Wynn Resorts expressed confidence in the ongoing gaming concession renewal process, saying that it has been “open, it’s been transparent, it’s been productive, and we feel very good about the future of Macau and our position in Macau.”
On an earnings call with analysts, Matt Maddox, CEO of Wynn Resorts, remarked that when the government announced the consultation process, “it was very structured, [with a] timeline […] and everything happened exactly as they had laid out.”
Gaming concessions are set to expire in June 2022. Public consultation on the proposed gaming amendments ended recently. It is still unclear whether concessions will be extended due to the Covid-19 pandemic.
“We’ve just been very happy with how open it’s been and how constructive it’s been. And I think that that is going to continue throughout 2022, as Macau really focuses on the long-term health and stability […] of the industry and of the region,” said Maddox.
“So I can’t give any specific dates or timelines, but what I can tell you is we’re very confident in the process,” the executive added.
With confidence in the renewal of its concession, the operator is keen on catering to the premium mass market.
Ian Coughlan, president of Wynn Macau, said that over the last three years, the gaming operator has been pivoting luxury assets that were formerly taken up by junket operators.
“We’ve been opening them up for premium mass, whether it’s villas in our towers, high-end fleets, and general gaming spaces. And we are fortunate to have the best assets and best service in market. So the pivot is very, very straightforward for us,” he said.
Q3 revenues
Operating revenues from Wynn Palace were USD181.3 million for the third quarter of 2021, an increase of USD165.6 million from USD15.7 million in the third quarter of 2020.
VIP table games win as a percentage of turnover was 4.45%, above the property’s expected range of 2.7% to 3.0% and above the 1.04% recorded in the third quarter of 2020.
The table games win percentage in mass market operations was 21.8%, slightly below the 22.0% result in the third quarter of 2020.
Meanwhile, operating revenues from Wynn Macau were USD130.7 million for the third quarter of 2021, an increase of USD79.3 million from USD51.4 million in the third quarter of 2020.
VIP table games win as a percentage of turnover was 2.44%, below the property’s expected range of 2.7% to 3.0% and below the 3.95% recorded in the third quarter of 2020. The table games win percentage in mass market operations was 19.7%, up from 18.7% in the third quarter of 2020.
Matt Maddox to leave Wynn
Wynn Resorts CEO Matt Maddox announced his decision to leave the company in a recent earnings call with analysts. The company’s chief financial officer, Craig Billings, will take the helm of the American operator, after Maddox steps down on January 31.
“I’ve been at Wynn for 20 years and been the CEO for the last four,” said Maddox.
The outgoing CEO will remain on the Macau board to “ensure stability and to assist with the concession renewal process.”
Praising his appointed successor, Maddox said that Billings “understands culture. He’s not a guy that’s going to build a big corporate infrastructure. He makes decisions fast and he feels the brand. The company really couldn’t be in a better position going forward.”
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