Wynn Resorts could post a loss of $2 million in Vegas to be offset by a $17.8 million operating income jump in Macau, according to preliminary third-quarter financial results released by the company after trading yesterday.
Adjusted property earnings before interest, taxes, depreciation and amortization is expected to be between $68 million and $72 million in Vegas, compared to last year’s result of $93.2 million. The company attributes this to a lower hold percentage and an increase “in our bad debt reserve based solely on the current global economic uncertainty.”
“Our company had a solid third quarter in both Las Vegas and Macau, but we have very little visibility on future earnings due to the global economic situation and the recently imposed travel restrictions in Macau,” Wynn Resorts stated in the preliminary report.
The total cash balance at the end of the quarter was reported at $1.7 billion with approximately $1.1 billion in excess cash, and total debt was noted at $4.9 billion. The preliminary report did not include earnings per share.