Operator News

China – Wynn secures all-time quarterly record in property EBITDA in Q4

By Phil - 12 February 2024

Wynn Resorts generated fourth quarter operating revenues of $1.84bn for the fourth quarter of 2023, an increase of $835.5m from $1bn for the fourth quarter of 2022.

The esteemed operator said that momentum in the business built throughout the year, ending on the high of an an all-time quarterly record of $632m in property EBITDA , capping off a record year in which it generated nearly $2.2bn of property EBITDA. 

Craig Billings, CEO of Wynn Resorts, said: “What a quarter and really what a year. Every single member of the Wynn team should be incredibly proud of what they achieved together in 2023.  We see tremendous value in our business as evidenced by our buybacks in the quarter and I’m genuinely looking forward to 2024. The company is more diversified than it’s ever been. In Las Vegas, we continue to distance ourselves from peers as the leader in luxury and it’s more evident than ever that we are the go-to spot for the best customers attending citywide events like F1. 

“The strong momentum we built throughout 2023 continued during the fourth quarter with Adjusted Property EBITDAR reaching a new all-time record. These impressive results highlight our team’s relentless focus on delivering five-star hospitality, which continues to elevate our properties above our peers as the destinations of choice for luxury guests in Las Vegas, Boston and Macau,” said Craig Billings, CEO of Wynn Resorts, Limited. “On the development front, construction of Wynn Al Marjan Island continues, with much of the hotel tower and podium foundation complete, and preparations underway to start vertical construction of the hotel tower. We are confident the resort will be a ‘must see’ tourism destination in the UAE. We are excited about the outlook for the Company, and we will continue to focus on driving long-term returns for shareholders.”

“We have a growing business in Macau that is running structurally higher margins than in the past, is much less reliant on the volatile VIP segment and is increasingly well positioned to compete. And importantly, we have a substantial growth opportunity in the UAE that will further diversify our portfolio and expand our brand into new markets.”

Turning to the quarter and starting in Vegas. Wynn Las Vegas delivered $271m of adjusted property EBITDA, an all-time quarterly record, up 24 per cent year-on-year on a very difficult comparison. While F1 was clearly a contributor, activity of the property was intense throughout the quarter, with RevPAR table drop, slot handle and food and beverage revenue all well above what was a very strong quarter in 2022. 

Mr Billings added: “We had our best October, our best November, and our best December ever in terms of EBITDA during Q4. We continue to fire on all cylinders here in Las Vegas, and I’m incredibly proud of the Vegas team.  More recently, January 2024 looked a lot like January 2023 from an overall revenue perspective with hotel revenue particularly strong. That being said, January isn’t where the action is this quarter. It’s all about February. Super Bowl, Chinese New Year and for us, the best February in our history for group and convention. “

Between Super Bowl and Chinese New Year, Wynn has doubled the front money and credit that we had in 2023, and expects record hotel revenue over Super Bowl.

In Boston, Encore generated $64m of EBITDAR during the quarter, similar to many other regional markets, with demand at the property largely stable year-on-year. “Revenue decreased by about 0.5 per cent, but the team has done a great job remaining disciplined on OpEx, driving a two per cent year-over-year increase in EBITDAR,” Mr Billings explained. “More recently, underlying demand has remained healthy through January although a couple of unfortunately timed winter storms had negatively impacted visitation during a few recent weekends. On the development across from Encore Boston Harbor, we recently received a key environmental approval and we are advancing through a few remaining items before construction can begin.”

Turning to Macau, Wynn generated $297m of EBITDA in the quarter on market share that was consistent with the prior quarter and with 2019.

Mr Billings added: “While we held in the normal range in mass, we held a bit high in VIP.  So on a fully normalized basis, EBITDA would have been approximately $290m or 94 per cent of Q4 2019 levels. The strength in our business there has continued into Q1. In the casino, our mass drop per day in January increased 32 per cent versus January 2019 and was up sequentially versus Q4.  On the non-gaming side, our hotel occupancy was 99 per cent, along with continued strength in tenant retail sales. Overall, strong top line performance, combined with disciplined OpEx control drove healthy margins during the month of January.”

Operating revenues from Wynn Palace were $524.4m for the fourth quarter of 2023, an increase of $411.3m from $113.1m for the fourth quarter of 2022. Table games win percentage in mass market operations was 23.6 per cent, above the 23.3 per cent experienced in the fourth quarter of 2022. VIP table games win as a percentage of turnover was 2.97 per cent, below the property’s expected range of 3.1 per cent to 3.4 per cent and above the 0.11 per cent experienced in the fourth quarter of 2022.

Operating revenues from Wynn Macau were $386.2m for the fourth quarter of 2023, an increase of $309m from $77.2m for the fourth quarter of 2022. Adjusted Property EBITDAR from Wynn Macau was $125.8m for the fourth quarter of 2023, compared to $(35.2)m for the fourth quarter of 2022. Table games win percentage in mass market operations was 19.1 per cent, above the 17.2 per cent experienced in the fourth quarter of 2022. VIP table games win as a percentage of turnover was 4.37 per cent, above the property’s expected range of 3.1 per cent to 3.4 per cent and above the 1.2 per cent experienced in the fourth quarter of 2022.

Operating revenues from its Las Vegas Operations were $696.8m for the fourth quarter of 2023, an increase of $111.3m from $585.5m for the fourth quarter of 2022. Table games win percentage for the fourth quarter of 2023 was 25.4 per cent, within the property’s expected range of 22 per cent to 26 per cent and above the 21.2 per cent experienced in the fourth quarter of 2022.

Operating revenues from Encore Boston Harbor were $217.1m for the fourth quarter of 2023, a decrease of $1.2m from $218.3m for the fourth quarter of 2022. Table games win percentage for the fourth quarter of 2023 was 22 per cent, within the property’s expected range of 18 per cent to 22 per cent and slightly above the 21.9 per cent experienced in the fourth quarter of 2022.