The latest financial report from Wynn Resorts Ltd has revealed a mixed performance for its Macau operations during the third quarter of 2024. The company, a prominent player in the global casino industry, reported total operating revenues of $871.7 million for the three months ending September 30, 2024. This figure reflects a 6.3% increase compared to the same period last year, although it marks a 1.5% decline from the previous quarter.
Wynn’s adjusted Property EBITDAR also saw a decrease, falling 6.2% quarter-on-quarter to $262.9 million. The performance of the Cotai integrated resort, Wynn Palace, was particularly notable, as it experienced a loss in revenue relative to the second quarter of 2024.
According to the company’s recent disclosures, Wynn Palace reported total operating revenues of $519.8 million for the third quarter, which is a slight dip of 0.9% year-on-year and a more significant 5.1% drop from the June quarter. Casino revenues remained stagnant at $418.0 million when compared to the same quarter in 2023, while adjusted Property EBITDAR decreased by 8.3% year-on-year, landing at $162.3 million.
In contrast, Wynn’s peninsula property showed a robust performance, with operating revenues reaching $352.0 million in Q3 2024. This figure represents a remarkable 19.3% increase year-on-year and a 4.4% rise sequentially. The peninsula’s casino revenues surged to $296.8 million, marking a significant 28.9% year-on-year growth. Additionally, adjusted Property EBITDAR for the peninsula property was reported at $100.6 million, which is a 29.1% increase compared to the same quarter last year and a 4.9% improvement from the previous quarter.
Wynn Resorts CEO Craig Billings commented on the results, stating that they “reflect healthy demand across our resorts highlighted by strong mass gaming win in Macau.” During the company’s earnings call, he noted that the combined mass and table win had increased by 10% year-on-year, indicating a positive trend in demand.
Billings attributed some of the peninsula’s success to recent upgrades in food and beverage offerings, which had previously been identified as areas needing enhancement. He emphasized that the company is concentrating on its strengths to drive market share, which has been a focal point over the past year.
Despite these positive indicators, Billings acknowledged the competitive landscape in Macau remains fierce. Wynn Resorts is currently prioritizing maximizing EBITDA rather than solely focusing on increasing market share. This strategic pivot highlights the need for careful navigation in a market characterized by intense rivalry.
When discussing the company’s margins for the quarter, which stood at 30.2%, Billings noted this was an unusual quarter, reflecting an increase of approximately 210 basis points compared to the same period in 2019. He clarified that while market share remained stable, the overall gross gaming revenue (GGR) had decreased due to a downturn in the market’s GGR quarter-over-quarter.
Moreover, Billings pointed out that higher VIP commissions during this quarter were a result of increased VIP turnover, despite flat VIP GGR figures. He explained that the dynamics of the Macau market hinge on the competitive nature and the balance between market share and EBITDA as the company looks forward to 2025.
On a broader scale, Wynn Resorts Ltd reported total operating revenues of $1.69 billion for Q3 2024, a slight increase from $1.67 billion a year earlier. The company recorded a net loss of $32.1 million, an improvement from a loss of $116.7 million during the same quarter last year. The adjusted Property EBITDAR for the group was reported at $527.7 million, which is marginally lower year-on-year and 7.7% down from the June 2024 quarter.
Overall, while Wynn Resorts has faced challenges in certain areas of its Macau operations, the peninsula property has shown significant growth, indicating a potential recovery trend in the market. As the company continues to adapt to the competitive environment, its focus on enhancing guest experiences and optimizing operational efficiencies will be crucial for future success.
