May 11, 2022 Newsdesk Latest News, Macau, Top of the deck  
Casino operator Wynn Macau Ltd saw its quarterly loss widen to US$188.5 million in the three months to March 31, compared to a loss amounting to US$161.2 million in the prior-year quarter.
That was on operating revenues that fell 28.4 percent year-on-year, to US$298.4 million.
Wynn Macau Ltd runs the Wynn Macau gaming resort (pictured) on the city’s peninsula, and Wynn Palace, in the Cotai district.
Hong Kong-listed Wynn Macau Ltd reports under International Financial Reporting Standards.
Its parent, United States-listed Wynn Resorts Ltd, reports under Generally-Accepted Accounting Principles.
The parent said that at Wynn Palace, operating revenues were US$163.3 million for the first quarter of 2022, a decrease of US$74.0 million.
Adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) from Wynn Palace were a negative US$0.9 million for the first quarter, compared to a positive US$27.4 million for the first quarter of 2021.
Wynn Macau Ltd’s first-quarter results were “better than expected”, with total EBITDA of “approximately negative US$6 million, versus consensus of negative US$25 million and our estimates of negative US$17 million,” wrote analysts Vitaly Umansky, Louis Li and Shirley Yang, at brokerage Sanford C. Bernstein Ltd.
First-quarter 2022 was a second recent “EBITDA-negative quarter, and we expect this trend to continue into the second quarter 2022, unless China relaxes its zero-Covid policy,” wrote analyst Andrew Lee, of Jefferies Hong Kong Ltd in a Wednesday note, referring to restrictions on inbound tourism to Macau due to Covid-19 outbreaks on the Chinese mainland.
But Mr Lee suggested the situation was “unlikely to change in the near-term,” with management at Wynn Macau Ltd focusing on a “prudent capital-expenditure and cost approach”.
First-quarter VIP turnover at Wynn Palace fell 56.1 percent year-on-year, to US965.6 million.
Mass-market table drop at Wynn Palace dipped 12.5 percent, to US$531.9 million.
Operating revenues from Wynn Macau were US$135.1 million for the first quarter, a decrease of US$44.6 million from the first quarter of 2021.
Wynn Macau’s adjusted property EBITDA was negative by US$4.7 million for the first quarter, compared to a positive US$16.6 million for the first quarter of 2021.
VIP turnover at Wynn Macau fell 50.8 percent year-on-year, to US$887.1 million.
Mass-market table drop at Wynn Macau went down 20.6 percent, to US$469.1 million.
The U.S. parent group’s cash and cash equivalents as of March 31 were US$2.32 billion, consisting of approximately US$1.29 billion held by Wynn Macau Ltd; approximately US$388.5 million held by Wynn Resorts Finance Ltd excluding Wynn Macau Ltd; and approximately US$641.6 million at corporate or other level.
(Updated May 11, 10.30am)
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