Wynn Resorts has announced its financial performance for the second quarter of 2023, with operating revenues of $1.6 billion, up $687 million from the same period last year. The casino operator saw an accelerated recovery in visitors to Macau in the quarter ended June 30, while a post-pandemic revenue surge in Las Vegas continued.
Craig Billings, Wynn CEO, said: “Our second quarter results reflect continued strength in North America and Macau. In the U.S., Wynn Las Vegas and Encore Boston Harbor continue to perform well, generating a new second-quarter record for Adjusted Property EBITDAR at our combined North American properties.”
“In Macau, the post-COVID recovery accelerated during the quarter, with particular strength in our mass gaming, luxury retail, and hotel businesses. On the development front, we were excited to begin construction on Wynn Al Marjan Island, which we believe will be a ‘must see’ tourism destination in the UAE,” he added.
Craig Billings
Wynn Resorts’ adjusted property EBITDAR for the second quarter of 2023 was $524.5 million, compared to $179.2 million for the same quarter in 2022. The company’s net income for Q2 was $105.2 million, a marked improvement from the net loss of $130.1 million it posted in 2022.
Breaking down revenue by segment, casino was the main source of revenue with $913 million in total revenue, up by 153.9% from 2022. The figure was driven by the removal of all remaining Covid restrictions in Macau, which in turn allowed VIP and high-value customers to return to the Wynn Palace and Wynn Macau properties.
Rooms revenue was $276.5 million, up 37.4%; while food and beverage revenue was up 11.8% to $257 million. In addition, entertainment, retail, and other revenue climbed 26.4% to $149.3 million, which includes Wynn Interactive’s 27% rise in revenue to $25.9 million.
Wynn Palace Macau
Breaking down performance by property and operating region, revenue in Macau amounted to $769.9 million, up 556.9% from the $117.2 million in the prior year. Revenue at Wynn Palace stood at $468.4 million, up 698.0% year-on-year. Meanwhile, revenue at Wynn Macau rocketed 414.7% to $301.6 million.
Meanwhile in Las Vegas, operations in the gambling mecca increased a slight 3% to $578.1 million. The company operates both Wynn Las Vegas and Encore Las Vegas on the city’s iconic Strip. As for other properties, revenue at Encore Boston Harbor in Massachusetts was up 5.6% year-on-year to $221.9 million.
Operating costs for the quarter increased 40.1% to $1.35 billion but financial expenses were down 26.5% to $160.7 million. The spike in revenue, which more than offset increased operating spend, allowed Wynn to post a pre-tax profit of $132.1 million, compared to the $212.7 million loss last year.
Encore Boston Harbor
For the first half of the year, the business reached $3.02 billion in revenue, up 62.2% from the $1.86 billion in the same period last year. Casino revenue almost doubled to $1.68 billion while rooms revenue increased by 47.7% to $549 million. Food and beverage revenue was up 21.3% to $489.6 million, with entertainment, retail, and other revenue rising 26.8% to $300.8 million.
Meanwhile, Macau revenue jumped 229.6% to $1.37 billion, while Vegas’ contribution increased 16.3% to $1.17 billion. As for the Encore Boston Harbor revenue was up 9.3% to $438.2 million and Wynn Interactive revenue climbed 7.2% to $46.4 million.
Operating costs jumped 29.4% to $2.60 billion but finance costs were lower at $285.5 million. Pre-tax profit hit $134.3 million, in stark contrast to a $466.2 million loss last year.