The operator reported widespread growth in 2023, with revenue rising across all properties. However, it was in Macau where Wynn saw the most success, with significant growth at the Wynn Palace and Wynn Macau, following the removal of Covid measures in the region.
Wynn will also be buoyed by revenue growth in the US across both its Las Vegas and Boston businesses, albeit at a much lower rate than in Macau.
In addition, construction work remains ongoing on a new Wynn property in the United Arab Emirates (UAE). The Wynn Al Marjan Island will be located on Al Marjan Island in the Emirate of Ras Al-Khaimah.
“We see tremendous value in our business as evidenced by our buybacks in the quarter and I’m genuinely looking forward to 2024,” CEO Craig Billings said. “The company is more diversified than it’s ever been.
“In Las Vegas, we continue to distance ourselves from peers as the leader in luxury. It’s more evident than ever that we are the go-to spot for the best customers attending citywide events like F1.
“We have a growing business in Macau that is running structurally higher margins than in the past, is much less reliant on the volatile VIP segment and is increasingly well positioned to compete. And importantly, we have a substantial growth opportunity in the UAE that will further diversify our portfolio and expand our brand into new markets.”
Wynn scales back interactive business
While ongoing property revenue growth is good news for Wynn, the same cannot be said for its interactive business. In August last year, the operator announced a major reduction in its online brand WynnBet’s US footprint.
Initially, Wynn said it would cease operations in Arizona, Colorado, Indiana, Louisiana, New Jersey, Tennessee, Virginia and West Virginia. New York and Michigan remain under review, while it remains active in Nevada.
Plans were also in place to continue in Massachusetts. However, chief financial officer Julie Cameron-Doe in a 2023 investor call, Wynn now looks set to exit that market as well.
“We’re continuing to review of New York and Michigan and we’ll stay tuned,” Cameron-Doe said. “We’ll have more information on that in the near future. Everywhere else is pretty much wrapped up now.
“We’re working on closing down Massachusetts online as well. And wherever we’re able to and where we can interact with anybody else, we’ll make sure that we do the best for our shareholders and monetise the assets that we have in a way that works well with what’s allowed and what’s available out there in the market.”
Making moves in Macau
Breaking down the 2023 results, casino revenue rocketed 127.7% to $3.72bn. Incidentally, this was only marginally lower than total group revenue in 2022 ($3.77bn). Rooms revenue jumped 47.9% to $1.19bn, food and beverage 21.6% to $1.03bn and entertainment, retail and other 25.9% to $599.2m.
Operations in Macau accounted for $3.10bn of all revenue. This was 329.7% more than in the previous year. Wynn Palace drew $1.89m in revenue and the Wynn Macau business $1.21bn.
Elsewhere, Las Vegas revenue climbed 16.3% to $2.48bn, while revenue at Encore Boston Harbor increased 4.2% to $865.8m.
Higher revenue was accompanied by a 47.5% rise in operating costs, which amounted to $5.69bn. Casino was the main outgoing at $2.24bn, while general and administrative costs amounted to $1.07bn.
Other expenses, including interest costs, hit $554.8m, leaving a pre-tax profit of $285.4m, in contrast to 2022’s $700.0m loss. Wynn received $496.8m in tax benefit and noted a $52.2m loss from non-controlling interests.
This resulted in a net profit of $730.0m, compared to a $423.9m loss in the previous year. In addition, adjusted property EBITDAR hiked 191.4% to a record $2.11bn for 2023.
Records also tumble in Q4 at Wynn
As for Q4, Wynn also reported growth and record figures, with revenue increasing 83.3% to $1.84bn. Again, there was growth across each business area, with casino leading the way on $1.07bn,
Revenue from Macau operations amounted to $910.6m in Q4. Of this, $524.4m came from Wynn Palace and $386.2m Wynn Macau. Las Vegas revenue reached $698.6m and Encore Boston Harbor $217.1m.
Turning to costs, operating expenses climbed 63.7% to $1.48bn and other costs amounted to $83.4m. This left a pre-tax profit of $357.7m, up 260.6% year-on-year.
Wynn received $499.4m in tax benefit but also noted a $44.6m accounted for a $44.6m loss from non-controlling interests. As such, net profit stood at $729.2m, up 2,150.6% from 2022.
In addition, adjusted property EBITDAR reached a new quarterly high of $630.4m.
“Every single member of the Wynn team should be incredibly proud of what they achieved together in 2023,” CEO Billings said.
Original article: https://igamingbusiness.com/finance/full-year-results/revenue-rockets-in-record-2023-for-wynn-resorts/
