Strong results in Las Vegas helped boost Wynn Resorts’ second-quarter earnings by 57 per cent, taking its net income to US$203.9m up from US$129.8m for the same quarter last year.
Net revenues for the second quarter of 2014 were $1,412.1m, compared to $1,332.3m in the second quarter of 2013. The growth was the result of a 12.5 per cent increase in net revenues from Wynn’s Las Vegas operations and a 3.2 per cent net revenue increase from its Macau Operations.
In Macau, table games turnover in the VIP segment was $26.4bn for the second quarter of 2014, an 11.7 per cent decrease from $29.9bn in the second quarter of 2013. VIP table games win as a percentage of turnover for the quarter was 2.93 per cent, within the expected range of 2.7 per cent to three per cent and in-line with the 2.94 per cent experienced in the second quarter of 2013.
Table games win in the mass market segment increased by 43.3 per cent to $311m in the second quarter of 2014. Mass market table games win per unit per day increased by 53 per cent to $17,852 from $11,671 in the second quarter of 2013. Drop in the mass market segment was $682.3min the second quarter of 2014, up 8.9 per cent from the 2013 second quarter, while the segment’s win percentage of 45.6 per cent compares to 34.6 per cent in last year’s second quarter and sequentially to 43.4 per cent in the first quarter of 2014.
Slot machine handle of $1.5bn for the second quarter of 2014 was 24.4 per cent above the prior-year quarter, and slot win increased 14.1 per cent compared to the prior-year period. Win per unit per day was 59.1 per cent higher at $1,163, compared to $731 in the second quarter of 2013.
The company is currently constructing Wynn Palace, a fully integrated resort containing a 1,700-room hotel, performance lake, meeting space, casino, spa, retail offerings, and food and beverage outlets in the Cotai area of Macau. In July 2013, Wynn signed a $2.6bn guaranteed maximum price (GMP) contract for the project’s construction. The total project budget, including construction costs, capitalized interest, pre-opening expenses, land costs and financing fees, is $4bn. A spokesperson said: “We expect to open our resort on Cotai in the first half of 2016. During the second quarter of 2014, we invested approximately $249.7m in our Cotai project, taking the total investment to date to $1.1bn.”
Fin Las Vegas, net revenues were $451.4m, a 12.5 per cent increase from $401.4m in the second quarter of 2013. Adjusted property EBITDA reached a quarterly record of $160.4m, up 18.3 per cent from $135.7m generated in the comparable period in 2013, the result of both a 5.9 percentage point increase in table games win percentage and a 7.3 per cent increase in room revenues.
Net casino revenues in the second quarter of 2014 were $182.5m, a 28 per cent increase from the second quarter of 2013. Table games drop of $629m was up 14.8 per cent compared to $548m in the 2013 quarter. Table games win percentage was 27.4 per cent, above both the property’s expected range of 21 per cent to 24 per cent and the 21.5 per cent reported in the 2013 quarter. Slot machine handle of $706.9m was 0.8 per cent below the $712m in the comparable period of 2013, while net slot win was up 3.2% per cent due to an increase in hold.