COVID-zero policy led Wynn Macau to $163 million revenue loss in 3Q22

November 11, 2022 Macau Earnings & Filings Industry Updates

During the past 3 months until September 30th, 2022, Wynn Resorts, a leading developer of high quality hotels and casinos, saw revenue decreased by 162,7,0 million dollars, across Wynn Macau and Wynn Palace, Macau-based branches of the company, thanks to COVID-zero policy.

Strong COVID-19 restrictions:

This revenue loss is a lot bigger than in the previous year (95,4 million dollars), because of mainland China’s COVID-zero policy that includes border restrictions and lockdowns. This has made for poor tourism across China, with a stagnant number of annual tourists . However, it’s slightly better from the 185,3 million dollar loss in 2Q22.

According to Wynn Resorts 3Q22 financial results that came on Thursday, November 10th, 2022, Wynn Macau and Wynn Palace revenue experienced a loss of 62,9% yearly and 1,4% sequentially, or 115,6 million dollars. Gross gaming revenue (GGR) decreased 8% from 2019.

Located on Macau half-island, Wynn Macau experienced a meaningful drop of its gaming and non-gaming revenues of 69,1% yearly, 40,4 million dollars, with a Combined EBIDTA loss of 43,8 million dollars.

On the other hand, Wynn Palace also experienced a significant drop of its gaming and non gaming revenues of 58,5% yearly, aka 75,2 million dollars, with a Combined EBIDTA loss of 185,3 million dollars, same as 2Q22 loss.

Craig Billings, Chief Executive Officer at Wynn Resorts, said: “In Macau, while COVID-related travel restrictions continued to negatively impact our results, we were pleased to experience encouraging pockets of demand during the recent October holiday period.

“We remain confident that the market will benefit from the return of visitation over time.”

Combined loss from both properties:

Combined EBITDA loss was 65,6 million dollars, somewhat counterbalancing an EBITDA gain of 10,2 million dollars in 3Q21. Still, this EBITDA loss was smaller than in 2Q22 of 90,3 million dollars.

While calculating the results, we can see that Macau-parts of the company affected Wynn Resorts hard, meaning its gaming and non-gaming revenues decreased by 10,5%, aka 889,7 million dollars. The company lost 142,9 million dollars for the quarter, even though it broke EBITDA record at Wynn Las Vegas and Encore Boston Harbor.

About Wynn Resorts:

Wynn Resorts Limited was founded in 2002 and it’s based in Las Vegas, Nevada. Its main focus is developing and operating high quality hotels and casinos.

The company is globally recognized with development properties in Macau, Cotai and Everett.

During the Covid-19 pandemic, Wynn was the only gaming operator to remain solely focused on its employees, meaning the company resisted to perform mass layoffs. That resulted with developing and operating another 6 properties in the middle of pandemic (2020).