Wynn’s Casino reported the revenue and net income for Q2 on Tuesday. The results are underwhelming for Wynn as the net income fell almost to two-fifth. The net income is reported to be $94.6m. However, on the revenue front, the company has some good news. It has reached $1.66b and this is 3.3% more than in the same period of last year. The company has also reported an increase of 1% for the adjusted property.
The Wynn Resorts continue to do well in Las Vegas. The two casinos of Las Vegas have reported an increase of revenue by 5% to $464m. The earnings have improved by 10.7% with the figure of $137.4m. There were double-digit gains in both the table and slots win. The hotel occupancy was also impressive and the non-gaming revenue increased by 1.3% to $344.4m.
Early speculation has already started about the profit decline of Wynn’s Casino. However, the company has come up with the explanation. June was an eventful time for the Wynn Resorts and a new venue was opened, Encore Boston Harbor. The company has partly blamed the pre-opening expenses of this venue as a dent to the profit. The return from Boston Harbor is yet to make an impact, as it was only open for a week in the Q2. In the one week, it contributed around $100k to profit and $18.8m to the revenue. The management is hopeful that the next quarter should have more realistic numbers for Encore Boston Harbor of Wynn Resort.
However, Wynn Resorts face a worrisome and critical situation in Macau. Wynn Macau, the original property in Macau has shown a drop one-third in the VIP turnover. The revenue surged by 0.6% to $546.5m. The gaming revenue was $481.2m for Wynn Macau though. The win percentage for the VIP here was surged by 0.74%.
The Wynn’s Palace is doing better than Macau however. The gaming revenue was increased by 1.3% to $528.5m. However, the 4.6% decline in the VIP turnover has pushed a few panic buttons among the management of the Wynn Resorts. The non-gaming revenue of Palace was up by 5% to $100.4m.
The management seems to have a plan for both Wynn’s Palace and Wynn Macau especially to account for the VIP drop. Wynn CEO Matt Maddox said that the company is ensuring to turn Wynn Macau to a property for the mass attraction. The Wynn’s Palace would deal with the VIP segment. However, this is easier said than done. Wynn’s Palace requires more rooms. The CEO confirmed that many guests are turned away as the property is currently booked. Wynn’s Palace Crystal Pavilion extension has the plan to add 650 more rooms and the construction is to begin somewhere in late 2021. The company has also planned for another 650 rooms for Crystal Pavilion, however, no more plan has emerged on that.