Wynn full-year results boosted by Palace earnings

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.