Wynn Resorts saw operating revenue from its Macau operations decline 2.6% to US$1.25 billion in the three months to 31 March 2019, hampered by ongoing upgrade works at Wynn Macau.
The company’s original Macau property, located on the Peninsula, suffered a 15.3% fall in revenues to US$523.9 million, with Adjusted Property EBITDA down 21.9% to US$163.9 million.
Wynn Macau’s VIP segment felt the brunt of the pain, with VIP turnover plummeting 40.3% to US$17.09 billion. By comparison, mass table drop fell just 2.2% to US$1.35 billion, with improved luck pushing mass table game win to US$264.5 million – a 3.1% increase over the prior year period. Slot machine handle fell 20.8% to US$794.4 million with win of US$37.9 million.
The company is currently embarking on a US$100 million upgrade to Wynn Macau, including a remodeling of its Encore Hotel rooms and more non-gaming facilities as well as converting gaming space from VIP to instead target Premium Mass.
There is no such distraction at Wynn Palace however, where operating revenues through 1Q19 grew 9.1% year-on-year to US$726.6 million and Adjusted EBITDA increased 5% to US$222.6 million.
The improvement was driven primarily by a 7.1% increase in mass volume to US$1.30 billion, with win of US$315.5 million. VIP volume declined 17.9% to US$12.63 billion but was aided by particularly strong hold of 3.91% – well above the 2.60% experienced in 1Q18. Slot machine handle fell 7.8% to US$975.0 million.
Group-wide, Wynn Resorts saw operating revenues fall 3.7% to US$1.65 billion with Las Vegas operations down 7.1% to US$401 million.
