Wynn Resorts Ltd. has released its financial results for the first quarter of 2018, which show that its operating revenue rose more than 20 percent over the same quarter in 2017 to US$1.72 billion (MOP13.87 billion).
According to the company, the increase was led by an improvement in the revenue of Wynn Palace and Wynn Macau. The two resorts saw their revenue rise by $213.5 million and $65.5 million respectively, representing 95 percent of Wynn’s total growth in operating revenue. Meanwhile, Las Vegas operations saw its revenue increase by just US$12.8 million year-on-year.
The company’s new CEO, Matt Maddox, said he was “as excited as ever about the future prospects of this company.” He said the company had seen “no degradation of business” during a reporting period marked by scandal.
He announced a planned US$100-million investment to revamp the Wynn Macau property on Macau peninsula, to start this year. That would include “reinvigorating” the original casino at the property’s first tower, and “taking out a lot of the exterior junket space that is not productive,” Maddox said.
The revamp is to add two new restaurants to the Wynn Macau casino-hotel and remodel the hotel rooms in its Encore tower.
The firm was also working on “two new restaurant concepts” for Cotai’s Wynn Palace casino resort, with construction scheduled to begin this year.
Maddox added that the Wynn group would also be “spending more time and more resources” in Japan, as the local authorities move to introduce a casino industry to the country. The firm was already talking with “potential consortium partners”, he said.
In terms of casino revenue, Wynn Macau registered $539 million in the quarter, a 10.5 percent increase compared with the first quarter of 2017. Meanwhile, casino revenues from Wynn Palace amounted to $568.5 million, increasing more than 50 percent year-on-year.
Non-casino revenues from Wynn Macau and Wynn Palace amounted to $79.2 million and $97.4 million respectively, an increase of 22.3 percent and 29.5 percent each, according to the company.
Nevertheless, the company registered a net loss attributable to Wynn Resorts of $204.3 million or $1.99 per diluted share in the first quarter of 2018, down from a net income of $100.8 million in the first quarter of last year. In its financial statement, Wynn Resorts said that the loss was primarily due to a $463.6 million litigation settlement expense.
For the first three months of 2018, adjusted property EBITDA rose 32 percent year-on-year to $564.3 million, as a result of increases of $100.1 million, $28.7 million and $8 million from Wynn Palace, Wynn Macau and Las Vegas operations respectively.
Wynn Resorts also approved a cash dividend of $0.75 per share this week, payable as of May 29, 2018, to stockholders on record as of May 17, 2018. This marks a 50 percent increase in the quarterly cash dividend from the final quarter of 2017, the company said.
According to the Macau Daily Times, the company’s earnings report came a day after founder Steve Wynn’s ex-wife, Elaine Wynn – who is also the biggest shareholder and co-founder of Wynn Resorts – announced she was seeking to remove one of the company’s directors overseeing an internal investigation into sexual misconduct allegations. Elaine Wynn said, in a filing with U.S. regulators on Monday, that John Hagenbuch is allied too closely with Steve Wynn, and asked shareholders to reject his re-election.
In a statement responding to Elaine Wynn’s letter, the company noted its decision last week to add three women directors to its board but did not directly address Hagenbuch’s status.
The final chapter of the company’s long- running legal battle also ended earlier this month, with Wynn agreeing to pay his ex- wife $25 million in a settlement. Elaine Wynn had joined the dispute alleging that she had been unfairly removed from the board by her ex-husband and others in 2015 because of her inquiries into company activities.
Wynn Resorts said Elaine Wynn had dropped claims against it, and that the company made no payment under the agreement.