Wynn Resorts posts first profitable quarter since pandemic in Q4, revenue flat for 2022

Wynn Resorts has announced its financial results for the fourth quarter and the full year of 2022. The company posted revenues of $1 billion for Q4, a decrease of $48.2 million; and delivered $3.76 billion for the year, flat when compared to 2021. Strong North American results offset a weak performance in Macau, where Wynn operates two properties.

Net income for the fourth quarter of 2022 came at $32.4 million, or $0.29 per diluted share, compared to a net loss of $177.2 million in Q4 2021. The operator’s commitment to a quality product at a premium price in Las Vegas and Boston led to the company’s first profitable quarter since the pandemic, executives said in a Wednesday earnings call with investors.

“Our teams at Wynn Las Vegas and Encore Boston Harbor delivered a new fourth-quarter record for adjusted property cash flow at our combined North American properties,” Wynn CEO Craig Billings said, as reported by Las Vegas Review-Journal. “These impressive results are a testament to our team’s relentless focus on delivering five-star hospitality, which continues to elevate our properties above our peers as the destinations of choice for luxury guests.”

For the full year of 2022, these properties generated $1.04 billion of Adjusted Property EBITDAR, a record for Wynn “by a wide margin.” However, while US results for 2022 were positive, with operating revenues for the year up in Vegas, Boston and the interactive segment, revenues decreased $472.7 million and $314.8 million at Macau properties Wynn Palace and Wynn Macau, respectively, from 2021.

Wynn Palace

While last year’s Macau performance was heavily impacted by Covid-19 restrictions, the gambling hub has now lifted most of its policies against the pandemic. And like its American peers in Macau, Wynn was able to see a glimmer of hope in January, during the Chinese New Year celebration, which drove revenue hikes across the region and saw the return of tourism.

However, Billings cautioned against reading too much into such a short period of time. “In the grand scheme of things, it’s a week. So it’s hard to read any tea leaves in a week,” he stated, as per Review-Journal. “What I would say is that the market roared back. Macau was a rager on the mass side, on the direct VIP side, on the retail side and on the occupancy side.”

January results “outperformed our expectations for the long period shortly thereafter,” noted Billings, cautioning that “anything beyond that is just too early to read.” Wynn is set to operate for another decade at the gambling hub, after being awarded a new 10-year gaming concession on January 1, with Billings saying the firm is “well-positioned” for success there.

Wynn Las Vegas

Looking to the months ahead, the company expects a robust convention calendar in Las Vegas, set to bring additional traffic to its two Strip resorts. The new “Awakening” production has a strong fan base, and by the end of the year, the casino operator is expecting big things from the first-ever Formula One Las Vegas Grand Prix.

Meanwhile, in Boston, planning continues on 10 acres near Encore Boston Harbor for new retail, entertainment and parking. Additionally, Massachusetts has recently launched in-person sports wagering, driving new casino customers to Encore, with mobile sports gaming on the WynnBet app expected to follow in March.

But Wynn Resorts is also moving ahead with new projects outside of its current markets. On Wednesday, Billings said that renderings for the company’s planned casino resort in the emirate of Ras Al Khaimah in the United Arab Emirates would be out in the next few weeks. The business is excited for the project, as it initially will operate as the only place in the emirates that will allow gambling.

The company is also targeting expansion in its home market of the US, where it is participating in the bid for one of three downstate New York casino licenses that have been made available. The operator is partnering with New York real estate giant Related Companies for a development in Hudson Yards, Manhattan.