Casino companies around the US have recently begun to release their revenue reports for the year’s third quarter. It’s clear that some of these companies are faring better than others. This week, more reports on Wynn Resorts’ revenue figures were officially released to the public.
This company has gone through some major changes in recent months. Now is a great time to discuss how these changes might affect Wynn Resorts moving forward. We’ll also take a close look at how much this casino operator brought in over July, August, and September.
Let’s get into it!
Breaking Down the Reports on Wynn Resorts’ Revenue for Q3
The past ten months have been some of the most successful in history for casino companies around the US. That is an incredible achievement, particularly when taking into account how dire things were for this industry in 2020. Tourism to major gambling hubs has increased throughout the year and casino revenue was flowing in.
Many casino companies have recently released their Q3 revenue reports. That includes Las Vegas Sands, which experienced a revenue decline during this period. This is primarily due to the company’s struggling properties in Macau.
Wynn Resorts’ revenue during Q3 also declined. Much of this is due to Wynn Resorts’ marketing efforts. This company managed to generate $183.4 million in adjusted EBITDA on $476 in operating revenue. Officials then discussed the company’s sports betting operations and revealed a new plan to focus more on WynnBet’s success.
Outgoing CEO Matt Maddox spoke about these reports during a conference call this week. He claims the company will focus on long-term strategies, rather than expensive marketing campaigns.
The market is really not sustainable right now,” Maddox said. Competitors are spending too much to get customers. And the economics are just not something that we’re going to participate in. We are focused on building a long-term business that’s sustainable, that is not losing lots and lots of money. So we are shifting our strategy to think about the long term, and think about cash preservation.”
It’s clear that Wynn Resorts is focused on making changes right now. That includes a change in leadership. Let’s take a look at some of the executive switch-ups happening within the company.
What to Expect From Wynn Resorts’ New CEO
Wynn Resorts has been dealt some unfortunate hands over the past two years. The company’s founder, Steve Wynn, was involved in numerous sexual misconduct cases. Company officials then began scrambling to figure out who would take over as CEO.
Max Maddox was eventually chosen. He has led the company during the mass shutdowns experienced in 2020. It seems these difficult times took a toll, as Maddox revealed that he will be stepping down as CEO in 2022.
Craig Billings, CEO of Wynn Interactive and former President and CFO of Wynn Resorts, was unanimously selected as the company’s new CEO. Many seem confident in Billings’ ability as the new company leader. He has been with the company for more than two decades and helped Wynn Resorts manage through the pandemic.
It seems that the upcoming CEO is already making plans for the future. Wynn Resorts’ revenue reports show that changes are needed. Whether that means less of a focus on operations in Macau remains to be seen. For nearly two years, Asia’s largest gambling hub has been bleeding several US casino operators dry.
A huge amount of attention has been put on Macau lately. Here’s a look at how casino operators may approach this major casino hub in 2022.
Is Macau No Longer a Profitable Casino Destination?
Macau has been considered one of the world’s most profitable gaming destinations for decades. As one of the few major casino hubs in Asia, it regularly draws in millions of gamblers from Mainland China, Japan, and Australia. The events that unfolded in 2022 took a massive toll on this territory.
Unlike the US casino industry, Macau’s casinos have found it difficult to generate revenue since early 2020. This is largely due to intense travel restrictions set in place by Mainland China. This has taken a major toll on the US casino companies with properties here.
Las Vegas Sands is one company that is being forced to take a hard look at its operations in Macau. Wynn Resorts and MGM Resorts International are others that own casinos here. All have seen poor revenue figures from their operations in this territory.
There is some confusion about the renewal of these company’s casino licenses in Macau. It seems unlikely that officials in Macau would choose not to renew these licenses. Anything is possible nowadays, though. Stay tuned for more information on Macau’s struggling gaming industry as the year goes.
Are you surprised to hear about Wynn Resorts’ revenue figures? How do you think Craig Billings will fare as the company’s new CEO? Let us know in the comments section below.