Wynn Resorts Ltd reported a consolidated net loss of $13 million in the second quarter of 2022 which ended on June 30 missing estimate by $72 mln.
On a year-on-year basis the company’s loss just narrowed down 1 percent by merely $1,318 as compared to net loss of $13.1 million as reported in the same period last year.
Consolidated revenue stream of the company chiefly declined due to the dent in casino revenues on a year-on-year basis, with the Macau component making a severe impact on the top-line as well on the bottom-line.
“In Macau, while COVID-related travel restrictions continued to impact our results, we remain confident that the market will benefit from the return of visitation over time,” said Craig Billings, CEO of Wynn Resorts, Limited.
Operating losses in the Macau Component in the second quarter of 2022 widened three times on a year-on-year basis at $185 million from $49 million.
“The results of operations of our Macau Operations for the second quarter of 2022 continued to be negatively impacted by certain travel-related restrictions and conditions, including COVID-19 testing and other mitigation procedures, related to the COVID-19 pandemic,” the press release read.
Macau Vs Vegas
Las Vegas component contributed 63 percent to the consolidated net revenues of the company in the second quarter at $561 million from $355 million registering growth of 58 percent on a year-on-year basis.
Whereas Encore Boston Harbor contributed 24 percent to the consolidated topline of the company registering 27 percent growth in revenues on a year-on-year basis at $210 million from $165 million.
“Our second quarter financial results reflect continued strength at both Wynn Las Vegas and Encore Boston Harbor. Our teams’ ongoing focus on five-star hospitality and new experiences at our market-leading properties combined with very strong customer demand drove a new all-time quarterly record for Adjusted Property EBITDA at Wynn Las Vegas and a second quarter record at Encore Boston Harbor,” said Craig Billings, CEO of Wynn Resorts, Limited.
Casino hits topline
Consolidated net revenue of the company missed the analyst estimates by $72 million declined 8 percent on a year-on-year basis at $909 million from $990 million.
Analyst estimates pegged Wynn Resorts 2Q22 consolidated net revenue at $980 million.
Of the consolidated net revenues for June 22 quarter, casino revenues constitute 39 percent of the revenue pie.
Food & Beverages segment represents 26 percent, Rooms segment 22 percent and entertainment, retail & other segments 13 percent.
While the rooms, food & beverages and Entertainment-Retail and Other segments registered growth in the second quarter of 2022, Wynn Resorts’ casino segment revenues culled 40 percent on a year-on-year basis at $360 million from $603 million.
Operating expenditure grew significantly for Rooms as well Food & Beverages segment at 29 percent and 58 percent respectively.
Pre-opening expenditure, as well property charges made a significant hole in the earnings of the company for June 22 quarter.
While the total operating expenditure of the company in the June 22 quarter declined by 6 percent on a year-on-year basis at $960 million from $1 billion, operating losses grew phenomenally at 76 percent on a year-on-year basis at $52 million from $30 million.