Wynn reduces losses as revenue jumps 29.4% in Q1

Total revenue for the three months to 31 March 2022 amounted to $953.3m (£772.5m/€903.7m), up from $736.7m in the previous year.

The bulk of this total came from gaming, despite its contribution dropping 5.1% year-on-year to $489.9m.

This was offset by a 123.6% jump in rooms revenue to $170.4m, while food and beverage revenue was up 154.0% to $174.0m. Entertainment, retail and other revenue also grew significantly, climbing 57.1% to $119.1m.

This growth was driven by the operator’s Las Vegas operations for which revenue grew 146.9% year-on-year to $441.2m. Meanwhile, the Encore Boston Harbor’s contribution was up 45.7% to $190.8m.

In Macau, Wynn said its operations continued to be negatively impacted by travel-related restrictions and conditions resulting from the novel coronavirus (Covid-19) pandemic, such as testing and other mitigation procedures.

As a result, revenue from Wynn Palace was 31.2% down to $163.3m, while Wynn Macau reported a 24.8% drop in revenue to $135.1m.

Looking at spending for the first quarter and total operating expenses were up 14.8% at $1.05bn.

This meant Wynn posted an operating loss of $94.9m for the quarter, though this was an improvement on the $175.7m loss posted in the prior year.

Wynn noted an additional $158.6m in other expenses, primarily $152.2m in interest costs, which resulted in a pre-tax loss of $253.5m, again a better result compared to the $335.7m loss last year.

The operator paid $1.1m in tax, meaning it posted a net loss of $254.6m for the three-month period, compared to $336.2m in Q1 2021. However, when accounting for $71.3 in net profit from non-controlling interests, this left a total net loss of $183.3m, an improvement on $281.0m last year.

In addition, Wynn noted that adjusted property earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 201.5% year-on-year to $177.6m.

“Our first quarter results reflect continued strength at both Wynn Las Vegas and Encore Boston Harbor where our teams’ unrelenting focus on five-star hospitality and world class experiences combined with very strong customer demand to deliver a new first quarter record for adjusted property EBITDA at both properties,” Wynn chief executive Craig Billings said. 

“In Macau, we remain confident that the market will benefit from the return of visitation when travel restrictions subside.”