Wynn Casino’s gambling industry profits in the second quarter finally have come up against an interesting development, Wynn Macau and Wynn Las Vegas. Wynn Macau has not been performing well, while Wynn Las Vegas has been hot.
Wynn Resorts delivered an after-hours report of better than expected second-quarter results.
The company’s revenue was $990.1 million. This means that it made more than expected. It had an adjusted loss of $1.12 per share which is narrower than the estimate of a $1.55 loss per share. The company also made more money before taxes, depreciation, and amortization.
CEO Matt Maddox Says..
“We were pleased to see the strong return of our guests at both Wynn Las Vegas and Encore Boston Harbor during the second quarter,”
Matt Maddox said that the earnings at U.S. operations were better than before the pandemic. He also said he thinks there is pent-up demand for travel and leisure because of people who can now afford it because they don’t have to work as much anymore.
Matt Maddox Goes Onto Say…
“While there have been some fits and starts along the road to recovery in Macau, we were encouraged by the strong demand we experienced during the May holiday period, particularly in our premium mass casino and luxury retail segments,”
WynnBet Online Casino And Sports Betting App Is Available In Several US States
“On the development front, WynnBET is currently available in six states with additional launches planned over the coming months,” he noted. “Wynn is also advancing its marketing and branding strategy as we approach the upcoming NFL 2021 season.”
Not a Big Win For Macau Business
Macau’s Gross Gaming Revenue was 31% of levels in the second quarter of 2019. Wynn Macau’s operating revenue was $184 million, which is less than what it was in the first quarter. Adjusted property EBITDA was 14.1 million dollars, and this is less than what it had been in the last quarter.
Wynn Palace had $270.4 million in revenues. This is up from the quarter before, but it is not as much as people expected them to have. Adjusted property EBITDA was $53.6 million, which is higher than the last quarter, but not as high as people expected it to be.
For example, after riding a strong week of results from Golden Week in May, a small COVID-19 outbreak in the Guangdong region of southern China “greatly suppressed” June volumes. Then despite noticing a “slight comeback” as close to normal levels by mid-July, another COVID-19 outbreak occurred which quickly shot back up.
Bill Foley’s company, Wynn Interactive, has seen their gross revenues increase during Q2 and they expect them to continue rising over the rest of the year. The next football season will have a significant part in this.
Overall, this quarter was better than we thought it would be. This is due to the recovery in North America. It’s hard to know how much of the stock will get credit for this because there is uncertainty about gambling in Macau and COVID-19 restrictions in the United States.