Collapse of VIP market drives Wynn Macau Ltd to widened US$181 million operating loss in 4Q22
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Wynn Resorts Ltd has reported a US$181.3 million loss from its Macau operations in the three months to 31 December 2022, widened from both the US$128.2 million loss reported in 4Q21 and the US$162.7 million loss in 3Q22.
The challenging result, which predated the recent reopening of Macau’s borders, was attributable to both the challenging operating environment in Macau during the quarter and the collapse of the junket industry, with Wynn’s VIP revenues plummeting compared with the same period in 2021.
Adjusted property EBITDA loss from Macau operations also widened from US$25.9 million a year earlier to US$59.1 million.
The 4Q22 result included a 52.8% year-on-year decline in casino revenues at Wynn Palace to US$68.9 million, with VIP table games win falling 96.4% to US$1.1 million. Mass table games win was down 35.2% to US$86.9 million while slots win fell 38.9% to US$8.3 million. Adjusted Property EBITDAR loss widened from US$1.4 million to US$23.9 million.
At peninsula property Wynn Macau, casino revenues fell by 47.2% year-on-year to US$51.4 million with VIP win again suffering the greatest decline, down 79.0% to US$5.1 million. Mass table games win dropped 40.2% to US$54.7 million although slots win increased 13.9% to US$7.9 million.
Despite this, Wynn Resorts managed to reverse a net loss of US$177.2 million reported in 4Q21, with the December 2022 quarter resulting in profit of US$32.4 million thanks to record results in Las Vegas and Boston.
These included a 16.6% increase in casino revenues in Las Vegas to US$141.3 million and 5.1% increase at Encore Boston Harbor to US$161.5 million.
“Our teams at Wynn Las Vegas and Encore Boston Harbor delivered a new fourth-quarter record for Adjusted Property EBITDAR at our combined North American properties,” said CEO Craig Billings.
“For the full year of 2022, these properties generated US$1.04 billion of Adjusted Property EBITDAR, a record for us by a wide margin. These impressive results are a testament to our team’s relentless focus on delivering five-star hospitality, which continues to elevate our properties above our peers as the destinations of choice for luxury guests in both Las Vegas and Massachusetts.
“In Macau, we were honored to be awarded with a new 10-year gaming concession during the quarter and were pleased to experience a meaningful return of visitation and demand during the recent Chinese New Year holiday period. We believe we are well-positioned for success in Macau’s next phase of growth.”
