GGRAsia – Wynn Macau Ltd grows revenue, EBITDA in 3Q

Wynn Macau Ltd grows revenue, EBITDA in 3Q

Nov 10, 2023 Newsdesk Latest News, Macau, Top of the deck

Macau casino operator Wynn Macau Ltd reported third-quarter total operating revenues of US$819.8 million, up 6.5 percent from the preceding quarter. Judged in year-on-year terms, such revenue increased 609.2 percent, according to a Thursday filing to the Hong Kong Stock Exchange.

The firm however reported a net loss of US$6.2 million for the July to September period, versus a second-quarter net profit of US$61.0 million. The latest figure compared to a US$242.0-million loss in the prior-year period, during which the Macau market was still being impacted by restrictions linked to the Covid-19 pandemic.

The company operates the Wynn Palace resort on Cotai, and also runs the Wynn Macau resort (pictured) on the city’s peninsula. Wynn Macau Ltd is a unit of U.S.-based casino developer Wynn Resorts Ltd.

Wynn Macau Ltd recorded adjusted earnings before interest, taxation, depreciation, amortisation and rent (EBITDAR) of just below US$255.0 million, up 3.6 percent from the second quarter. The latest quarterly result compared with a negative figure of US$65.6 million a year ago.

The firm said operating profit for the three months to September 30 stood at US$127.7 million, a 4.7 percent increase quarter-on-quarter. The figure compared with an operating loss of US$161.3 million a year earlier.

Operating costs for the period were US$692.1 million, up 6.8 percent sequentially, and 150.0-percent higher from a year ago.

Wynn Macau Ltd’s third-quarter casino revenue rose 6.6 percent quarter-on-quarter, to US$648.3 million. It compared to casino revenue of US$68.2 million in the third quarter of 2022.

On a property basis, operating revenues from Wynn Palace were US$524.8 million for the third quarter this year, 12.0 percent sequentially. The property’s adjusted EBITDAR amounted to US$177.0 million, up 13.0 percent quarter-on-quarter.

Casino revenue at Wynn Palace grew by 14.4 percent quarter-on-quarter, to US$418.0 million. The result was driven by a 31.5 sequential increase in mass-market table games win, to US$402.3 million.

The Wynn Macau resort recorded operating revenues US$295.0 million for the three months to September 30, down 2.2 percent from the preceding quarter. The complex produced adjusted EBITDAR of US$77.9 million, a 13.1-percent decline from the second quarter.

Casino revenue at Wynn Macau fell 5.2 percent sequentially, to US$230.3 million, despite a 5.5-percent increase in mass-market table games win. VIP table games win however declined by 27.4 percent quarter-on-quarter.

Craig Billings, chief executive of Wynn Resort, said in prepared remarks: “Our third quarter results reflect continued strength across our property portfolio.”

“In Macau, the recovery continued to progress during the quarter, with particular strength in our mass gaming, luxury retail and hotel businesses,” stated the CEO.

He added: “Our teams at Wynn Las Vegas and Encore Boston Harbor delivered a new third-quarter record for adjusted property EBITDAR at our combined North American properties.”

On the development front, Mr Billings said, “construction on Wynn Al Marjan Island is well underway, and we are confident the resort will be a ‘must see’ tourism destination” in the United Arab Emirates.

On Thursday, Wynn Resorts announced a third-quarter net loss of US$116.7 million, compared to a US$105.2-million profit in the preceding quarter. The parent company reported operating revenues of US$1.67 billion for the three months to September 30, down from US$1.60 billon in the second quarter this year.

Wynn Resorts also announced that its board declared a cash dividend of US$0.25 per share, payable on November 30. The parent company announced earlier this year the resumption of its quarterly dividend programme.