Shares of Wynn Resorts (WYNN -0.74%) jumped this week after the company reported fourth-quarter 2023 financial results. According to data provided by S&P Global Market Intelligence, shares were up 10.2% at one point and closed the week up 8.3%.
Las Vegas impresses
Revenue jumped from $1 billion a year ago to $1.84 billion, and Macao was a big driver of the increase. Wynn Palace's revenue jumped from $113.1 million to $524.4 million, and Wynn Macau's revenue went from $77.2 million a year ago to $386.2 million.
But the more surprising results were in Las Vegas. Revenue jumped 19% to $696.8 million and adjusted property earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR), a proxy for cash flow from a resort, was $270.8 million. That's an incredible result and continues the strong results from Las Vegas coming out of the pandemic.
The cash machine is running again
After four years of the pandemic impacting results, Wynn Resorts is now running at full steam. Las Vegas has been there for a while, but Macao is now contributing a meaningful amount to results.
It's also possible there's significant growth ahead in Macao as the Chinese economy improves, travel opens up, and gamblers come back.
In the past year, Wynn Resorts has generated $2.11 billion in adjusted property EBITDAR, so there's a lot of cash coming into the business right now. Management is paying a small dividend of $0.25 per share and could pay back some debt given very few expansion opportunities. With cash coming in the door again, these are good options to have for Wynn Resorts and shareholders.
