Mass market growth keeps Wynn afloat as Macau revenues rise 1.0% in 2Q19

The results were driven by higher volumes in the mass market segment as well as improved luck in VIP where volume fell at both Macau integrated resorts, Wynn Palace and Wynn Macau.

At Wynn Palace, operating revenues rose 1.3% to US$628.9 million in 2Q19 with casino revenues up 0.7% to US$528.5 million. VIP turnover for the period was down 4.6% to US$13.39 billion, aided by a slight improvement in win rate to 3.02%.

Conversely, mass market table drop grew 4.0% to US$1.27 billion, while mass table games win was up 5.8% to US$296.9 million. Slot machine handle fell by 0.3% to US$937.8 million.

Adjusted Property EBITDA at Wynn Palace was US$167.2 million, a 6.8% decrease from US$179.3 million in 2Q18.

At Wynn Macau, operating revenues grew 0.6% to US$546.5 million with Adjusted Property EBITDA rising 1.7% to US$175.9 million for the quarter.

Casino revenues at the peninsula property were up 1.7% to US$481.2 million despite VIP table games turnover plummeting 33.4% to US$9.28 billion. Just like at Wynn Palace, VIP was boosted by a high 3.30% win rate – well above the expected range as well as the 2.56% win rate experienced in the June 2018 quarter.

Mass market table drop grew 4.2% to US$1.35 billion with table games win up 10.7% to US$279.1 million. Slot machine handle fell 3.9% to US$925.8 million although win increased 5.9% to US$42.8 million.

Commenting on the group’s 2Q19 results, which also included a 5.1% increase in revenues from its Las Vegas operations to US$464.1 million, CEO Matt Maddox referred to “particular strength in our core mass business in Macau” while also highlighting the recently announced expansion of Wynn Palace.

“We have made meaningful progress designing and planning the Crystal Pavilion in Macau, which we believe will be a ‘must-see’ tourism destination on Cotai,” Maddox said.

Wynn Resorts Limited announced a cash dividend of US$1.00 per share to be paid on 27 August 2019.