Wynn Resorts reported record EBITDAR for Q4 and made huge jumps year-over-year, but none of that success can be attributable to the company’s interactive division.
Overall, Wynn Resorts saw operating revenues jump from $1 billion in Q4 2022 to $1.84 billion this past quarter. Net income was also up to $729.2 million compared to just shy of $700 million in 2022.
“The strong momentum we built throughout 2023 continued during the fourth quarter with Adjusted Property EBITDAR reaching a new all-time record. These impressive results highlight our team’s relentless focus on delivering five-star hospitality, which continues to elevate our properties above our peers as the destinations of choice for luxury guests in Las Vegas, Boston and Macau,” said Craig Billings, CEO of Wynn Resorts. “On the development front, construction of Wynn Al Marjan Island continues, with much of the hotel tower and podium foundation complete, and preparations underway to start vertical construction of the hotel tower. We are confident the resort will be a ‘must see’ tourism destination in the UAE. We are excited about the outlook for the Company, and we will continue to focus on driving long-term returns for shareholders.”
What was noticeably absent from Billings’s comments during the earnings call was any mention of the interactive division.
Wynn’s Interactive woes continued in Q4, with the digital division reporting just over $8.7 million in losses on the quarter. The losses are a drop in the bucket compared to the $50.6 million the company division lost over the same period in 2022. For the entire year of 2023, the division reported $276 milion in operating income losses and $42.6 million in adjusted EBITDAR losses. Combine that with 2022’s $240 million in operating income losses and nearly $100 million in adjusted EBITDAR losses, and it becomes clear why the company is getting away from the interactive division.
Wynn Resorts announced it would be drastically reducing its online presence in August 2023, so Q4 was the first quarter to show the impact of that on the bottom line in the form of reduced spending and losses.
Initially, Wynn Resorts said it intended to focus on markets where the company had a brick-and-mortar presence, like Nevada and Massachusetts. However, Wynn is meeting with the Massachusetts Gaming Commission to finalize plans to shutter the WynnBet app in the state in the coming weeks.