Wynn Resorts recently held its second-quarter earnings call, and CEO Craig Billings discussed two main themes: all-time revenues in Las Vegas and Boston, and the continued underperformance of the Macau market.
According to the company, Wynn Las Vegas tallied $227 million in second quarter earnings, which represents a new quarterly record for the market, 40 percent higher than the previous mark set back in 2014. Billings said that Wynn’s “performance in Las Vegas speaks for itself.”
Additionally, Wynn’s Encore Boston property brought in $64 million in adjusted revenue, representing a second-quarter record for the market. This is perhaps the most welcome news of all for investors, given that Massachusetts’ recent move to legalize sports betting is almost sure to bring in even more traffic once it is implemented.
The bad news, however, continues to come from Macau—Billings said that the company’s gross gaming revenue in July was a dismal 2 percent of what it was in July 2019. Overall, Wynn Macau registered a $90 million loss in the second quarter, equivalent to about $900,000 per day.
As with all Macau operators, Billings is confident that the numbers will eventually return to normal once Covid and travel restrictions are eased, whenever that may be.
Despite the uncertainties with Macau, Wynn is forging ahead with plans to develop an integrated resort project on Al Marjan Island in the United Arab Emirates, which will feature an expansive casino, a hotel with over 1,000 rooms, shopping centers and more.
Billings said that as the project continues to develop, “the more I’m convinced of our ability to build a robust gaming and non-gaming business.”
