Wynn: Market makes roaring return following CNY results
Wynn Macau’s recovery was evident during the recent Chinese New Year holiday period after the heavy losses it recorded in 2022.
In an earnings announcement, Wynn Macau posted a loss of USS235.8 million in 2022, higher than last year’s USD208.1 million.
Since 2020 concessionaires in Macau have suffered unprecedented losses due to strict measures to prevent and contain Covid-19, which led to a sharp drop in the number of visitors.
However, with the easing of restrictions, the gaming sector has welcomed back an increasing number of guests as the region has reopened to travel and tourism.
For Wynn Macau, on the non-gaming side, hotel occupancy was at 96%, and its tenant retail sales increased by 34% compared to Chinese New Year in 2019.
“Overall, during the Chinese New Year period, we delivered our strongest EBITDAR performance since the onset of the pandemic, approximately USD4 million of normalized EBITDAR per day,” said Craig Billings, CEO of Wynn Resorts.
In the casino, mass table drop reached 95% of 2019 Chinese New Year levels with “strong play” across the spectrum from premium mass to core mass. Direct VIP turnover was 40% above pre-Covid Chinese New Year levels.
“And, importantly, we estimate that our hold-normalized GGR market share during the month of January was consistent with 2019 levels despite all the changes in the junket environment, despite the expectations of those who continue to incorrectly believe that we are solely a VIP-focused organization,” the official added.
The gaming operator says the business remains “very, very strong” with mass gaming, direct VIP and retail sales better than previously similar period in the past.
Meanwhile, Billings noted that there was some junket activity over the course of Chinese New Year. However, the situation changed a lot from the pre-Covid period.
After decades of easy profit and a reputation for helping China’s richest funnel money overseas, junkets have faced a hard crackdown, beginning with the arrest of junket mogul Alvin Chau.
With the new gaming laws, authorities now have increase oversight of casinos in an effort to stop capital flight and accelerate the enclave’s integration into the SAR.
“What I would say is that the market has roared back, Macau was a ranger on the mass side, on the direct VIP side, on the retail side, and on the occupancy side during Chinese New Year, and it outperformed our expectations for the lull period shortly thereafter,” Billings said.
