Wynn Resorts has reported operating revenues of $1.67 billion for the third quarter ended September 30, 2023, marking an increase of $782.2 million (87.9%) from $889.7 million in the same period last year. The growth comes as the operator eyes growth potential in the United Arab Emirates (UAE).
Net loss narrowed to $116.7 million from $142.9 million in the third quarter of 2022. Diluted net loss per share was $1.03 for the third quarter, compared to $1.27 in Q3 2022.
During the quarter, operating revenues increased $449.5 million, $254.6 million, $74.6 million, and $4.8 million at Wynn Palace, Wynn Macau, our Las Vegas Operations, and Wynn Interactive, respectively, and decreased $1.4 million at Encore Boston Harbor, from the third quarter of 2022.
Macau’s growth followed the removal of Covid measures in the region, allowing VIP and high-value customers to return. Casino was by far the main source of revenue for Q3, with this jumping 170.2% on the back of said relaxed restrictions.
The company’s adjusted net income stood at $112.0 million, or $0.99 per diluted share, for the third quarter, compared to $135.4 million, or $1.20 per diluted share, in the same quarter in 2022. Adjusted Property EBITDAR was $530.4 million, compared to $173.5 million for the same period in 2022.
“Our third quarter results reflect continued strength across our property portfolio,” said Craig Billings, CEO of Wynn Resorts, Limited. “Our teams at Wynn Las Vegas and Encore Boston Harbor delivered a new third-quarter record for Adjusted Property EBITDAR at our combined North American properties as we continue to elevate our properties above those of our peers.”
“In Macau, the recovery continued to progress during the quarter, with particular strength in our mass gaming, luxury retail and hotel businesses. On the development front, construction on Wynn Al Marjan Island is well underway, and we are confident the resort will be a ‘must see’ tourism destination in the UAE.”
Elaborating further on the UAE opportunity during the earnings call, Billings emphasized that the anticipated $3.9 billion resort-casino on Al Marjan Island is poised to enjoy a considerable period without direct competition post its 2027 launch. He suggested that the market might see only one or two competing ventures in the foreseeable future.
“We believe it’s highly unlikely that every Emirate will ultimately avail themselves of the right to host an integrated resort. Our view is that it will likely be us and us alone for a multi-year period given that we are well underway on construction now… We all know the advantages of being first as we have seen in other markets,” Billings said.
“After that, it may be a duopoly or an oligopoly of three. But I find either ultimate market structure undaunting given the database advantages of being first and the fact that we’ve very successfully operated in the two most competitive markets in the world: Vegas and Macau.”
The resort will be located on 115 acres on Al Marjan Island, made up of four islands, in the emirate of Ras Al Khaimah. A leading tourism destination in UAE, Al Marjan Island is 15 minutes from the Ras Al Khaimah International Airport and 45 minutes from the Dubai International Airport.
Going back to the results, Adjusted Property EBITDAR in Q3 increased $198.9 million, $121.7 million, $24.0 million, and $12.9 million at Wynn Palace, Wynn Macau, our Las Vegas Operations, and Wynn Interactive, respectively, and decreased $0.6 million at Encore Boston Harbor, from the third quarter of 2022.
Wynn Resorts also announced today that its Board of Directors has declared a cash dividend of $0.25 per share, payable on November 30, 2023 to stockholders of record as of November 20, 2023.
