Wynn Palace revenues not enough to offset overall revenue decline

Strong results for Wynn Palace was not enough to fully offset the total revenue decline for Wynn Resorts in 19Q1, with Wynn Macau and Las Vegas operational revenue falling in the quarter.

Thd company however was able to swing to net income of $103.9 million in the first quarter of 2019, compared to a net loss of $204.3 million in the prior year period, primarily due to a litigation settlement of $463.6 million, partially offset by an income tax benefit which affected income in the first quarter of 2018.

Adjusted property EBITDA for $494.8 million, down 12.3 percent year-on-year.

The results were largely in-line with analyst estimates.

The company recorded growth in operating revenues from its Wynn Palace resort, increasing 9.1 percent year-on-year to $726.6 million. This was attributed to a rise in casino revenues in the quarter, namely VIP table games turnover, along with mass table games drop, partially offset by lower slot machine handle.

However, operating revenue from both Wynn Macau and its Las Vegas operations fell by 15.3 percent and 7.1 percent, respectively, with casino revenues to blame for both.

Looking ahead, Wynn is working on constructing Encore Boston Harbor, an integrated casino resort in Everett, Massachusetts.

The resort will contain a hotel, a waterfront boardwalk, meeting and convention space, casino space, a spa, retail offerings and food and beverage outlets.

The total project budget, including gaming license fees, construction costs, capitalized interest, pre-opening expenses and land costs, is estimated to be approximately $2.6 billion.

The company expects to open Encore Boston Harbor in mid-2019.

The company is also constructing an approximately 430,000 square foot meeting and convention facility at Wynn Las Vegas and have begun construction activities in connection with the reconfiguration of the Wynn Las Vegas golf course.

Based on current designs, the total project budget is estimated to be approximately $425 million.