Wynn Resorts Limited has published financial results for the second quarter ended June 30, 2018, falling short of analyst estimates of $1.67bn earnings. Operating revenues finally came in at $1.61bn for the second quarter of 2018, an increase of nine per cent, or $132.5m, from $1.47bn for the same period in 2017. Operating revenues from Wynn Palace and Las Vegas Operations increased $224.2m and $3.5m, respectively, compared to the same period of 2017. But all that hard work was undone courtesy of a big loss in revenue to the tune of $95.2m at Wynn Macau.
On a US generally accepted accounting principles (“GAAP”) basis, net income attributable to Wynn Resorts was $155.8m, or $1.44 per diluted share, for the second quarter of 2018, compared to $74.9m, or $0.73 per diluted share, for the same period of 2017. The increase in net income was primarily due to an increase in operating income from Wynn Palace. Adjusted net income was $166.2m, or $1.53 per diluted share, for the second quarter of 2018, compared to $129.4m, or $1.26 per diluted share, for the same period of 2017.
Turning to its Vegas business, Wynn reported: “Operating revenues from our Las Vegas operations were $441.6m for the second quarter of 2018, a 0.8 per cent increase from $438m for the same period of 2017. Adjusted property EBITDA from our Las Vegas Operations was $124.2m, a 6.1 per cent decrease from $132.2m for the second quarter of 2017.
“Casino revenues from our Las Vegas Operations were $101.7m for the second quarter of 2018, a 1.2 per cent increase from $100.5m for the same period of 2017. Table games drop was $403.7m, a 3.7% decrease from $419.3m for the second quarter of 2017. Table games win was flat at $101.0m for the second quarter of 2018, compared to the same period of 2017.
“Table games win percentage was 25 per cent, within the expected range of 22 to 26 per cent and above the 24.2 per cent experienced in the second quarter of 2017. Slot machine handle was $778.4 million, a 1.8 per cent increase from $764.8m for the second quarter of 2017, while slot machine win decreased 6.8 per cent to $49.4m.”
Wynn also revealed further details regarding its Encore Boston Harbor development, an integrated resort currently under construction in Everett, Massachusetts, located adjacent to Boston along the Mystic River. It said: “The resort will contain a hotel, a waterfront boardwalk, meeting and convention space, casino space, a spa, retail offerings and food and beverage outlets. The total project budget, including gaming licence fees, construction costs, capitalised interest, pre-opening expenses and land costs, is estimated to be approximately $2.5bn. As of June 30, 2018, we have incurred $1.64bn in total project costs. We expect to open Encore Boston Harbor in mid-2019.”