Wynn full-year results boosted by Palace earnings

Thursday 31st of January 2019

Wynn Palace has continued to drive revenue growth for Wynn Resorts. with strong casino revenue growth in 18Q4 helping to boost its full-year results.

On Wednesday, the U.S. casino operator reported full-year operating revenue of $6.7 billion, an increase of 10.7 percent year-on-year.

This was due mainly to a year-on-year surge in operating revenues at its flagship, Wynn Palace, increasing by $727.3 million in the year.

This was however partially offset by decreases in operating revenue of $42.4 million and $37.4 million from its Wynn Macau and its Las Vegas Operations, respectively.

GAAP net income attributable to Wynn Resorts was $584.2 million, down from $747.2 million reached in 2017. Wynn said the decrease was primarily due to a litigation settlement expense of $463.6 million recorded in the first quarter of 2018.

Full year Adjusted Property EBITDA increased 12.9 percent to $2.04 billion.

In 18Q4, Wynn's results largely beat consensus estimates, recording net revenue of $1.69 billion.

Bernstein analysts noted on Thursday that Wynn Palace remains in ramp-up mode, recording a 12.8 percent increase in operating revenue reaching $740.6 million.

"Wynn Palace continues to deliver stellar performance with continued Mass outperformance," said the analysts.

It’s Las Vegas operations also saw a boost in the quarter, driven by both casino and non-casino revenue growth.

Wynn Macau however, saw a 5.2 percent decrease in operating revenues, reaching $553.4 million.

"At Wynn Peninsula, the company has been undergoing renovations and repositioning – shifting its focus from mid-tier junket VIP to Premium Mass side of the business and beginning a major renovation of the Encore room product. As a result, rolling chip volume at Wynn Peninsula saw y/y and q/q declines," said Bernstein.

The operator is expected to pay a fine to the Nevada Gaming Control Board sometime this year over a sexual misconduct scandal involving its founder Steve Wynn and its former board of directors.