$1.86B Revenue. +66% Profit. Premium Momentum – Wynn Resorts Keeps Raising the Bar Under Craig Billings
Wynn Resorts reported first-quarter revenue of $1.86bn, up 9% year-on-year, with net income increasing to $120.5m as growth in Macau and Las Vegas offset continued weakness in regional US operations. Adjusted property EBITDAR rose to $562.4m, up from $532.9m a year earlier.
Performance across the portfolio was uneven, however, reflecting mix-driven volatility in Macau, pricing-led gains in Las Vegas and softer momentum in Boston.
Macau growth driven by Wynn Palace as Wynn Macau weakens
Macau was the primary growth engine, but gains were concentrated at Wynn Palace rather than the group’s peninsula property.
Wynn Palace revenue increased 23% year-on-year to $659.3m, while EBITDAR rose 26% to $203.8m, supported by stronger VIP hold, healthy mass-market performance and higher gaming volumes. Mass table drop rose 15.6%, while slot handle increased 17.1%, underlining broad-based demand strength beyond headline win rates.
By contrast, Wynn Macau revenue was flat at $329.9m and EBITDAR declined 16% to $75.6m. The weakness was largely driven by sharply lower VIP hold, with VIP win percentage falling to 0.39% – materially below the property’s expected 3.1% to 3.4% range – amplifying pressure on earnings despite strong slot and mass-market volume growth.
The divergence reinforces Cotai’s premium-mass advantage, although Wynn Macau’s underperformance in the quarter was heavily influenced by unusually soft VIP hold rather than purely underlying demand deterioration.
Las Vegas growth led by pricing, not volume
Las Vegas operations delivered revenue growth of 6% to $661.9m, with EBITDAR increasing 4% to $232.5m.
The key driver was pricing rather than occupancy:
- ADR increased 12% to $592
- Occupancy declined to 85.5%
That points to continued resilience at the high end of the market, with Wynn maintaining pricing power even as room volumes softened.
Gaming volumes improved, particularly in table drop, which rose 15.7%, but slot win slipped 2.4%, suggesting a mixed demand environment beneath headline growth.
Regional softness persists at Encore Boston Harbor
Encore Boston Harbor revenue declined 2% to $205.7m, while EBITDAR fell 12% to $50.5m. Table drop decreased 4.6% and table win fell 6.4%, while food and beverage revenue dropped nearly 10%.
The figures point to softer operating momentum in the quarter, potentially reflecting regional demand softness and competitive pressure in the Northeast US market.
Capital allocation split between returns and UAE expansion
Wynn returned $53.8m to shareholders through buybacks during the quarter and declared a $0.25 dividend, while continuing to fund its long-term UAE expansion project.
The company invested a further $100.1m into Wynn Al Marjan Island during Q1, taking total contributions to $1.01bn ahead of its planned 2027 opening.
The result is a dual-track capital strategy:
- near-term shareholder returns
- long-cycle international expansion
Balance sheet remains heavily leveraged
Total debt stood at $10.52bn at quarter-end, against $1.19bn in cash, excluding short-term investments held by Wynn Macau. Wynn also retains substantial revolving borrowing capacity, providing liquidity support despite elevated leverage.
While EBITDAR growth supports debt servicing, leverage remains high as Wynn balances shareholder returns with continued funding for Al Marjan’s development.
Outlook: earnings quality remains tied to Macau mix
The quarter reinforces Wynn’s exposure to three core earnings drivers:
- premium-mass growth in Macau
- pricing-led performance in Las Vegas
- continued softness in regional US operations
The central variable remains Macau earnings quality, where hold volatility, property mix and Cotai’s continued premium positioning are increasingly shaping group performance.
Source: Wynn Resorts
