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Asia Casino News │ ACN东方博彩新闻

Asia Casino News outlet for Online Gaming and Gambling Industry in Asia.

November 10, 2022 Macau

Wynn Resorts Results Again Walloped By Macau

It’s become a familiar refrain for casino operators with Macau exposure. That being that the Chinese territory is a drag on earnings and Wynn Resorts (NASDAQ:WYNN) is no exception to that trend.

Shares of the Wynn Macau parent traded slightly lower in Wednesday’s after-hours session after the company reported a third-quarter loss of $1.20 a share on revenue of $888.7 million. Analysts expected a per share loss of $1.01 on sales of $867.42 million.

In the September quarter, Wynn posted adjusted property earnings before interest, taxes, depreciation and amortization (EBITDA) of $173.5 million — a 12.3% year-over-year jump. However, Wynn Macau and Wynn Palace — the operator’s two venues in the special administrative region (SAR) — shed $75.8 million in adjusted property EBITDA year-over-year. The third quarter included a nearly two-week closure of Macau casinos due to an uptick in coronavirus cases.

Our casino operations at Wynn Palace and Wynn Macau were closed for a 12-day period in July 2022, in response to an outbreak of COVID-19 in Macau,” according to a statement issued by the company. “The results of operations of our Macau Operations for the third quarter of 2022 continued to be negatively impacted by certain travel-related restrictions and conditions, including COVID-19 testing and other mitigation procedures, related to the COVID-19 pandemic.”

Wynn’s Las Vegas integrated resorts and Encore Boston Harbor remained sources of strength for the operator during the July through September period.

 

Viva Las Vegas (and Boston) for Wynn Resorts
While Macau continues being a thorn in the side of the six concessionaires, was able to offset some of that turbulence in the Chinese territory with strength on the Las Vegas Strip and in Boston.

Wynn’s Las Vegas operations notched a third-quarter adjusted property EBITDA increase of $12.3 million while revenue at Encore Boston Harbor increased $19.6 million year-over-year.

“Operating revenues from our Las Vegas Operations were $544.4 million for the third quarter of 2022, an increase of $68.4 million from $476.0 million for the third quarter of 2021,” added the operator. “Adjusted Property EBITDA from our Las Vegas Operations for the third quarter of 2022 was $195.8 million, compared to $183.4 million for the third quarter of 2021. Table games win percentage for the third quarter of 2022 was 20.7%, below the property’s expected range of 22% to 26% and below the 21.7% experienced in the third quarter of 2021.”

Wynn shares are down 19.71% year-to-date, but are higher by 14.49% over the past month — a move largely fostered by news that Tilman Fertitta’s Fertitta Entertainment took a 6.1% stake in the casino giant.

 

Wynn Interactive Improvements
Earlier this year, Wynn was rumored to be shopping its Wynn Interactive arm, which includes WynnBET, at a steeply discounted multiple, but that transaction didn’t materialize and things are perking up at the digital gaming unit. Adjusted property EBITDA for that business surged $85.3 million in the third quarter. WynnBET’s cash burn rate slid 80% in the quarter.

Speaking of sports betting, Wynn CEO Craig Billings said on a conference call with analysts that the company “remains excited” about sports wagering in Massachusetts though it’s possible that will start with retail, not mobile wagering. He expects sports betting to commence in the commonwealth early next year.

As of Sept. 30, Wynn had $1.94 billion in cash and $12.12 billion in debt.

Source: https://www.casino.org/news/wynn-resorts-q3-results-were-plagued-by-macau-weakness/
Other Interesting Articles: https://asiacasino.org/2022/11/09/things-you-should-not-do-in-an-online-casino/
See other website: http://www.orientalgame.com/

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