Wynn Resorts’ Q2 net loss widens to $213.4m
The loss was $40m more than the loss recorded in Q2 2021, which was $173.3m
The revenue total, meanwhile, was also 45.1% less than the revenue recorded pre-pandemic, in Q2 2019, when the business reported revenue of $1.65bn.
Craig Billings, CEO of Wynn Resorts, said the business benefited from operations in the US – but Covid-related restrictions affected operations in Macau, leading to diverging stories for its major divisions.
“Our second quarter financial results reflect continued strength at both Wynn Las Vegas and Encore Boston Harbor,” said Billings. “Our teams’ ongoing focus on five-star hospitality and new experiences at our market-leading properties combined with very strong customer demand drove a new all-time quarterly record for adjusted property earnings before interest, tax, depreciation and amortisation (EBITDA) at Wynn Las Vegas and a second quarter record at Encore Boston Harbor.
“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.”
Revenue at the Wynn Palace in Macau was $58.6m, a significant drop of 78.3% compared to Q2 2021. Revenue fell most dramatically within casino operations – decreasing by 87.2%.
Wynn Macau suffered similar issues during Q2 – with revenue decreasing by 68.1% to $58.5m. Again, casino revenue fell the most, by 79.1% to $39.9m.
Revenue elsewhere offset this slightly. Revenue at Wynn Boston Harbor rose by 27.2% to $210.1m.
Meanwhile, Wynn Las Vegas produced revenue of $561m, up by 58%. Once again rooms revenue grew the most, increasing by 78% to $167.1m. Wynn Las Vegas’ adjusted property EBITDA hit a quarterly record, at $133.2m.
On Wynn’s earnings call, Billings said that Massachusetts was set to be a good opportunity for Wynn’s digital segment, after the state passed a sports betting bill earlier this month.
“We are looking forward to the potential for a significant catalyst for Wynn Bet in Massachusetts both in digital and retail sports betting,” said Billings. “For us, Massachusetts, I’ve said this before, Massachusetts was always an important bootstrapping event for Wynn Bet and for Wynn Interactive.”
“We’ll be in Massachusetts day one.”
Earlier this year, the business was reported to be considering a cut-price sale of its digital business, though Billings said Wynn was still committed to online gaming after its Q1 results.
Operating expenses for the quarter came to $960.8m, a decrease of 5.7%. Casino costs were the largest expense at $244m, followed by general and administrative expenses at $200.3m and food and beverage expenses at $185.3m.
This caused an operating loss of $52m, $22.5m more than the previous year. Following interest expenses of $154.8m, other expenses at $10.0m and other income at $4.2m, the total loss before income taxes was $212.7m.
After accounting for taxes, the net loss for the quarter was $213.4m, up by $40m year-on-year.
For the half-year, revenue was $1.86bn. This is higher than the half-year 2021 revenue, which was $1.72bn.
Operating expenses for the six months are also higher, at $2.00bn compared to $1.93bn year-on-year.
The overall net loss for the half year was $468m, $23.5m less than in 2021.