Wynn Resorts Reports Record First Quarter Cash Flow Despite Macau Crisis
Wynn Resorts Ltd. posted record first-quarter cash flow in Las Vegas and Boston, and executives remain confident that Macau’s numbers will eventually rebound.
The company posted revenue of $953.3 million in the first quarter, up 29.4% from $736.7 million in the same quarter last year. It also posted lower net revenue losses, $183.3 million, compared to $281 million in the first quarter of 2021.
Executives at the Las Vegas company that operates Wynn and Encore in Las Vegas and Encore Boston Harbor said that, like other casino operators across the country, they experienced weak results in January due to the omicron variant. . But results gradually improved later in the quarter and are at an even better pace heading into the second quarter.
“We actually achieved 91% hotel occupancy in March, which contributed to a record cash result in the month,” Wynn Resorts Ltd. CEO Craig Billings said Tuesday during a briefing. conference call with investors. “We don’t see any signs of slowing down.”
Solid American Properties
Like their peers in Macau, results from the three Wynn properties in the Chinese enclave are suffering from a significant drop in visits due to border closures and community shutdowns across China resulting from COVID-19 policies.
“Our first quarter results reflect the continued strength of Wynn Las Vegas and Encore Boston Harbor, where our teams’ relentless focus on five-star hospitality and world-class experiences combined with very strong guest demand for delivering a new first quarter record for cash flow adjusted property at both properties,” Billings said. “In Macau, we remain confident the market will benefit from the return of visitation as travel restrictions ease.”
Billings said Wynn has invested in Las Vegas properties during some of the difficult times of COVID.
“Everyone on this call knows that Las Vegas as a market has had a rapid rebound over the last year or so,” he said. “We certainly took advantage of it. We also benefit from our own efforts over the past few years. Even during difficult times, we have invested in our people and our products. We opened Delilah (a restaurant). We have completed a refresh of the living rooms adjacent to Dream Lake. We opened Casa Playa (another restaurant) and renovated the rooms in the Wynn Tower.
“We looked at every inch of this market-leading property and asked ourselves how can it be improved? How can we bring him back more? It is the dedication to our craft that makes us incredibly proud and that generates lasting results.
The design of the project takes shape
Billings also updated the progress of its planned resort in the United Arab Emirates and told investors the company was interested in developing a casino in New York.
“We moved quickly to design our project in the UAE and I’m getting more excited about the opportunity with each iteration of this design,” he said. “The island, which is truly a blank canvas for us, offers incredible opportunities to do what we do best. From large-scale water and light shows at sea like the Lake of Dreams in Las Vegas to a bedroom product that takes advantage of the unique aspects of the site.I am confident that we will offer something special to a market that is paramount to a luxury experience.
In response to an investor’s question, Billings discussed the company’s interest in New York, where it could potentially compete with MGM Resorts International and Las Vegas Sands Corp. for a casino license.
“We’re interested in any gateway city that’s conducive to the scale and quality of Wynn Resorts development, so we’re interested in New York and we’re active there, but we’re not in a position to talk about anything yet. either in particular. ,” he said.
Wynn stock, traded on the Nasdaq stock exchange, climbed 32 cents, 0.5%, to close at $61.65 a share trading about twice the normal average volume. After hours, shares fell 65 cents, 1%, to end at around $61 per share.
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Contact Richard N. Velotta at firstname.lastname@example.org or 702-477-3893. To follow @RickVelotta on Twitter.