Wynn Resorts has reported an annual record for its operations in Las Vegas, as its operating revenues rose by just under 4% year-over-year in 2024 compared to the previous year.
While overall operating revenues in Q4 for the company remained flat, the operator stated that it did set another full-year record for adjusted property EBITDAR in 2024.
During the operator’s earnings call, CEO Craig Billings added that Vegas operations are already off to a good start in 2025 despite tough YoY comparatives in February since the Super Bowl was hosted in the city in 2024.
Billings said: “Demand in January looked good, with both drop and handle up year over year and ADR and F&B covers both up year over year. This year, we didn’t have the benefit of hosting the Super Bowl here in Las Vegas, which impacts February, and that’s about a $25m EBITDA headwind for Q1 vs 2024. Excluding Super Bowl weekend, all of our key volume metrics are up year over year.
“Looking further out, we already have our budgeted group and convention room nights for 2025 on the books at healthy ADRs, and transient booking demand over the last two weeks has been extremely robust. When coupled with a calendar that is once again chock-full of large demand drivers in the market, the setup for 2025 feels good.
“The team at Wynn Las Vegas continues to set the standard and with new food and beverage openings later this year, including the much-anticipated opening of Zero Bond, a planned renovation of the Encore tower and other relatively modest targeted investments, we will exit 2025 even stronger and with limited remaining capex on the horizon.”
Financial results
For Q4, Wynn Resorts’ operating revenues were flat in comparison to the same period the previous year at $1.84bn, with casino revenue coming in at $1.1bn (Q4 2023: $1.07bn), rooms at $325.4m (Q4 2023: $347.3m), food and beverage at $258.2m (Q4 2023: $271.6m) and entertainment, retail and other revenue at $143.1m (Q4 2023: $155.6m).
Net income stood at $277m (Q4 2023: $729.2m). Q4 2023’s net income included an income tax benefit of $474.2m “related to the release of valuation allowance on certain deferred tax assets”.
The company’s diluted net income per share was $2.29 (Q4 2023: $6.19), while adjusted property EBITDAR was $619.1m (Q4 2023: $630.4m).
For the full year, the operator reported operating revenues of $7.13bn (2023: $6.53bn), with casino revenue coming in at $4.26bn (2023: $3.72bn), rooms at $1.24bn (2023: $1.19bn), food and beverage at $1.07bn (2023: $1.03bn) and entertainment, retail and other revenue at $555.4m (2023: $599.2m).
Net income stood at $501.1m (2023: $730m), diluted net income per share was $4.35 (2023: $6.32) and adjusted property EBITDAR was $2.36bn (2023: $2.11bn).
As of 31 December 2024, Wynn Resorts’ cash and cash equivalents totalled $2.43bn, while its total current and long-term debt outstanding was $10.54bn.
“Our fourth quarter and full-year results reflect continued strength throughout our business, setting another full-year record for Adjusted Property EBITDAR for the Company in 2024, with another annual record in Las Vegas,” commented Billings.
“We delivered a strong quarterly performance in Las Vegas on very tough comparables and drove healthy market share in Macau, led by strength in both premium mass and VIP.
“In addition, construction of the Wynn Al Marjan Island project in the UAE continued to advance, and the thirty-fifth floor of the hotel tower was recently completed. We are confident the resort will be a ‘must see’ tourism destination in the UAE and will support strong long-term free cash flow growth.
“At the same time, during the fourth quarter, we continued to focus on the return of capital to shareholders through both a cash dividend and the repurchase of $200m of our stock.”
Property performance
Results per property in Q4, in Macau, Wynn Resorts noted that Wynn Palace operating revenues were $562.9m (Q4 2023: $524.4m), while adjusted property EBITDAR stood at $184.6m (Q4 2023: $171.1m). At Wynn Macau, operating revenues came in at $363.7m (Q4 2023: $386.2m), while adjusted property EBITDAR was $108.2m (Q4 2023: $125.8m).
Las Vegas operations revenue at the end of the quarter was $699.5m (Q4 2023: $696.8m), while adjusted property EBITDAR was $267.4m (Q4 2023: $270.8m). Encore Boston Harbor operating revenues were $212.7m (Q4 2023: $217.1m), while adjusted property EBITDAR was $58.8m (Q4 2023: $64.4m).
For the full year, Wynn Palace operating revenues were $2.22bn (2023: $1.89bn), while adjusted property EBITDAR stood at $733.7m (2023: $615.8m). Wynn Macau operating revenues were $1.46bn (2023: $1.21bn), while adjusted property EBITDAR was $441.9m (2023: $338.1m).
Las Vegas operations revenue across 2024 came in at $2.57bn (2023: $2.48bn), while adjusted property EBITDAR stood at $946.8m (2023: $946.2m). Encore Boston Harbor operating revenues were $857.2m (2023: $865.8m), while adjusted property EBITDAR was $247.1m (2023: $257.4m).
Wynn Al Marjan Island
Wynn Resorts also provided an update on the Wynn Al Marjan Island resort in the United Arab Emirates, which is currently scheduled to open in 2027.
In Q4, $99m of cash was contributed by the company into a 40%-owned joint venture that is constructing the development. The operator’s life-to-date cash contributions to the project stand at $631.7m.
“Construction is rapidly progressing on the project, with work now reaching the 35th floor of the hotel and over 4.6 million square feet of concrete and steel in place,” stated Billings on Wynn Resorts’ earnings call.
“As we discussed at our investor day in October, we believe the UAE will be a $3bn to $5bn gaming market over time and certainly the most exciting new market for our industry in decades.
“To support this project and the early work we are doing to build our database and brand awareness in the region, we were pleased to announce in early January that we entered into an agreement to purchase Aspinalls in Mayfair, London. This small, but strategic asset, provides a presence in Central London, where many of our future Wynn Al Marjan customers spend a meaningful amount of time.”
