Wynn Macau reports US$270.6m net loss for Q2

In the previous quarter, the company had reported a net loss of US$188.5m.
In the previous quarter, the company had reported a net loss of US$188.5m.

Operating revenues were down 74.2 per cent year-on-year at US$117.2m.

Macau.- Wynn Macau Ltd has reported that its net loss widened from US$188.5m to US$270.6m in the second quarter of the year. It also registered a fall in operating revenues to US$117.2m, down 74.2 per cent when compared to last year. In the first quarter of the year, the company posted operating revenue of US$298.4m.

Adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) was negative US$90.3m, compared to a positive US$67.6 for the second quarter of 2021.

Craig Billings, chief executive of Wynn Macau Ltd and its parent Wynn Resorts, said: “On a normalised basis, our EBITDA loss was US$900,000 per day in the second quarter. Despite the nearly two-week market-wide casino closure in July, our EBITDA loss has been comparable, at approximately US$1m per day, quarter-to-date in the third quarter.

“Our team has done a fantastic job controlling costs in a very challenging operating environment, through a combination of decreases in payroll and fixed operating expenses.”

Casinos in Macau were ordered to close their doors for two weeks as a countermeasure against a new outbreak of Covid-19 cases that began in June. The temporary closure and general lack of business led Macau’s GGR to fall to its lowest since records began in 2003. Macau’s GGR for the first seven months of 2022 combined stands at MOP26.6bn (US$3.29bn), down 53.6 per cent year-on-year.

Andrew Lee, of Jefferies Hong Kong Ltd, said that the three months to September 30 would likely be another difficult quarter for the firm.

He added: “Macau is at the bottom with gaming revenue currently driven by local players only, and we expect tourists to continue to avoid Macau in the near term. October’s Golden Week holiday will be key, but this depends on Covid-19 cases.” 

Billings noted that Wynn was working on its bid for Macau’s gaming concession tender process. Casino operators must submit their proposals before September 14. According to local media reports, bidders in the gaming retender process will be expected to submit thorough non-gaming plans as part of their applications.

Bids will need to include “the nature, content, amount, location and space, initial and annual investment and implementation plans, estimated economic benefit (especially the proportion of revenue from non-gaming projects about the general income), and the estimate of the extension of the stay in Macau of tourists, regarding the investments of each item, explaining them in a quantifiable way for each year”.

Bidders must also describe their plans for promotional and marketing activities to raise awareness of Macau among international customers. They must submit plans for film festivals, cultural performances and carnivals while strengthening relationships with local small and medium enterprises (SMEs).

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