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Introduction & Market Context
Wynn Resorts (NASDAQ:WYNN) released its first quarter 2025 earnings presentation on May 6, revealing year-over-year declines across its properties while emphasizing progress on strategic growth initiatives. The luxury casino operator reported Q1 adjusted property EBITDAR of $533 million, a 17.9% decrease from the $649 million reported in the same period last year, falling short of analyst expectations.
The company’s stock declined 0.39% in aftermarket trading to $83.19 following the release of results that missed forecasts. Wynn reported earnings per share of $1.07, below the anticipated $1.31, and revenue of $1.7 billion, missing projections of $1.75 billion.
Quarterly Performance Highlights
Wynn’s presentation detailed performance across its three main operating regions, all showing year-over-year declines in the first quarter:
Las Vegas operations generated adjusted property EBITDAR of $223 million with a 35.7% margin, down from $246 million and a 38.7% margin in Q1 2024. The company noted that the prior year period benefited from the Super Bowl being held in Las Vegas, creating a challenging comparison.
As shown in the following chart comparing Wynn’s Las Vegas performance to competitors, the company maintains a significant premium in EBITDAR per hotel room:
Encore Boston Harbor, positioned as "The East Coast’s Only Forbes 5-Star Casino (EPA:CASP) Resort," delivered adjusted property EBITDAR of $57 million with a 27.5% margin, compared to $63 million and a 29.0% margin in the prior year period.
Macau operations faced the steepest decline, with adjusted property EBITDAR falling 25.8% to $252 million (29.1% margin) from $340 million (34.0% margin) in Q1 2024. The company attributed this partly to unusually low VIP hold rates of 2.6% at Wynn Palace and 1.1% at Wynn Macau (OTC:WYNMF).
Strategic Initiatives
Despite the earnings miss, Wynn continues to advance its global expansion strategy, with significant progress on the Wynn Al Marjan Island development in the UAE. Construction has reached the 47th floor of the hotel tower as of April 30, 2025, keeping the project on track for its planned opening in early 2027.
The following image shows the current construction progress at the Wynn Al Marjan Island site:
The company has hired 49 team members for the UAE project to date, with plans to expand to approximately 327 employees by year-end 2025. Key division heads are in place across all gaming and non-gaming areas.
Wynn also highlighted its January announcement of the planned acquisition of Crown London Aspinalls, further expanding its global footprint. The company views the UAE as "the most exciting new market for Integrated Resort development" and noted "encouraging" early progress in Thailand.
The presentation emphasized how the UAE project will enhance Wynn’s geographic diversification. The following chart illustrates the expected contribution from Wynn Al Marjan Island to the company’s overall EBITDAR:
Financial Position & Capital Allocation
Wynn maintains a strong liquidity position despite operational challenges, with $1.3 billion in domestic liquidity and $1.8 billion in Macau. The company reported a net lease-adjusted leverage ratio of 4.3x for domestic operations and 4.7x net leverage for Macau.
The following chart details Wynn’s debt maturity profile, showing limited near-term maturities:
The company continues its capital return program, having repurchased approximately 10% of gross shares since 2022 and paid approximately $220 million in dividends since 2023, totaling over $1.1 billion returned to shareholders.
For 2025, Wynn forecasts $750-$800 million in domestic project capex and $250-$300 million in Macau, with an additional $90-$115 million in maintenance capex for domestic properties. The company expects no material domestic cash income taxes in 2025.
Forward-Looking Statements
Wynn outlined a well-defined capital expenditure cycle that is expected to conclude in late 2026. For the Wynn Al Marjan Island project, remaining estimated equity contributions range from $650-$725 million. Domestic projects include the completion of Fairway Villas renovation, Zero Bond, Golf Course Club House & Grill, high limit table expansion, and Encore Tower renovation, with anticipated costs of $375-400 million in both 2025 and 2026.
In Macau, the company is advancing concession capex projects including the Wynn Palace Event and Entertainment Center and Wynn Palace Theater and Resident Show, with estimated expenditures of $250-300 million in 2025 and $450-500 million in 2026.
The detailed reconciliation of operating income to adjusted property EBITDAR provides insight into the company’s financial performance across segments:
CEO Craig Billings expressed optimism during the earnings call, stating, "We have plenty of development opportunities" and "The future is bright," despite current challenges. The company’s presentation emphasized its position as "the premier luxury global gaming operator" with a focus on long-term shareholder value creation through its large EBITDAR base, defined capex cycle, and significant free cash flow generation.
While Wynn faces near-term headwinds reflected in its Q1 performance, the company continues to invest in strategic growth initiatives that aim to diversify its revenue streams and strengthen its global market position in the luxury integrated resort segment.
Full presentation:
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