Wynn Resorts has told its investors that it has delayed around $375m of capital expenditure projects due to the current tariff rates in the US, but assured that it is prepared for every scenario.
This announcement came alongside the operator declaring a decline in revenue and net income in the first quarter of 2025 compared to the same period last year.
Still, CEO Craig Billings described Wynn Resorts as showing “continued strength” in Q1, adding that Las Vegas figures were “healthy results” due to the record Q1 achieved in the previous year, which included the NFL’s Super Bowl being hosted in the city.
Tariff impact
Speaking on Wynn Resorts’ Q1 earnings call, Billings commented on the current tariff rates situation in the US.
The CEO noted that while the tariff rates’ impact on operational expenditure is expected to be manageable and mostly affect food and beverage in the US, with alternative sourcing being explored, delays will occur in capital expenditure projects.
Billings said: “We had a number of capex projects in flight in the US and while we have sourced for those projects presuming some tariff impact, the current tariff rates have driven us to delay about $375m of capex projects, including the Encore Tower remodel.
“Once tariff rates have settled, we will thoroughly respec and resource the most severely affected items. While we’re staying nimble, the pace of change at the moment is just too significant to commit to revised timing on that capex.
“Turning to the potential indirect impacts, there’s been plenty of recent research on the potential impact of tariffs on growth, and while we are certainly better insulated than some, given our more resilient affluent customer base, there is obviously uncertainty out there.”
Billings added that while the operator’s recent results in April have been good, it acknowledged that uncertainty remains, and so it has “a playbook ready for every scenario”.
Challenging Super Bowl comparisons for Vegas
For Q1, Wynn Resorts reported $1.7bn in operating revenue, down $162.5m in comparison to the same period last year (Q1 2024: $1.86bn), while net income stood at $72.7m (2024: $144.2m).
Casino revenue in the quarter dropped to $1.04bn (2024: $1.12bn), rooms revenue declined to $274.5m (2024: $327.4m), food and beverage revenue fell to $249.9m (2024: $266.9m) and entertainment, retail and other revenue came in at $135.6m (2024: $147.1m).
Every one of the operator’s properties underwent a year-over-year operating revenue decline in Q1. Las Vegas operations revenue dropped by $11.3m to $625.3m (2024: $636.5m), while Encore Boston Harbor revenue fell by $8.6m to $209.2m (2024: $217.8m).
In Macau, Wynn Palace revenue decreased by $51m to $535.9m (2024: $586.9m), while Wynn Macau revenue declined by $81.8m to $330m (2024: $411.7m).
Wynn Resorts’ adjusted property EBITDAR in Q1 was $532.9m, down $113.6m YoY (2024: $646.5m). Per property, Las Vegas operations adjusted property EBITDAR fell by $22.9m to $223.4m (2024: $246.3m), while Encore Boston Harbor adjusted property EBITDAR dropped by $5.7m to $57.5m (2024: $63.1m).
In Macau, Wynn Palace adjusted property EBITDAR declined by $40.5m to $161.9m (2024: $202.4m), while Wynn Macau adjusted property EBITDAR decreased by $47m to $90.2m (2024: $137.2m).
Despite the decline, Billings was positive when speaking about the results, spotlighting challenging YoY comparisons in Las Vegas after the city hosted the Super Bowl in February 2024.
The CEO stated: “Our first quarter results reflect continued strength throughout our business. In Las Vegas, where we recently celebrated the resort’s 20th anniversary, the team delivered healthy results against a record prior year comparison, which reflected the Las Vegas Super Bowl.
“In Macau, while VIP hold negatively impacted results, we held market share in our expected range, and announced an increased dividend from Wynn Macau, Limited, reflecting the strong free cash flow generated by the business.”
Wynn Al Marjan Island 2027
Wynn Resorts added that it contributed $51.2m of cash into the 40%-owned joint venture that is constructing the Wynn Al Marjan Island development in the United Arab Emirates, which is expected to open in 2027. Its life-to-date cash contributions currently stand at $682.9m.
Billings said: “Construction of our growth project in the UAE, Wynn Al Marjan Island, continued to advance with the hotel tower reaching the forty-seventh floor.
“At the same time, we continued to return capital to shareholders through our regular quarterly dividend and the repurchase of $200m of stock in the quarter.”
As of 31 March 2025, Wynn Resorts’ cash and cash equivalents totalled $2.07bn, while its total current and long-term debt outstanding was $10.55bn.
