Casino operator Wynn Resorts saw its revenue jump by nearly one-half in the third quarter thanks to its newest Macau resort and a solid performance by its Vegas properties.
On Thursday, Wynn released its financial report covering the three months ending September 30, in which revenue shot up 45.3% to $1.61b. Wynn reported adjusted earnings of $473m (+54.8%) and net income of $79.8m versus a $17.4m net loss in the same period last year, which was hampered by costs associated with prepping the opening of the $4.4b Wynn Palace integrated resort in August 2016.
Wynn Palace (pictured) reported revenue of $555.3m in Q3, not far behind the company’s original Wynn Macau property, which generated $567.7m. Wynn Macau’s revenue was up 16.2% year-on-year, while Wynn Palace was only open for 40 days in Q3 2016, rendering comparisons moot.
Wynn Palace’s VIP turnover ($13.7b) narrowly edged out Wynn Macau ($13.37b), but Wynn Macau played luckier, boasting a VIP win rate of 3.37% versus Wynn Palace’s 2.99%.
Mass market table drop at Wynn Macau fell 3.2% to $1.07b but win rose 5.5% to over $216m, while slots handle and win shot up 26.9% and 21.1%, respectively. Wynn Palace reported mass table drop of nearly $867m and win of over $194m, while slots win totaled $42m.
Wynn Palace’s non-gaming revenue hit $79.4m, besting Wynn Macau’s $62.2m.
Stateside, Wynn’s Las Vegas operations reported revenue rising 7.6% to $459.6m while adjusted earnings improved 17.6% to $151.5m. Slots handle was flat but win improved 13.6% to $59.6m, while table win shot up nearly 11% to $132.2m despite table drop rising only 2.7%.
Non-gaming revenue in Vegas was up 4.3% to just under $330m, with nearly all components in positive territory, including room revenue, occupancy, and food & beverage. Only ‘entertainment and other’ revenue spoiled the party, falling 3.3% to $57m.
AUDIO-VISUAL BEDLAM
On the post-results analyst call, Wynn CEO Steve Wynn celebrated the fact that Wynn’s Vegas operations had “the best third quarter in existence since 2005.”
Steve also shed more light on the company’s plans for its major off-Strip non-gaming carnival-themed expansion, which will include a lagoon that’s 1,600 feet long and up to 750 feet wide, surrounded by a mile-long boardwalk, plus a 103-foot-diameter carousel and nightly parades of floats inspired by Rio’s Carnivale festival.
There’s also a truly wacky sounding plan involving massive bumper car races in which contact between cars engages light and sound effects, and if you dare to establish pole position, three “Keystone Cop” cars will attempt to run you off the road. Steve called it “bedlam in audio-visual interaction,” and we take him at his word.
VEGAS SHOOTING AFTERMATH
On a more serious note, Steve was asked about the recent mass shooting at a Vegas open-air concert that left 59 people dead, including the gunman Stephen Paddock.
Steve noted that Paddock had been a Wynn customer since 2006 who was a net loser at Wynn’s video poker machines but “tipped very well.” Steve said Paddock and his longtime girlfriend “can only be described as the most vanilla, unexciting, totally typical couple that has ever walked in this building” and Wynn staff were “stunned, mystified” that Paddock went on to do what he did.
Earlier this week, Caesars Entertainment CEO Mark Frissora told investors that his company’s Vegas casinos had seen a decrease in casino play by Asian gamblers following the shooting. Asked about Frissora’s comments, Steve said the effect on Wynn’s properties had been “none that we can measure.”
