Wynn Resorts has recently released its financial results for the third quarter of 2022, showcasing a mixed performance. While the company experienced a decline in revenue due to limited activity in Macau caused by Covid-19-related restrictions, its US operations showed strength and resilience.
Q3 2022 Revenue Overview:
During the third quarter of 2022, Wynn Resorts reported total revenue of $899.7 million, representing an 11% decline compared to the same period in 2021, where it recorded $994.6 million. The company’s quarterly revenue was primarily driven by its Las Vegas Operations, contributing $544.4 million, followed by Encore Boston Harbor, generating $211.8 million.
Macau Operations Impacted by Covid-19:
Macau, a significant market for Wynn Resorts, experienced limited activity during the third quarter of 2022 due to Covid-19 travel restrictions. As a result, the revenue from Wynn Palace and Wynn Macau declined significantly, reaching $75.2 million and $40.4 million, respectively. Both properties had to temporarily close their casino operations in response to the outbreak of Covid-19.
Net Loss and Positive Trend:
Wynn Resorts reported a net loss of $142.9 million for Q3 2022, indicating a 14% improvement in losses compared to the same period in 2021, where the loss was $166.2 million. However, the net loss increased by 9.8% quarter-on-quarter from $130.1 million. This highlights the ongoing challenges faced by the company during the pandemic.
Adjusted Property EBITDA:
Despite the overall decline in revenue, Wynn Resorts managed to achieve positive growth in adjusted property EBITDA during Q3 2022. The total adjusted property EBITDA for the period was $173.5 million, a 12% increase from the prior-year period. The company’s Las Vegas Operations and Wynn Interactive experienced significant growth in adjusted property EBITDA, whereas Wynn Palace, Wynn Macau, and Encore Boston Harbor saw a decline compared to Q3 2021.
CEO’s Perspective:
Wynn CEO Craig Billings acknowledged the challenges faced in Macau due to Covid-19-related restrictions. However, he expressed optimism about the return of visitation over time, which is expected to positively impact the market. On the other hand, Billings praised the outstanding performance of Wynn’s US operations, especially Wynn Las Vegas and Encore Boston Harbor, which achieved a new third-quarter record for Adjusted Property EBITDA. He attributed this success to the relentless focus on five-star hospitality and the market-leading facilities provided by the company.
Wynn Resorts’ financial results for the third quarter of 2022 demonstrate a mixed performance with revenue declines in Macau due to pandemic-related restrictions. However, the company’s US operations have shown resilience and growth, reaching new records in adjusted property EBITDA. As the world moves towards recovery, Wynn Resorts remains hopeful for improved performance in Macau with the return of visitation, while continuing to provide top-notch luxury experiences in Las Vegas and Massachusetts, elevating its properties above competitors as the destinations of choice for luxury guests.