Wynn Resorts Q4 2024 earnings: Strong Wynn Palace performance partially offsets challenges at Wynn Macau, resulting in mixed overall results.
Wynn Resorts' fourth-quarter and full-year 2024 earnings revealed a mixed picture, with strength at Wynn Palace partially masking significant challenges at Wynn Macau.
While Wynn Palace demonstrated growth, declines in revenue and adjusted property earnings before interest, taxes, depreciation, amortization, and restructuring (EBITDAR) at Wynn Macau ultimately impacted the company's overall Macau performance and contributed to a less robust quarter.
Wynn Palace provided a bright spot in Q4 2024. Operating revenues increased by approximately ₱2.12 billion (approximately $36.7 million), reaching approximately ₱30.96 billion (approximately $536.5 million). Adjusted Property EBITDAR also saw growth, rising to approximately ₱10.15 billion (approximately $176 million) from approximately ₱9.41 billion (approximately $163 million) in Q4 2023.
This positive performance was driven by a strong mass market table games win percentage of 26.0%, exceeding the 23.6% seen in the same period last year. VIP table games win percentage also outperformed expectations and the previous year's results, landing at 3.51%.
Wynn Macau experienced significant challenges in the fourth quarter, acting as a key factor in the company's overall performance. Operating revenues decreased by approximately ₱1.24 billion (approximately $21.5 million), totaling approximately ₱20 billion (approximately $346.5 million). Adjusted Property EBITDAR also declined, falling to approximately ₱5.95 billion (approximately $103 million) from approximately ₱6.92 billion (approximately $120 million) in Q4 2023.
A lower mass market table games win percentage of 17.9%, compared to 19.1% in the same period last year, was a primary driver of this decline. While Wynn Macau's VIP table games win percentage was strong at 5.01%, exceeding both expectations and the Q4 2023 result, it wasn't enough to offset the negative impact of the mass market performance.
The declines at Wynn Macau had a direct impact on Wynn Resorts' consolidated results. While Wynn Palace showed resilience, the overall Macau segment was negatively affected.
Wynn Resorts CEO Craig Billings acknowledged the healthy market share driven by premium mass and VIP segments, indicating that Wynn Macau's challenges were specific to that property and not necessarily indicative of broader market share loss.
However, the decrease in mass market win percentage at Wynn Macau highlights the competitive pressures and operational factors that can influence individual property performance, ultimately impacting the company's bottom line. Wynn Resorts reported operating revenues of approximately ₱101.2 billion (approximately $1.75 billion), matching the same period in 2023, but net income decreased significantly, largely due to a prior year tax benefit.
Adjusted Property EBITDAR was also slightly down year-over-year, reflecting the mixed performance in Macau and the challenges faced by Wynn Macau.
Read related article: Wynn Resorts Secures P139B Record Funding for UAE Resort
.png)
Comments