Cost controls, high hold helps Wynn Macau Ltd continue recovery in 1Q20 as loss narrows to US$75 million

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Wynn Macau Ltd continued to show steady progress in its recovery from the impact of the COVID-19 pandemic in 1Q21, with operating loss narrowing and revenues and EBITDA rising compared with the previous quarter driven by the performance of Wynn Palace.

The Macau results formed part of parent company Wynn Resorts first quarter earnings release issued early Tuesday (Asia time), with group-wide revenues falling 23.9% year-on-year to US$$725.8 million but improved from revenues of US$686.0 million in 4Q20.

Likewise Macau operations, comprising Wynn Palace in Cotai and Wynn Macau on the peninsula, saw operating revenues down 14.7% year-on-year but up 3.4% quarter-on-quarter to US$417 million.

Adjusted EBITDA increased from US$39.4 millionin 4Q20 to US$43.9 million also well above the US$29.4 million achieved in 1Q20 while loss narrowed from US$111.3 million in Q4 to US$75.0 million. Tight cost controls and high hold in the premium segments were credited for adding between US$10 million and US$15 million in Adjusted EBITDA for the quarter.

At Wynn Palace, operating revenues grew from US$221.5 million in 4Q20 to US$237.3 million in 1Q21 although Adjusted Property EBITDA fell very slightly to US$27.4 million

VIP table games win of US$96.5 million was aided by a high win rate of 4.38%, while mass market table games win exceeded the first quarter of 2020 at US$131.6 million.

At Wynn Macau, operating revenues of US$179.7 million were below the US$181.9 million achieved in 4Q20 although Adjusted EBITDA was considerably higher at US$16.6 million versus US$10.7 million in Q4.

VIP table games win was down 52.2% on 1Q20 to US$58.6 million and mass table win down 10.8% to US$105.2 million

Our first quarter results reflect continued progress in our business as consumers began to once again travel to their favorite leisure and gaming destinations, said Wynn Resorts CEO Matt Maddox.

In Macau, we experienced continued gradual improvement in visitation trends driving particular strength in premium mass casino and luxury retail.

Maddox noted that customer volumes, particularly in the mass and premium segments, had shown considerable strength in March and continued since through April and May.