US – Wynn Las Vegas reports best ever quarter and best ever AprilBy Phil - 10 May 2023
With Macau returning to profitability and Wynn Las Vegas enjoying a record quarter and month, Wynn Resorts’ CEO Craig Billings has said it is a ‘fascinating time’ to be in the casino business.
Operating revenues were $1.42bn for the first quarter of 2023, an increase of $470.3m, from $953.3 million for the first quarter of 2022.
“For the first time in over three years, each of our resorts is generating strong financial results, which is once again a testament to our team’s relentless focus on delivering five-star hospitality and experiences to our guests,” Mr. Billings said. “In the US, Wynn Las Vegas and Encore Boston Harbor are firing on all cylinders, generating a new all-time record for Adjusted Property EBITDAR at our combined North American properties during the quarter. In Macau, after several challenging years, we were pleased to experience a meaningful return of visitation and demand, particularly in our mass gaming and retail businesses. We believe we are well-positioned for success in Macau’s next phase of growth.”
For the first quarter of 2023, operating revenues increased $145.6m, $206m, $95.6m, and $25.5m at the company’s Las Vegas Operations, Wynn Palace, Wynn Macau, and Encore Boston Harbor, respectively, and decreased $2.4m at Wynn Interactive, from the first quarter of 2022.
Mr. Billings added: “It’s a fascinating time in our business. Despite the confluence of high inflation, high-interest rates, bank failures, and increasingly difficult year-over-year comps, Wynn Las Vegas delivered an all-time record in Q1 with $232m of adjusted property EBITDA, supported by a consumer that continues to feel flush. We also subsequently delivered the best April in the history of the property. We continue to invest heavily in people, programming, and the building to further distance ourselves as the clear leader in luxury in Vegas.
In the Macau mass table sector, drop reached 82 per cent of Q1 2019 levels.
Mr Billings said: “Performance during and after the quarter was skewed toward Wynn Palace, driven both by the mix of customers that have returned to Macau in the initial reopening wave and the renovation-related closures of Wynn Macau.
“I expect Wynn Palace will continue to pace ahead of Wynn Macau in the recovery,” he added. “Everyone who follows Macau closely knows that GGR and visitation were somewhat disconnected in the initial wave in that you had a lot of dedicated players come back. Most were rated players and they weren’t coming with tour groups, they were coming as individual visitors and they disproportionately, in our business at least, ended up at Cotai. Wynn Macau historically has been more exposed to the tour group business and general unrated business, so I’m not surprised that Wynn Palace led Wynn Macau.
“The second point is that there are a number of changes we are making to Wynn Macau. The property needs to be refreshed and we are making those changes now. We started those in Q1 including some pretty significant refreshment to the east casino, which interrupted a significant numbers of pits which were effectively closed during the quarter. That also had an impact.
“As the mass market continues to recover, as more unrated play comes back to the market and more tour groups, then we’ll get the natural benefit downtown but in the interim I would expect Palace to lead Wynn Macau.”