- Las Vegas EBITDAR Record: Achieved $234.8 million (up 2% YoY) driven by 14.5% casino revenue growth and strong retail sales.
- Boston EBITDAR Growth: Reached $63.9 million (up 5.2% YoY) with effective management of union-related payroll costs.
- Macau Recovery: Generated $253.7 million EBITDAR, with June-July combined EBITDAR averaging $3.3 million per day despite VIP hold challenges.
- Strong Financial Position: $3.6 billion liquidity ($1.8 billion in Macau, $1.7 billion in U.S.) and $158 million in stock repurchases during the quarter.
Las Vegas Stays Strong
Las Vegas continues to be a bright spot for Wynn, with record EBITDAR of $234.8 million, up 2% year-over-year. The company prioritized average daily rate, leading to continued success despite a slight dip in midweek occupancy. Healthy demand and strong retail sales further contributed to this positive performance.
Boston Shows Resilience
Boston also performed well, generating $63.9 million in EBITDAR, up 5.2% year-over-year. The company effectively mitigated union-related payroll increases, demonstrating its ability to manage costs and maintain profitability in a challenging labor market.
Macau Rebounds
Macau delivered $253.7 million in EBITDAR, a remarkable achievement despite unfavorable VIP hold. The company's reinvestment in promotional activities has proven effective, attracting new customers and maintaining market share. The strong June and July combined EBITDAR of $3.3 million per day signals a positive momentum shift in the region.
Looking Ahead: Investments and Growth Opportunities
Wynn Resorts is actively investing in key capital projects to further enhance its offerings and capitalize on growth opportunities. The expansion of the Chairman's Club gaming area at Wynn Palace and the refreshing of Wynn Tower rooms at Wynn Macau are aimed at attracting high-value customers and improving the overall guest experience.
UAE Ambitions: Wynn Al Marjan Island
The company's ambitious Wynn Al Marjan Island project in the UAE, slated to open in early 2027, is another key driver of future growth. Executives believe they will likely be the only gaming operator in the market for some time, positioning them to capture significant market share. Wynn is actively building a marketing pipeline for the project, leveraging existing relationships, events, and nightlife partnerships to generate excitement and anticipation.
Valuation and Outlook
With a P/E ratio of 26.13 and an EV/EBITDA of 14.43, Wynn Resorts appears to be trading at a premium. However, its strong performance, expansion plans, and potential in the UAE market suggest that the market is pricing in future growth. The dividend yield of 0.94% and the free cash flow yield of 9.54% offer investors some income potential.