Wynn Resorts managed to significantly reduce its loss in the third quarter of the year, shrinking the figure to $32.05 million, compared to $116.67 million in 3Q23, on the back of better casino revenues and reduced expenses.
In results released early on Tuesday, the company indicated that casino revenues neared $1.02 billion during the period, compared with operating expenses of $1.56 billion.
This compares to casino revenue of $972.45 million and operating expenses of $1.61 billion in 3Q23.
The group’s Macau operations brought in some $871.74 million, up 6.33 percent yearly, despite yearly casino revenue from its Cotai Strip property, Wynn Palace, remaining flat at $418.04 million.
VIP turnover during the period at Wynn Palace was up by 11.6 percent, totaling $3.19 billion, while mass market table drop fell slightly, by 1.8 percent, to $1.69 billion.
This resulted in reduced property EBITDAR for the Cotai property, at $162.28 million, down by 8.3 percent yearly.
Casino revenues at Wynn Macau saw a better yearly comparison, up by 28.8 percent, to $296.78 million. VIP turnover was flat year-on-year, at $1.2 billion, while mass market table drop rose by 9.5 percent, to $1.51 billion.
Property EBITDAR at Wynn Macau rose by 29 percent, to $100.59 million.
During the quarter, the group saw hotel occupancy at its Wynn Palace property increase to 98.3 percent, while that of its Macau peninsula property rose slightly to 98.9 percent.
US-based operations
The group’s Las Vegas operations saw a contraction in casino revenue, of 13.6 percent, to $145.18 million, as table games drop fell by 14.3 percent yearly to $580.8 million. The slot machine handle rose, however, by 3.5 percent, to $1.69 billion.
Adjusted property EBITDAR fell slightly, to $202.7 million.
The group’s Boston Harbor property performed better, with total casino revenues up by 1.8 percent yearly, to $158.74 million. Table games drop was up by 1 percent, to $347.08 million, while the slot machine handle rose by 3.1 percent to $1.37 billion.
Adjusted property EBITDAR rose slightly to $63 million during the quarter.
Hotel occupancy at the group’s Las Vegas property fell slightly to 89 percent, while that of Encore Boston Harbor rose slightly to 96.9 percent.
“Healthy demand”
Speaking of the results, Wynn Resorts CEO Craig Billings noted “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”.
UAE
Looking ahead to the group’s future markets, Billings indicated that “we are also continuing to invest in growing 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”.
During the quarter, the group contributed some $18.2 million in cash to the joint venture in which it holds 40 percent. That brings the total cash contributions to the project so far to $532.6 million.
The group indicated that ‘Wynn Al Marjan Island is currently expected to open in 2027,’ in line with expectations.
Equity repurchase
Keeping shareholders happy also appears high on the list for Wynn, with a recent equity repurchase program expanded to $1 billion cleared in November. The group’s CEO noted that “We are excited about the outlook for the Company, and we will continue to focus on driving long-term returns for shareholders.”
