Wynn Q3 net income drops 80% to $17.3m as Las Vegas hold and Macau VIP slump bite

Wynn Resorts reported third-quarter net income attributable to the company of $17.3 million on 5 November, a decline of 80.4%, with revenue of $1.69 billion, down 7.9% year‑on‑year. The company attributed the results to a low Las Vegas table hold, a sharp reduction in Macau VIP activity and a labour disruption at Encore Boston Harbor that has since been resolved.

Results overview and segment performance

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

Every operating segment reported lower income versus the prior year. Las Vegas Operations produced $158.8 million of Adjusted Property EBITDAR, down from $203.4 million, on revenues of $575.2 million, a 7.4% decline. Macau Operations generated $255.3 million, down from $308.3 million; that figure comprises $165.8 million at Wynn Palace and $89.5 million at Wynn Macau. Encore Boston Harbor earned $50.1 million, down from $58.4 million.

Chief executive Craig Billings said Wynn Las Vegas was hurt by "a hold rate outside of our expected range". On the earnings call, chief financial officer Craig Fullalove quantified the Las Vegas shortfall at just under $24 million, and said above‑expectation VIP hold in Macau added just under $12.3 million.

Las Vegas: hold explains part but not all

Table games at Wynn Las Vegas held 18.9% in Q3 against an expected range of 22% to 26%, a shortfall the company says cost "just under $24 million." Las Vegas Adjusted Property EBITDAR fell $44.6 million year‑on‑year; adding back the $24 million attributed to hold still leaves a decline of about $20 million. Last year's hold of 23.0% sat inside the expected range, so the prior base was not artificially high.

Wynn described forward bookings for Las Vegas as healthy on the call, and Billings said the remainder of the fourth quarter looked healthy.

Macau: VIP squeeze and mixed mass performance

Wynn Macau, Limited — about 71% owned by Wynn Resorts — filed figures in Hong Kong showing 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, conducted on 11 VIP tables versus 17 in the prior period. The company's filings and supplemental data also show mass baccarat revenue in Macau declined 7.9%.

At Wynn Palace, VIP turnover fell 14.3% and mass table drop was 12.9% lower, although a 25.8% mass win rate (against 22.6% previously) kept mass table win almost flat. Billings characterised the Macau quarter as mixed, citing a soft September and volumes that declined late in October after Golden Week was in line with the prior year.

Wynn said it plans to add 432 suites to Wynn Palace, where occupancy was 99.0%, signalling a push into premium mass rather than chasing restored VIP volume.

Encore Boston Harbor strike and resolution

About 1,300 Encore Boston Harbor workers walked out on 4 September. Union members from UNITE HERE Local 26 and Teamsters Local 25 ratified a new contract late on 5 November and returned to work on 6 November, according to GBH News and CDC Gaming Reports. Terms were not disclosed; Carlos Aramayo, president of Local 26, said the deal met Greater Boston market standards. The strike reduced the property's September gaming revenue by 22%, which Wynn described as "a modest headwind."

Capital allocation, Al Marjan and balance sheet

Wynn contributed $62.2 million in the quarter to the 40%-owned joint venture building Wynn Al Marjan Island, taking cumulative contributions to $1.12 billion. The company says guest room fit‑out is under way for an expected September 2027 opening. Craig Fullalove reported $1.76 billion had been drawn on the construction loan.

The board declared a $0.25 per‑share dividend, payable on 30 November, and authorised share repurchases, buying back $58.1 million of stock in the quarter. Reported debt stood at $10.73 billion against cash of $1.64 billion.

What the numbers reveal

Macau benefited from roughly $12.3 million of favourable VIP hold in the quarter, meaning the reported 17.2% fall in Macau EBITDAR understates the underlying weakness caused by halved VIP turnover at Wynn Macau. The company's breakdown shows the Las Vegas hold shortfall explains only about half of the Las Vegas EBITDAR decline; the remainder points to softer Strip demand. With $1.12 billion committed to Al Marjan and ten months until the scheduled opening, Billings indicated further development decisions will wait until construction and funding demands ease.

"A hold rate outside of our expected range," Craig Billings said, describing Wynn Las Vegas's Q3 headwind.

Carlos Aramayo, president of Local 26, said the ratified deal "met Greater Boston market standards."

Wynn framed the quarter as worse than the underlying business, noting a one‑time strike and a temporary hold shortfall that should reverse, while flagging a structurally smaller VIP book in Macau and softer Las Vegas volumes that will not correct without demand improvement.