Wynn revenue up 168.4% in Q3 as CEO Maddox steps down

Maddox will remain on the Wynn Macau and Wynn Interactive boards until the end of 2022, at the request of Wynn’s board of directors.

Maddox has held roles with Wynn Resorts for 20 years. He took over as chief executive in February 2018, when Steve Wynn stepped down.

“Matt has done an incredible job as CEO since his appointment four years ago,” said Philip G. Satre, chairman of the Wynn Resorts Board.

“The entire board of directors is grateful for Matt’s dedication and leadership of the company and thanks him for all that he has done.”

He will be replaced by Craig Billings, who previously served as chief financial officer and president of Wynn Resorts. Billings will take on the role of CEO effective 1 February 2022. Billings is also chief executive of the Wynn Interactive business.

“The last four years have been challenging but extremely rewarding, and I am incredibly proud that we accomplished so much,” said Maddox.

“I am grateful to the board for their faith in me and the support and insight they have offered me as CEO. I am very pleased with the board’s decision and know I am leaving Wynn Resorts in great hands with Craig, as well as the entire management team.”

Meanwhile, Wynn recorded a 168.4% increase in revenue for Q3 compared to the same period in 2020, bringing in $994.6m.

Casino revenue contributed $496.2m to the total, up 145.8% year-on-year. Food and beverage revenue hit $217.5m, another substantial rise of 183.9%. Rooms generated $173.8m in revenue, up 184.2%, while entertainment, retail and other revenue rose by 247.0% to $107.0m.

However, operating expenses also saw significant increases across the board. Casino expenses hit $315.3m, up by 96.0% from Q3 2020. General and administrative costs rose by 22.6% to $197.3m. Food and beverage costs at $163.6m and entertainment, retail and other costs at $156.4m also more than doubled, up by 113.8% and 1070.4% respectively.

Depreciation and amortization expenses were $177.1m, down slightly by 3.4% year-on-year. The remaining operating costs added up to $68.3m.

In total, the operating costs for the quarter came to $1.07bn. This was an increase of 65.0% year-on-year.

This created an operating loss of $83.6m, though this loss was less than the $283.0m lost in Q3 2020.

Looking at operating income by division and property, Wynn’s Macau locations suffered heavy losses this quarter due to continued restrictions in the region. Wynn Palace made a loss of $58.6m, a difference of $91.8m from a $150.4m loss in the previous third quarter.

Wynn Macau also had an operating loss of $33.2m, down $30.0m year-on-year. Other Macau operating losses of $3.4m brought the total Macau losses to $95.3m, a 55.8% increase.

Wynn’s Macau operations may soon be impacted by the results of a government consultation on a number of changes to gaming in the region, including changes to the number of licences issued and the possibility of introducing government representatives to licensees. However, Maddox praised the structure of the consultation and the transparency involved.

“When the government announced a consultative process, it was very structured,” said Maddox.

“We have been very happy with how open it’s been and how constructive it’s been. And I think that that is going to continue throughout 2022 as Macau really focuses on the long-term health and stability which they have continued to say of the industry and of the region.”

Wynn’s Las Vegas operations, on the other hand, made a profit of $102.7m, an increase of $150.1m year-on-year.

Corporate and other losses took away $104.1m. Wynn’s Encore Boston Harbor location made $13.1m this quarter.

Looking at non-operating costs and income, interest expense came to $150.3m, up from $145.1m year-on-year. Other income costs came to $12.5m. Additional income came to $1.6m.

In total, this led to a $161.1m expense, up by $20.0m year-on-year. This brought the loss before income taxes to $244.8m, down by 42.2%.

After a $1.1m provision for income taxes, the overall net loss for the quarter was $245.9m, down by 70.4% from Q3 2020.

“With our recent investments in innovative food and beverage offerings, a new convention facility in Las Vegas and a revamped casino loyalty program, the best days are ahead for our business in North America,” said Maddox.

“And while there have been some fits and starts along the road to recovery in Macau, we are confident that Macau will benefit from the return of consumer demand as we progress through 2022.”