Wynn profit falls 72% as Macau turns from certainty to weakness

If anyone doubted the severity of Macau’s casino gaming revenue decline, a quick look at Wynn Resorts’ Q2 numbers would convince them.

Wynn reported net income of $56.5m in the three months ending June 30, 72% less than the company reported in the same period a year ago. Total revenue fell 23% to $1.045b, with Las Vegas operations down 6.2% to $423.5m and Macau off 35.8% to $617m.

VIP table game turnover at Wynn Macau was off 41% in Q2 and mass market table drop fell 16.5%. While VIP win rate of 2.92% was flat year-on-year, mass market win came in at 17.5%, nearly four points down from last year, pushing mass win down 33% to $208.6m. Slots handle and win fell 29.5% and 22.5% respectively. Non-gaming revenue was down 22.3% to $78.1m and occupancy fell two points to 96.4%.

In Vegas, gaming revenue fell 26.2% as table drop fell 19% and table win fell nearly eight points year-on-year to 19.5%, below the expected range of 21% to 24%. On the plus side, slots handle nudged up 0.7% while slot win gained 10.6%. Non-gaming revenue was up 5.3% to $330.3m.