Wynn Resorts revenue up across all properties in Q2

Wednesday 7th of August 2019

Wynn Resorts saw year-over-year revenue growth across all of its properties in the second quarter of 2019, particularly in Macau and Las Vegas.

Total operating revenues increased 3.3 percent year-on-year, reaching $1.7 billion.

Both properties in Macau, namely Wynn Palace and Wynn Macau, saw their operating revenues inch upwards in the quarter, propped by increased casino revenue from the mass market.

Table games turnover in VIP operations fell 4.6 percent at Wynn Palace, and 33.4 percent at Wynn Macau.

Operating revenue from its Las Vegas operations also registered an increase in the quarter, up 5.1 percent to $464.1 million on the stronger casino and non-casino revenues.

"We were pleased to deliver year-over-year revenue growth at all of our properties in the second quarter, with particular strength in our core mass business in Macau and REVPAR in Las Vegas," said Matt Maddox, CEO of Wynn Resorts, Limited.

However, net income attributable to Wynn Resorts was $94.6 million, down 39.3 percent, due primarily to an increase in pre-opening expenses related to Encore Boston Harbor.

Adjusted Property EBITDA was $480.6 million for the second quarter of 2019, an increase of 0.9 percent from $476.4 million for the second quarter of 2018.

"On the development front, we have made meaningful progress designing and planning the Crystal Pavilion in Macau, which we believe will be a 'must-see' tourism destination on Cotai. We also achieved a significant milestone during the quarter with the successful opening of Encore Boston Harbor, the East Coast’s first premium integrated resort, on June 23. Importantly, the opening of Encore Boston Harbor drives a reduction in our near-term capital expenditures and improvement in our discretionary free cash flow profile,” said Maddox on the company’s latest projects.

“We remain excited about the outlook for the Company and we will continue to focus on leveraging our premium-focused business model to drive long-term returns for shareholders."

The company also reported that it is constructing a 430,000 square-foot meeting and convention facility at Wynn Las Vegas and are reconfiguring the Wynn Las Vegas golf course, which was closed in the fourth quarter of 2017.

The facility will feature approximately 217,000 square feet of state-of-the-art meeting and convention space available for group reservations.

Based on current designs, the company estimates the total project budget to be approximately $425 million.

“We expect to reopen the golf course in the fourth quarter of 2019 and open the additional meeting and convention space in the first quarter of 2020,” it said.