Wynn Resorts Ltd. third quarter performance saw the Las Vegas-based casino company’s revenue drop 1.4% on the back of a turbulent three months in Macau. From July to September 2014, Wynn reported a revenue of $1.37 billion from $1.39 billion in the third quarter of 2013.
The biggest culprit in Wynn Resorts’ disappointing Macau numbers can be traced to the drop in table games turnover in the high-roller segment. In the third quarter, that segment accounted for $25.1 billion in turnover, 17.4% worse than the $30.3 billion it received in 2013. The mass market segment did post a significant increase in table games win, improving by 36.4% to $327.2 million while slot machine handle also rose 23.2% to $1.4 billion.
Non-gambling revenue also increased 1.4% to $99.1 million on the strength of an improved average daily room rate of $327 compared to $310 in the third quarter of 2013. Wynn Resorts also reported increasing its occupancy at Wynn Macau to 98.5%, 2.7% better than its 2013 percentage.
Despite the slowdown in VIP gambling in Macau, Wynn’s overall revenue could have been a lot worse had it not been for the steady gains it made in Las Vegas, where the company’s net casino revenue increased 10.5% to $178.6 million. Adjusted property EBITDA in Las Vegas also increased 5.3% from $435.6 million in 2013 to $458.8 million in the third quarter of 2014.
Table games turnover in Wynn’s Vegas property dropped 5.2% from $676.3 million in the 2013 quarter to $640.9 million this year but the company’s win percentage reached 25.7%, well above the expected range of 21-24%. Slot machine handle in Vegas rose to $788.1 million, 7.4% better than the $733.5 million it received in 2013, all while accounting for a net slot win that’s 3.5% better this quarter compared over the same period last year.
Non-gaming revenues in Wynn’s Las Vegas business also increased, led by a 7.2% improvement in room revenues from $95.7 million to $102.5 million, a 5.8% improvement in food and beverage revenues and a 1.8% uptick in entertainment, retail and other revenues.