Casino operator Wynn Resorts beats fourth-quarter profit estimates on improved Las Vegas, Macau performance
Wynn Resorts, the controlling shareholder of Wynn Macau, beat fourth-quarter profit estimates on stronger gaming, luxury retail and hotel bookings at its Macau and Las Vegas properties.
The company posted adjusted profit of US$1.91 per share, exceeding analysts’ estimates of US$1.15, according to LSEG Data & Analytics. Operating revenue came in at US$1.84 billion, beating expectations of US$1.74 billion.
Net income jumped to US$729.2 million, compared with US$32.4 million in the same quarter in 2022, which the company said was mainly because of increased operating revenues from its Macau and Las Vegas operations.
“The strong momentum we built throughout 2023 continued during the fourth quarter, with adjusted property earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs (EBITDAR) reaching a new all-time record,” Craig Billings, CEO of Wynn Resorts, said in a statement.
Operating revenues from the Wynn Palace Macau hotel were US$524.4 million for the quarter ended December, an increase of 364 per cent from US$113.1 million in the same period a year earlier.
Adjusted property EBITDAR from Wynn Palace was US$171.1 million, compared with a loss of US$23.9 million in the same period a year earlier.
The win percentage in the mass market table games operations was 23.6 per cent, above the 23.3 per cent experienced in the fourth quarter of 2022. VIP table games win as a percentage of turnover was 2.97 per cent, below the property’s expected range of 3.1 per cent to 3.4 per cent and above the 0.11 per cent experienced in the fourth quarter of 2022.
At the company’s other Macau hotel, Wynn Macau, operating revenues for the fourth quarter came in at US$386.2 million, 400 per cent higher than the US$77.2 million in the fourth quarter of 2022.
The hotel’s table games win percentage in the mass market segment was better than that in VIP table games at 19.1 per cent, above the 17.2 per cent in the year-earlier quarter. VIP table games achieved a win ratio as a percentage of turnover was 4.37 per cent, above the property’s expected range of 3.1 per cent to 3.4 per cent and above the 1.2 per cent in the fourth quarter of 2022.
Fourth-quarter operating revenues at Wynn Resorts’ Las Vegas operations were US$696.8 million, 19 per cent higher than the US$585.5 million in the fourth quarter of 2022.
Shares of Nasdaq-listed Wynn Resorts fell 0.23 per cent overnight to US$99.83, while shares of Hong Kong-listed Wynn Macau closed 3.1 per cent higher at HK$6.76 on Thursday.
Billings provided an update on the progress of the company’s new casino in the United Arab Emirates, saying that much of the construction of the Wynn Al Marjan Island hotel tower and podium foundation was complete, and preparations were under way to start vertical construction of the building.
“We are confident the resort will be a ‘must see’ tourism destination in the UAE,” he said. “We are excited about the outlook for the company, and we will continue to focus on driving long-term returns for shareholders.”
Wynn Resorts announced a dividend of US$0.25 per share.