Thursday, July 18, 2024 - Login

Wynn Macau Q3 to be impacted by trade dispute, protests

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.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

Contact us

PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264

Asia Gaming Brief