WYNN - Wynn Resorts tops Q2 expectations after Macau results shine

2023-08-09 16:21:26 ET

Wynn Resorts Limited ( NASDAQ: WYNN ) gained in late action on Wednesday after posting Q2 results slightly higher than expectations.

The casino giant reported that overall operating revenue rose 49% to $1.60B vs. $1.53B consensus. Operating revenue increased across segment Wynn Palace (+$409.7M), Wynn Macau (+$243.0M), Las Vegas (+$17.0M), Encore Boston Harbor (+$11.8M), and Wynn Interactive (+$5.5M). Net income attributable to Wynn Resorts ( WYNN ) was $105.2M for Q2, compared to net loss of $130.1M a year ago.

Adjusted property EBITDAR for the quarter improved to $524.5M from $179.2M a year ago. Notably, adjusted property EBITDAR turned positive for the Macau segment after COVID restrictions led to a big loss a year ago. Adjusted property EBITDAR was down 1.1% for the Las Vegas segment to $224.1M. A lower table games win percentage and decline in food and beverage revenue dragged on the EBITDAR tally. RevPAR for Las Vegas properties rose to $418 from $417 a year ago.

CEO update: "In the U.S., Wynn Las Vegas and Encore Boston Harbor continue to perform well, generating a new second quarter record for Adjusted Property EBITDAR at our combined North American properties. In Macau, the post-COVID recovery accelerated during the quarter, with particular strength in our mass gaming, luxury retail and hotel businesses. On the development front, we were excited to begin construction on Wynn Al Marjan Island, which we believe will be a 'must see' tourism destination in the UAE."

On the balance sheet, Wynn ( WYNN ) ended the quarter with a cash position of $3.65B and total current and long-term debt outstanding of $12.14B, comprised of $6.73B of Macau related debt, $2.65B of Wynn Las Vegas debt, $2.15B of Wynn Resorts Finance debt, and $614M of debt held by the retail joint venture.

Following the report, shares of Wynn gained 1.12% in after-hours trading on Tuesday to $102.68 vs. the 52-week range of $53.81 to $117.86.

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