Craig Billings, CEO of Wynn Resorts, has voiced further confidence in the group’s UAE prospects, as ongoing difficulties across Macau continue to hinder the operator through Q2 and beyond.
The year thus far has been “very different in Macau than it has been in North America” noted Billings in a Q2 earnings call, with the “very difficult market” seeing gross gaming revenue in July only reaching around two per cent of levels encountered in July 2019.
Overall, EBITDA loss for the group through April to June was $90m, while post Q2, due to an almost two-week marketwide casino closure in July, that loss “has been comparable at approximately $1m per day quarter to date in Q3”.
“Our folks in Macau have endured what I know is a difficult period of isolation and volatility while our teams in Las Vegas and Boston have responded admirably to meaningfully elevated business volumes,” said Billings.
Adding: “Our team has done a fantastic job controlling costs in a very challenging operating environment through a combination of decreases in payroll and fixed opex.”
However, with Wynn currently working through a response to the concession tender RFP, the group’s stance from the first quarter remains as confidence in the region’s recovery is stressed.
“Longer term, we remain excited about the prospects for Macau with so much pent-up demand for travel and tourism in Asia,” it is added.
“Our market-leading assets and strong liquidity position us well to thrive as visitation returns to the market over time.”
“…we remain excited about the prospects for Macau with so much pent-up demand for travel and tourism in Asia”
This comes as Wynn details an 8.21 per cent revenue decrease to $908.8m (2021: $990.1m), as net loss lowered fractionally from $131.4m one year ago to $130.1m, and adjusted EBITDA dropped 13.38 per cent to $179.2m (2021: $206.9m).
For the three months ending June 30, 2022, revenue increases to $561.1m (2021: $355.1m) and $210.2m (2021: $165.2m) were felt across Las Vegas operations and Encore Boston Harbor.
This offset drops at Wynn Palace and Wynn Macau, which closed at $58.7m (2021: $270.4m) and $58.6m (2021: $184m).
Elsewhere, Billings also reiterated trust in a long-term digital strategy that was implemented last year, with fresh entrants to the US’ online ecosystem a cause for optimism at the company.
“At Wynn Interactive, the strategy we implemented late last year to manage the business with a long-term shareholder-friendly view is working with our overall EBITDA burn rate declining to $21m in Q2 from $32m in 1Q, despite a three per cent quarter-over-quarter decline in total turnover due to the seasonally weak second quarter sports calendar.
“We are looking forward to the potential for a significant catalyst for WynnBET in Massachusetts both in digital and retail sports betting.”
To close, attention was once again shifted towards the UAE, which will see a multibillion dollar integrated resort developed on the man-made Al Marjan Island in Ras Al Khaimah.
“The design and programming for our project in the UAE are really coming along, and I grow more excited about the opportunity every day,” he concluded.
“The project parking along a beautiful white sand beach will contain a 200,000 square foot casino, an extensive food and beverage portfolio and numerous forms of entertainment and spectacle. The more time I spend in this project, the more I’m convinced in our ability to build robust gaming and non-gaming businesses.”
