Wynn Resorts reported an 8% drop in revenue for the second quarter, owing largely to Covid restrictions in Macau.
The company’s second-quarter operating revenue was $908.8 million, down from $990.1 million the previous year.
Finally, this downturn can be attributed primarily to travel restrictions imposed by Macau’s government in order to limit the spread of Covid-19.
As a result, Wynn Palace’s operating revenue fell 78%, from $270.4 million to $58.7 million, while Wynn Macau’s fell 68%, from $184 million to $58.6 million. Both reported an adjusted property EBITDA loss of $50 million and $40.4 million, respectively.
This is part of a larger pattern.
MGM China and SJM Holdings, two of Wynn Resorts’ competitors in Macau, also reported revenue declines.
MGM China reported a 54% decrease in revenue for Q2, while MGM Resorts overall reported a 44% increase, while SJM Holdings reported a 25% decrease in net gaming revenue for H1.
However, improved performance from Wynn Resorts’ North American operations helped to mitigate the impact of Macau.
The company’s Las Vegas division generated $561.1 million in second-quarter operating revenue, a 58% increase over the previous year’s $355.1 million. Meanwhile, Encore Boston Harbour generated $210.2 million, a $44.9 million increase year on year.
This is consistent with the performance of other US operators, such as Caesars Entertainment, whose Las Vegas segment generated $1.1 billion in net revenue in the second quarter, up 30% year on year.
Wynn Resorts’ net loss increased slightly from $131.4 million to $130.1 million in the second quarter of last year.
Wynn Resorts’ operating revenue is up 8% year on year, while expenses are down, and its net loss has shrunk from $412.3 million to $313.4 million.
The company’s CEO, Craig Billings, expressed confidence in Macau’s recovery, saying, “In Macau, while Covid-related travel restrictions continued to impact our results, we remain confident that the market will benefit from the return of visitation over time.”