Wynn reports strong quarterly results, banking on UAE project
Wynn Resorts has eluded some of the headwinds felt by other Las Vegas Strip casino operators, its latest earnings report shows.
The Las Vegas-based company said Thursday that it booked more than $1.7 billion in second-quarter revenue, a slight increase of 0.3 percent from the same period last year. It also logged $1.47 billion in expenses during the three months ending June 30, up 0.7 percent from a year earlier.
Still, overall profits fell sharply while the company bought back stock from investors. Wynn officials said a more important metric in measuring the company’s financial position is in its record second-quarter adjusted property earnings before interest, taxes, depreciation and restructuring in Las Vegas, which was $234.8 million, compared with $230.3 million for the second quarter of 2024.
The company said it repurchased more than 2 million shares of its stock for a combined $158.1 million.
All told, the company reported nearly $77 million in second-quarter net income, down 47 percent from the same period last year.
Wynn CEO Craig Billings said in an earnings call that its overall positive results are likely related to Wynn hosting a disproportionate number of wealthier guests.
“We’re not the best barometer of Las Vegas at large,” Billings said. “We’re the best barometer, I think, of a very particular portion of Las Vegas.”
According to Billings, the company hasn’t “seen any diminishment in the willingness to spend at the tables and the slots.
“We’ve been able to hold rate, which is a good indicator of demand for what we offer, and we’ve been able to do that in a market where rates have dropped,” he said, referring to hotel room prices.
The company’s confidence prompted it to proceed with the stock buyback, a 25-cent-per-share dividend and plans to start a $330 million remodeling of the property’s Encore tower this year.
While executives were happy with results from Las Vegas, Boston and Macao, the company’s most anticipated project continues to be in the United Arab Emirates.
“I think when people see what we’re building, they won’t be disappointed,” Billings said.
Billings said crews are pouring cement on the 61st floor of the 70-story tower and are on track to top off the high-rise later this year.
Located in the Ras Al Khaimah emirate, the resort is expected to have 1,542 hotel rooms, 22 private villas, 22 restaurants and casino, retail and convention space.
The company also has finalized several food and beverage partnerships and agreed to key terms with a number of still-undisclosed high-profile retail tenants,
Billings said the reception to the project has been “incredibly strong,” and analysts expect the lack of casino competition in the region makes for an optimistic financial outlook.
Wynn officials have told investors they anticipate Wynn Al Marjan Island to be a market capable of annual revenue between $3 billion and $5 billion.
“You’ve seen analysts come out with estimates as high as $8 billion,” Billings said. “So even if it’s a fraction of that size, the absence of near-term competition, I think, introduces conservatism into the base case that we presented at the analyst meeting.”
By comparison, operating revenue at the company’s three Macao properties for the quarter totaled $883.4 million. Wynn’s Las Vegas segment reported $638.6 million and Encore Boston Harbor had $215.7 million.
Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.