LAS VEGAS (KLAS) — Wynn Resorts executives see Formula One and the Super Bowl as a perfect match for their customers — the luxury crowd.
And the company was expecting a strong second half of 2023 even without F1, according to CEO Craig Billings. Second quarter (Q2) net profits came in at $105.2 million on the strength of an “impressive” resurgence in Macau, where Wynn operates two resorts that are re-emerging as business returns.
“F1, Super Bowl are events that are made for us,” Billings told investors as he went through the financial picture of strong business in Las Vegas and anticipation for more success in Macau — and the next big step: “We’ve got a great project in the UAE that’s going to be a stunner,” he said.
Wynn Resorts reported operating revenue of $1.59 billion, a big increase compared to a Q2 of 2022 when Macau was still under heavy restrictions from the Chinese government’s COVID policies. This year’s Q2 produced about $687 million more than the same period last year — almost exactly the total increases reported by the Macau properties.
Wynn’s Las Vegas properties saw profits increase by about $17 million compared to Q2 2022. Operating revenue was $578.1 million in Las Vegas.
“In the U.S., Wynn Las Vegas and Encore Boston Harbor continue to perform well, generating a new second-quarter record for Adjusted Property EBITDAR at our combined North American properties,” Billings said in a prepared statement. “In Macau, the post-COVID recovery accelerated during the quarter, with particular strength in our mass gaming, luxury retail and hotel businesses. On the development front, we were excited to begin construction on Wynn Al Marjan Island, which we believe will be a ‘must see’ tourism destination in the UAE.”
Or, as he said on the earnings call, “What a quarter.”
The company has consistently filled rooms at premium rates, and investors asked if they could go even higher. Billings said the company monitors economic trends closely and without offering specifics he said he didn’t see rates increasing more at this time.
The rate “speaks to the product we offer,” he said.
Billings spoke briefly about negotiations with the Culinary Union, and said he was committed to fair compensation for employees.
“The team at Wynn Las Vegas is the heart and soul of the place. They’re very important to me, and it’s the same reason that we paid everybody during the closure, during COVID,” he said.
“Unfortunately, and it’s a reality, rent in Las Vegas has increased … and it’s very important to me that our employees can support a stable home environment for their families,” Billings said.
He said he expects back-and-forth with the union to find a fair compensation level, and it’s still early in the process.
