Wynn Resorts Q1 Revenue report shows growth in its Michigan online gambling endeavours & increased revenue, but share price falls! (Image from @tangjingao on pexels.com)
In Michigan State, Evolution provides Wynn Resorts online casino with its live dealer tables and RNG operated First-Person collection of game titles. However, its partner, who streams the Evolution titles via Wynn’s tech partner GAN, has reported a decline in earnings per share of 27% compared to the beginning of Q1 2022.
Wynn Online Gambling Revenues Rank 6 in Michigan
Wynn Resorts’ online sports betting and casino operations in Michigan have taken in $62.4 million in revenue since legal online betting launched in the state in January 2021. In January, February, and March 2022 (Q1 2022) it reported revenues of $ 5.3 million, $ 4.5 million, and $ 4.9 million, respectively. That total of $14.7 million puts the brand a long way off its competitors.
Other Evolution live casino platform partners’ Q1 revenues in the Michigan online gambling market reported by BetMGM were a staggering $ 138.7 million, while DraftKings reported $61 million. FanDuel reported $60 million in revenue, BetRivers reported $25.8 million, and Golden Nugget $17.7 million for Q1 2022. Wynn Resorts did beat Barstool reporting $13.7 and Caesars online casino reporting $13.4 million Q1 2022 results. Overall, as far as the casino firm’s online revenues are concerned, it ranks 6th in a market that consists of 14 online casinos and targets a population of 10 million.
Online Growth Positive: Over Q4 of 2021, Wynn online casino operation in Michigan took in $13.2 million, giving the firm a quarter-on-quarter growth of 1.5 million. Compared to Q1 2021, reporting $7.7 million, the year-on-year growth is $7 million, close to double its quarterly revenue.
Shares Value Take a 27% Drop Slightly Missing Analyst Forecasts
Wynn Resorts trades on the NASDAQ under the ticker (NASDAQ:WYNN). Analysts forecasted a loss in shares from the company, but a 27% decline was not the prediction according to the Wynn Resorts revenue report on Inesting.com.
The official earning per share over Q1 came in at $-1.21 on a revenue of $953.3 million. The predicted EPS was $-1.17 on revenue of $986.35M. That said, it’s not a bad estimate and not far off the mark.
The year-on-year share price is down 24.97%. That likely still has something to do with the pandemic, but Q1 figures are not looking great considering the global casino market is beginning to see recovery.
Wynn Resorts Q1 Revenue Grows
Despite the drop in share prices, Wynn Resorts’ overall revenue has increased. Partly this is due to its online gambling operations reported above, while in part, Las Vegas is booming once again. However, around 70% of revenue for Wynn used to come from Macau, so what’s happened here is anyone’s guess. Vegas contributes around 25%, while its Boston operations 5%.
Year-on-year revenue growth reported by Wynn is a 29.4% increase after official figures how $953.33 million for the month. These figures are yet to be adjusted, so the revenue could in fact be more, or if Macau operations affect the casino, then less.
On the negative side, the casino resort firm saw increases in operating costs over Q1 2022 of 14.8% to $1.04 million and overall would have had an impact on what is a reported 5.1% lower than Q1 the previous year. On a positive note, Wynn did boost revenues from its entertainment, hotel, restaurant, and retail operations.
Wynn Casino Revenue Round-Up: Wynn Resorts operates Wynn Las Vegas and Encore Las Vegas in Nevada. The company also owns and operates the Encore Boston Harbor Everett, Massachusetts. However, it also owns Wynn Macau, Encore at Wynn Macau, and Wynn Palace in Macau where the casino city is suffering from strict pandemic rules preventing overseas customers from entering the land-based casino scene. It is safe to predict that there are still considerable losses here, while its US land-based operations and live online casino operations, plus non-gaming business sectors are boosting operations.
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