Case study: Wynn Resorts Q2 proves underlying Las Vegas-Macau divide

August 11, 2022
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Record-breaking Las Vegas results could not offset calamitous Macau showings.

Wynn Resorts has announced its operating results for Q2 of 2022, reporting an 8% revenue drop to $908.8m. This decline is largely attributable to the poor showing of Wynn Macau’s assets, which continue to be hampered by Covid-19-related restrictions.

However, Wynn’s H1 results of $1.86bn in revenue still compare favorably to 2021’s half-year revenue of $1.72bn. The overall net loss for the half year was $468m, $23.5m less than in 2021. These results show that Wynn Macau’s Q2 results detracted from what was a much-improved half-year compared to 2021.

Wynn Palace posted a 78% drop in operating revenue, plummeting from $270.4m to $58.7m, while Wynn Macau reported a 68% downturn, falling from $184m to $58.6m. These two casinos reported an adjusted property EBITDA loss of $50m and $40.4m, respectively.

This continues a larger trend; the Asian operations of major gambling organizations have fared far worse than their North American counterparts. MGM China and SJM Holdings, two of Wynn Resorts’ rivals in Macau, likewise posted revenue drops, with MGM China experiencing a 54% revenue decrease.

Wynn’s North American performance was impressive enough to slightly offset the multiple double-digit drops in Macau revenue. The company’s Las Vegas business produced $561.1m in Q2 operating revenue, a 58% increase from the prior year’s return of $355.1m.

Wynn Las Vegas set a record with a $227m EBITDA in Q2 – over 40% above the 2014 pre-Covid-19 Las Vegas EBITDA record (for any Strip casino).

The Macau results were negative enough for markets to estimate a $1 loss per share for Wynn Resorts, however, the adjusted loss per share was $0.82. Net loss attributable to Wynn was $130.1m, or $1.14 per diluted share – compared to $131.4m, or $1.15 per diluted share, in the second quarter of 2021.

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