Wynn Resorts recently unveiled its financial report for the third quarter ending Sept. 30, 2023. The company reported an increase in revenue, attaining an 88% surge when compared to Q2 2022.
The hospitality and gaming company reported operating revenues of $1.67 billion for the third quarter of 2023, representing a staggering $782.2 million increase from the same period in 2022.
In addition to the revenue growth, the company reported an adjusted property EBITDAR of $530.4 million for the third quarter of 2023. This marked a turnaround from the adjusted property EBITDAR loss of $173.5 million generated in Q3 2022.
Craig Billings, CEO of Wynn Resorts, commented on the Q3 financial report:
“Our third quarter results reflect continued strength across our property portfolio,” Billings said. “Our teams at Wynn Las Vegas and Encore Boston Harbor delivered a new third-quarter record for Adjusted Property EBITDAR at our combined North American properties as we continue to elevate our properties above those of our peers.”
Despite the growth in revenue, the financial report also disclosed a net loss attributable to Wynn Resorts of $116.7 million. This represents a notable improvement compared to the net loss garnered by the company during the third quarter of 2022, amounting to $142.9 million.
Wynn’s Q3 Revenue Growth Driven by Macau
The Q3 revenue of $1.67 billion is largely attributed to Wynn Resorts’ Macau operations. Wynn Palace generated a revenue of $524.8 million during the three months leading to Sept. 30, up 598% from the $75.2 million garnered in Q3 2022. Its adjusted property EBITDAR was $177 million as opposed to $21.8 million from the same period in 2022.
Wynn Macau also experienced an increase in operations revenue, amounting to $295 million within the trading period, up 630% when compared to $40.4 million in Q3 2022. It recorded an adjusted EBITDAR of $77.9 million, 73.9% more than the division recorded in the same period in 2022.
Wynn’s Las Vegas operations maintained its position as the division with the most revenue generated within any trading period. In Q3, it posted a revenue increase of 13.7% from the same period in the previous year, amounting to $619 million. Encore Boston Harbor, on the other hand, experienced a slight dip in revenue, generating $210.4 million in Q3, $1.4 million less than it reported in Q3 2022.
Las Vegas posted an adjusted EBITDAR of $219.7 million, having generated $195.8 million from the same period in 2022. Meanwhile, Encore Boston Harbor had a third-quarter adjusted EBITDAR of $60.5 million, $0.6 million less than Q3 2022.
Wynn Resorts Projects Growth Opportunities in UAE
Wynn Resorts highlighted ongoing development projects, particularly the construction of Wynn Al Marjan Island, which is poised to become a prominent tourism destination in the UAE.
Billings describes the region as “the most exciting new market opening in decades.” The development is estimated to cost the company about $3.9 billion, with its site located at the artificial Al Marjan Island in the Emirate of Ras Al-Khaimah.
“On the development front, construction on Wynn Al Marjan Island is well underway, and we are confident the resort will be a ‘must see’ tourism destination in the UAE,” Billings said.
“We believe it’s highly unlikely that every Emirate will ultimately avail themselves of the right to host an integrated resort. Our view is that it will likely be us and us alone for a multi-year period given that we are well underway on construction now.
“We all know the advantages of being first as we have seen in other markets. After that, it may be a duopoly or an oligopoly of three. But I find either ultimate market structure undaunting given the database advantages of being first and the fact that we’ve very successfully operated in the two most competitive markets in the world: Vegas and Macau.”