Wynn Q3 Profit Falls 80% to $17.3 Million on Las Vegas Hold and Macau VIP Slide

Bad luck at the Las Vegas tables, a shrinking Macau VIP business and a Boston strike that has now ended cut Wynn Resorts' quarterly profit by four fifths. Strip out the hold and Las Vegas still earned less, while cash keeps flowing to the UAE.

• Wynn Resorts reported third-quarter net income attributable to the company of $17.3 million on 5 November, down 80.4%, on revenues of $1.69 billion, down 7.9%
• Las Vegas table games held 18.9% against an expected 22% to 26%, which the chief financial officer said cost just under $24 million
• Macau Operations revenue fell 8.2% to $919.2 million as VIP turnover at Wynn Macau more than halved, adding to a quarter in which Macau's mass baccarat revenue fell 7.9%
• About 1,300 Encore Boston Harbor workers who walked out on 4 September ratified a new contract late on 5 November and returned to work on 6 November
• Wynn's cumulative cash contributions to Wynn Al Marjan Island reached $1.12 billion, with the resort still expected to open in September 2027

Every Property Earned Less Than a Year Earlier

Wynn Resorts' third-quarter release of 5 November shows operating revenues $144.7 million lower than a year earlier. Diluted earnings per share fell to $0.17 from $0.85, and adjusted earnings to $0.33 from $0.86. Adjusted Property EBITDAR fell 18.6% to $464.2 million.

Every segment declined. Las Vegas Operations produced $158.8 million of Adjusted Property EBITDAR, down from $203.4 million, on revenues down 7.4% to $575.2 million. Macau Operations produced $255.3 million, down from $308.3 million: $165.8 million at Wynn Palace and $89.5 million at Wynn Macau. Encore Boston Harbor produced $50.1 million, down from $58.4 million.

Chief executive Craig Billings said in the release that Wynn Las Vegas was hurt by "a hold rate outside of our expected range". On the call, chief financial officer Craig Fullalove put that cost at just under $24 million, and said above-expectation VIP hold added just under $12.3 million in Macau. Billings said the rest of the fourth quarter in Las Vegas looked healthy.

Macau's VIP Rooms Are Emptying

Figures filed in Hong Kong by Wynn Macau, Limited, about 71% owned by Wynn Resorts, show Macau Operations revenue down 8.2% to $919.2 million. VIP turnover at the Wynn Macau peninsula property fell 53.9% to $470.4 million, on 11 VIP tables against 17. At Wynn Palace, VIP turnover fell 14.3% and mass table drop 12.9%, although a 25.8% mass win rate, against 22.6%, held mass table win almost flat.

Billings called the Macau quarter mixed, with a soft September, and said Golden Week was in line with last year before volumes declined late in October. He also set out plans to add 432 suites to Wynn Palace, where occupancy was 99.0%.

The Boston Strike Is Over

Billings called the Encore Boston Harbor strike "a modest headwind". UNITE HERE Local 26 and Teamsters Local 25 members ratified a new contract late on 5 November, according to GBH News and CDC Gaming Reports, and returned on 6 November. Terms were not disclosed; Carlos Aramayo, president of Local 26, said the deal met Greater Boston market standards. The strike had cut the property's September gaming revenue by 22%.

Cash Keeps Flowing to Ras Al Khaimah

Wynn contributed $62.2 million in the quarter to the 40%-owned joint venture building Wynn Al Marjan Island, taking its cumulative contributions to $1.12 billion, and says guest room fit-out is under way for a September 2027 opening. Fullalove said $1.76 billion had been drawn on the construction loan. The board declared a $0.25 dividend, payable on 30 November, and Wynn bought back $58.1 million of stock. Debt stood at $10.73 billion against cash of $1.64 billion.

The Hold Explains Only Half of the Las Vegas Decline

Las Vegas EBITDAR fell $44.6 million. Add back the $24 million attributed to hold and it still fell by about $20 million. Last year's 23.0% hold sat inside the expected range, so the base is not flattered. That points to softer Strip demand, consistent with MGM Resorts' falling Strip profit, though Wynn describes its forward bookings as healthy.

Macau's Hold Is Masking a Smaller Business

Macau benefited from about $12.3 million of favourable VIP hold, which means the 17.2% fall in Macau EBITDAR understates the underlying weakness. Wynn Macau's VIP turnover has halved, and even Wynn Palace's strong mass win rate rested on 12.9% less drop. The 432 suites suggest Wynn is backing premium mass at Cotai rather than chasing the VIP volume that has gone.

Al Marjan Now Sets the Pace

With $1.12 billion committed and ten months to go, Billings indicated that decisions on further development would wait until Al Marjan's demands ease. Continued dividends and buybacks suggest Wynn sees no strain yet, but a weak quarter leaves less room.

A strike settled and a hold shortfall that should reverse make the quarter look worse than the business. A smaller VIP book in Macau and softer Las Vegas volumes are the parts that will not reverse on their own.