Wynn Resorts Ltd has reported operating revenue of US$1.12 billion in the three months to 31 December 2019, a decline of 13.8% on the back of a significant decline in VIP turnover.
While Macau still contributed 67.6% of the group’s combined revenue for the quarter, the decline was enough to push Wynn into the red with a loss attributable to the company of US$72.9 million on revenue of US$1.65 billion, compared with a profit of $464.9 million in 4Q18.
Flagship Macau IR Wynn Palace took the brunt of the hit, with operating revenues down 20.3% to US$590.0 million and Adjusted Property EBITDA by 21.6% to US$177.6 million. Those figures were the result of a 42.4% decline in VIP turnover to US$9.31 billion and 45.5% decline in VIP win to US$286.4 million. Mass table drop fell 3.6% to US$1.25 billion while slot handle rose 2.0% to US$1.0 billion.
At Wynn Macau, operating revenues fell 5.1% to US$525.4 million in 4Q19 with Adjusted Property EBITDA down 1.5% to US$170.1 million. VIP was again the primary culprit with turnover down 37.9% to US$7.93 billion and win by 28.8% to US$259.7 million.
Mass table drop at Wynn Macau increased 10.6% to US$1.39 billion while slot handle fell 6.0% to US$825.8 million.
Despite the overall decline, Wynn Resorts CEO Matt Maddox said the company’s Macau investments, including a recent US$130 million upgrade to peninsula property Wynn Macau, “position us well to compete in any market environment, supported by another quarter of record mass table win.”
“It was also a successful quarter on the development front as we made significant progress rolling out the industry’s leading global growth pipeline,” he said. “In November, we launched key portions of the new Lakeside Casino at Wynn Macau, further solidifying the property as the peninsula’s marquee integrated resort.”