Wynn Resorts CEO Craig Billings said the operator is edging closer to securing a licence for its new integrated resort in the United Arab Emirates (UAE), while the business posted a 75.8% rise in Q2 revenue to $1.60bn (£1.26bn/€2.46bn).
The business first announced plans to open Wynn Al Marjan Island in early 2022. The Wynn Resorts facility will be located on the man-made Al Marjan Island in the Emirate of Ras Al-Khaimah and will cost approximately $3.90bn.
The venue is not due to open until early 2027 but Wynn is already busy making plans for the casino. Construction partners were appointed in March, initial designs were revealed shortly after and Thomas Schoen was recently named project president.
“We have everything we need to operate gaming in Al Marjan”
In addition, the operator is pushing to secure early approval ahead of the planned opening. Speaking on its earnings call, he said Wynn expects to receive regulatory approval for the project in the near future.
Regulatory approval in the UAE works on an Emirate-by-Emirate basis, rather than legalisation across the UAE as a whole, he explained.
“We have everything we need to operate gaming in Al Marjan,” Billings said. “While there may be conversation in other Emirates about legalisation or at federal level, thereby covering all Emirates, I expect that we will have our licence for Ras Al Khaimah actually imminently.
“But there should be no concern that there is a legalisation process that needs to occur in order for a broader legalisation process for gaming to occur in that property.
“We have a very substantial growth opportunity in the UAE, the most exciting new gaming market in decades.”
Casino success drives revenue growth at Wynn Resorts
Turning to Wynn’s Q2 and revenue in the three months to 30 June amounted to $1.60bn, up 75.8% year-on-year.
Casino was by far the main source of revenue, with this segment drawing $913.0m in total revenue. This was 153.9% higher than last year due to the removal of all remaining Covid restrictions in Macau, which in turn allowed VIP and high-value customers to return to its Wynn Palace and Wynn Macau venues.
Rooms revenue also increased 37.4% to $276.5m, while food and beverage revenue was up 11.8% to $257.0m. In addition, entertainment, retail and other revenue climbed 26.4% to $149.3m.
Q2 Macau revenue reaches $769.9m
Breaking down performance by property and operating region, revenue in Macau amounted to $769.9m. This was 556.9% ahead of $117.2m in the previous year, with the 2022 period impacted by Covid restrictions.
Revenue at Wynn Palace stood at $468.4m, up 698.0% year-on-year. It was a similar story at Wynn Macau, where revenue rocketed 414.7% to $301.6m.
Turning to Las Vegas, operations in the Nevada city increased 3.0% to $578.1m. The business operates both the Wynn Las Vegas and Encore Las Vegas on the city’s iconic Strip.
There was also growth at Encore Boston Harbor in Massachusetts. Revenue at the facility was up 5.6% year-on-year to $221.9m.
In addition, the Wynn Interactive business posted a 27.0% rise in revenue to $25.9m. This was reported as part of the entertainment, retail and other revenue segment.
Wynn Resorts Q2 profits up despite costs
Operating costs for the quarter increased 40.1% to $1.35bn but financial expenses were down 26.5% to $160.7m. Given the spike in revenue, which more than offset increased operating spend, this allowed Wynn to post a pre-tax profit of $132.1m, compared to the $212.7m loss last year.
Wynn paid $4.3m in tax, leaving a net profit of $127.8m, in contrast to last year’s $223.4m loss. After also taking $22.7m in loss attributable to non-controlling interests, bottom-line net profit was $105.2m, compared to a $130.1m loss in 2022.
In addition, adjusted EBITDAR was 192.7% higher year-on-year at $524.5m.
H1 revenue surpasses $3.00bn
Looking to the first half and revenue for the six months to 30 June reached $3.02bn. This was 62.2% higher than $1.86bn in the same period last year.
Casino revenue almost doubled to $1.68bn while rooms revenue increased by 47.7% to $549.0m. Food and beverage revenue was up 21.3% to $489.6m, with entertainment, retail and other revenue rising 26.8% to $300.8m.
Macau revenue jumped 229.6% to $1.37bn, while Vegas’ contribution increased 16.3% to $1.17bn. Encore Boston Harbor revenue was up 9.3% to $438.2m and Wynn Interactive revenue climbed 7.2% to $46.4m.
Operating costs jumped 29.4% to $2.60bn but finance costs were lower at $285.5m. As such, pre-tax profit hit $134.3m, in stark contrast to a $466.2m loss last year.
Wynn paid $5.3m in tax, resulting in a $129.0m net profit, compared to last year’s $468.0m loss. The operator also noted $11.5m in loss attributable to non-controlling interests, which left bottom-line net profit at $117.5m, against a $313.4m loss in 2022.
As for adjusted EBITDAR, this was 167.5% higher at $954.2m.
“Our second quarter results reflect continued strength in North America and Macau,” Billings added.