Operator News
Wynn generates all-time record property EBITDAR in first quarter of 2024
By Phil - 8 May 2024
With all-time record property EBITDAR, Wynn Resorts reported revenues of $1.86bn for the first quarter of 2024, an increase of $439.2m from $1.42bn for the first quarter of 2023.
“The strong momentum we experienced in our business throughout 2023 continued to build during the first quarter with Adjusted Property EBITDAR reaching a new all-time record. The investments we have made in our properties, our team and our unique programming continue to extend our leadership position in each of our markets,” said Craig Billings, CEO of Wynn Resorts, Limited. “On the development front, vertical construction on the hotel tower at Wynn Al Marjan Island is well underway, and 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 believe we are well positioned to deliver continued long-term growth.”
For the first quarter of 2024, operating revenues increased $217.5m, $181m, $49.8m, and $1.5m at Wynn Palace, Wynn Macau, our Las Vegas Operations, and Encore Boston Harbor, respectively, from the first quarter of 2023.
Mr. Billings added: “In Las Vegas, we remain at the pinnacle of the market with tremendous demand for what we offer, and an inflation — and in an inflationary environment like this, we have the luxury of being able to reprice our hotel rooms every day in order to take advantage of that demand. “Wynn Las Vegas delivered $246m of adjusted property EBITDAR, a first quarter record and up six per cent year-on-year on a very difficult comp. Most of the action in the quarter was concentrated in February, as the combination of Super Bowl and Chinese New Year drove all-time record EBITDA during the month. The quarter was characterized by strong performance across our non-gaming businesses with revenue growing 16 per cent year-on-year, led by 21 per cent growth in hotel revenue, along with healthy volumes in the casino. Through our unique combination of the best service levels in the market, continuous reinvestment in our property, and our Only at Wynn programming, we continue to fire on all cylinders here in Las Vegas.
“Turning to Boston, Encore generated $63m of EBITDAR during the quarter,” he added. “The team in Boston successfully navigated a confluence of poor weather in January and inflationary pressures during the quarter as EBITDAR and revenue at the property were largely stable year-on-year. There were encouraging pockets of strength in the quarter with record slot handle and strong year-on-year growth in hotel revenue.
“More recently, demand has remained healthy through April with particular strength in slot handle and RevPAR. On the development across from Encore Boston Harbor, we have put this development on hold for the time being, as we have been unable to reach an agreement with local authorities on certain financial terms. Though it’s disappointing, we have numerous other development projects globally where we can redirect the capital we intended to deploy in Boston.
“In Macau, we continue to punch above our weight on a revenue per hotel room basis, generating meaningful market share and substantial discretionary free cash flow. We also have a meaningful high ROI project underway in the UAE along with potential greenfield developments in other attractive gateway cities. Meanwhile, our leverage profile continues to improve as does our outlook on future free cash flow. Our best days lie ahead.
“We generated $340m of EBITDAR in the quarter on GGR market share that was above both the prior quarter and above our 2019 exit rate. We held above our expected range, so on a fully normalized basis, EBITDAR would have been approximately $320m. The strength in our business has continued into Q2,” Mr Billings added.
“In the casino, our mass drop per day in April increased 30 per cent versus April 2019 and on the non-gaming side, our hotel occupancy was 99 per cent. Overall, strong top-line performance combined with disciplined OpEx control drove healthy margins during April. We were also pleased with results during May, Golden Week, particularly in light of unfavourable weather in the region. In the casino, mass drop per day increased 30 per cent versus the comparable 2019 holiday period and approached levels seen during last Chinese New Year.”
