International edition
August 20, 2019

Las Vegas casino revenues saw a 17.7% increase year-on-year

Wynn's operating revenues up 3.3% in Q2, with core business growth in Macau

Wynn's operating revenues up 3.3% in Q2, with core business growth in Macau
Operating revenues from Wynn Palace were USD 628.9 million for the second quarter of 2019, a 1.3% increase year-on-year.
United States | 08/07/2019

Operating revenues from Las Vegas operations were USD 464.1 M for the second quarter of 2019, a 5.1% increase; and revenue per available room (RevPAR) was up 9.5%. During its eight days of operations in Q2, Encore Boston Harbor's operating revenues were USD 18.8 M and Adjusted Property EBITDA was USD 0.1 M.

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ynn Resorts reported Tuesday its financial results for the quarter ended June 30, 2019. Operating revenues were $1.66 billion, an increase of 3.3%, or $52.9 million, from $1.61 billion for the second quarter of 2018. Operating revenues increased $8.3 million, $3.2 million, and $22.6 million at Wynn Palace, Wynn Macau, and Las Vegas Operations, respectively, year-over-year.

"We were pleased to deliver year-over-year revenue growth at all of our properties in the second quarter, with particular strength in our core mass business in Macau and RevPAR (Revenue per available room) in Las Vegas," said Matt Maddox, CEO of Wynn Resorts. "On the development front, we have made meaningful progress designing and planning the Crystal Pavilion in Macau, which we believe will be a 'must-see' tourism destination on Cotai.”

“We also achieved a significant milestone during the quarter with the successful opening of Encore Boston Harbor, the East Coast’s first premium integrated resort, on June 23. Importantly, the opening of Encore Boston Harbor drives a reduction in our near-term capital expenditures and improvement in our discretionary free cash flow profile. We are also pleased to announce a $1.00 per share dividend for the quarter, consistent with our strategy of capital return to shareholders. We remain excited about the outlook for the company and we will continue to focus on leveraging our premium-focused business model to drive long-term returns for shareholders," Maddox added.

On a U.S. generally accepted accounting principles ("GAAP") basis, net income attributable to Wynn Resorts was $94.6 million, or $0.88 per diluted share, for the second quarter of 2019, compared to $155.8 million, or $1.44 per diluted share, in the same period of the prior year. The change was primarily due to an increase in pre-opening expenses related to the development of Encore Boston Harbor. Adjusted net income attributable to was $153.9 million, or $1.44 per diluted share, from $166.2 million, or $1.53 per diluted share.

Adjusted Property EBITDA was $480.6 million for the second quarter of 2019, an increase of 0.9%, or $4.2 million, from $476.4 million in Q2 2018. Adjusted Property EBITDA increased $2.9 million and $13.2 million at Wynn Macau and our Las Vegas Operations, respectively, and decreased $12.1 million at Wynn Palace. Wynn Resorts also announced that it has approved a cash dividend of $1.00 per share, payable on August 27, to stockholders of record as of August 16, 2019.

Las Vegas operations

Operating revenues from Las Vegas were $464.1 million for the second quarter of 2019, a 5.1% increase from $441.6 million for the same period of 2018. Adjusted Property EBITDA was $137.4 million, a 10.7% increase from $124.2 million year-on-year.

Casino revenues were $119.8 million, a 17.7% increase from $101.7 million. Table games drop was $440.8 million, a 9.2% increase; table games win was $126.4 million, up 25.2%; table games win percentage was 28.7%, above the property’s expected range of 22% to 26% and above the 25.0% experienced in the second quarter of 2018. Slot machine handle was $811.6 million, a 4.3% increase; slot machine win increased 11.6% to $55.1 million.

Non-casino revenues from Las Vegas operations were $344.4 million for the second quarter of 2019, a 1.3% increase from $339.8 million from prior-year period. Room revenues were $127.6 million for the second quarter of 2019, a 7.9% increase; average daily rate (ADR) was $333, a 6.4% increase ; occupancy increased to 90.1%; revenue per available room (RevPAR) was $300, up 9.5%; food and beverage revenues decreased 3.3%; entertainment, retail and other revenues increased 1.8% to $51.6 million.

Furthermore, during its eight days of operations in the second quarter of 2019, Encore Boston Harbor's operating revenues were $18.8 million and Adjusted Property EBITDA was $0.1 million. The results of Encore Boston Harbor will be reported as a separate segment beginning in the third quarter of 2019.

Macau operations

Operating revenues from Wynn Palace were $628.9 million for the second quarter of 2019, a 1.3% increase from $620.6 million for the second quarter of 2018. Adjusted Property EBITDA was $167.2 million, a 6.8% decrease from $179.3 million year-over-year.

Casino revenues from Wynn Palace were $528.5 million for the second quarter of 2019, up 0.7%. Table games turnover in VIP operations was $13.39 billion, a 4.6% decrease. VIP table games win as a percentage of turnover was 3.02%, above the expected range of 2.7% to 3.0% and above the 3.00% experienced in the second quarter of 2018. Table drop in mass market operations was $1.27 billion, a 4.0% increase from $1.22 billion in the second quarter of 2018.

Table games win in mass market operations was $296.9 million, a 5.8% increase year-on-year; table games win percentage in mass market operations was 23.4%; slot machine handle was $937.8 million, a 0.3% decrease; slot machine win decreased 1.4% to $43.6 million.

Non-casino revenues from Wynn Palace were $100.4 million for the second quarter of 2019, a 5.0% increase from $95.6 million for the same period of 2018. Room revenues were $43.2 million, a 6.0% increase; ADR was $265, a 4.1% increase; occupancy increased to 97.4% for the second quarter of 2019; RevPAR was $258, a 5.3% increase from $245 for the second quarter of 2018.

Operating revenues from Wynn Macau were $546.5 million for the second quarter of 2019, a 0.6% increase from $543.3 million for the same period of 2018. Adjusted Property EBITDA was $175.9 million for the second quarter of 2019, up 1.7% from $172.9 million year-on-year.

Casino revenues were $481.2 million for the second quarter of 2019, a 1.7% increase; table games turnover in VIP operations was $9.28 billion, a 33.4% decrease; VIP table games win as a percentage of turnover was 3.30%, above the expected range of 2.7% to 3.0% and above the 2.56% experienced in the second quarter of 2018. Table drop in mass market operations was $1.35 billion, a 4.2% increase; table games win in mass market operations was $279.1 million, up 10.7%; table games win percentage in mass market operations was 20.7%. Slot machine handle was $925.8 million, a 3.9% decrease; slot machine win increased 5.9% to $42.8 million.

Non-casino revenues from Wynn Macau were $65.3 million for the second quarter of 2019, a 6.8% decrease from $70.0 million for the second quarter of 2018. Room revenues were $26.5, a 2.2% decrease; ADR was $281, a 3.2% increase; occupancy decreased to 98.9%; RevPAR was $278, a 2.6% increase from the second quarter of 2018.

As for development projects, Wynn is constructing an approximately 430,000 square foot meeting and convention facility at Wynn Las Vegas and is reconfiguring the Wynn Las Vegas golf course, which was closed in the fourth quarter of 2017. The facility will feature approximately 217,000 square feet of state-of-the-art meeting and convention space available for group reservations. Based on current designs, Wynn estimates the total project budget to be approximately $425 million. As of June 30, 2019, the company has incurred $246.6 million in total project costs. It expects to reopen the golf course in the fourth quarter of 2019 and open the additional meeting and convention space in the first quarter of 2020.

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