Wynn Resorts reported third-quarter earnings for its properties from Las Vegas to Macau just after the end of ZorkFest. While overall revenue was up slightly, the company missed the mark on Wall Street.
Craig Billings, CEO of Wynn Resorts painted a prettier picture in the earnings press release:
“Our third quarter results reflect healthy demand across our resorts highlighted by strong mass gaming win in Macau and solid non-gaming performance 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”
Wynn’s Macau and US revenue for the quarter were mixed. The company also looked to the future discussing plans for the United Arab Emirates (UAE) and possibly New York City.
Unlike the other Las Vegas casino operators Wynn was confident it would see another strong fourth quarter due to numerous events it had planned during the Las Vegas Grand Prix F1 race (LVGP). The other Las Vegas casino corporations were either expecting flat revenue or no impact.
Wynn Resorts Third Quarter Earnings Overview
Here’s a quick look at Wynn Resorts’ third-quarter earnings. Worldwide operating revenues were $1.69 billion for the third quarter of 2024. This was an increase from $1.67 billion during the third quarter last year.
Operating revenues increased by $56.9 million at Wynn Macau and by $3.7 at Encore Boston Harbor, respectively. Revenue decreased by $11.8 million in Las Vegas and $5 million at Wynn Palace in Macau.
The acronym EBITDAR is essentially a way to measure profit for certain industries, including casinos and restaurants. Profits were down at Wynn during the quarter.
The adjusted EBITDAR for Wynn Resorts was $527.7 million for the third quarter of 2024. This was a small decrease compared to $530.4 million last year.
Wynn Macau and Encore Boston Harbor saw an increase in EBITDAR with $22.7 million and $2.5 million, respectively. Las Vegas and Wynn Palace in Macau saw decreases of $17 million and $14.8 million.
Wynn Al Marjan Island
Construction on Wynn Al Marjan Island is halfway there. Wynn says construction is now 55% completed. Billings shared a financial update on the progress during the quarterly earnings call:
“Importantly, we are also continuing to invest in growing the business with construction on Wynn Al Marjan Island rapidly advancing. We are confident the resort will be a ‘must see’ tourism destination in the UAE and expect that it will support strong long-term free cash flow growth.”
Construction is indeed moving rapidly. In an update this week, the company said:
“The concrete structure is complete up to the 26th floor of the main resort tower, with walls extending to the 29th floor. The construction team is completing one floor per week, working toward a topping off in December 2025.”
When complete Wynn Al Marjan Island will have 1,542 hotel rooms and suites. The property will also have 22 restaurants, lounges, bars, a shopping promenade, and meeting spaces. The experiences “will range from high-energy social destinations to fine dining.”
As you’d imagine Wynn Nightlife will be featured in its nightclub and dayclub. The latter will have its own white sand beach on the Arabian Gulf that will feature a pool complex adjacent to the beach with multiple swimming and wading pools, water features, private cabanas, and tropical landscaping.
Wynn Las Vegas Update
Wynn’s third-quarter revenue in Las Vegas was $607.2 million, a decrease of $11.8 million from $619.0 million from last year.
However, profit was up during the quarter. Wynn reported EBITDAR from Las Vegas during the quarter was $202.7 million, compared to $219.7 million last year.
The big hit in Las Vegas came from casino revenue which was down 13% compared to the third quarter last year. Meanwhile, hotel room revenue and entertainment increased 4.8% and 20%, respectively.
The average daily hotel room rate (ADR) for the quarter was a whopping $495 per night. The price was right as the company reported 89% occupancy during the quarter.
Hotel room prices should see an increase in the fourth quarter with programming for LVGP, NFR, and the holidays kicking into high gear. For reference, the ADR during the fourth quarter of last year was $631.
Tilman Fertitta Investing In Wynn Bigly
Golden Nugget owner Tilman Fertitta now owns almost 10% of Wynn’s available stock. It does not appear as though he’s planning to buy Wynn Resorts outright.
You may remember that Fertitta once https://www.houstonchronicle.com/business/article/Tilman-Fertitta-s-bid-for-Caesars-Entertainment-14039273.php tried to buy Caesars. That obviously never happened.
Stay tuned to see what happens next.
