Wynn Resorts sees revenue fall in the first quarter of the year
The company reported a 3.7% decline in operating revenue
Wynn Resorts released its financial report for the first quarter of the year yesterday and the results are in line with what many expected. The company saw a decrease of 3.7% year-on-year in its operating revenue, dropping to $1.65 billion from the $1.72 billion last year.
According to a press release from the company, “On a U.S. generally accepted accounting principles (“GAAP”) basis, net income attributable to Wynn Resorts, Limited was $104.9 million, or $0.98 per diluted share, for the first quarter of 2019, compared to a net loss attributable to Wynn Resorts, Limited of $204.3 million, or $1.99 per diluted share, in the first quarter of 2018. The change was primarily due to a litigation settlement of $463.6 million, partially offset by an income tax benefit of $111.0 million, recorded in the first quarter of 2018. Adjusted net income attributable to Wynn Resorts, Limited (1) was $172.6 million, or $1.61 per diluted share, for the first quarter of 2019, compared to $237.0 million, or $2.30 per diluted share, for the first quarter of 2018.”
The company, which recently was told it would have to pay a record fine of $55 million to Nevada and Massachusetts for the actions of its founder and former CEO, Steve Wynn, is still trying to rebound from the fallout of the sexual misconduct allegations against Steve Wynn. It continues to face issues in all of its operating regions and its latest stateside project, Encore Boston Harbor in Massachusetts, is now facing a launch delay that could cost the company millions of dollars.
Wynn’s adjusted property EBITDA (earnings before interest, taxes, depreciation and amortization) dropped 12.3% to $494.8 million for the quarter. This was driven primarily by decreases at all of its Las Vegas properties and its Wynn Macau venue, while Wynn Palace saw an increase of $10.7 million in its EBITDA.
The company has current and long-term outstanding debt of $9.17 billion – $3.73 billion for Macau operations, $3.10 billion for its Las Vegas operations, $983 million for Wynn America and $1.35 billion between Wynn Resorts and another retail joint venture. It is also getting another $250 million term loan because, of course, it has to pay for the fines from somewhere.