Casino operator Wynn Resorts posted better than expected Q1 numbers as the company’s newest Macau property found its stride.
Figures released Tuesday show Wynn’s overall revenue hitting $1.48b in the three months ending March 31, nearly 48% higher than the same period last year. Adjusted earnings rose 42.4% to $427.5m while net income shot up 34% to $100.8m.
The new Wynn Palace property in Macau, which opened last August, generated revenue of $475.8m in its second full quarter of operations, up from $418.7m in Q4 2016. Wynn’s original Macau property, Wynn Macau, reported revenue falling 3.5% to $587m.
Wynn Palace reported VIP turnover of just over $11b, mass market table drop of $770m, and slots handle of $657.6m. Wynn Macau reported $13.3b VIP, $1.14b mass and $856.7m slots. VIP win rate at both properties was slightly above the statistical range.
Wynn Palace managed to surpass Wynn Macau in non-gaming revenue, by a ratio of $85.6m to $64.9m. Occupancy at both properties was around 95.7%.
Wynn’s Las Vegas operations reported revenue of $413m, up 6% year-on-year, while earnings gained nearly one-quarter to $134.6m. Table drop fell slightly but table win rose, while slots win was flat despite a nearly 7% rise in handle.
Wynn’s Macau operations have always been focused on a ritzier clientele, and its underwhelming early returns reflected Macau’s lingering VIP doldrums. Similarly, Wynn Palace’s current strong showing reflects the market’s overall Q1 performance, in which VIP gaming grew at twice the speed of the mass market.
Speaking on the analyst call, Wynn CEO Steve Wynn trumpeted Wynn Palace for boosting the company’s Macau market share to 16% from just 9% a few years ago. Wynn expects to take an even bigger bite once construction work around Wynn Palace concludes and gamblers have easier access to the property.
In Vegas, Wynn’s ambitious plans to build a major off-Strip non-gaming expansion known as Paradise Park could get underway as early as December. However, while the proposed lagoon and meeting center are still in the mix, plans for a new hotel have been put on hold until the company sees how the first phases pan out.
Steve took time to celebrate the National Football League owners having recently approved the Oakland Raiders franchise relocating to Vegas, predicting that “having NFL games in Las Vegas is going to light this town up.” Steve’s already looking forward to Vegas hosting its first Super Bowl, during which “this place will go bonkers.”