Wynn posts strong Q1 results and places focus on new projects

Wynn Macau Ltd. reported a 14.3% increase in adjusted property earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (EBITDAR) in the first quarter of 2024, reaching USD339.6 million as the casino operator’s Macau properties continued to see strong momentum.

The Macau operations of U.S.-based Wynn Resorts Ltd. generated operating revenues of USD998.6 million in the first quarter, a 9.7% increase over the previous quarter and a 66.4% jump from a year earlier. Wynn Palace in Cotai remained the best-performing property, with operating revenues of USD586.9 million and adjusted property EBITDAR reaching USD202.4 million, up 11.9% and 18.3% quarter-on-quarter, respectively.

“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,” said Wynn Resorts CEO Craig Billings. “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,” Billings said.

The group’s Wynn Macau property on the Macau peninsula also saw a surge, with operating revenues climbing 6.6% to USD411.7 million and adjusted property EBITDAR up 9% to USD137.2 million.

“In the casino, our mass drop per day in April increased 30% versus April 2019. And on the non-gaming side, our hotel occupancy was 99%. Overall, strong top-line performance, combined with disciplined [operating expense] control drove healthy margins during April,” Billings commented in an earnings call with analysts.

The CEO also remarked that the group is pleased with its results during May Golden Week, particularly in light of unfavorable weather in the region.

In the casino, mass drop per day increased 30% versus the comparable 2019 holiday period and approached levels seen last Chinese New Year.

“On the development front in Macau, we began initial demolition and construction work on our second concession-related project, our destination food hall. We are well into design and planning for our other major concession-related [capital expenditure] commitments, including our new events and entertainment center and a unique theater and showroom,” he added.

Looking ahead, Wynn Resorts said it expects to contribute around USD900 million to the development of its USD4 billion Wynn Al Marjan Island integrated resort project in the United Arab Emirates. Billings said the company is also “actively considering greenfield development opportunities in New York City and, potentially, Thailand.”

“In Thailand, it’s early days and we have yet to see the regulatory and licensing structures,” Billings noted. “Thailand is already a major tourism destination with significant tourism infrastructure and a world-class service culture. So, we will continue to closely monitor advancement of the legalization process,” he concluded. Staff Reporter