Wynn Macau sees revenue surge along with ‘very healthy’ tenant retail sales
Wynn Macau has generated revenues exceeding analysts’ expectations as Macau undergoes a robust recovery.
In the second quarter, the gaming operator generated USD246 million of EBITDAR, which is 72% of pre-Covid levels.
“Hold was a bit of a mixed bag in the quarter as we held high in our VIP business, but that was more than offset by low hold on the mass table side. We saw strength across the property with several components of the business above 2019 levels,” said Craig Billings, Chief Executive Officer of Wynn Resorts, in an earnings call with analysts.
Billings noted that mass table drop increased 4% versus Q2 2019, despite the fact that “portions of Wynn Macau’s casino were closed for renovation during the quarter.”
“The quality of our product and service, the relaunch of our loyalty program, and our very robust non-gaming events calendar, all helped drive 14.2% market share in the quarter, consistent with our share as we exited 2019.”
Meanwhile, on the non-gaming side, its tenant retail sales have surged up to 47% relative to Q2 2019, which the company considered to be “incredibly strong.”
According to the gaming operator, the strength has continued into Q3 with mass drops per day in July exceeding what the group experienced in each month in Q2 and reaching 120% of daily mass drop in 2019.
“In July, we also continue to experience robust hotel occupancy and very healthy tenant retail sales,” said Billings.
Billings told analysts that customers had shorter stays at the hotel but have stayed more frequently and spent more money.
Billings attributes the trend to recovery from Covid-19, when customers were more likely to come for longer periods if they committed to traveling.
Further, the CEO revealed that construction is now underway on Wynn Al Marjan Island, Wynn’s planned integrated resort in the UAE, with secant walls and soil compaction complete and over 40% of the required hotel piles in the ground.
Wynn adds Paul Liu to board of directors
Wynn Resorts has announced the appointment of experienced executive Paul Liu to its board of directors.
“Liu’s track record and perspective on creating guest experiences in the luxury and hospitality fields, as well as his unique understanding of business talent in the Asia Pacific market, will be a significant contribution to the company,” a Wynn Resorts spokesman said, as cited in reports. “He will offer an important perspective to the Wynn board of directors.”
Serving as an independent director, Liu has experience in entertainment, hospitality and financial services across China and the Asia-Pacific region.
