Wynn Macau Surpasses Q4 Expectations with Strong Revenues

In a notable rebound, Wynn Macau Ltd, the Macau-based casino operator and subsidiary of Wynn Resorts Ltd, has reported impressive financial results for the fourth quarter of 2023. According to a filing with the Hong Kong Stock Exchange, the company recorded total operating revenues of $910.6 million, an 11.1% increase from the previous quarter. This figure represents a 378.5% year-on-year surge, showcasing remarkable growth.

Metrics Are Up across the Board

The positive trend extended to adjusted earnings before interest, taxation, depreciation, amortization, and rent (EBITDAR), which amounted to just under $297.0 million, reflecting a robust 16.5% increase from the third quarter. This metric marked a notable improvement from the negative $59.1 million reported a year ago.

Both Macau properties performed admirably, achieving triple-digit operating revenue growth. Wynn Palace saw this metric increase 364% year-on-year, reaching $524.4 million, while Wynn Macau recorded a 400% growth compared to the previous year. Casino revenues followed this trend, increasing by 506% and 524%, reaching $417.3 million and $320.6 million respectively.

These results are especially notable, considering 2022 was a significantly challenging year for these properties. However, impressive market awareness and shrewd leadership allowed the two integrated resorts to position themselves at the forefront of Macau’s recovery, bolstering their appeal with diverse luxury offerings and a world-leading guest experience catering to gaming and non-gaming tourists.

Wynn Resorts Greatly Benefited from This Resurgence

Macau’s success contributed significantly to the broader group’s Q4 success. Parent company Wynn Resorts recorded a remarkable year-on-year revenue surge of 83.1%, reaching $1.84 billion and surpassing analyst estimates of $1.74 billion by 5.9%. The company’s revenue dynamics, particularly in the Casino and Non-Gaming segments, demonstrated significant growth, setting the stage for a successful 2024.

This quarter also saw a notable improvement in the operating profit margin, which reached 19.4%, reflecting enhanced efficiency in expense management. Wynn Resorts CEO Craig Billings was optimistic regarding the operator’s financial results, noting they were only possible due to the company’s unrelenting focus on surpassing the competition with industry-leading offerings.

These impressive results highlight our team’s relentless focus on delivering five-star hospitality, which continues to elevate our properties above our peers.

Craig Billings, Wynn Resorts CEO

Looking ahead, Wall Street expects continued growth for Wynn Resorts, with analysts projecting an increase in the company’s operating margin from 12.9% to 16.5% over the next 12 months. Its Macau properties will play a significant role in this resurgence as the region reemerges as a leading hospitality hub, focused less on gambling and more on delivering a five-star leisure experience.