Wynn Resorts has reported a loss in its Q1 financial results, as the firm sees its bottom line hit by a $463.5m litigation settlement, and seeks to fight back following sexual misconduct allegations levelled at former CEO Steve Wynn.
Announcing an operating income loss of $81.2m, a number of settlements across its Macau and Las Vegas properties have also been blamed for its net income loss.
Amounting to $204.3m, or $1.99 per share, it is in stark contrast to figures reported for the period ending March 31 last year, when Wynn Resorts posted a $100m increase, relating to 99 cents per share.
Releasing its first financial results since the scandal and resignation of Wynn, the company posted operating revenues of $1.72bn for the first quarter of 2018, an increase of 20.5% or $291.8m, contrasted to $1.42bn for the same period of 2017.
This was helped by increases from its Wynn Palace, Wynn Macau and Las Vegas operations, of $213.5m (47.2%), $65.5m (11.9%) and $12.8m (3%) respectively.
Adjusted net income for the period stands at $237m, a significant increase on the previous years $130.9m, with the adjusted earnings coming to $2.30 per share, contrasted to 2017’s $1.28.
Adjusted property EBITDA for Wynn Resorts stands at $564.3m for the years first quarter, a rise of 32% ($136.8m) for the same period in 2017, which was also helped by its Palace, Macau and Vegas properties.
Individually they reported increases of $100.1m, $28.7m and $8.0m, amounting to percentages of 89.4, 15.9 and six respectively.
This comes a day after Wynn Resorts responded to calls from its co-founder and largest shareholder Elaine Wynn, who outlined a number of reasons she believes shareholders should withhold votes from legacy director nominee John J. Hagenbuch.
Wynn Resorts also addressed its proposed Boston Harbour Project in Massachusetts, stating: “The Company is currently constructing Wynn Boston Harbour, an integrated resort in Everett, Massachusetts, located adjacent to Boston along the Mystic River.
“The resort will contain a hotel, a waterfront boardwalk, meeting and convention space, casino space, a spa, retail offerings and food and beverage outlets.
“The total project budget, including gaming license fees, construction costs, capitalised interest, pre-opening expenses and land costs, is estimated to be approximately $2.5 billion. As of March 31, 2018, we have incurred $1.38 billion in total project costs. We expect to open Wynn Boston Harbour in mid-2019.”