Wynn Resorts recently reported fourth quarter and full year earnings for 2024. While the company was looking forward to the future, it also acknowledged another record year in Las Vegas.
Since Mr. TravelZork is a Wynn Fanboy ™ we’ll mostly focus on how Wynn Las Vegas performed after a quick look at the big picture of the company.
Craig Billings, CEO of Wynn Resorts shared the following in a press release:
“Our fourth quarter and full year results reflect continued strength throughout our business, setting another full-year record for Adjusted Property EBITDAR for the Company in 2024, with another annual record in Las Vegas. We delivered strong quarterly performance in Las Vegas on very tough comparables and drove healthy market share in Macau led by strength in both premium mass and VIP.”
Looking forward to international development, Billings added:
“In addition, construction of the Wynn Al Marjan Island project in the UAE continued to advance, and the thirty-fifth floor of the hotel tower was recently completed. We are confident the resort will be a ‘must see’ tourism destination in the UAE and will support strong long-term free cash flow growth.”
Las Vegas In Focus
Wynn was one of the few Las Vegas casino operators who was looking forward to the Las Vegas Grand Prix F1 race in November. The first running of the race was a perfect match for Wynn’s luxury resort and the more affluent F1 fans. It looks like that continued.
Here’s a breakdown of fourth quarter revenue and profit in Las Vegas for Wynn:
- Operating revenue: $699.5 million – a tiny increase of $2.7 million from $696.8 million for the fourth quarter of 2023.
- Adjusted Property EBITDAR (profit): $267.4 million – down slightly from $270.8 million for the fourth quarter of 2023.
- The company did well in the casino with a table game win percentage of 30.9% during the fourth quarter. That was aove expectations and better than 25.4% in the fourth quarter of 2023.
My favorite metric from Wynn earnings is to compare the ridiculously high hotel room rate to previous periods. During the fourth quarter of 2024, the average room rate was just $598. That was down 5.25% from 2023 when the rate was $631 during the same quarter.
The lower rate isn’t much of a surprise after hearing other operators say they saw flat or slightly lower prices. However, Wynn was still stronger than the competition during the F1 race.
During the earnings call, Billings noted that Wynn’s room rates were the highest in Las Vegas during the quarter. Specifically, he said “our ADRs were about 50% higher than the two closest competing properties here in Las Vegas.”
Similar to MGM Resorts, Billings said that business is much better with the race in November than it was before:
“Our daily EBITDA during the 2024 event remains materially elevated relative to the years before F1 was a fixture in the market. The F1 team did a tremendous job with this year’s event.”
Like every other Las Vegas casino operator, Billings muted expectations for the first quarter of this year since February room rates will be lower since the Super Bowl didn’t take place this year.
Lastly, Wynn confirmed that it will be renovating the hotel rooms in the Encore Tower this summer. The company hasn’t released renderings of the rooms yet and there’s no estimate on when the rooms will be available since construction can be paused if there’s high demand for hotel rooms.
Golden Wynn Nugget? Not Likely…Or Is It?
Tilman Fertitta is the number one shareholder of Wynn Resorts. He continues to increase how many shares he owns of Wynn. The latest disclosure this year shows that he owns more than 10% of the available shares in Wynn Resorts.
According to the Houston Chronicle, he can purchase even more shares in May. The current allotment available is “another 1.68 million shares at $85.73.”
For comparison, Fertitta owns more than Elaine Wynn, who owns eight percent of the shares, according to Forbes.
Feritta owns Golden Nugget, Landry’s restaurants, the Houston Rockets, and is awaiting confirmation as ambassador to Italy by the President. He has a lot on his plate and hasn’t made any intentions known about his future as the largest shareholder in Wynn Resorts…Stay tuned.
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