Wynn Resorts trounced expectations in its first quarterly earnings report of the year thanks to a strong U.S. consumer, the reopening of Macau, and Wynn’s first legal sports betting operation in Massachusetts.
Wynn reported adjusted earnings of $0.29 per share — far above the $0.01 per share analysts expected. Wynn Las Vegas played a key role — producing a record-breaking $232 million of adjusted property EBITDA — and that trend appears to be continuing into the second quarter. “We also subsequently delivered the best April in the history of the property,” said Wynn CEO Craig Billings.
Wynn’s Macau properties also reported positive EBITDA for the quarter, owing to China’s reopening of its borders and reducing COVID restrictions at the start of 2023. During Tuesday’s conference call, Billings was obviously pleased, saying “…right now, things feel good around here.”
In the fourth quarter of 2022, Wynn posted a profit for the first time since the start of the pandemic. With a second consecutive positive quarter under its belt, Wynn is confident of continued improvement. So confident, in fact, that Wynn reinstated its quarterly dividend, which had been suspended since May 2020.
WynnBET not wynning yet
Wynn’s online sports betting site is yet to see the same profitability, however, as WynnBET, was still operating in the red during the first quarter. Its division, Wynn Interactive, had an EBITDA burn rate of $21.1 million. Still, that’s an improvement over last quarter’s burn rate of $31.5 million.
WynnBET is currently available in Arizona, Colorado, Indiana, Louisiana, Michigan, New Jersey, New York, Tennessee, and Virginia — adding Massachusetts in March. Little was said about WynnBET during the earnings conference call except that the company was staying “disciplined on cost, while driving improved marketing efficiencies.” Sports betting, however, is playing a meaningful role in Wynn’s continued performance.
Wynn reported opening its first retail sports betting operation in Massachusetts. The sportsbook at Encore Boston Harbor helped drive a 20% increase in sign-ups to Wynn’s reward program year-to-date.
