Wynn Resorts, Limited (WYNN - Free Report) reported fourth-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. The top line declined year over year, while the bottom line improved from the prior-year quarter's figure.
Craig Billings, CEO of Wynn Resorts, Limited, stated, "In Macau, we were honored to be awarded with a new 10-year gaming concession during the quarter and were pleased to experience a meaningful return of visitation and demand during the recent Chinese New Year holiday period. We believe we are well-positioned for success in Macau’s next phase of growth."
Q4 Earnings & Revenues
During the quarter, the company reported an adjusted loss of $1.23 per share, wider than the Zacks Consensus Estimate of a loss of $1.17. In the prior-year quarter, the company reported an adjusted loss of $1.37 per share.
Quarterly revenues of $1,004.9 million surpassed the consensus mark of $941 million. However, the top line declined 4.6% on a year-over-year basis. The downside was mainly due to the dismal performance of Wynn Palace and Wynn Macau.
Wynn Palace Operations
During the fourth quarter, Wynn Palace revenues were $113.1 million compared with $194 million reported in the prior-year quarter. Casino revenues in the reported quarter totaled $68.9 million compared with $145.9 million reported in the prior-year quarter. Rooms and food and beverage revenues declined 20.8% and 0.3% year over year to $12.3 million and $11.5 million, respectively. During the quarter under review, entertainment, retail and other revenues declined 3.3% year over year to $20.4 million.
In the VIP segment, table games turnover was $ 1,047.5 million, down 11.9% year over year. VIP table games win (loss) rate (based on turnover) was 0.11%, below the expected range of 3.1-3.4%. The figure was below the 2.59% reported in the prior-year quarter. Table drop in the mass market segment was $ 373.3 million compared with $592.1 million reported in the prior-year quarter. Table games’ wins in mass market operations amounted to $86.9 million compared with $134.2 million reported in the prior-year quarter.
During the reported quarter, RevPAR declined 22.3% year over year to $73. Occupancy levels in the segment came in at 50.1% compared with 50.9% reported in the prior-year quarter. The average daily rate (ADR) during the quarter came in at $146, down 21.1% on a year-over-year basis.
Wynn Macau Operations
During the fourth quarter, Wynn Macau’s revenues amounted to $77.2 million compared with $131.7 million reported in the prior-year quarter. The downside was primarily due to a fall in the casino, rooms and entertainment, retail and other revenues.
Casino revenues in the reported quarter were $51.4 million, down 47.2% year over year. Rooms and entertainment, retail and other revenues declined 37.7% and 20.2% year over year to $7.1 million and $11.2 million, respectively. During the quarter, food and beverage revenues declined 15.3% year over year to $7.5 million.
Table games turnover in the VIP segment declined 49.9% year over year to $429.6 million. The VIP table games win rate (based on turnover) was 1.2%, below the expected range of 3.1-3.4%. Also, the figure was lower than 2.85% reported in the prior-year quarter.
Table drop in the mass market segment was $ 317.8 million compared with $527.2 million reported in the prior-year quarter. Table games’ win in the mass market category was $54.7 million compared with $91.5 million reported in the prior-year quarter.
During the reported quarter, RevPAR fell 37.5% year over year to $70. Occupancy levels in the segment came in at 51.8% compared with 55.2% in the prior-year quarter. However, ADR came in at $135, down 33.8% year over year.
Las Vegas Operations
During the fourth quarter, revenues from Las Vegas operations were $585.5 million compared with $493.9 million reported in the year-ago quarter.
Casino revenues increased 16.6% year over year to $141.3 million. Revenues from food and beverage, rooms and entertainment, retail and other increased 12.8%, 19.5% and 35.9% year over year to $176.1 million, $190.6 million and $77.4 million, respectively.
Table games drop inched up 1.1% year over year to $590.7 million. Table games wins increased 3.5% year over year to $125.4 million. During the fourth quarter, table games win percentage of 21.2% was below the projected range of 22-26%. However, the figure was above 20.8% reported in the prior-year quarter.
During the quarter under review, RevPAR increased 16.6% year over year to $443. The occupancy rate came in at 89.9%, up from 86.3% reported in the prior-year quarter. ADR was $492, up 11.6% year over year.
Encore Boston Harbor
During the fourth quarter, revenues from Encore Boston Harbor operations amounted to $218.3 million compared with $204 million reported in the prior-year quarter. During the quarter, table games win percentage of 21.9% was within the projected range of 18-22%. However, the figure was below 22.2% reported in the prior-year quarter.
During the reported quarter, RevPAR increased 27.9% year over year to $380. The occupancy rate came in at 93.9%, up from 87.2% reported in the prior-year quarter. ADR was $404, up 18.5% year over year.
Operating Performance
During the fourth quarter, adjusted property EBITDAR was $195.1 million compared with $149.1 million reported in the prior-year quarter.
In the quarter under review, adjusted property EBITDAR from Wynn Macau totaled ($35.2) million compared with ($24.5) million reported in the prior-year quarter. Adjusted property EBITDAR from Las Vegas operations was $219.3 million compared with $186.2 million reported in the year-ago quarter. Adjusted property EBITDAR from Encore Boston Harbor was $63.3 million compared with $68.2 million reported in the prior-year quarter.
Cash Position
As of Dec 31, 2022, Wynn Resorts’ cash and cash equivalents totaled $3.65 billion compared with $1.94 billion as of Sep 30, 2022.
Total current and outstanding debt at the end of the fourth quarter amounted to $12.12 billion. The figure included $3.14 billion of Wynn Las Vegas-related debt, $6.19 billion of Macau debt, $2.17 billion of Wynn Resorts Finance debt and $613.5 million of debt held by the retail joint venture, which the company consolidated.
2022 Highlights
Total revenues in 2022 came in at $3,756.8 million compared with $3,763.7 million in 2021.
Adjusted EBITDAR in 2022 came in at $725.4 million compared with $569.4 million in 2021.
In 2022, adjusted earnings per share (EPS) came in at $(4.47) compared with $(6.12) reported in the previous year.
Zacks Rank & Key Picks
Wynn Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are OneSpaWorld Holdings Limited. (OSW - Free Report) , Las Vegas Sands Corp. (LVS - Free Report) and Manchester United plc (MANU - Free Report) .
OneSpaWorld currently sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 84.2%, on average. Shares of the company have increased 7.9% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 24.2% and 91%, respectively, from the year-ago period’s levels.
Las Vegas Sands sports a Zacks Rank #1. LVS has a long-term earnings growth rate of 4.9%. The stock has increased by 23.2% in the past year.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 100.8% and 217.5%, respectively, from the year-ago period’s estimated levels.
Manchester carries a Zacks Rank #2 (Buy). MANU has a trailing four-quarter earnings surprise of 34.4%, on average. Shares of the company have gained 69.8% in the past year.
The Zacks Consensus Estimate for MANU’s 2024 sales and EPS indicates a rise of 11.4% and 27.8%, respectively, from the year-ago levels.
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Wynn Resorts, Limited (WYNN - Free Report) reported fourth-quarter 2022 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. The top line declined year over year, while the bottom line improved from the prior-year quarter's figure.
Craig Billings, CEO of Wynn Resorts, Limited, stated, "In Macau, we were honored to be awarded with a new 10-year gaming concession during the quarter and were pleased to experience a meaningful return of visitation and demand during the recent Chinese New Year holiday period. We believe we are well-positioned for success in Macau’s next phase of growth."
Q4 Earnings & Revenues
During the quarter, the company reported an adjusted loss of $1.23 per share, wider than the Zacks Consensus Estimate of a loss of $1.17. In the prior-year quarter, the company reported an adjusted loss of $1.37 per share.
Quarterly revenues of $1,004.9 million surpassed the consensus mark of $941 million. However, the top line declined 4.6% on a year-over-year basis. The downside was mainly due to the dismal performance of Wynn Palace and Wynn Macau.
Wynn Palace Operations
During the fourth quarter, Wynn Palace revenues were $113.1 million compared with $194 million reported in the prior-year quarter. Casino revenues in the reported quarter totaled $68.9 million compared with $145.9 million reported in the prior-year quarter. Rooms and food and beverage revenues declined 20.8% and 0.3% year over year to $12.3 million and $11.5 million, respectively. During the quarter under review, entertainment, retail and other revenues declined 3.3% year over year to $20.4 million.
In the VIP segment, table games turnover was $ 1,047.5 million, down 11.9% year over year. VIP table games win (loss) rate (based on turnover) was 0.11%, below the expected range of 3.1-3.4%. The figure was below the 2.59% reported in the prior-year quarter. Table drop in the mass market segment was $ 373.3 million compared with $592.1 million reported in the prior-year quarter. Table games’ wins in mass market operations amounted to $86.9 million compared with $134.2 million reported in the prior-year quarter.
During the reported quarter, RevPAR declined 22.3% year over year to $73. Occupancy levels in the segment came in at 50.1% compared with 50.9% reported in the prior-year quarter. The average daily rate (ADR) during the quarter came in at $146, down 21.1% on a year-over-year basis.
Wynn Macau Operations
During the fourth quarter, Wynn Macau’s revenues amounted to $77.2 million compared with $131.7 million reported in the prior-year quarter. The downside was primarily due to a fall in the casino, rooms and entertainment, retail and other revenues.
Casino revenues in the reported quarter were $51.4 million, down 47.2% year over year. Rooms and entertainment, retail and other revenues declined 37.7% and 20.2% year over year to $7.1 million and $11.2 million, respectively. During the quarter, food and beverage revenues declined 15.3% year over year to $7.5 million.
Table games turnover in the VIP segment declined 49.9% year over year to $429.6 million. The VIP table games win rate (based on turnover) was 1.2%, below the expected range of 3.1-3.4%. Also, the figure was lower than 2.85% reported in the prior-year quarter.
Table drop in the mass market segment was $ 317.8 million compared with $527.2 million reported in the prior-year quarter. Table games’ win in the mass market category was $54.7 million compared with $91.5 million reported in the prior-year quarter.
During the reported quarter, RevPAR fell 37.5% year over year to $70. Occupancy levels in the segment came in at 51.8% compared with 55.2% in the prior-year quarter. However, ADR came in at $135, down 33.8% year over year.
Las Vegas Operations
During the fourth quarter, revenues from Las Vegas operations were $585.5 million compared with $493.9 million reported in the year-ago quarter.
Casino revenues increased 16.6% year over year to $141.3 million. Revenues from food and beverage, rooms and entertainment, retail and other increased 12.8%, 19.5% and 35.9% year over year to $176.1 million, $190.6 million and $77.4 million, respectively.
Table games drop inched up 1.1% year over year to $590.7 million. Table games wins increased 3.5% year over year to $125.4 million. During the fourth quarter, table games win percentage of 21.2% was below the projected range of 22-26%. However, the figure was above 20.8% reported in the prior-year quarter.
During the quarter under review, RevPAR increased 16.6% year over year to $443. The occupancy rate came in at 89.9%, up from 86.3% reported in the prior-year quarter. ADR was $492, up 11.6% year over year.
Encore Boston Harbor
During the fourth quarter, revenues from Encore Boston Harbor operations amounted to $218.3 million compared with $204 million reported in the prior-year quarter. During the quarter, table games win percentage of 21.9% was within the projected range of 18-22%. However, the figure was below 22.2% reported in the prior-year quarter.
During the reported quarter, RevPAR increased 27.9% year over year to $380. The occupancy rate came in at 93.9%, up from 87.2% reported in the prior-year quarter. ADR was $404, up 18.5% year over year.
Operating Performance
During the fourth quarter, adjusted property EBITDAR was $195.1 million compared with $149.1 million reported in the prior-year quarter.
In the quarter under review, adjusted property EBITDAR from Wynn Macau totaled ($35.2) million compared with ($24.5) million reported in the prior-year quarter. Adjusted property EBITDAR from Las Vegas operations was $219.3 million compared with $186.2 million reported in the year-ago quarter. Adjusted property EBITDAR from Encore Boston Harbor was $63.3 million compared with $68.2 million reported in the prior-year quarter.
Cash Position
As of Dec 31, 2022, Wynn Resorts’ cash and cash equivalents totaled $3.65 billion compared with $1.94 billion as of Sep 30, 2022.
Total current and outstanding debt at the end of the fourth quarter amounted to $12.12 billion. The figure included $3.14 billion of Wynn Las Vegas-related debt, $6.19 billion of Macau debt, $2.17 billion of Wynn Resorts Finance debt and $613.5 million of debt held by the retail joint venture, which the company consolidated.
2022 Highlights
Total revenues in 2022 came in at $3,756.8 million compared with $3,763.7 million in 2021.
Adjusted EBITDAR in 2022 came in at $725.4 million compared with $569.4 million in 2021.
In 2022, adjusted earnings per share (EPS) came in at $(4.47) compared with $(6.12) reported in the previous year.
Zacks Rank & Key Picks
Wynn Resorts currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are OneSpaWorld Holdings Limited. (OSW - Free Report) , Las Vegas Sands Corp. (LVS - Free Report) and Manchester United plc (MANU - Free Report) .
OneSpaWorld currently sports a Zacks Rank #1. OSW has a trailing four-quarter earnings surprise of 84.2%, on average. Shares of the company have increased 7.9% in the past year.
The Zacks Consensus Estimate for OSW’s 2023 sales and EPS indicates a rise of 24.2% and 91%, respectively, from the year-ago period’s levels.
Las Vegas Sands sports a Zacks Rank #1. LVS has a long-term earnings growth rate of 4.9%. The stock has increased by 23.2% in the past year.
The Zacks Consensus Estimate for LVS’ 2023 sales and EPS indicates a rise of 100.8% and 217.5%, respectively, from the year-ago period’s estimated levels.
Manchester carries a Zacks Rank #2 (Buy). MANU has a trailing four-quarter earnings surprise of 34.4%, on average. Shares of the company have gained 69.8% in the past year.
The Zacks Consensus Estimate for MANU’s 2024 sales and EPS indicates a rise of 11.4% and 27.8%, respectively, from the year-ago levels.
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