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  • Wynn flaunts ‘record-setting’ Las Vegas property strength during Q4 2022 earnings report

Wynn’s two Las Vegas properties highlighted growth for the company during its Q4 earnings call as it continues to trim losses from its digital division and regain momentum in its Asian markets.

Topline numbers

Wynn operating revenues were $1bn for the fourth quarter of 2022, a decrease of $48.2m, from Q4 2021. Operating revenues for Q4 2022 increased $91.6m and $14.4 million at the company’s Las Vegas properties (Wynn and Encore) and Encore Boston Harbor, respectively.

Internationally, operating revenues decreased $80.9m at Wynn Palace and $54.5m at Wynn Macau for the fourth quarter as the company’s Chinese properties ran up against government-mandated COVID-19 closures. Wynn Interactive, the company’s online sports betting and casino division, saw operating revenue decline nearly $8m from Q4 2022 to Q4 2021.

Net income attributable to Wynn was $32.4m, or $0.29 per diluted share, for the fourth quarter of 2022, compared to a net loss of $177.2m, or ($1.54) per diluted share, in the fourth quarter of 2021. Adjusted net loss attributable was nearly $139m, or $1.23 per diluted share, for the fourth quarter of 2022, compared to adjusted net loss of roughly $157.4m, or $1.37 per diluted share, in Q4 2021.

In Q4 2022, Wynn’s adjusted property EBITDAR was a little over $195m against roughly $149m during that same quarter a year earlier.

Adjusted property EBITDAR for Q4 2022 increased $33m and $51m at Las Vegas properties and Wynn Interactive, respectively, between Q4 2022 and Q4 2021. That figure decreased $22.5m, $10.7m, and $5m at Wynn Palace, Wynn Macau and Encore Boston Harbor, respectively, during that same time frame.

Wynn’s overall operating revenues for calendar year 2022 were $3.76bn, flat compared to operating revenues for full year 2021.

News nugget

Wynn CEO Craig Billings said during Wednesday’s earnings call the company’s two Las Vegas properties reported $816m in normalized adjusted property EBITDA during 2022. He said an analyst in 2019, before the start of the COVID-19 pandemic, predicted the two properties would generate “only” $482m in calendar year 2022.

The eye-popping figures underscore the continued rebound of all major Las Vegas Strip operators since the depths of the pandemic in spring 2020. Other major Strip operators including MGM, which also reported strong Vegas property numbers during its Q4 earnings report Wednesday, and Caesars, which will report later this month, have seen similar results.

Wynn, however, has just two casinos in Las Vegas that essentially function as one major property, compared to more than a half-dozen at both MGM and Caesars. Wynn also appeals to a more affluent demographic, which reaffirms the Las Vegas markets’ strength in all customer subsets.

Best quote

Billings on Wynn and Encore’s $816m 2022 AEBITDA:

“I’m confident that this is an all-time record for a standalone Las Vegas Strip property. And mind you, we did not deliver this result by nickel and diming on service standards and reducing staff to drive operating leverage. The team did it by focusing on what we do best, great product, great service, great programming, and it showed in our market share and pricing power.”

Best question

Billings, who took over as CEO in 2022 after leading the company’s WynnBet division, was asked about Wynn’s digital future. He said the company was already seeing strong results from players at the retail sportsbook at Encore Boston Harbor and expected Massachusetts to be a leading digital market when WynnBet’s online platform goes live in the state in March.

WynnBet is also continuing to reduce its cash burn, a critical step for Wynn Interactive, Billings said. Though WynnBet initially chased Caesars, MGM and other rivals for online gaming market share, the company has since redirected its digital division resources to select iGaming markets as well as “high-value” online sports betting states.

Along with Massachusetts, WynnBet is set to launch in Maryland and Ohio in the coming months.

Current outlook and trading

Wynn officials said Wednesday they expect continued strength from its flagship Las Vegas properties as well as growth for Encore Boston Harbor, which they said will be even further bolstered by the new on-property retail sportsbook as well as the digital sports betting launch in Massachusetts next month.

In Macau, Wynn was already seeing a “meaningful return of visitation and demand” during the roughly two-week Chinese New Year holiday period that began Jan. 26. With COVID-19 pandemic restrictions easing, Wynn officials believe they can see significant returns from their Asian properties after years of shutdowns and financial losses.

Wynn’s stock was up more than 3% during after-hours trading following Wednesday’s earnings call. The company’s stock is up more than 8% in the past month and roughly 43% in the past three months.