Much like competitor MGM Resorts, Wynn Resorts reported strong Las Vegas numbers despite a down quarter for Q2 of this year. Revenues from Las Vegas were $561.1 million, more than double the $206 million the company generated last year. However, with the continued pandemic-related shutdowns in Macau as well spending on WynnBet, the company reported net losses and a decline on EBITDA YoY.
Here is a look at the top-line numbers from the Wynn earnings report:
- Revenues were $908.8 million, down 9.2% from $990.1 million in 2021
- Net losses amounted to $130.1 million compared to $131.4 million last year, a change of 1%
- Diluted share losses were also flat at $1.14 per share, up a penny from 2021
- Adjusted EBITDA was down from $206.9 million in 2021 to $179.2 million this past quarter, a decline of 13.4%
“Our second quarter financial results reflect continued strength at both Wynn Las Vegas and Encore Boston Harbor. 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 EBITDA at Wynn Las Vegas and a second-quarter record at Encore Boston Harbor,” said Craig Billings, CEO of Wynn Resorts. “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.”
Wynn’s Macau numbers more than halved by continued coronavirus closures
Both Wynn Palace and Wynn Macau reported relatively dismal numbers compared to 2021. Wynn Macau generated $58.6 million in operating revenues, a YoY decline of 68.2%. The numbers for Macau Palace were even worse. The property produced $58.7 million, a whopping 78.3% compared to 2021.
Adjusted EBITDA for Wynn Macau and Palace were $40.4 million in losses and $50 million in losses, respectively.
Last month Wynn loaned the Macau properties $500 million to help the casinos survive during this time of regular closures and operational problems.
Wynn Interactive an afterthought on the earnings call
The focus of the Wynn Q2 earnings call was on land-based performance, while the interactive wing really only came up during the Q&A period. This is not surprising, as Wynn has spoken openly about scaling back marketing and recently shuttered its Betbull brand.
Billings did affirm the WynnBet brand would be present in Massachusetts if Gov. Charlie Baker signs the sports betting bill. There retail sportsbook at Encore Boston Harbor is already built and ready to launch as soon as regulators give the green light.
Moreover, Billings conceded the losses coming from the Interactive division, which amounted to $162 million so far this year, might not continue a direct path downward if there is a promotional spend in Massachusetts. Billings elaborated:
“Our goal is really to make sure that we are consistently running the business as best we can from a lifetime value to cost per acquisition perspective. So, increase retention, decrease CPA, increase handle per customer. That’s the way we run the business. That has resulted in a declining burn over time, which you’ve seen as each quarter has sequentially gone by, as we told you it would. That burn could go up modestly with the launch of Massachusetts because we will do some user acquisition. I don’t think we’ll ever be back in the position that we were in at the launch of last NFL season. We’ve learned a lot in terms of which marketing channels work and which don’t.”
When asked about whether or not the brand has big plans beyond Massachusetts, Billings said there would be future launches in new states, but Massachusetts should be treated as a bit of an outlier given the land-based presence in the state.
In July, Wynn ranked sixth out of the nine operators in New York with $6 million in handle, representing .75% of total market share.
