Wynn Resorts’ Third Quarter Shows Revenue Gains, UAE Expansion Progress

Wynn Resorts posted its financial report for the third quarter ending September 30, 2024, revealing slight revenue growth alongside an ongoing net loss. Operating revenue reached $1.69 billion, a $21.4 million rise from the same quarter in 2023, indicating a steady demand across its properties. Despite this, the company recorded a net loss of $32.1 million, down from the $116.7 million net loss in the prior year. Diluted net loss per share fell to $0.29 from $1.03 last year. Adjusted Property EBITDAR, however, saw a small dip to $527.7 million, a decrease of $2.7 million year-over-year.

Craig Billings, CEO of Wynn Resorts, highlighted the resilient demand at their properties, driven by strong performance in Macau’s mass gaming segment and consistent non-gaming revenue in Las Vegas. “The investments we have made in our properties, our team, and our unique programming continue to extend our leadership position in each of our markets,” Billings commented.

Regional Property Results

Wynn’s regional property earnings painted a varied picture, with Macau’s gains contrasting with minor declines in Las Vegas and Wynn Palace.

• Macau Operations: The company’s Macau operations displayed robust performance. Operating revenue for Wynn Macau reached $352 million, marking a significant increase from $295 million in 2023. Adjusted Property EBITDAR also rose, hitting $100.6 million from last year’s $77.9 million. Mass market table games recorded a win percentage of 18.5%, up from 16.5% the previous year, and VIP table games saw a 3.61% win rate, exceeding expectations.
• Wynn Palace: Wynn Palace’s operating revenue slightly declined to $519.8 million from $524.8 million in 2023. Adjusted Property EBITDAR followed this trend, dropping to $162.3 million from $177 million in the prior year. Mass market table games saw a 23.9% win percentage, a small increase from 23.3% last year, though VIP table games win percentage dipped to 3.04%, missing the expected 3.1%-3.4% range.
• Las Vegas Operations: The company’s Las Vegas properties saw revenue slide to $607.2 million from $619 million the year prior, while Adjusted Property EBITDAR declined to $202.7 million from $219.7 million. The table games win percentage in Las Vegas was 23.3%, within the forecasted range but down from 26% the previous year.
• Encore Boston Harbor: Encore Boston Harbor reported revenues of $214.1 million, a minor increase from $210.4 million in 2023. Adjusted Property EBITDAR rose as well, reaching $63 million from last year’s $60.5 million. Table games win percentage was recorded at 21.3%, within expectations and a slight improvement from 20.8% in 2023.

Expansion and Strategic Investments

Wynn is actively investing in new markets, particularly with the Wynn Al Marjan Island resort in the United Arab Emirates. The company allocated $18.2 million in cash to this t venture during Q3 2024, raising its cumulative cash contributions to $532.6 million. Projected to open in 2027, Wynn Al Marjan Island is expected to attract international tourists and long-term cash flow.

Billings expressed optimism regarding the new resort’s potential impact. “We are confident the resort will be a ‘must see’ tourism destination in the UAE and expect that it will strong long-term free cash flow growth,” he said.

In line with shareholder returns, Wynn’s board expanded the company’s share repurchase program authorization to $1 billion. This increase allows the company flexibility to buy back shares as market conditions permit. During Q3 2024, Wynn repurchased approximately 1.46 million shares at an average of $80.37 per share, totaling $117.7 million. This brings Wynn’s total stock repurchases for the first nine months of 2024 to 2.2 million shares, amounting to $185.7 million.

Additionally, the board declared a cash dividend of $0.25 per share, payable to shareholders on November 27, 2024, for those on record as of November 15.

Balance Sheet and Debt Management

Wynn Macau, $464.1 million by Wynn Resorts Finance, and $603.7 million at the corporate level. Restricted cash reserves, totaling $1.2 billion, were used in early October to manage senior notes repayment.

The company’s total debt was $11.79 billion, which includes $6.41 billion related to Macau operations, $1.46 billion linked to Wynn Las Vegas, $3.3 billion under Wynn Resorts Finance, and $614.5 million for a retail t venture.

In recent debt activities, Wynn extended loan maturities for various credit agreements. The company issued $800 million in senior notes due in 2033 and repaid $600 million of senior notes that matured on October 1, 2024. These actions reflect Wynn’s strategic management of its liabilities, ensuring longer-term financial stability.

With steady gains in Macau and a new flagship UAE property underway, Wynn Resorts is positioning itself for future growth. As investments continue, the company aims to sustain demand across its markets and deliver consistent value to shareholders.

Source:

”Wynn Resorts, Limited Reports Third Quarter 2024 Results”, wynnresortslimited.gcs-web.com, November 04, 2024.