Wynn Resorts says it expects its Macau results in the third quarter of 2019 to be impacted by the ongoing US-China trade war and social unrest in Hong Kong.
The company made the announcement in a filing to the Securities and Exchange Commission on Thursday.
“Consistent with the broader Macau market, we anticipate our Macau Operations’ casino revenues and Adjusted Property EBITDA for the third quarter of 2019 will be negatively impacted by significantly lower VIP gaming turnover resulting from a variety of factors in
the region, including the ongoing trade dispute between the U.S. and China and disruptions in Hong Kong SAR.”
VIP will also be impacted by an unusually low hold in direct VIP operations, despite VIP win as a percentage of turnover being in its expected range.
“We expect VIP gaming results to be partially offset by continued growth in mass-market table drop and slot handle,” it added.
In Las Vegas, Wynn said it anticipates casino revenues and adjusted property EBITDA to be negatively impacted by its table games win percentage, though it noted that its table drop and slot handle at its Las Vegas Operations was higher for the first two months of the third quarter of 2019.
Based on these trends, Wynn Resorts says it expects its total operating revenues to be in the range of approximately $1.01 billion to $1.12 billion for the two months ended August 31, 2019, down from $1.15 billion in the prior-year period.
Adjusted Property EBITDA, excluding certain leased retail space directly owned by Wynn Resorts, to be in the range of approximately $225 million to $248 million, compared to $339.4 million.
The company has based its anticipated results on preliminary financial information from July 1, 2019, through August 31, 2019.
Private notes offering
In addition to its results expectations, the company also announced that Wynn Resorts
Finance, LLC is offering $750 million aggregate principal amount of Senior Notes due 2029 in a private offering.
Wynn Resorts Finance plans to use the net proceeds from the offering, together with borrowings under the Senior Secured Credit Facilities, to (i) refinance the existing credit facilities of Wynn Resorts and Wynn America, LLC and (ii) pay related fees and expenses.