‘Phenomenal quarter’: Strong convention business boosts Wynn Resorts

Riding the financial strength of all its major markets, Wynn Resorts Ltd. cruised to a record first quarter performance.

Wynn Resorts CEO Craig Billings said Tuesday that its resorts are generating “strong” financial results “for the first time in over three years.”

“In the U.S., Wynn Las Vegas and Encore Boston Harbor are firing on all cylinders, generating a new all-time record for adjusted property cash flow at our combined North American properties during the quarter. In Macao, after several challenging years, we were pleased to experience a meaningful return of visitation and demand, particularly in our mass gaming and retail businesses,” he said.

Nowhere was the company’s financial position stronger than in Las Vegas, where Wynn has had sturdy group business and improving international visitation mixed with a robust calendar extending into late 2023.

“I have to tell you … it’s a fascinating time in our business,” Billings said in a conference call with investors. “Despite the confluence of high inflation, high interest rates, bank failures and increasingly difficult year-over-year comps, Wynn Las Vegas delivered an all-time record in Q1 with $232 million of adjusted property cash flow supported by a consumer that continues to feel flush.”

“We also subsequently delivered the best April in the history of the property,” he said.

For the quarter that ended March 31, Wynn reported net income of $12.3 million, a loss of 2 cents a share, on revenue of $1.42 billion. That compared with a net loss of $183.3 million, $1.59 a share, on revenue of $953.3 million.

Billings explained why the numbers also look good in the future.

“Looking ahead, we currently have a strong pipeline in forward group demand, continued room pricing power, healthy drops and handles (in casino play) and a robust programming calendar, particularly in the back half of the year,” he said. “In general, I would say the market is coming back much more quickly than anybody would have thought of, certainly six or nine months ago.”

Billings said international visitation isn’t quite back to pre-COVID-19 levels. But Wynn Las Vegas President Brian Gullbrants said group business — conventions and trade shows — has vaulted past pre-pandemic times.

“We had the best convention group revenue we’ve ever had,” Gullbrants said. “We had all the stars line up: CES, (National) Homebuilders (Association), ConExpo … it was just a phenomenal quarter. That helped drive the record quarter.

“Right now ’24 is pacing ahead of what we believe will be a record ’23. So we’re beyond 2019 levels.”

At Encore Boston Harbor in Everett, Massachusetts, gaming revenue ticked upward after the state’s legalization of sports wagering. The casino began taking sports bets in late January.

Wynn Macau and Wynn Palace on Macao’s Cotai Strip have seen rising revenue as the Chinese special administrative region continues its recovery from shutdowns brought upon by COVID-19.

Billings also noted first-quarter progress on its $3.9 billion Wynn Al Marjan Island project in the United Arab Emirates. The resort, which will include a 1,000-foot hotel tower on the Arabian Gulf, is being built on man-made islands and will be the only integrated resort in the UAE with legalized gambling.

Wynn shares, traded on the Nasdaq exchange, were down $1.06, 0.94 percent, in slightly-above-average volume Tuesday, closing at $111.70 a share. In after-hours trading, the stock rebounded by 55 cents, 0.49 percent, to end at $112.25 a share.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.