On August 6, 2024, Wynn Resorts Ltd (WYNN, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. The company, which operates luxury casinos and resorts, reported operating revenues of $1.73 billion, an increase from $1.60 billion in the same period last year. Net income attributable to Wynn Resorts Ltd was $111.9 million, up from $105.2 million in Q2 2023. Diluted net income per share was $0.91, compared to $0.84 in the previous year.
Company Overview
Wynn Resorts Ltd (WYNN, Financial) operates luxury casinos and resorts, including Wynn Macau, Encore in Macao, Wynn Las Vegas, and Encore in Las Vegas. The company also operates Cotai Palace in Macao and Encore Boston Harbor in Massachusetts. Additionally, Wynn Resorts Ltd is developing a managed integrated resort in the United Arab Emirates, expected to open in 2027, and operates Wynn Interactive, a digital sports betting and iGaming platform. The company received 76% of its 2019 pre-pandemic EBITDA from Macao and 24% from the US.
Performance and Challenges
Wynn Resorts Ltd reported operating revenues of $1.73 billion for Q2 2024, an increase of $137.1 million from Q2 2023. However, this figure fell short of the analyst estimate of $1.752 billion. The company's net income attributable to Wynn Resorts Ltd was $111.9 million, compared to $105.2 million in the same period last year. Diluted net income per share was $0.91, which fell short of the analyst estimate of $1.09.
Despite the revenue miss, the company achieved a new second-quarter record for Adjusted Property EBITDAR, which was $571.7 million, up from $524.5 million in Q2 2023. CEO Craig Billings commented,
Our second quarter results, including a new second quarter record for Adjusted Property EBITDAR, reflect continued strength throughout our business. I am incredibly proud of our teams in Las Vegas, Macau, and Boston."
Financial Achievements
Wynn Resorts Ltd's financial achievements are significant in the Travel & Leisure industry, where maintaining strong revenue and profitability is crucial. The company's Adjusted Property EBITDAR increased by $47.2 million year-over-year, demonstrating operational efficiency and effective cost management. The company's ongoing investments, such as the construction of Wynn Al Marjan Island in the UAE, highlight its commitment to growth and expansion.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Operating Revenues | $1.73 billion | $1.60 billion |
| Net Income Attributable to Wynn Resorts Ltd | $111.9 million | $105.2 million |
| Diluted Net Income Per Share | $0.91 | $0.84 |
| Adjusted Property EBITDAR | $571.7 million | $524.5 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Wynn Resorts Ltd had cash and cash equivalents totaling $2.38 billion. The company also reported $500 million in short-term investments. Total current and long-term debt stood at $11.03 billion. During the second quarter, the company repurchased 741,340 shares of its common stock at an average price of $91.72 per share, for an aggregate cost of $68 million. The company has $365.4 million in repurchase authority remaining under its program.
Analysis
Wynn Resorts Ltd's Q2 2024 earnings report shows a mixed performance. While the company missed revenue estimates, it fell short of earnings per share expectations and achieved a record Adjusted Property EBITDAR. The company's strong cash position and ongoing investments in new projects, such as Wynn Al Marjan Island, indicate a focus on long-term growth. However, the decrease in operating revenues at Encore Boston Harbor and the challenges in maintaining table games win percentages in some properties highlight areas that need attention.
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Explore the complete 8-K earnings release (here) from Wynn Resorts Ltd for further details.
