Wynn Macau lost some market share for the second quarter, impacted by low hold in the mass segment and a disciplined player reinvestment policy amid a highly competitive promotional environment.
Wynn Macau contributed USD280 million (MOP2.3 billion) in EBITDAR, despite a slight decline in market share.
In an earnings call with analysts, the gaming operator revealed that its gross gaming revenue share decreased by 150 basis points (bps) to 12.7% on a quarter-over-quarter basis.
Wynn Resorts CEO Craig Billings acknowledged the competitive landscape in Macau, where operators are intensifying promotions to capture market share.
“We generated $280 million of EBITDAR in the second quarter on slightly lower market share than we have experienced over the previous several quarters and slightly lower mass hold quarter over quarter,” said Billings.
“There has been a lot of chatter in the market about the elevated promotional environment in Macau with concessionaires jockeying for market share,” the executive added.
For the three months ending June 30, 2024, Wynn Macau reported total operating revenues of $885.3 million (MOP7.1 billion), up 15% year-on-year but down 11.3% compared to the previous quarter.
Adjusted property EBITDAR fell by 17.4% quarter-on-quarter to $280.4 million (MOP2.3 billion), primarily due to a subdued performance from the peninsula property, Wynn Macau.
The Wynn Macau property reported operating revenues of $337.3 million (MOP2.7 billion) in Q2 2024, an 11.8% increase year-on-year but an 18% decrease sequentially.
At Cotai’s Wynn Palace, operating revenue increased by 17% year-on-year to $548 million (MOP4.4 billion), despite falling 6.6% quarter-on-quarter. Casino revenue at Wynn Palace reached $445 million (MOP3.6 billion), up 21.8% year-on-year.
Meanwhile, Billings emphasized Wynn’s commitment to disciplined operational expenditures and player reinvestment, resulting in an EBITDAR margin that exceeds pre-pandemic levels.
The company is also progressing on a new destination food hall in Macau, set to open in 2025, which will further enhance its offerings in the region.
“We continue to elevate our product offering in Macau through new and innovative food and beverage concepts and unique programming,” said Billings.
“We also continue to advance construction work on our second major concession-related project, our destination food hall, which we expect to open in 2025,” said Billings.
In the Middle East, Wynn is making significant strides with its Wynn Al Marjan Island project in the United Arab Emirates (UAE).
The CEO recently visited the site and noted rapid construction progress, with the hotel structure now reaching 90 meters, making it the tallest building in the UAE.
The company has invested $357 million (MOP2.9 billion) in equity for this joint venture, which includes land for the hotel and additional acreage for future developments.
Billings expressed optimism about the UAE market, calling it “the most exciting opportunity for the gaming industry in decades.”
The company has also acquired additional land for potential future developments.
Meanwhile, Wynn Resorts, in the second quarter, achieved a record EBITDAR of US$571.7 million (MOP4.6 billion)—the highest in the company’s history.
“Our second quarter results, including a new record for adjusted property EBITDAR, reflect continued strength throughout our business. I am incredibly proud of our teams in Las Vegas, Macau, and Boston,” Billings stated during the earnings call.
With a robust liquidity position of over $3.9 billion (MOP31.3 billion), Wynn Resorts is also exploring potential developments in gateway cities such as New York and Bangkok, ensuring a balanced approach to growth in both established and emerging markets. Nadia Shaw
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