Consumer Discretionary
Resorts & Casinos
$9.21B
28K
Wynn Resorts, Limited designs, develops, and operates integrated resorts. The company operates through four segments: Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. The Wynn Palace segment operates private gaming salons and sky casinos; a luxury hotel tower with suites, and villas, including a health club, spa, salon, and pool; food and beverage outlets; retail space; meeting and convention space; and performance lake and floral art displays. The Wynn Macau segment operates casino space with private gaming salons, sky casinos, and a poker room; a luxury hotel tower, that include health clubs, spas, a salon, and a pool; food and beverage outlets; retail space; meeting and convention space; and Chinese zodiac-inspired ceiling attractions. The Las Vegas Operations segment operates casino space with private gaming salons, a sky casino, a poker room, and a race and sports book; a luxury hotel tower with suites, and villas, including swimming pools, private cabanas, full-service spas and salons, and a wedding chapel; food and beverage outlets; meeting and convention space; retail space; and theaters, nightclubs, a beach club. The Encore Boston Harbor segment operates casino space with gaming areas, and a poker room; a luxury hotel tower including a spa and salon; food and beverage outlets and a nightclub; retail space; meeting and convention space; and a waterfront park, floral displays, and water shuttle service. Wynn Resorts, Limited was incorporated in 2002 and is based in Las Vegas, Nevada.
Key insights and themes extracted from this filing
Total operating revenues increased by 1.3% YoY to $1.693B, driven by a 6.3% increase in Macau Operations. However, Las Vegas Operations saw a 1.9% decrease in revenue, offsetting some of the gains.
Net loss attributable to Wynn Resorts, Limited decreased from $(116.678) million to $(32.053) million YoY. This improvement was primarily due to a decrease in operating expenses, partially offset by forfeitures related to the non-prosecution agreement with the U.S. Attorney's Office.
Casino revenues increased by 4.8% YoY to $1.019B, while non-casino revenues decreased by 3.6% YoY to $674.6M. This shift indicates a greater reliance on gaming for revenue generation during the quarter.
The Company contributed $18.2 million in cash to Island 3, bringing life-to-date cash contributions to $532.6 million. This demonstrates a commitment to the integrated resort development, expected to open in 2027.
The closure of Wynn Interactive's digital sports betting and casino gaming business impacted revenue and expenses. This is reflected in the decrease in entertainment, retail and other expenses, and a shift in revenue mix.
The increase in operating revenues was primarily driven by an increase of $56.9 million from Wynn Macau as a result of higher gaming volumes. This indicates a strategic focus on expanding and capitalizing on the Macau market.
The decrease in net loss attributable to Wynn Resorts, Limited was primarily due to a decrease in operating expenses in connection with the closure of Wynn Interactive's digital sports betting and casino gaming business.
The company actively manages its debt profile, with actions including the issuance of new senior notes, repurchase of existing notes, and amendment of credit facilities. These actions aim to optimize the capital structure and reduce interest expenses.
The Company repurchased 1,464,773 shares of its common stock during the three months ended September 30, 2024, at an average price of $80.37 per share. This demonstrates management's confidence in the company's value and commitment to returning capital to shareholders.
Wynn Las Vegas entered into a non-prosecution agreement with the U.S. Attorney's Office, resulting in a $130.0 million forfeiture. This represents a significant financial impact and highlights the ongoing regulatory scrutiny faced by the company.
The company notes that fluctuations in the exchange rates resulting in weakening of the Macau pataca or the Hong Kong dollar in relation to the U.S. dollar could have materially adverse effects on our results, financial condition and ability to service debt.
The company's financial performance is significantly reliant on its Macau operations, making it vulnerable to international relations, national security policies, anticorruption campaigns and other geopolitical events, which may impact the number of visitors to our properties and the amount of money they are willing to spend.
The company acknowledges competition in the casino/hotel and resort industries and actions taken by our competitors, including new development and construction activities of competitors.
The company's dependence on a limited number of resorts and locations for all of our cash flow and our subsidiaries' ability to pay us dividends and distributions.
The company's ability to maintain our customer relationships and collect and enforce gaming receivables.
Casino expenses increased $29.9 million and $8.2 million at Wynn Macau and Wynn Palace, respectively. These increases resulted from higher operating costs, including $26.3 million and $3.3 million in incremental gaming tax expense at Wynn Macau and Wynn Palace, respectively, driven by an increase in casino revenues.
Depreciation and amortization decreased $18.3 million at Encore Boston Harbor as a result of certain furniture, fixtures and equipment assets being fully depreciated five years after the opening of the property in June of 2019.
Room expenses increased $3.4 million at our Las Vegas Operations as a result of higher operating costs, commensurate with the increase in room revenues.
The company closed Wynn Interactive's digital sports betting and casino gaming business, indicating a shift in strategy regarding online gaming.
The decrease in total operating expenses was primarily due to goodwill and intangible asset impairments recognized in the three months ended September 30, 2023 in connection with the closure of Wynn Interactive's digital sports betting and casino gaming business, as well as decreased entertainment, retail and other expenses related to Wynn Interactive's operations during the three months ended September 30, 2024.
Pursuant to the NPA, Wynn Las Vegas agreed to forfeit $130.0 million in funds involved in transactions at issue and continue to make certain enhancements to its compliance program.
The company actively manages its debt profile, with actions including the issuance of new senior notes, repurchase of existing notes, and amendment of credit facilities. These actions aim to optimize the capital structure and reduce interest expenses.
On November 1, 2024, the Company's Board of Directors authorized the Company to repurchase a total of up to $1.0 billion of the Company's outstanding shares of common stock, increasing the previously available repurchase authorization by approximately $766 million.
The Company paid a cash dividend of $0.25 per share in each of the quarters ended March 31, 2024, June 30, 2024, and September 30, 2024 and recorded $28.0 million in each of the quarters ended March 31, 2024 and June 30, 2024 and $27.7 million in the quarter ended September 30, 2024, against accumulated deficit.
Pursuant to the NPA, Wynn Las Vegas agreed to forfeit $130.0 million in funds involved in transactions at issue and continue to make certain enhancements to its compliance program.
There is no specific information about board diversity in this document.
There is no specific information about environmental commitments in this document.
Casino revenues increased primarily due to higher gaming volumes at our Macau Operations which benefited from growing tourism in Macau during the nine months ended September 30, 2024.
Wynn Las Vegas entered into a non-prosecution agreement with the U.S. Attorney's Office, resulting in a $130.0 million forfeiture. This highlights the regulatory challenges and compliance requirements faced by the company.
As of September 30, 2024 and December 31, 2023, approximately 72.4% and 68.2%, respectively, of the Company's markers were due from customers residing outside the United States, primarily in Asia. Business or economic conditions or other significant events in the countries in which the Company's customers reside could affect the collectability of such receivables.