Wynn Resorts has announced its financial results for the second quarter of 2024, showcasing an impressive growth trajectory. The company’s total operating revenues reached $1.73 billion, marking an 8.6% increase from the same period last year. This growth is indicative of a robust performance across various properties, despite some localized challenges.
Revenue Growth
In the second quarter of 2024, Wynn Resorts achieved a significant revenue increase, with total operating revenues climbing to $1.73 billion. This rise of 8.6% year-on-year underscores the company’s solid financial health and successful operational strategies. The increase in revenue reflects enhanced performance across several properties, even as some areas faced declines.
Net Income and Earnings Per Share
Wynn Resorts’ net income attributable to the company saw a notable rise of 6.4%, reaching $111.9 million. Correspondingly, diluted net income per share increased to $0.91, an 8.3% rise. These metrics highlight the company’s effective cost management and profitability improvements, contributing to a strong bottom line for the quarter.
Adjusted Property EBITDAR
The adjusted property EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) stood at $571.7 million for the second quarter, representing a 9% increase. This growth is attributed to improved performances across various properties, although some locations experienced revenue declines. This metric is crucial for evaluating the operational efficiency and profitability of Wynn Resorts’ properties.
Macau
Wynn Palace in Macau delivered outstanding results with operating revenues of $548.0 million, up 17% from the previous year. Adjusted property EBITDAR at Wynn Palace surged by 17.8% to $184.5 million. The table games win percentage in mass market operations at Wynn Palace rose to 23.6%, reflecting strong performance in this segment.
Wynn Macau also performed well, with operating revenues reaching $337.3 million, an increase of 11.8%. Adjusted property EBITDAR at Wynn Macau grew by 7.1% to $95.9 million. However, the table games win percentage in mass market operations slightly decreased to 17.5%.
Las Vegas
In Las Vegas, Wynn Resorts generated operating revenues of $628.7 million, marking an 8.8% increase compared to Q2 2023. Adjusted property EBITDAR for the Las Vegas segment was $230.3 million, up 2.8%. Despite these positive figures, the table games win percentage fell to 21.9%, which was below the expected range.
Encore Boston Harbor
Encore Boston Harbor faced challenges with operating revenues declining by 4.2%, and adjusted property EBITDAR falling by 10.1% to $62.1 million. The table games win percentage in this location was 19.6%, which fell within the expected range but reflected a decrease in performance.
Development Projects and Investments
Wynn Resorts continues to invest in future growth with its Wynn Al Marjan Island project in the UAE. During the quarter, the company contributed $356.5 million to a joint venture, primarily for acquiring 155 acres of land. This development is part of Wynn’s strategy to expand its global footprint, with the project expected to open in 2027.
Financial Position and Share Repurchase
As of June 30, 2024, Wynn Resorts held cash and cash equivalents totaling $2.38 billion, with a significant portion held by Wynn Macau. The company’s total debt was $11.03 billion, distributed across its various operations. During the second quarter, Wynn Resorts repurchased 741,340 shares at an average price of $91.72 per share, amounting to $68.0 million. The company has $365.4 million remaining in its repurchase program and has declared a cash dividend of $0.25 per share, payable on August 30, 2024.
Comparison with Q1 2024
In the first quarter of 2024, Wynn Resorts experienced a remarkable 30.9% year-on-year increase in revenues, reaching $1.86 billion. This growth was primarily driven by strong performances in Macau, particularly at Wynn Palace and Wynn Macau. These results demonstrate the company’s ongoing success and its strategic focus on expanding its global presence through both existing and new developments.
Wynn Resorts’ financial results for the second quarter of 2024 reflect a solid growth trajectory and operational efficiency. With significant increases in revenue, net income, and adjusted property EBITDAR, the company has demonstrated its ability to perform well across various regions despite some challenges. The continued investment in development projects like Wynn Al Marjan Island highlights Wynn Resorts’ commitment to long-term growth and expansion. Overall, the company remains well-positioned for continued success in the global hospitality and gaming markets.