Wynn Resorts struggles as Macau, Vegas VIP gamblers go AWOL

Casino operator Wynn Resorts reported falling revenue and earnings in Q1 as VIP gamblers gave its Macau and Las Vegas casinos a wide berth.

Figures released Thursday show Wynn’s revenue falling 3.7% year-on-year to $1.65b in the three months ending March 31, while adjusted earnings fell 12.3% to $494.8m and net income totaled $104.9m versus a net loss of $204.3m in Q1 2018, although that loss was attributable to costs associated with resolving ex-CEO Steve Wynn’s legal woes.

Wynn’s operations in Macau were a mixed bag, with the new Wynn Palace property reporting revenue up 9.1% to $665.8m and earnings up 5% to $212m. By contrast, the Wynn Macau venue’s revenue fell 15.3% to $524m while earnings fell 22% to $164m.

Both properties reported significant declines in VIP gambling turnover, with Wynn Palace down 18% to $12.6b and Wynn Macau tumbling 40.3% to $10.2b. A reprieve of sorts came via Wynn Palace’s 3.91% VIP win rate, a full 1.3 points higher than the year before and well above the normal 2.7-3.0% range, while Wynn Macau’s win rate rose 0.3 points to 2.9%.