Casino and resort company Wynn Resorts has announced its financial performance for the first quarter of 2023, with operating revenues of $1.42 billion, up $470.3 million from the same period last year.
CEO Craig Billings announced that each of the company’s resorts is generating strong financial results “for the first time in over three years,” with the Macau market rebounding post-pandemic. Billings emphasized that the achievements are a testament to the team’s “relentless” dedication.
Despite external factors such as high inflation, high-interest rates, and challenging year-over-year comparisons, Wynn Las Vegas achieved an all-time record in Q1, generating $232 million of adjusted property cash flow.
Wynn Resorts’ adjusted property EBITDAR for the first quarter of 2023 was $429.7 million, compared to $177.6 million for the same quarter in 2022. The company’s net income for Q1 was $12.3 million, a marked improvement from the net loss of $183.3 million it posted in the same period of 2022.
The company’s Las Vegas operations were not the only ones that had a strong Q1: along with Massachusetts’ Encore Boston Harbor, which also had a stellar performance, these locations generated a new all-time record for Adjusted Property EBITDAR for the combined North American segment during the quarter.
Encore Boston Harbor
The positive financial trend extended to Macau as well. After facing challenges in recent years, Wynn Resorts experienced a meaningful return of visitation and demand, particularly in the mass gaming and retail sectors. This resurgence signals a promising future for the company in the gaming hub’s next phase of growth, said Billings.
But all in all, it was Wynn Resorts’ solid performance in Las Vegas that contributed the most to its strong financial results. The company benefited from a solid group business (conventions and trade shows), improved international visitation, and a robust event calendar extending into late 2023. The business saw its best convention group revenue ever, which helped drive the quarterly performance.
Momentum has extended beyond Q1, and Billings said the company has subsequently delivered the best April in the history of Wynn Las Vegas.
In addition to the positive financial outlook, Wynn Resorts announced the resumption of its quarterly dividend program. The strong financial results, robust liquidity position, and commitment to returning capital to shareholders have facilitated the reinstatement of the dividend program. Stockholders will receive a cash dividend of $0.25 per share, with the payment scheduled for June 6, 2023.
“Looking ahead, we currently have a strong pipeline in forward group demand, continued room pricing power, healthy drops and handles (in casino play) and a robust programming calendar, particularly in the back half of the year,” Billings told investors, as reported by Las Vegas Review-Journal. “In general, I would say the market is coming back much more quickly than anybody would have thought of, certainly six or nine months ago.”