Although Las Vegas revenue burdened Q3 results for Wynn Resorts, the operator remains buoyant over future prospects particularly as it eyes the UAE as a ‘must see’ tourism destination.
It was a mixed bag for Wynn in Q3 as the casino giant navigated challenging climates in Las Vegas, reporting operating revenue reductions of $11.8m to $607.2m.
Overall operating revenues for the firm stood at $1.69bn, a $21.4m rise from the same period last year. However, challenges remained as Wynn Resorts still reported a net loss of $32.1m.
Craig Billings, CEO of Wynn Resorts, Limited, commented: “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.”
The group underpinned key ambitions in the UAE, with $18.2m being injected into the constructing the Wynn Al Marjan Island development in the region as progress continues with the regulatory framework.
Recently, Wynn Resorts shone a light on the significant potential of the market, which anticipates to open in the first quarter of 2027, revealing that according to financial forecasts for its upcoming Wynn Al Marjan Island resort in Ras Al Khaimah (RAK) it projects gross gaming revenue of up to $1.66bn.
Wynn Resorts recently also confirmed the landmark moment of being awarded a commercial gaming operator licence in the United Arab Emirates.
The Las Vegas-based casino operator has confirmed that it has been issued a Commercial Gaming Facility Operator licence from the General Commercial Gaming Regulatory Authority (GCGRA), the country’s gambling regulator that was established last year.
Billings added: “Importantly, we are also continuing to invest in growing the 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. At the same time, we continue to increase the return of capital to shareholders through our recurring dividend and opportunistic share repurchases.
“To that end, we are pleased to announce that the Board has increased our share repurchase authorisation to $1bn. We are excited about the outlook for the Company, and we will continue to focus on driving long-term returns for shareholders.”
There was also adjusted Property EBITDAR of $527.7m for the firm, representing a decrease of $2.7m compared to Adjusted Property EBITDAR of $530.4m for the third quarter of 2023.
For the third quarter of 2024, Adjusted Property EBITDAR increased $22.7m and $2.5m at Wynn Macau and Encore Boston Harbor, respectively, and decreased $17m and $14.8m at our Las Vegas Operations and Wynn Palace, respectively, from the third quarter of 2023.
The group did however report positive results in its Macau performance, with landing US$871.7m revenue a rise of 6.3% year-on-year.
Looking at the current state of play for the group’s balance sheet, it revealed that current and long-term debt outstanding at September 30, 2024 was $11.79bn, made up of $6.41bnof Macau related debt, $1.46bn of Wynn Las Vegas debt.
