Wynn Resorts has maintained that ongoing investments positions the company well “to compete in any market,” as decreases across the firm’s Macau-based properties hinders third quarter progress.
Decreases in revenue of $132.4m and $105.3m at Wynn Palace and Wynn Macau coupled with a relatively flat performance in Las Vegas operations was partially offset by its new Encore Boston Harbor property.
Total operating revenue for the firm stands at $1.65bn for the period, a decrease of 3.6 per cent from $1.71bn, with the firm’s group-wide casino figures falling 9.3 per cent to $1.10bn (2018: $1.12bn).
This is driven by the performance at Wynn’s Palace and Macau properties, with revenue finishing at $598.2m, an 18.1 per cent decrease from $730.6m, and $474.3m, an 18.2 per cent drop from $579.6m, respectively.
As $10.9m was paid out by the two entities relating to business interruption insurance proceeds due to the full settlement of claims from Typhoon Hato in 2017, a significant drop in the casino segment is highlighted at the pair.
Casino revenues from Wynn Palace was $497.7m, a 20.4 per cent decrease from $625.6m, with those at Wynn Macau coming to $408.8m, an 18.8 per cent dip from $503.6m
In its home market of Las Vegas a relatively flat showing was highlighted year-on-year with revenue of $399.5m, as casino fell 6.3 per cent to $87m (2018: $92.9).
Encore Boston Harbor, opened in June, reported revenues of $175.8m and $7.7m adjusted property EBITDA during its first full quarter.
Casino revenue from the property was $114.9m for the third quarter of 2019, with table games drop $379.6m and table games win $74.9m.
Regarding the firm’s financial performance Matt Maddox, CEO of Wynn Resorts, explained: “We delivered solid financial results in the third quarter, despite negative hold impact in both Macau and Las Vegas. In Macau, the investments we have made position us well to compete in any market environment, as evidenced by record mass table win in the quarter.
“Our strategy at Wynn Las Vegas continues to bear fruit as we increased market share in our domestic gaming business and drove nearly 4 per cent year-on-year growth in RevPAR. During our first full quarter of operations at Encore Boston Harbor, we have been particularly pleased with the strength of our table games business and we are encouraged by the opportunity to drive growth at the property over the next several years.”
Adding: “On the development front, we are on track to launch the renovated West Casino at Wynn Macau beginning in late 2019, further solidifying the property as the peninsula’s marquee integrated resort.
“In Las Vegas, our 430,000 square foot group space expansion is on schedule to open in the first quarter of 2020 and feedback from meeting planners has been very encouraging.
“Importantly, we were pleased to be certified as the only casino resort in Las Vegas as a ‘Great Workplace’ by the analysts at Great Place to Work highlighting the advancements we have made in our corporate culture over the past eighteen months.
“We are excited about the outlook for the company and we will continue to focus on leveraging our premium-focused business model to drive long-term returns for shareholders.”
