Wynn Resorts reported a 49.3% increase in revenue year-on-year in the first quarter 2023.
Wynn announced that each of its land based casino resorts had generated “strong” financial returns for the first three years following the removal almost all remaining Covid-19 Measures in Macau.
The operator also reported growth in its Las Vegas operations as well as at Encore Boston Harbor, Massachusetts.
Wynn Resorts CEO Craig Billings stated that despite a slight revenue decline for Wynn Interactive, the growth of the company as a whole was a “testament” of its efforts.
Billings stated that “for the first time in more than three years, our resorts are generating strong financial outcomes, which is yet another testament to our team’s relentless focus on providing five-star experiences and hospitality to our guests.”
After several difficult years in Macau, we are pleased to see a significant return of visitors and demand. This is especially true for our retail and mass gaming businesses. We are confident that we will be successful in Macau’s new phase of growth.
Revenue for the three months to 31 March amounted to $1.42bn (PS1.13bn/EUR1.30bn), up from $953.3m in the previous year.
Casino revenue increased 56.6% to $767.0m. Room revenue increased 59.9%, to $272.5m. Food and beverage revenue increased 33.7%, to $232.6m. Entertainment, retail, and other revenue rose 27.2%, to $151.5m.
Segment-by-segment, Macau’s revenue soared by 101.1%. It reached $600.1m. The Wynn Palace generated $369.4m, an increase of 126.2%. Wynn Macau brought in $233.7m, an increase of 70.8%.
The revenue in Las Vegas was up 32.8% at $586.0m. Encore Boston Harbor, owned by Wynn, posted a revenue of $216.3m, an increase of 13.4% on the previous year. The operator did note that Wynn Interactive’s revenue fell 6.8%, to $20.5m.
Costs were also higher, at $1.25bn. The main expense was casino costs of $473.4m. Wynn reported other net finance costs of $167.4m for Q1, with the majority being interest expenses.
This resulted in a $2.2m pre-tax gain, compared to the loss of $253.5m at the same time in 2022. Wynn had to pay $1.0m income tax. This left a net profit of $1.1m compared with a loss of $254.6m last year.
When you discount the loss of $11.2m attributable non-controlling interest, net profit is higher at $12.3m. This is a stark contrast to 2022’s net loss of $183.3m.
The adjusted property earnings (EBITDAR), which is the amount of profit before depreciation, interest, taxes, and rent costs, was $429.7m, or 142.0%.