Wynn Resorts Ltd (WYNN) Q3 2024 Earnings Call Highlights: Strong Macau Performance and ...

GuruFocus News
3 min read

In This Article:

  • Las Vegas Revenue: $607.2 million in operating revenue.

  • Las Vegas Adjusted Property EBITDA: $202.7 million with an EBITDA margin of 33.4%.

  • Boston Revenue: $214.1 million.

  • Boston Adjusted Property EBITDA: $63 million with an EBITDA margin of 29.4%.

  • Macau Operating Revenue: $871.7 million.

  • Macau Adjusted Property EBITDA: $262.9 million with an EBITDA margin of 30.2%.

  • Global Cash and Revolver Availability: $3.5 billion as of September 30.

  • Net Leverage Ratio: Just over 4 times.

  • Cash Dividend: $0.25 per share payable on November 27, 2024.

  • Share Repurchase: 1.5 million shares repurchased for $118 million.

  • CapEx: $101 million for the quarter.

  • Equity Contribution to Wynn and Marjan Island Project: $18.2 million during the quarter, total contribution to date $532.6 million.

Release Date: November 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Wynn Resorts Ltd (NASDAQ:WYNN) announced an increase in share repurchase authorization to $1 billion, demonstrating a commitment to returning capital to shareholders.

  • The company reported strong performance in Macau with $263 million in EBITDA, a 3% year-on-year increase, driven by a 10% growth in combined mass table and slot wins.

  • Wynn Resorts Ltd (NASDAQ:WYNN) received the first land-based gaming license in the UAE, with construction progressing rapidly on the Marjan Island project.

  • The Las Vegas operations showed resilience with hotel revenue up 5% and slot handle up 4% despite challenging year-over-year comparisons.

  • Encore Boston Harbor reported a 4% increase in EBITDAR, with strong demand across gaming and non-gaming segments.

Negative Points

  • Las Vegas faced tough year-over-year comparisons, resulting in flat EBITDA despite a 1% increase in revenue.

  • Macau's competitive environment remains intense, impacting market share despite efforts to maximize EBITDA.

  • The company is facing increased operational expenses, with OpEx in Macau up 7% year-on-year due to higher payroll and variable costs.

  • Wynn Resorts Ltd (NASDAQ:WYNN) is experiencing challenges in managing costs related to union payroll increases in Boston.

  • The company anticipates significant CapEx commitments in Macau, ranging between $350 million to $425 million through 2025, which could impact cash flow.

Q & A Highlights

Q: Can you outline the required revenue to maintain margins across regions for 2025 and any forecasted cost increases? A: Craig Billings, CEO, explained that they don't manage to a margin but focus on aggressively managing revenues and costs. In Las Vegas, the high-end consumer remains strong despite tough comps, with minimal wage pressure. In Macau, the focus is on market share versus EBITDA, with stable market share despite a competitive environment.

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