In a notable turnaround, Wynn Resorts Ltd’s Macau operations have witnessed substantial growth, marking a significant departure from previous quarters. The latest financial report for the three months ending on December 31, 2023, underscores this transformation.
Macau Operations Performance Overview:
Wynn Resorts Ltd’s Macau operations demonstrated a remarkable resurgence, as evidenced by the notable increase in operating income and adjusted property EBITDAR. In the fourth quarter of 2023, the operating income soared to US$169.8 million, showcasing a significant uptick of 33.6% compared to the preceding quarter. This turnaround reversed the US$181.3 million loss incurred during the same period in 2022. The adjusted property EBITDAR also witnessed a substantial sequential increase of 16.5%, reaching US$297.0 million. This impressive performance can be primarily attributed to the robust rebound in casino revenues at Wynn Palace and Wynn Macau.
Wynn Palace Performance Highlights:
Wynn Palace, located in the Cotai region, reported a staggering increase in operating revenues, soaring by 364% year-on-year to US$524.4 million. This growth was propelled by a remarkable 506% improvement in casino revenues, totaling US$417.3 million. Notably, VIP win experienced exponential growth from US$1.1 million in the fourth quarter of 2022 to US$93.9 million in 4Q23. Additionally, mass table win surged by 365% to US$404.5 million, while slot machine win witnessed a 232% improvement, reaching US$27.6 million. Hotel revenue also recorded a substantial increase, rising by 312% to US$50.5 million.
Wynn Macau Performance Highlights:
Similarly, Wynn Macau, situated in the peninsula area, reported robust operating revenues of US$386.2 million, marking a remarkable year-on-year increase of 400%. Casino revenues experienced a substantial surge of 524%, totaling US$320.6 million. The growth was fueled by a significant increase in mass table games win, which rose by 444% to US$297.7 million, and slot machine win, which increased by 164% to US$20.8 million. Notably, VIP win amounted to US$125.8 million, marking a substantial reversal from a segment loss of US$35.2 million recorded a year earlier.
Group-wide Performance:
Across the entire Wynn Resorts group, the fourth quarter of 2023 showcased robust performance, with operating revenues reaching US$1.84 billion, indicating a notable increase of 83.6% year-on-year. Net income stood at an impressive US$729.2 million. Moreover, adjusted property EBITDAR witnessed a remarkable surge, climbing to US$630.4 million, marking a substantial 223% increase compared to the previous year. This stellar performance reflects the relentless dedication of Wynn Resorts’ team in delivering exceptional hospitality, positioning their properties as premier destinations for luxury guests across Las Vegas, Boston, and Macau.
CEO Perspective:
Wynn Resorts CEO Craig Billings expressed satisfaction with the company’s performance, highlighting the sustained momentum throughout 2023. He emphasized that the achievement of a new all-time record in adjusted property EBITDAR underscores the team’s unwavering commitment to delivering unparalleled five-star hospitality. Billings reiterated that these impressive results distinguish Wynn Resorts’ properties as the preferred choice for luxury travelers in key markets such as Las Vegas, Boston, and Macau.
Wynn Resorts Ltd’s Macau operations have experienced a remarkable turnaround, marked by significant increases in operating income and adjusted property EBITDAR. The resurgence in casino revenues at Wynn Palace and Wynn Macau underscores the effectiveness of strategic initiatives undertaken by the company. With a focus on delivering unparalleled hospitality, Wynn Resorts continues to set new benchmarks in luxury experiences, reaffirming its position as a leader in the global hospitality and entertainment industry.