Wynn Resorts Q3 Revenue Soars by 87.9%
LISTEN TO THIS ARTICLE:Wynn Resorts announced an impressive 87.9% increase in its revenue to $1.67 billion in the third quarter primarily due to strong performances at its Macau venues, Wynn Palace and Wynn Macau, following the easing of Covid-related restrictions in the region.
Wynn Optimistic about UAE Project
The company also places strong emphasis on future growth prospects, notably in the United Arab Emirates (UAE). It is actively progressing with the construction of the Wynn Al Marjan Island in the Emirate of Ras Al-Khaimah, a project estimated to cost around $3.90 billion.
CEO Craig Billings expressed his enthusiasm about the UAE market, considering it a paramount new market opportunity in recent decades.
We believe it’s highly unlikely that every Emirate will ultimately avail themselves of the right to host an integrated resort. Our view is that it will likely be us and us alone for a multi-year period given that we are well underway on construction now. We all know the advantages of being first as we have seen in other markets. After that, it may be a duopoly or an oligopoly of three. But I find either ultimate market structure undaunting given the database advantages of being first and the fact that we’ve very successfully operate in the two most competitive markets in the world. Vegas and Macau. As I’ve said before, this is the most exciting new market opening in decades.
Strong Growth in Several Areas
In detailed financial results for Q3, Wynn reported significant gains across various segments. Casino revenues grew by 170.2%, driven by Macau’s relaxed restrictions. The company also saw a 46.7% increase in room revenues, reaching $289.3 million, alongside growths in food and beverage, and entertainment, retail, and other revenues.
In the US, the Las Vegas operations of Wynn generated $619.0 million in revenue, marking a 13.7% year-on-year increase. However, the Encore Boston Harbor experienced a slight dip in revenue, down 0.7% to $210.4 million.
The reopening in Macau also brought about increased operational costs for Wynn, totaling $1.61 billion in Q3, a 70.7% increase from the previous year. Despite these heightened expenses, the company improved its financial position compared to last year, reducing its pre-tax loss to $123.3 million from $206.4 million.
Significant Contrast to Last Year
Considering the nine-month performance up to September, Wynn’s revenue was up by 70.5%, totaling $4.69 billion. This included significant contributions from casino, room, food and beverage, and other sources. Operational costs rose to $4.21 billion, but the company managed a pre-tax profit of $11.0 million, a substantial contrast to the previous year’s significant loss.
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