Wynn Macau has reported solid first quarter results, with the company registering a profit of $47.13 million during the three-month period, a complete about-face from the $98.26 million loss recorded in the same period of 2022. The group also recorded adjusted property EBITDAR of $155.8 million.
The figure reverses a negative adjusted property EBITDAR of $5.54 million recorded in 1Q22.
Wynn Palace
Total revenue from the group’s Cotai Strip property, Wynn Palace, totaled $369.36 million during the period, a yearly rise of 126.2 percent, while adjusted property EBITDAR rose to $111.05 million, reversing a loss of $864,000 in 1Q22.
Casino revenues at the property amounted to $270.68 million, up 136.6 percent yearly.
VIP turnover was also up 137.5 percent yearly, topping $2.29 billion, at the property, as opposed to mass table drop of $1.18 billion (up 122.2 percent yearly). VIP table games win as a percentage of turnover was below the group’s expected range, at 2.72 percent, still above the 2.05 percent registered in 1Q22. Mass table games win percentage also rose during the quarter, to 22.1 percent.
During the quarter, the group operated 50 VIP gaming tables and 237 mass tables at the Cotai property.
The group recorded 88.1 percent hotel occupancy during the period, nearly double that of the previous year, contributing to a 239.2 percent increase in room revenue – of $46.91 million.
Wynn Macau
The group’s Macau peninsula property also saw gains, with revenue of $230.72 million, up 70.8 percent yearly, while adjusted property EBITDAR rose to $44.74 million, reversing a loss of $4.68 million in 1Q22.
Casino revenue lagged behind its Cotai counterpart, but was still up 72.2 percent, to $176.38 million.
VIP turnover totaled $1.14 billion, a rise of 29 percent yearly, while mass table drop was $939.98 million, up 111 percent year-on-year.
VIP table games percentage win was below both the group’s expectations and that of 1Q22, at 2.69 percent, while mass table games win percentage also lagged the same quarter of last year, at 17 percent.
During the period, the group operated 52 VIP gaming tables and 217 mass market tables at the property.
US operations
Adjusted property EBITDAR from the group’s Las Vegas operations rose by 45.3 percent annually during the quarter, to $231.59 million, with total revenue up by one-third, to $586.76 million.
Rooms ($185.1 million, up 40.8 percent) and F&B ($172.48 million, up 26.8 percent) revenue overshadowed casino revenue, which totaled just $154.53 million, still an increase of 24.3 percent yearly.
Regarding the group’s Boston Harbor operations, incremental gains were seen, with adjusted property EBITDAR up 14.8 percent to $63.41 million and revenue up 13.4 percent to $216.3 million, of which casino revenue rose 11.2 percent to $165.39 million.
Wynn Resorts overall
Overall, the company saw a healthy quarter, with $1.42 billion in operating revenues, up by $470.3 million yearly, while adjusted property EBITDA totaled $429.74 million, as opposed to $177.58 million in 1Q22.
Profit totaled $12.33 million, reversing a $183.32 million loss in the same period of last year, based on strong rises in casino revenue of 56.5 percent, to $766.99 million.
CEO comments
Speaking of the group’s results, Wynn Resorts CEO Craig Billings noted that “for the first time in over three years, each of our resorts is generating strong financial results,” noting that the US operations were “firing on all cylinders, generating a new all-time record for Adjusted Property EBITDAR at our combined North American properties during the quarter”.
Regarding Macau, Billings noted that the company was emerging from “several challenging years” by seeing “a meaningful return of visitation and demand, particularly in our mass gaming and retail business”, noting the group is “well-positioned for success in Macau’s next phase of growth.”
The group has announced a divided of $0.25 per share.
