Wynn Resorts is widely known as a high-end US-based corporation that specializes in the developmental and operational aspects of operating luxury hotel and casino resorts where customers regularly stop by to enjoy exquisite hotels, fine dining, and otherwise memorable experiences.
About Wynn Resorts
It was founded in 2002 by Steve Wynn and is now run by CEO Craig Billings. It is traded under NASDAQ under the symbol WYNN and is a part of the Standard and Poor’s 500 indexes (S&P500), one of the most followed equity indices in the US.
In May 2021, Wynn Resorts also introduced Wynn Interactive, which used to be a public company via SPAC, however, that’s not the case anymore, because the deal with Austerlitz Acquisition Corp has been canceled last November.
Along with the six properties it owns, it also operates a sportsbook that is among the best US betting sites according to the experts at betting.us. Apart from using their several betting sites in the USA, bettors also have the option of downloading the WynnBET app that displays in-game stats live.
As far as the game selection goes, WynnBET is one of those sports betting sites that allows you to bet on a wide selection of markets, including golf, NBA, MLB, NFL, and others.
A Loss in Q3
Wynn Resorts has conducted its 3rd quarter report ending September 30th and the company reports a revenue of $899.7 million which is a decrease of $104.9M from last year’s Q3. The company suffered a net loss of $142.9M for the period or $1.27 per share. This is reduced from a loss of $166.2M in 2021.
The 3rd quarter results were largely hindered by the operation in Macau, while the US properties continued to flourish to a groundbreakingly unexpected extent. However, as things progress, the company might benefit from the relaxation or cancellation of visa-related restrictions in certain provinces.
The Reasons Behind the Loss of Revenue
The casino keeps dealing with limitations in activity in Macau and losing revenue for this reason, however, its US operations are going strong and in fact, delivering record results, the majority of their total revenue coming from the company’s Las Vegas Operations ($544.4M) branch as well as their Encore Boston Harbour ($211.8M).
Unfortunately, the optimistically positive US performance was not enough to manage the losses and create a positive market outcome, as the Macau setbacks resulted in an overall revenue drop of roughly 10%.
The Story From The CEO’s Point Of View
Craig Billings, the CEO of Wynn Resorts, has responded to the drop-off in numbers, stating that their teams at Wynn Las Vegas and Encore Boston Harbor delivered a new third-quarter record for Adjusted Property EBITDA at their combined North American properties.
Their relentless focus on five-star hospitality, combined with their market-leading facilities, continue to elevate their properties above the ones that are run by the competition, firmly cementing them as the destinations of choice for luxury guests, both in Massachusetts and Las Vegas alike.
As far as their Macau branches go, however, the results in Q3 can be described as less than satisfactory. Oddly enough, these are usually the strongest times for the establishment due to the October holiday season.
A Deeper Look Into The Numbers
The revenue at the Macau branches totaled $75.2M at Wynn Palace and $40.4M at Wynn Macau. Both of the facilities were also financially affected by COVID-19 outbreaks and were thus forced to close their doors as a result. This lasted for a period of 12 days in July, as they are required to adhere to China’s extremely strict zero-tolerance policy as it relates to the pandemic.
These losses were also due to the resulting travel restrictions, testing policies, and other measures intended to keep the outbreak as dormant as physically possible. According to Billings, they were pleased to continue experiencing encouraging trickles of demand during the recent October holiday period, stating that they remain confident the market will benefit from the once again revived tourism scene.
The Future Plans
In the future, the company expects to move forward with its plans of bringing its casino gaming model to the United Arab Emirates in the form of an investment, as part of the project referred to as Wynn Marjan in Ras Al Khaimah on the fantastically dreamy Marjan Island. Specifically, things are scheduled to go live on the Island of RAK, touted by some as the ‘mini Ibiza hotspot’ of the region.
According to Hotelier Middle East, the company is hard at work planning their new property, while the Emirate authorities are writing exact gaming laws based on Singaporean and American regulations and laws.
Billings adhered firmly to the fact that the regulations are well underway and the tax rate and structures defined, both of which are supposedly very reasonable, having been modeled after those from Singapore and the United States. He further explained that they’re not looking at a multi-year legalization process like we’ve seen in certain other markets.
If the plans of Wynn Marjan come to fruition, we could be seeing a gigantic casino establishment as early as 2026, with premises totaling 18500 sqm in size and this is only according to the initial plans. This would make the facility one of the biggest of its kind on a global scale.