3.4%, and down on the 4.38% turnover rate in the first quarter of 2021.
Table game win percentage in mass market operations was also down on an expected rate of 21.7% at 20.9%.
The picture was largely similar at Wynn Macau; adjusted EBITDA was only $4.7m for the first quarter of 2022, compared to $16.6m in the prior-year period. Table game win percentage was also down year-on-year, but only by 0.3% at 17.5%.
And, somewhat surprisingly, VIP table game win as a percentage of turnover was above the property’s expected range of 3.1% to 3.4%, at 3.84%. It was also above the 3.25% experienced in the first quarter of 2021.
This is scant consolation, however, for a market that continues to be hampered by persistent restrictions brought on by the Covid-19 pandemic.
Particularly in Macau, operations continued to be negatively impacted by Covid testing and social distancing, in addition to revenue-killing travel bans.
Bloomberry to invest in Cebu’s new Emerald Bay resort
Bloomberry Resorts is set to buy a stake in Emerald Bay, an integrated resort (IR) being developed in Cebu, Philippines.
Emerald Bay is due to open in Q1 2023 and will be the second resort in which Bloomberry has investments in, after Solaire Resort & Casino, which the company fully owns and operates.
“Wynn Palace’s operating revenues were $163.3m this quarter, down $74m year-on-year, while Wynn Macau saw a $44.6m decrease, down to $135.1m” Wynn Resorts, Financial Report
Details of Bloomberry’s investment were detailed on the Philippine Stock Exchange, by Emerald Bay’s parent company PH Resorts Group.
Bloomberry Resorts will transfer funds into Lapulapu Leisure, the company currently developing the new Emerald Bay Resort in Cebu’s Lapu-Lapu City.
The owner of Solaire has also placed investment funds into Clark Grand Leisure, which is developing The Base Resort Hotel and Casino in Pampanga.
The Term Sheet, which details investments, is subject to several closing conditions, including the execution of mutually acceptable definitive agreements; the approval of both regulators and creditors, corporate approvals and cooperation on due diligence.
PH Resorts has announced it will provide further disclosures, including the potential impact Bloomberry’s investment of funds will have on the parent company of Emerald Bay, in due course.
Emerald Bay Resort, which is being designed by Steelman Partners, is expected to include 600 slot machines, 122 gaming tables and a 270-room hotel.
Beleaguered Suncity Group to sell two groups of subsidiaries
Junket operator Suncity Group has struck an agreement to sell two groups of wholly owned subsidiaries, for an aggregate consideration of HKD1.00 (US$0.13).
Suncity believes offloading its two groups of subsidiaries presents a great opportunity, to discharge a portion of its obligations to repay several loans and heavy interest fees incurred by numerous firms.
The company expects to reduce its debt by HKD127.8M upon the completed sale of its subsidiaries. However, the details of the subsidiaries for sale remain unclear at present.
Despite this, the sales will provide some overdue respite for a junket operator which is hanging on by its coattails; Suncity has fallen on hard times since Covid-19 ground the junket business to a halt, and since its CEO Alvin Chau was arrested in a high-profile tax fraud case.
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