Wynn delays US$375m worth of work at Encore due to Trump’s tariffs
Wynn Resorts is delaying projects in Las Vegas worth some US$375m as it waits to access the impact of US President Donald Trump’s tariffs.
Craig Billings, CEO of Wynn Resorts, said: “We had a number of capex projects in flight in the US and while we have sourced for those projects presuming some tariff impact, the current tariff rates have driven us to delay about US$375m of capex projects including the Encore tower remodel. Once tariff rates settle, we will thoroughly re-spec and re-source the most severely affected items. While we’re staying nimble, the pace of change at the moment is just too significant to commit to any revised timing on that capex.”
Thews came as Wynn’s first quarter saw operating revenues slide to $1.7bn, a decrease of $162.5m from $1.86bn for the first quarter of 2024, due to tough comparisons in Las Vegas due to last year’s Super Bowl being held there and a dip in VIP hold in Macau.
“Our first quarter results reflect continued strength throughout our business,” said Craig Billings, CEO of Wynn Resorts, Limited. “In Las Vegas, where we recently celebrated the resort’s 20th anniversary, the team delivered healthy results against a record prior year comparison which reflected the Las Vegas Super Bowl. In Macau, while VIP hold negatively impacted results, we held market share in our expected range, and announced an increased dividend from Wynn Macau, Limited, reflecting the strong free cash flow generated by the business. In addition, construction of our growth project in the UAE, Wynn Al Marjan Island, continued to advance with the hotel tower reaching the forty-seventh floor. At the same time we continued to return capital to shareholders through our regular quarterly dividend and the repurchase of $200 million of stock in the quarter.”
For the first quarter of 2025, operating revenues decreased $81.8m, $51m, $11.3m, and $8.6m at Wynn Macau, Wynn Palace, the Las Vegas Operations, and Encore Boston Harbor, respectively, from the first quarter of 2024.
Mr Billings added: “In Macau, mass drop in April was in line with 2024 and direct VIP turnover was up nicely. Golden Week, which just ended, saw mass drop up from last year and full occupancy in the hotels. But again, the booking window there is short and we are watching customer activity day to day. Long story short, recent results have been good, but we have to acknowledge the uncertainty out there and the impact that uncertainty may have on demand. As always, we have a playbook ready for every scenario.”
“Were’re pleased to deliver another solid quarter of EBITDA in Las Vegas on an impossible comp against the 2024 Super Bowl. Demand remained healthy in the quarter with a four per cent increase in total casino revenues even without the Super Bowl in 2025. Our slot business continues to be a bright spot as the investments we have made in our premium slot areas and in the team have helped maintain our premium positioning.
“If you remove Super Bowl weekend from the prior year quarter, we were up across the board. At Encore Boston Harbor, slot volumes continue to hold up well with slot revenue up about three per cent. More recently, demand in Boston has remained healthy through April with drop and handle flat to last year.
“In Macau, other than hold, the business in Q1 felt very good. Business generated $252,000,000 in EBITDA with poor VIP hold costing us nearly $40m of EBITDA. We saw healthy volumes in the quarter with turnover up 31 per cent and mass drop up one point, both sequentially. Adjusted for VIP hold, we grew market share sequentially and improved EBITDA margins from Q4 to Q1. While the market in Macau continues to be highly competitive, we remain disciplined in our focus on maximizing EBITDA and generating a healthy margin profile.”
During the first quarter of 2025, the company contributed $51.2 million of cash into the 40%-owned joint venture that is constructing the Wynn Al Marjan Island development in the UAE, bringing our life-to-date cash contributions to the project to $682.9 million. Wynn Al Marjan Island is currently expected to open in 2027.
