Q2 2023: Macau bounces back to drive 76% growth at Wynn Resorts
Q2 2023: Macau bounces back to drive 76% growth at Wynn Resorts
For Q2 2023, Wynn Resorts reported a substantial increase in revenue, reaching $1.6bn, up 76% on Q2 2022.
Net income stood at $105.2m, marking a stark contrast to the net loss of $130.1m incurred in the same period of 2022.
Diluted net income per share also reflected this positive trend.
In the second quarter of 2023, the diluted net income per share reached $0.84, a substantial improvement from the diluted net loss per share of $1.14 reported in the prior year’s quarter.
Meanwhile, Wynn recorded an adjusted property EBITDAR of $524.5m, up 192 % on the group’s Q2 2022 result.
This robust performance was underpinned by notable increases in operating revenues across various segments of Wynn Resorts’ portfolio.
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In particular, Wynn Resorts showed impressive growth in its Macau operations as post-Covid normalisation continued.
Operating revenue at Wynn Palace soared by a staggering 698% to $468.4m in Q2 2023.
Wynn Macau also contributed to this upward trajectory, with operating revenue reaching $301.6m. This figure marked a 414% increase compared to Q2 2022.
In the US, however, growth slowed. The company’s Las Vegas operations generated operating revenue of $578.1m, up 3% on Q2 2022.
Encore Boston Harbor reported revenue of $221.9m in the second quarter of 2023, an increase of 5.6% compared to the second quarter of 2022.
“Our second quarter results reflect continued strength in North America and Macau,” said Craig Billings, CEO of Wynn Resorts. “In Macau, the post-COVID recovery accelerated during the quarter.
“We were encouraged by the meaningful uptick in visitation and demand we experienced during the quarter, with particular strength in mass casino drop, direct VIP turnover, luxury retail sales, and hotel revenue, all above Q2 2019 levels,” he added.
Moreover, Wynn will begin construction on Wynn Al Marjan Island, “which we believe will be a ‘must see’ tourism destination in the UAE,” said Billings.
The group’s online division, Wynn Interactive, generated a loss of $25.7m in Q2 2023, compared to a loss of $57.3m in Q2 2022.
Billings commented: “Our EBITDAR burn rate decreased both sequentially and year-over-year to $15m in Q2 2023. Our team continues to stay disciplined on costs, while driving improved marketing efficiency.”
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“I see tremendous value in our business, and I know our brightest days are ahead of us. Our path is the clearest it has been in years, and our team is committed and energised.”
Wynn CEO Craig Billings
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Wynn did not offer many insights into its online segment, so Chad Beynon from Macquire asked for some more details. He also asked whether Wynn was on track to turn the segment profitable during Q4.
Billings responded: “I don’t think we ever said it would breakeven in the fourth quarter. But what we are focused on is making sure that it goes down every quarter.”
CFO Julie Cameron-Doe added: “Sports betting is a tough business. It’s about the game of commodity, but we’re very focused on managing this business. We’ve got a very long-term shareholder-friendly view on it. So that’s our focus.”
Current trading and outlook
Wynn Resorts saw a slight uptick in trading after presenting its results.
Billings emphasised a significant shift in the company’s business dynamics, where a larger portion now comes from mass-market customers compared to VIP clients.
Notably, on the mass-market side, there has been a decrease in the average length of stay, which is understandable given the impact of Covid-19.
“During Covid, if you made the commitment to come, you were coming for an extended period, but we’ve seen spend per customer actually go up,” he added.
This shift has led to a strategic advantage, said Billings, allowing for more efficient utilisation of their accommodations and ultimately benefiting overall business performance.
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