Wynn Resorts has published its results for Q4, showing a 9.1% revenue increase to $7.13 billion for 2024. The company’s operating revenues were $1.84 billion for the quarter (the same as 2023), with all-year results showing the positive impact of sustained growth in Macau.
Macau operations led the way in terms of growth for the company, with annual revenue increasing by 14.6%.
The picture for domestic revenues from the likes of Las Vegas and Encore Boston Harbor isn’t quite as positive, but does show good stability. Las Vegas revenue grew by 1.2% over the course of 2024, despite what the company's CEO has termed “very tough comparables.”
The 62% drop in net income (to $277 million in Q4) can be attributed to the absence of the $474.2 million tax benefit Wynn enjoyed in Q4 of 2023.
Macau remains Wynn’s strongest market
Macau is undoubtedly the top market for Wynn Resorts, and continued to lead the way in growth for the company in 2024. Revenue from the market rose by 19.3% in Q3, and Q4’s results showed a continuation of that positive trend.
The increase in revenue was generated largely by the likes of Wynn Palace, which saw a revenue increase of 7.3%, to $562.9 million in Q4. The results show an increase in Macau's mass table games win percentage, which was up to 26%, compared to 23.6% in 2023, as well as a rise in the VIP table games win percentage, to 3.51% from 2.97%.
High stakes gaming went from strength to strength in Q4. The company’s VIP win percentage rose to 5.01% from 4.37%, while its table games percentage dropped to 17.9% (it had been 19.1% in the previous year).
It wasn’t all good news from Macau, however. The company did record a drop in mass-market gaming performance, down 5.8% to $363.7 million. There was also a 14% drop in adjusted property EBITDAR to $108.2 million.
Muted growth in Las Vegas
Results published by Wynn Resorts show some growth in Las Vegas markets, but adjusted property EBITDAR declined by 1.2% to $267.4 million in Q4. While revenue was up 1.2%, the results in terms of gaming trends and what they meant for the company in 2024 is very mixed.
There was a marked rise in win percentage for table games in Vegas, up to 30.9% from 25.4% in Q4 2023. Added to that is the dip in demand seen in results from Q3, which, despite some improvements in Q4, did mean a lack of meaningful growth for Wynn in 2024.
Revenue drops in Encore Boston Harbor
The picture from Encore Boston Harbor showed a dip in revenue of 2.1% in Q4. Total reported revenue for Encore Boston Harbor was $212.7 million, with adjusted property EBITDAR also declining by 8.7% to $58.8 million.
There was also a drop in win percentage for table games (down from 22% in the same quarter last year to 20.7%), but the final percentage for Q4 remained within the property’s expected range of 18% to 22%.
CEO praises strong performance on tough comparables
Discussing the results, Craig Billings, CEO of Wynn Resorts said the fourth quarter and full-year results “reflect continued strength” throughout the business, as they set another full-year record for Adjusted Property EBITDAR for the company in 2024.
“We delivered 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,” Billings said. “In addition, construction of the Wynn Al Marjan Island project in the UAE continued to advance, and the 35th floor of the hotel tower was recently completed.”
Earlier this month, we reported on the $2.4 billion loan Wynn Resorts will receive for its UAE casino. The financing deal, which is the largest ever for the country’s hospitality sector, will allow Wynn to build a resort of 1,542 rooms and suites, with almost two dozen restaurants and bars, a beach club, a shopping center, and a spa.
The loan is to be delivered in delayed draw form via a syndicate of global financial groups, to ensure liquidity at each stage of project development. Wynn Resorts will hold a 40% stake in the building of the resort.
“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,” Billings said. “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 $200 million of our stock.”
