Wynn Resorts, Limited (NASDAQ: WYNN ) reported the company's Q1 results on the 6 th of May after market close. The casino operator's quarter showed weaker-than-expected earnings, stemming from Wynn's Macau operations. The company's U.S. operations also showed declining earnings, but Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it express ...

Wynn Resorts, Limited (WYNN) reported first-quarter 2025 results, with earnings and revenues missing the Zacks Consensus Estimate. The top and bottom lines declined on a year-over-year basis.Management highlighted potential tariff-related pressures on operations. While the direct impact on operating expenses is expected to be minimal, mainly affecting the U.S. food and beverage segment, the company is actively pursuing alternative sourcing solutions. Additionally, the company acknowledged the broader econom ...

Wynn Resorts 1Q25 Earnings Presentation May 2025 1 The World's Only Global Luxury Integrated Resort Developer and Operator Preeminent global designer, developer, and operator of integrated resorts, and the only gaming company which is vertically integrated across all three disciplines Forward-Looking Statements This presentation contains forward-looking statements regarding operating trends and future results of operations. Such forward-looking statements are subject to a number of risks and uncertainties t ...

Earnings Performance - Wynn Resorts reported quarterly earnings of $1.07 per share, missing the Zacks Consensus Estimate of $1.22 per share, and down from $1.59 per share a year ago, representing an earnings surprise of -12.30% [1] - The company posted revenues of $1.7 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.52%, and down from $1.86 billion year-over-year [2] Market Performance - Wynn shares have lost about 3.7% since the beginning of the year, compared to the S&P 500's decline of -3.9% [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $1.28 on revenues of $1.75 billion, and for the current fiscal year, it is $4.96 on revenues of $7.03 billion [7] - The estimate revisions trend for Wynn is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Industry Context - The Gaming industry, to which Wynn belongs, is currently in the bottom 45% of the Zacks industry rankings, suggesting potential challenges ahead [8] - Another company in the same industry, International Game Technology (IGT), is expected to report a significant decline in earnings, with a projected EPS of $0.14, down 69.6% year-over-year, and revenues expected to be $632.03 million, down 40.8% from the previous year [9][10]

Financial Performance - Operating revenues for Q1 2025 were $1,700,397, a decrease of $162,512 or 8.7% compared to Q1 2024[101]. - Net income attributable to Wynn Resorts, Limited for Q1 2025 was $72,747, down $71,469 or 49.6% from $144,216 in Q1 2024[102]. - Average daily rate (ADR) and revenue per available room (REVPAR) decreased across properties, contributing to lower overall revenues[102]. - Macau Operations reported total revenues of $865,889 for Q1 2025, a decline of $132,756 or 13.3% from $998,645 in Q1 2024[104]. - Casino revenues for Q1 2025 were $1,040,430, down $81,036 or 7.2% from $1,121,466 in Q1 2024, representing 61.2% of total operating revenues[105]. - Non-casino revenues decreased to $659,967 in Q1 2025, a drop of $81,476 or 11.0% compared to $741,443 in Q1 2024[105]. Casino Operations - Total casino revenues for Wynn Palace decreased by $29.3 million, or 6.2%, from $473.8 million in 2024 to $444.5 million in 2025[107]. - Total casino revenues for Wynn Macau decreased by $70.8 million, or 20.4%, from $346.4 million in 2024 to $275.6 million in 2025[107]. - Total casino revenues for Las Vegas Operations increased by $25.8 million, or 19.1%, from $135.2 million in 2024 to $161.0 million in 2025[108]. - The decrease in operating revenues was largely driven by lower VIP win as a percentage of turnover and mass market table games win in Macau[101]. - VIP win percentage in Macau is expected to range between 3.1% to 3.4%, while table games win percentage in Las Vegas is projected at 22% to 26%[98][99]. Expenses and Financial Metrics - Total operating expenses decreased by $68.2 million, or 4.5%, from $1.5 billion in 2024 to $1.4 billion in 2025[112]. - Casino expenses decreased by $40.6 million, or 6.0%, primarily due to lower gaming tax expenses[112]. - Interest expense decreased by $24.8 million due to a reduction in the weighted average debt balance from $11.92 billion in 2024 to $10.94 billion in 2025[117]. - Cash flows from operating activities decreased to $133.8 million for the three months ended March 31, 2025, from $315.1 million in 2024[132]. - Income tax expense decreased to $11.0 million for the three months ended March 31, 2025, from $20.0 million in 2024[121]. Shareholder Returns and Capital Management - The company repurchased 2,504,560 shares of common stock for an aggregate cost of $212.0 million during the three months ended March 31, 2025[138]. - A cash dividend of $0.25 per share was declared, with a total of $26.8 million recorded against accumulated deficit[150]. - The company authorized a $1.00 billion share repurchase program, with $613 million remaining as of March 31, 2025[152]. - The company plans to pay a final dividend of HK$0.185 per share on June 11, 2025, subject to shareholder approval[143]. Investments and Future Plans - Wynn Resorts has a 40% equity interest in Island 3, which is constructing an integrated resort in Ras Al Khaimah, UAE[92]. - The company is reassessing $375 million in planned enhancements at Wynn Las Vegas due to uncertainties regarding tariffs[146]. - Wynn Al Marjan Island FZ-LLC entered a $2.4 billion delayed draw secured term loan facility for development financing[156]. - The company contributed $51.2 million to Wynn Al Marjan Island, with remaining equity requirements estimated between $650 million and $725 million[149]. Currency and Debt Management - As of March 31, 2025, approximately 76% of long-term debt was fixed rate, with a potential $19 million change in annual interest expense from a 100 basis point rate change[162]. - The company entered into foreign currency swaps totaling $2.9 billion to manage exchange rate risks associated with U.S. dollar denominated senior notes[164]. - An assumed 1% change in the U.S. dollar/Hong Kong dollar exchange rate could result in a gain/loss of $12.5 million to income before taxes[165]. - The company incurred a foreign currency remeasurement loss of $8.4 million for the three months ended March 31, 2025, compared to a loss of $4.7 million for the same period in 2024[119]. - The company recorded a loss of $29.5 million from changes in derivatives fair value for the three months ended March 31, 2025, compared to a loss of $17.9 million in 2024[120].

Financial Data and Key Metrics Changes - The company reported adjusted property EBITDA of $223.4 million at Wynn Las Vegas on operating revenue of $625.3 million, resulting in an EBITDA margin of 35.7% [17] - Total casino revenues increased by 4% year-over-year, despite the absence of the Super Bowl in 2025 [12] - Adjusted property EBITDA for Macau operations was $252.1 million on operating revenue of $865.9 million, yielding an EBITDA margin of 29.1% [19] Business Line Data and Key Metrics Changes - In Las Vegas, adjusted EBITDA was down approximately $11 million when adjusting for hold, with slot business showing strong performance [12][18] - Encore Boston Harbor generated $57.5 million of adjusted property EBITDA on revenue of $209.2 million, with an EBITDA margin of 27.5% [19] - Macau's mass drop was up year-over-year, while VIP turnover increased significantly, although lower VIP hold impacted EBITDA by over $38 million [14][20] Market Data and Key Metrics Changes - In Las Vegas, RevPAR was slightly up from 2024, with slot handle also increasing [10] - Macau's mass drop during Golden Week was up from the previous year, with full hotel occupancy reported [11] - The company noted that international visitation to Las Vegas is currently at 9% of room nights, which can be backfilled easily [32] Company Strategy and Development Direction - The company is focused on maximizing EBITDA and maintaining a healthy margin profile amidst competitive pressures in Macau [14] - The opening of the Gourmet Pavilion Food Hall at Wynn Palace has driven incremental visitation and revenue [15] - The company is committed to stock buybacks, having repurchased $200 million in Q1 and an additional $100 million in Q2 [16][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the operating environment due to tariffs but noted that the business in Vegas and Macau is holding up well [11] - The company is prepared for various scenarios and has a playbook ready to address potential impacts on demand [11] - Management expressed confidence in the future, highlighting the upcoming property opening and the strength of the business [16] Other Important Information - The company plans to spend between $250 million to $300 million on CapEx in 2025, including concession-related commitments [21] - The liquidity position remains strong with $3.2 billion in global cash and revolver availability as of March 31 [21] - The company is focused on returning capital to shareholders, with a proposed increase in dividends and ongoing share repurchases [22][23] Q&A Session Summary Question: Changes in promotions and discounts in Las Vegas - Management confirmed that promotions correlate strongly with ADR, and the Super Bowl comparison influenced the observed changes [26] Question: CapEx deployment cadence - Management indicated that CapEx will follow the usual construction curve, deploying funds over the remainder of the year and into next year [27] Question: International visitation impact on Las Vegas - Management noted that high-end visitation remains stable, while international visitation is currently at 9% of room nights, which can be easily backfilled [32] Question: Competitive environment in Macau - Management described the competitive landscape as stable but noted the importance of service quality and product offerings to remain competitive [42][46] Question: Development opportunities in New York and Japan - Management is prepared to submit proposals for New York and is open to opportunities in Japan, provided the conditions are favorable [53][67] Question: CapEx projects on hold - The majority of the delayed CapEx is related to the Encore Tower remodel, with management emphasizing that the project is not canceled but rescheduled [58][75] Question: OpEx management with new openings - Management stated that OpEx per day remained flat year-over-year, attributing this to careful management and economies in other areas [20][82]

Financial Data and Key Metrics Changes - The company reported adjusted property EBITDA of $223.4 million for Wynn Las Vegas on operating revenue of $625.3 million, resulting in an EBITDA margin of 35.7% [16] - Total casino revenues increased by 4% year-over-year, excluding the Super Bowl impact [11] - Adjusted property EBITDA for Macau operations was $252.1 million on operating revenue of $865.9 million, with an EBITDA margin of 29.1% [17] Business Line Data and Key Metrics Changes - In Las Vegas, slot volumes increased by approximately 3%, contributing to overall revenue growth [12] - Encore Boston Harbor generated $57.5 million in adjusted property EBITDA on revenue of $209.2 million, with an EBITDA margin of 27.5% [17] - Macau's mass drop was up year-over-year, while VIP turnover increased significantly, although lower VIP hold impacted EBITDA by about $38 million [13][18] Market Data and Key Metrics Changes - In Las Vegas, RevPAR for April was slightly up from 2024, with healthy group activity and slot handle [9] - Macau's mass drop during Golden Week showed improvement compared to the previous year, with full hotel occupancy [10] - The company noted that international visitation to Las Vegas is currently at 9% of room nights, which can be backfilled easily [32] Company Strategy and Development Direction - The company is focused on maximizing EBITDA and maintaining a healthy margin profile despite competitive pressures in Macau [13] - The opening of the Gourmet Pavilion Food Hall at Wynn Palace has driven increased visitation, with 2,400 additional daily restaurant covers [14] - The company is committed to returning capital to shareholders, having repurchased $200 million in stock during Q1 and an additional $100 million in Q2 [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the operating environment due to tariffs but noted that the business in Vegas and Macau is holding up well [10] - The company remains optimistic about future demand, particularly in group and convention business, despite short booking windows [9][34] - Management expressed confidence in the upcoming Wynn on Marjan Islands project, viewing it as a compelling development opportunity [15] Other Important Information - The company expects total CapEx spend in 2025 to range between $250 million to $300 million, with a significant portion related to concession commitments [20] - The company has a strong liquidity position with $3.2 billion in global cash and revolver availability as of March 31 [20] Q&A Session Summary Question: Changes in promotions and discounts in Las Vegas - Management indicated that the observed changes correlate strongly with ADR, particularly influenced by the Super Bowl comparison [25] Question: Thoughts on international inbound and VIP exposure - Management noted that high-end visitation remains stable, while international visitation has decreased but does not significantly impact the business [32] Question: Competitive environment in Macau - Management described the competitive landscape as stable but emphasized the importance of service quality and product offerings to remain competitive [44][108] Question: CapEx projects on hold due to tariffs - The majority of the delayed CapEx is related to the Encore Tower remodel, with a total of $375 million impacted [59] Question: Group business outlook for 2026 - Management reported strong demand for group bookings in 2026, attributing it to large events scheduled for that year [62]

Financial Performance - Operating revenues for Q1 2025 were $1.70 billion, a decrease of $162.5 million from $1.86 billion in Q1 2024[3] - Net income attributable to Wynn Resorts for Q1 2025 was $72.7 million, down from $144.2 million in Q1 2024, with diluted net income per share at $0.69 compared to $1.30[5] - Adjusted Property EBITDAR for Q1 2025 was $532.9 million, a decrease of $113.6 million from $646.5 million in Q1 2024[5] - Total operating revenues for Q1 2025 were $1,700,397, a decrease of 8.7% from $1,862,909 in Q1 2024[22] - Net income attributable to Wynn Resorts, Limited for Q1 2025 was $72,747, down 49.6% from $144,216 in Q1 2024[26] - Adjusted net income attributable to Wynn Resorts, Limited for Q1 2025 was $113,145, a decline of 36.0% compared to $176,801 in Q1 2024[23] - Adjusted Property EBITDAR for Q1 2025 was $532,899, down 17.6% from $646,535 in Q1 2024[26] Revenue Breakdown - Operating revenues from Wynn Palace were $535.9 million, down $51.0 million from $586.9 million in Q1 2024, with Adjusted Property EBITDAR at $161.9 million compared to $202.4 million[7] - Operating revenues from Wynn Macau were $330.0 million, a decrease of $81.8 million from $411.7 million in Q1 2024, with Adjusted Property EBITDAR at $90.2 million compared to $137.2 million[8] - Casino revenues for Wynn Palace in Q1 2025 were $444,508, a decrease of 6.2% from $473,781 in Q1 2024[28] - Wynn Macau's total operating revenues decreased by 19.9% to $329.96 million in Q1 2025 from $411.74 million in Q1 2024[30] - Las Vegas operations reported a slight decline in total operating revenues by 1.8% to $625.29 million in Q1 2025 compared to $636.55 million in Q1 2024[32] - Encore Boston Harbor's total operating revenues fell by 3.9% to $209.22 million in Q1 2025 from $217.78 million in Q1 2024[34] Operational Metrics - The average number of table games in the VIP segment decreased by 6.8% to 55 in Q1 2025 compared to 59 in Q1 2024[28] - The occupancy rate for Wynn Palace was 98.3% in Q1 2025, slightly down from 98.8% in Q1 2024[28] - Slot machine handle increased by 23.4% to $734,869 in Q1 2025 from $595,621 in Q1 2024[28] - Slot machine handle in Las Vegas increased by 18.8% to $1.78 billion in Q1 2025 from $1.50 billion in Q1 2024[32] Debt and Cash Position - Cash and cash equivalents as of March 31, 2025, totaled $2.07 billion, with $1.49 billion held by Wynn Macau and subsidiaries[12] - Total current and long-term debt outstanding was $10.55 billion, including $5.80 billion of Macau-related debt[13] Shareholder Returns - The company repurchased 2,360,194 shares at an average price of $84.76 per share for a total cost of $200 million during Q1 2025[14] - A cash dividend of $0.25 per share was declared, payable on May 30, 2025, to stockholders of record as of May 16, 2025[6] Future Developments - Wynn Al Marjan Island development in the UAE received a cash contribution of $51.2 million, bringing total contributions to $682.9 million, with an expected opening in 2027[11] Room Revenue and Performance - Room revenues for Wynn Palace fell by 32.1% to $36,615 in Q1 2025 from $53,936 in Q1 2024[28] - Average Daily Rate (ADR) for rooms in Wynn Macau decreased by 17.6% to $234 in Q1 2025 from $284 in Q1 2024[30] - REVPAR for rooms in Las Vegas decreased by 12.0% to $461 in Q1 2025 from $524 in Q1 2024[32] Adjusted Performance Metrics - Adjusted Property EBITDAR for Wynn Macau decreased by 34.3% to $90.20 million in Q1 2025 from $137.19 million in Q1 2024[30] - Las Vegas operations' Adjusted Property EBITDAR declined by 9.3% to $223.36 million in Q1 2025 from $246.26 million in Q1 2024[32] - Encore Boston Harbor's Adjusted Property EBITDAR decreased by 9.0% to $57.45 million in Q1 2025 from $63.14 million in Q1 2024[34] VIP Performance - VIP table games win at Wynn Macau dropped significantly by 70.8% to $15.71 million in Q1 2025 from $53.91 million in Q1 2024[30]

Core Viewpoint - Wynn Resorts is expected to report a decline in earnings and revenues for the first quarter of 2025, with earnings per share estimated at $1.22, down 23.3% from the previous year, and revenues projected at nearly $1.73 billion, reflecting a 7.3% decrease from the prior-year quarter [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for first-quarter earnings per share is $1.22, indicating a 23.3% decline from $1.59 reported in the same quarter last year [1]. - The consensus revenue estimate is approximately $1.73 billion, suggesting a 7.3% decrease from the previous year's figure [2]. Group 2: Factors Influencing Performance - Wynn Resorts' first-quarter performance is likely to benefit from strong domestic demand, recovery in Macau, and disciplined capital spending [3]. - In Las Vegas, the company is expected to see gains from a strong slot handle, elevated table drop, and high-margin non-gaming revenues, with room revenues predicted to rise 9% year over year to $244.3 million [4]. - Progress on capital expenditures related to concessions, including new developments at Wynn Palace, is anticipated to support performance [5]. Group 3: Operating Expenses and Economic Factors - Total operating expenses for the first quarter are projected to increase by 3.6% year over year to $1.55 billion [5]. - Macroeconomic challenges such as inflation and labor cost pressures may negatively impact margins during the quarter [5]. Group 4: Earnings Prediction and Stock Rank - The model predicts an earnings beat for Wynn Resorts, supported by a positive Earnings ESP of +0.15% and a Zacks Rank of 3 (Hold) [6][7].

Financial Data and Key Metrics Changes - The company received proxies representing approximately 86% of the shares entitled to vote at the meeting, indicating strong shareholder engagement [6] - The meeting included proposals for the election of directors and the ratification of independent accountants, reflecting ongoing governance practices [9] Business Line Data and Key Metrics Changes - No specific financial data or business line performance metrics were disclosed during the meeting [0] Market Data and Key Metrics Changes - The discussion highlighted the changing customer preferences in the gaming industry, particularly regarding indoor air quality and smoking policies, which may impact market dynamics [11][12] Company Strategy and Development Direction - The company is focused on maintaining high standards of luxury and service, as evidenced by the legacy of Elaine Wynn, which continues to influence company culture [3][4] - There is an ongoing evaluation of the impact of smoking policies on business risks, indicating a potential shift in strategy to align with market trends and customer preferences [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the evolving landscape of the gaming industry, particularly in relation to health concerns stemming from the COVID-19 pandemic, which has altered customer expectations [11] - The company is aware of the competitive environment, especially with other properties adopting smoke-free policies, which may necessitate a reassessment of its own policies [12] Other Important Information - The meeting included a proposal from Trinity Health regarding transparency on indoor smoking policies, highlighting potential risks associated with current practices [10][11] - The board recommended shareholders vote against the proposal from Trinity Health, indicating a preference to maintain current policies [14] Q&A Session Summary Question: Proposal for transparency on indoor smoking policies - The proposal emphasized the need for greater transparency regarding the risks of indoor smoking and its impact on employee health and customer preferences [10][11] - The company responded by highlighting its existing measures to limit smoking areas and improve ventilation, but did not commit to the requested transparency [12][14]