Wynn Resorts has reported a downturn in revenues in its financial results for Q1 ended March 31, 2019. Operating revenues were $1.65bn for the period, down 3.7%, or $64m, from $1.72 bn for Q1 2018. Operating revenues increased $60.8m at Wynn Palace, but decreased $94.4m and $30.5m at Wynn Macau and its Las Vegas operations, respectively.
Net income was $104.9m, or $0.98 per diluted share, for the first quarter of 2019, compared to a net loss of $204.3m, or $1.99 per diluted share, year-on-year. The change, claimed the firm, was primarily due to a litigation settlement of $463.6m, partially offset by an income tax benefit of $111m recorded in the first quarter of 2018.
Focusing on the Las Vegas business, Wynn revealed that operating revenues were $401m for Q1, marking a 7.1% decrease from $431.5m year-on-year. Adjusted Property EBITDA from its Vegas operations was $108.3m, a 24% decline from $142.6m for Q1 2018.
Casino revenues from Las Vegas operations were $111.7m during the quarter, a 17.1% decrease from $134.6m in 2018. Table games drop was $404.1m, down by 24.7% from $536.6m. Table games win was $111.4m, a 27.9% decrease from $154.4m
Table games win percentage was 27.6%, above the property’s expected range of 22% to 26%, but below the 28.8% experienced in the first quarter of 2018. Slot machine handle was $789.3m, a 6.1% increase from $744.1m in 2018. Slot machine win increased 10.7% to $54.5m compared to $49.3m for the first quarter of 2018.
Updating investors on development projects, Wynn said: “We are currently constructing Encore Boston Harbor, an integrated casino 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, capitalized interest, pre-opening expenses and land costs, is estimated to be approximately $2.6bn. As of March 31, 2019, we have incurred $2.26bn in total project costs. We expect to open Encore Boston Harbor in mid-2019.
“We are currently constructing an approximately 430,000 square foot meeting and convention facility at Wynn Las Vegas and have begun construction activities in connection with the reconfiguration of the Wynn Las Vegas golf course, which we closed in the fourth quarter of 2017. Based on current designs, we estimate the total project budget to be approximately $425m. As of March 31, 2019, we have incurred $181.5m in total project costs.”