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.
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.”