Wynn Resorts has reported a significant turnaround in the first quarter of 2023, registering a 49.3% year-on-year increase in revenue. The growth is attributed to strong financial results from each of its land-based casino resorts for the first time in three years, following the relaxation of nearly all Covid-19 restrictions in Macau.
Wynn Resorts Macau and Las Vegas Drive
Wynn Resorts has experienced a surge in visitor traffic and footfall in Macau, resulting in a year-on-year doubling of revenue in the region. Additionally, the operator has reported growth across its Las Vegas operations and at its Encore Boston Harbor in Massachusetts.
Wynn Resorts CEO Craig Billings said, “For the first time in over three years, each of our resorts is generating strong financial results, which is once again a testament to our team’s relentless focus on delivering five-star hospitality and experiences to our guests.”
Q1 revenue for the three months ending 31st March totaled $1.42bn (£1.13bn/€1.30bn), a significant rise from $953.3m in the previous year. Casino revenue increased by 56.6% to $767.0m, while rooms revenue grew by 59.9% to $272.5m. Food and beverage revenue rose 33.7% to $232.6m, and entertainment, retail, and other revenue jumped 27.2% to $151.5m.
A Brief Overview of Wynn’s Financial Performance
Revenue from Macau operations skyrocketed 101.1% to $600.1m, including $369.4m from Wynn Palace and $233.7m from Wynn Macau. Las Vegas revenue rose 32.8% to $586.0m, and Encore Boston Harbor reported a 13.4% year-on-year increase with $216.3m in revenue. However, Wynn Interactive, concentrating on the iGaming online experience, experienced a slight revenue decline of 6.8% to $20.5m.
Total operating expenses for the quarter were 19.7% higher at $1.25bn, with casino costs being the main expense at $473.4m. The pre-tax profit stood at $2.2m, a stark contrast to the $253.5m loss in 2022. After paying $1.0m in income tax, net profit reached $1.1m, compared to the $254.6m loss the previous year.
Implications for the iGaming Industry
The remarkable recovery of Wynn Resorts has three significant implications for the iGaming industry:
- Resilience of land-based casinos: Despite the rapid growth of online gaming during the pandemic and the 2023 iGaming trend of increased revenue of crypto casinos and web3 lotteries, Wynn’s recovery demonstrates the ongoing appeal and resilience of land-based casinos in a post-pandemic world.
- Importance of diversification: Wynn Resorts’ growth across multiple locations, including Macau, Las Vegas, and Massachusetts, highlights the benefits of geographic diversification for gaming operators.
- Challenges for online gaming: While Wynn Resorts’ overall performance has been strong, the slight decline in Wynn Interactive’s revenue could signal challenges for the online gaming sector as land-based casinos regain traction.