Wynn Resorts has reported that its strong 2023 momentum continued in the fourth quarter with adjusted property EBITDAR reaching a new high.
In addition, CEO Craig Billings noted that the operator is “excited” about its outlook in 2024, which includes the continued construction of Wynn Al Marjan Island in the UAE, as well as Chinese New Year celebrations and the Super Bowl in Las Vegas this month.
Wynn Resorts revenue growth
Publishing its financial results, Wynn declared Q4 operating revenues of $1.84bn, an $835.5m increase year-over-year (Q4 2022: $1bn), improving by $411.3m, $309m, $111.3m and $5.1m across Wynn Palace, Wynn Macau, Las Vegas operations and Wynn Interactive respectively, but decreased by $1.2m at Encore Boston Harbor.
For the full year 2023, operating revenues grew by $2.78bn YoY to $6.53bn (2022: $3.76bn), rising by $1.48bn, $902.3m, $348.5m, $34.7m, and $13m across Wynn Palace, Wynn Macau, Las Vegas operations, Encore Boston Harbor and Wynn Interactive respectively.
Q4 casino revenue came in at $1.07bn (Q4 2022: $423,218), rooms revenue was $347,299 (Q4 2022: $233,252), food and beverage revenues stood at $271,558 (Q4 2022: $217,648), while entertainment, retail and other revenue came in at $155,645 (Q4 2022: $130,819).
For the full year, casino revenue stood at $3.7bn (2022: $1.6bn), rooms revenue came in at $1.2bn (2022: $802,138), food and beverage revenue stood at $1bn (2022: $846,214), while entertainment, retail and other revenue came in at $599,187 (2022: $475,932).
Net income in Q4 was $729.2m, a significant improvement on Q4 2022’s $32.4m which Wynn attributes to increased operating revenues from Macau and Las Vegas operations, as well as an “income tax benefit related to the release of valuation allowance on certain deferred tax assets as a result of achieving sustained profitability in the US.”
“The strong momentum we built throughout 2023 continued during the fourth quarter with adjusted property EBITDAR reaching a new all-time record.”
Wynn Resorts CEO Craig Billings
For 2023, net income came in at $730m, a substantial uptick compared to 2022’s net loss of $423.9m, with Wynn giving the same explanation as Q4 behind the improvement.
Adjusted property EBITDAR in Q4 was $630.4m (Q4 2022: $195.1m), while for the full year, adjusted property EBITDAR stood at $2.11bn (2022: $725.4m).
As of December 31, 2023, cash and cash equivalents stood at $2.88bn, while current and long-term debt is $11.74bn.
Billings stated: “The strong momentum we built throughout 2023 continued during the fourth quarter with adjusted property EBITDAR reaching a new all-time record.
“These impressive results highlight our team’s relentless focus on delivering five-star hospitality, which continues to elevate our properties above our peers as the destinations of choice for luxury guests in Las Vegas, Boston and Macau.”
Resort performance
In Macau, Wynn Palace Q4 operating revenues came in at $524.4m, a $411.3m increase YoY (Q4 2022: $113.1m), with an adjusted property EBITDAR of $171.1m (Q4 2022: $23.9m loss). Wynn Macau operating revenues stood at $386.2m, up $309m (Q4 2022: $77.2m), with adjusted property EBITDAR of $125.8m (Q4 2022: $35.2m loss).
In the US, Las Vegas operating revenues were $696.8m, a $111.3m uptick YoY (Q4 2022: $585.5m), with adjusted property EBITDAR of $270.8m (Q4 2022: $219.3m), benefitting from the Formula One grand prix taking place in the city in November.
Encore Boston Harbor operating revenues were $217.1m, down $1.2m (Q4 2022: $218.3m), with adjusted property EBITDAR of $64.4m (Q4 2022: $63.3m).
2024 outlook
In addition, Billings noted that the construction of Wynn Al Marjan Island is going well and that the operator is confident in the future of the destination.
The CEO stated: “On the development front, construction of Wynn Al Marjan Island continues, with much of the hotel tower and podium foundation complete, and preparations underway to start vertical construction of the hotel tower. 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 will continue to focus on driving long-term returns for shareholders.”
During Wynn’s earnings call, Billings was also confident in how the operator will perform in Q1 2024, especially in February with Chinese New Year celebrations and the Super Bowl in Las Vegas.
“More recently, January 2024 looked a lot like January 2023 from an overall revenue perspective with hotel revenue particularly strong,” Billings said.
“That being said, January isn’t where the action is this quarter. It’s all about February. Super Bowl, Chinese New Year and for us, the best February in our history for group and convention. Between Super Bowl and Chinese New Year, we have doubled the front money and credit that we had in 2023, and we expect record hotel revenue over Super Bowl.”
