Casino operator Wynn Resorts posted a $3.5m net loss in the third quarter as VIP gamblers took its Vegas and Macau tables to the cleaners.
Figures released Wednesday show Wynn’s revenue hitting $1.65b in the three months ending September 30, down 3.6% from the same period last year. Adjusted earnings were down 21.3% to $397m and the company posted a net loss of $3.5m versus a $156m profit in Q3 2018.
Macau operations were largely responsible for the decline, as Wynn Palace’s revenue was down 18.1% to $598.2m while earnings were off 28.3% to $162.2m. The Palace’s VIP turnover was down nearly one-third and the VIP win rate, while still above the expected range, fell 0.2 points year-on-year.
Wynn Macau’s revenue fell 18.2% to $474.3m and earnings slid 24% to $139m, as VIP turnover plunged by 42.5% while VIP win was down 0.25 points year-on-year. Wynn said its Macau operations were negatively impacted to the tune of $22m by its direct (non-junket) VIP operations.
It was a different story for mass market gaming, with mass table drop up 9.2% at the Palace and 11.5% higher at Wynn Macau, although mass win rates dipped slightly at both venues. While slots are still a minor piece of the Macau revenue mix — about $47m at each property — slots handle improved 5.5% at the Palace and jumped 11.7% at Wynn Macau.
Turning stateside, Wynn’s Las Vegas operations reported flat revenue of $399.5m, although earnings dipped 7.6% to $88m. Table drop was up while table win was down, largely due to VIP baccarat players playing lucky, resulting in table revenue falling 1.1% to $85.7m. Slots handle rose over 9%, pushing slots win up 4% to $58.2m.
In Massachusetts, the new Encore Boston Harbor venue generated revenue of $175.8m and earnings of $7.7m in its first full quarter of operation. Gaming tables accounted for $74.9m while slots added $62.4m.
Encore’s hotel occupancy stood at 69.6% for the quarter, reflecting its role as a more regional venue. By comparison, Las Vegas occupancy was 87.9% while Wynn Palace (97.2%) and Wynn Macau (99.4%) ranked even higher.
Wynn CEO Matt Maddox said the company had performed well despite VIP hold declines in both Macau and Vegas, thanks in part to a record mass table win in Macau. The Wynn Macau property is expected to get a further boost from the launch of its renovated West Casino before the year’s end.