Wynn Macau casinos underperformed in Q2

Even with total casino revenue improving in Q2 2017, Wynn’s casinos in Macau performed below average in the mass market operations.

Macau.- Wynn Resorts revealed its Q2 2017 Macau casino results and reported an improvement in total casino revenue, but also underperformed in the mass-market operations, which showed softness in both Wynn Macau casino and Macau Palace. Results caused the company to lose 4 percent in after-hours trading.

Neither the higher revenue, which was up 44 percent year-to-year to US$1.53 billion (Macau Palace’s was 180 percent higher than the company’s combined Las Vegas Operations at US$372 million), nor the adjusted earnings per share growth could make up for the softness in the mass-market operations on both venues. According to CNBC, investor’s concerns on that performance caused Wynn’s stock to drop.

“It’s very important that you don’t get caught up in the very short-term myopia that your professions demand in many respects,” said Chairman and CEO Steve Wynn at an earnings conference call. “It’s the big things that determine the long-range viability of these places,” he added.

Wynn assured its investors that “the train is on schedule” and explained that “the future of the company is being built intelligently, with a strong foundation.” He further detailed that thrends in the gambling room are “less than half of our business,” yet he conceded they can be volatile.

Management also reported that the company is still making sequential market share gains against its competitors in Macau, despite the softness in the mass market business. Wynn Macau President Ian Coughlan held the smoking ban issue responsible for the mass market performance.

Wynn also explained that “the mass is really affected by the physicality of the neighborhood,” and explained: “Mass has an awful lot to do with access. We’re literally surrounded on four sides by things that are under construction that will all add to our mass.”