A significant decline in VIP turnover and lower hold saw Wynn Macau Ltd suffer a 22.7% decline in operating revenues to US$1.07 billion and a 26.4% fall in Adjusted Property EBITDA to US$301.2 million in 3Q19.
Falling VIP proved too much for even record quarterly mass table win to overcome for the quarter, with both flagship Cotai IR Wynn Palace and peninsula property Wynn Macau feeling the impact of economic headwinds.
At Wynn Palace, operating revenues fell 18.1% to US$598.2 million, with Adjusted EBITDA down 28.3% to US$162.2 million.
VIP turnover was hit hard, down 32.3% to US$10.52 billion, while a strong win rate of 3.19% was still lower than the 3.40% enjoyed in the prior year period.
Mass market table drop grew 9.2% to US$1.30 billion with win up 5.2% to US$308.1 million. Slot machine handle rose 5.5% to US$973.7 million and win by 2.7% to US$47.3 million.
On the peninsula, Wynn Macau suffered an 18.2% fall in operating revenues to US$474.3 million and 24.0% decline in Adjusted Property EBITDA to US$139.0 million for the third quarter.
Once again results were primarily driven by VIP where turnover fell 42.5% to US$8.02 billion. A win rate of 2.76% was below the 3.01% experienced in 3Q18.
Mass market table drop at Wynn Macau increased 11.5% to US$1.18 billion while mass table win was up 8.9% to US$272.5 million. Slot machine handle grew 11.7% to US$1.0 billion with slot machine win rising 35.1% to US$47.0 million for the third quarter of 2019.
Wynn Macau’s parent company, Wynn Resorts, reported a group-wide 3.6% decline in operating revenues to US$1.65 billion – the decline in Macau VIP partially offset by the opening of Encore Boston Harbor.
Adjusted Property EBITDA fell 21.3% to US$396.9 million with the company falling into loss of US$3.5 million.
Nevertheless, Wynn Resorts CEO Matt Maddox said he expected the impending launch of renovated casino space at Wynn Macau in 4Q19 to provide a boost going forward, “further solidifying the property as the peninsula’s marquee integrated resort.
“We are excited about the outlook for the Company and we will continue to focus on leveraging our premium-focused business model to drive long-term returns for shareholders,” he said.
