Wynn’s revenue drops in second quarter despite strong US performance as Macau headwinds drag results down

Gaming and hospitality giant Wynn Resorts shared its financial results for the second quarter of the year. The company delivered $908.8 million in operating revenue, down $81.3 million compared to the comparable period last year; while a net loss fell from $137.4 million in the second quarter of 2021 to $213.4 million the last quarter.

“Our second quarter financial results reflect the continued strength of Wynn Las Vegas and Encore Boston Harbor,” said Craig Billings, CEO of Wynn Resorts.. “Our teams’ continued focus on five-star hospitality and new experiences at our market-leading properties, combined with very strong guest demand, led to a new all-time quarterly record for Adjusted EBITDA from properties to Wynn Las Vegas and a record in the second quarter at Boston Harbor again.”

Craig Billings

But while the company’s operations in its home market have remained strong, Wynn’s efforts in Macau have not fared as well as Covid-related travel restrictions continue to impact results.. Despite the setback, Billing said the company remains confident “that the market will benefit from the return of visits over time” with some of the restrictions in place during the second quarter having now been lifted.

Q2 2022 Property Adjusted EBITDA decreased to $179.2 million, down from $206.9 million in 2021. While EBITDA increased $93.5 million and $16.8 million at the company’s operations in Las Vegas and Encore Boston Harbor, Massachusetts, respectively, it decreased $103.5 million. dollars and $54.5 million to Wynn Palace (Macau) and Wynn Macaurespectively.

Wynn Palace

A similar picture can be seen when breaking down operating revenue for each property’s second quarter. While Las Vegas was up $206 million and Encore Boston Harbor was up $44.9 million, Wynn Palace and Wynn Macau saw their operating revenues decrease from $211.7 million to $58.7 million and from $125.4 million to $58.6 million, respectively, since the second quarter of last year.

Travel Restrictions Affecting Macau Operations in Q2 Include Covid-19 Testing and Other Mitigation Procedures. These unfavorable conditions continued to be in place after the end of the second quarter, as the gaming center faced one of its worst outbreaks to date in July, which forced a two-week shutdown to curb the spread of the virus. Casinos have now been allowed to reopen and some border measures have been lifted, giving early signs of recovery.

Overall, Wynn’s results for the quarter could be described as a tale of two cities. While the U.S. gaming market remained strong, particularly the Vegas Strip, where the company’s gaming revenue grew 58%, Macau was a drag on the business.

Encore Boston Harbor

Looking ahead, on Wynn’s earnings call, Billings said Massachusetts is poised to be a good opportunity for the company’s digital segment after the state embraces sports betting. earlier this month. “We look forward to the potential of a significant catalyst for Wynn Bet in Massachusetts, both in digital sports betting and at retail,” the executive said.

“Massachusetts has always been an important seed event for us for Wynn Bet and for Wynn Interactive,” he noted. “We’ll be in Massachusetts on day one.” The Massachusetts Gaming Commission has now taken the reins of implementing the law, but a launch date has yet to be determined.

Turning to Wynn’s half-year results, revenue was $1.9 billion, up from first-half 2021 revenue of $1.7 billion.. Operating expenses for the six months were higher at $2 billion, while the company’s overall net loss for the first half was down $23.5 million from 2021 to $468 million. of dollars.

See Wynn Resorts’ full second quarter results here.