Wynn Macau Hoping to Attach Premium Players Through New Upgrades
Wynn Resorts is targeting growth in Macau by enhancing its high-end gaming and hospitality offerings at its two properties in the region. The casino operator is expanding its investment in Macau even as its local revenue there slips.
The Wynn Palace casino resort in Macau at night. (Source: Wynn Resorts)
LISTEN TO THIS ARTICLE:The company's leadership, led by CEO Craig Billings, recently shared insights into its strategic efforts during Wynn Resorts' third-quarter 2024 earnings call. These efforts include significant upgrades to the exclusive Chairman's Club gaming areas at both Wynn Macau and Wynn Palace, along with further enhancements to the properties' loyalty programs and specialized events. The goal is to attract more premium clientele and solidify Wynn's market share in Macau, where competition remains intense.
Related: Wynn Resorts Announces Expansion Plans for Thailand and UAEBillings outlined ongoing initiatives to refresh Wynn Macau's Chairman's Club and a similar upgrade planned for Wynn Palace. These renovations are part of a broader capital expenditure plan designed to elevate the gaming experience and secure loyalty among high-stakes players.
Additionally, Wynn is reinforcing these improvements with refinements to its loyalty program and expanding its "Only at Wynn" offerings, which include a selection of exclusive culinary, entertainment, and sports events. Billings emphasized that these investments are essential for positioning the company competitively in the Macau market, particularly given the demand for unique, high-end experiences among visitors.
Beyond gaming, Wynn is also focusing on enhancing its non-gaming amenities, which play a critical role in attracting diverse guest demographics. Recent projects include the opening of four revamped food and beverage outlets at Wynn Palace, the debut of the Drunken Fish restaurant at Wynn Macau, and plans for a food hall at Wynn Palace scheduled to open in mid-2025.
According to Billings, these new outlets are designed to complement the company's established standards in hospitality and provide an edge in market differentiation. The company views these additions as long-term assets that will strengthen Wynn's appeal across a variety of visitor segments, thus supporting a steady growth trajectory into 2025 and beyond.
In the coming years, Wynn also intends to further develop its concession-related capital expenditures, which will encompass new amenities such as an events center and a production show aimed at increasing visitor numbers. Billings noted that the strategy of investing in exclusive experiences has proven effective in Macau's competitive landscape. He also expressed confidence in Wynn's ability to maintain its leadership by leveraging the brand's reputation for luxury and exceptional service.
More Business News
An Economic Slowdown
Wynn's Chief Financial Officer Julie Cameron-Doe provided financial guidance on the company's projected expenditures, indicating that concession-related capital spending will range between $350 million and $425 million from 2024 to the end of 2025. Much of this spending will be allocated to expanding and refining Wynn Palace, aligning with Wynn's strategic goal of drawing premium customers to its top offerings.
Financially, Wynn's Macau operations generated $871.7 million in revenue for the third quarter of 2024, reflecting a 6.3% year-on-year increase. However, revenues were down slightly from the previous quarter, declining by 1.5%.
Adjusted property earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) also dropped by 6.2% quarter-on-quarter, amounting to $262.9 million. Wynn Palace, situated on Cotai, experienced some challenges, with total operating revenue falling by 5.1% from the June quarter to $519.8 million. While casino revenue remained consistent with the previous year at $418.0 million, adjusted property EBITDAR saw an 8.3% decrease year-on-year.
Conversely, Wynn Macau, located on the peninsula, posted stronger results. The property reported $352.0 million in total operating revenue for the third quarter, marking a 19.3% increase from the same period in 2023 and a 4.4% rise sequentially. The property's casino revenue also rose by 28.9% year-on-year, reaching $296.8 million, and its adjusted property EBITDAR climbed by 29.1% compared to the previous year.
According to Billings, the Macau results demonstrate robust demand, particularly in the mass gaming segment, with Wynn experiencing a combined growth in mass and table game win of 10% year-on-year. He noted that recent upgrades to Wynn's food and beverage offerings in the peninsula property have contributed to the property's improved performance and market positioning. Despite a challenging competitive environment, Wynn remains focused on initiatives that enhance EBITDA rather than purely targeting market share expansion.
Billings acknowledged the quarter's unique characteristics, mentioning that while Wynn's market share remained stable, the overall gross gaming revenue (GGR) in Macau had declined quarter-over-quarter. He also cited higher VIP commissions as a factor impacting the results, which coincided with increased VIP turnover. This focus on profit and value generation remains central to Wynn's approach in the region, where maintaining EBITDA and delivering an exceptional guest experience are prioritized.
Overall, Wynn reported group-wide revenues of $1.69 billion for the third quarter of 2024, a slight increase from the previous year's $1.67 billion. However, the company reported a net loss of $32.1 million, an improvement from the $116.7 million loss recorded in the same period last year. Still, the company remains optimistic about its strategic investments in Macau, viewing them as crucial steps toward ensuring long-term growth and stability in a rapidly evolving market.
RELATED TOPICS: Business
Latest News
Most Read
Must Read
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Wynn Macau Hoping to Attach Premium Players Through New Upgrades