Wynn Resorts has missed estimates in the first quarter of 2025. Its quarterly results revealed a slowdown of business across many of the company’s resorts.
Key Takeaways
- Wynn Resorts revenue falls 8.7%, missing estimates.
- Volatile high stakes market caused trouble for the company in Q1.
- Construction of Wynn Al Marjan Island on track for 2027 opening.
Wynn Macau, Wynn Palace, Las Vegas operations, and Encore Boston Harbor all saw revenue decline during the quarter. The difference was far more pronounced at the company’s two Macau properties, though. At Wynn Palace, revenue fell by 8.7%. Wynn Macau saw revenue drop 19.9%.
Revenue also fell elsewhere, but not nearly as far. In Las Vegas, where Wynn recently celebrated its 20-year anniversary, operations revenue dipped by 1.8%. At Encore Boston Harbor, it was 3.6%.
Overall operating revenues of $1.7 billion were an 8.7% reduction from the $1.86 billion reported in the first quarter of 2024. Revenue estimates had been around the $1.74-billion mark.
Adjusted Property EBITDAR, another key performance metric for casino operators, was $532.9 million for the first three months of this year. That’s quite a drop from $646.5 million recorded in the same period last year.
VIP hold impacts results at Macau properties
Wynn has attributed the results to recent weaknesses across its Macau operations. Win percentages fell far below expectations at both Wynn Palace and Wynn Macau during the quarter, negatively impacting revenue for both properties.
Craig Billings, CEO of Wynn Resorts, admitted that the company had faced challenges this quarter, but remained optimistic about ongoing growth strategies.
“In Macau, while VIP hold negatively impacted results, we held market share in our expected range, and announced an increased dividend from Wynn Macau, Limited, reflecting the strong free cash flow generated by the business,” Billings said.
Wynn Al Marjan Island on schedule for 2027 launch
Billings went on to speak about the company’s plans for the future, highlighting the progress that has been made on the construction of Wynn Al Marjan Island.
“Construction of our growth project in the UAE, Wynn Al Marjan Island, continued to advance with the hotel tower reaching the 47th floor,” Billings said.
The beachside resort will be 50 minutes from Dubai International Airport, on a 60-hectare island on the Arabian Gulf. It is expected to welcome its first guests in 2027.
There are already 49 members of Wynn staff working on the UAE project. By the end of this year, the company is expected to have hired 327 employees to keep it on track for its grand opening.
After-market drop in shares followed by quick recovery
Wynn posted adjusted earnings per share of $1.07, short of the analyst consensus of $1.31. In the first quarter of 2024, it was $1.59 per diluted share.
Billings drew attention to the fact that shareholders had continued to see return on capital this quarter.
“We continued to return capital to shareholders through our regular quarterly dividend and the repurchase of $200 million of stock in the quarter," he said.
The company announced its quarterly cash dividend at $0.25 per share, payable on May 30. Diluted net income per share was $0.69 for the first quarter of 2025, compared to diluted net income per share of $1.30 for the first quarter of 2024.
Wynn Resorts shares have dropped 9% since the start of this year. On Tuesday, shares declined 2.4%, closing at $83.52, but modest gains were made by Wednesday morning, so investors clearly remain optimistic about the company’s future plans and its ability to turn things around in Macau.
Considering the growth seen in the Macau market over the course of last year, this looks likely. Let’s not forget that high stakes gaming was going from strength to strength last quarter, with Wynn’s VIP percentage rising to 5.01% from 4.37% in Q4 of 2024.
