Wynn Macau’s loss in Q4 hits US$208m

February 17, 2022 Macau Earnings & Filings Industry Updates

Macau casino operator Wynn Macau’s (1128) net loss widened 43.6 percent year-on-year to US$208.1 million (HK$1.62 billion) in the fourth quarter in 2021 mainly due to declines in operating revenues from all segments.

Total operating revenues in the period dropped by 19.3 percent to US$325.7 million because of Covid though it managed to reduce the operating costs and expenses by 5.5 percent.

Revenue from the casino business shed by 16.3 percent to US$243.3 million, and that from the hotels fell 23.2 percent to US$27 million. Income created from the food and beverage segment and retail leases and others plunged 38.5 percent and 21 percent, respectively.

Operating revenues from Wynn Palace were US$194 million for the fourth quarter last year, down by 12.4 percent.

VIP table games win as a percentage of turnover was 2.59 percent, below the property’s expected range of 2.7 percent to 3 percent but above the 1.97 percent experienced a year ago.

Table games win percentage in mass market operations was 22.7 percent, above the 21.6 percent experienced in the fourth quarter of 2020.

Operating income from the Wynn Macau resort slumped by 27.6 percent to US$181.9 million and table games win percentage in mass market operations was 17.4 percent, 0.5 percentage points lower than that in the fourth quarter of 2020.

The results came as the Macau gaming giant’s parent, Wynn Resorts, agreed to sell the land and buildings associated with its Encore Boston Harbor resort for US$1.7 billion to Realty Income.

Wynn Resorts will continue to manage the property, paying the San Diego-based real estate investment trust rent that begins at US$100 million annually.