Wynn Resorts has had a busy year. This major casino operator opened the Encore Boston Harbor in June and continues to invest in Macau. Interestingly, Wynn Resorts revenue was boosted the most by Las Vegas last quarter, despite the city’s fluctuating casino earnings.
Today, we’re going to look at Wynn’s revenue figures for 2019’s second quarter. We’ll also look at which markets brought in the most money for this company. Let’s get into it!
Wynn Resorts Sees Revenue Increase Over the Past Four Months
It’s been an interesting year for Wynn Resorts. This Las Vegas-based company has continued to invest in major new properties, including the brand new Encore Boston Harbor. This major casino-resort opened in late June and is now one of the top gambling venues on the East Coast.
Encore Boston Harbor’s location was a concern to some. It’s located in Everett, Massachusetts, just north of Boston. Historically speaking, Everett hasn’t been thought of as a major tourist destination.
Fortunately, this casino is exceeding all expectations. It managed to generate $18.8 million in its first eight days of operating and is projected to bring in $1 billion in annual revenue. Based on this casino’s success, this is a realistic goal.
Despite the immediate success, Encore Boston Harbor remains a major expense for Wynn Resorts. It cost $2.6 billion to construct, yet most analysts predict it’s the company’s best opportunity for major growth.
Overall, Wynn Resorts revenue rose by 3.3% to $1.66 billion. This week, reports have surfaced that indicate Las Vegas helped to boost Wynn Resorts’ earnings the most last quarter.
Las Vegas Helps to Boost Wynn Resorts Revenue in 2019’s Q2
As we just mentioned, the Encore Boston Harbor is already bringing in a significant amount of money for Wynn Resorts. Las Vegas, however, remains the company’s most profitable destination. Wynn Resorts revenue from Las Vegas jumped by 5.1% last quarter to $464.1 million.
With EBITDA, the company’s revenue was $137.4 million, which represents a 10.7% increase from the same time period last year. Gambling revenue from table games rose by 9.2% and slot revenue jumped by 4.3%. Even non-gaming revenue jumped last quarter.
Wynn Resorts non-gambling earnings rose by 1.3% to $344.4 million. Hotel room revenue jumped by 7.9% and overall occupancy rose by a staggering 90.1%. It’s clear that Las Vegas remains the top gambling and hotel hub for Wynn Resorts.
Not everyone predicted that Vegas would be so successful. Gambling revenue has dropped here throughout most of the year. Things changed in June, where revenue spiked and appears to have stayed up through July.
It makes sense for Wynn Resorts to profit off its Las Vegas operations. Recently, this company’s two main hotel-casinos here were ranked the best in the country. Hope is that this city continues to bring in money for this company while the Encore Boston Harbor begins to gain steam.
Wynn Resorts Macau Properties Hold Steady
Much like Las Vegas, Macau has been having a rough year. This city has experienced revenue drops for most of the year due to trade disputes with the US and China. The Chinese economy is slowing down, and as a result, many VIP gamblers that Macau relies on are now choosing not to gamble.
More recently, the protests in Hong Kong have hurt Macau’s gambling revenue. Many people are avoiding this area with overall tourism numbers in Macau dropping significantly. Amazingly, Wynn Resorts is still profiting off this market. At Wynn Palace, revenue jumped by 1.3% last quarter.
At Wynn Macau, revenue rose by a modest 0.6%. Property EBITDA rose by 1.7% here to $175.9 million. It’s not a huge boost, yet considering the state of Macau right now, company officials have to be pleased.
Las Vegas is the main reason why Wynn Resorts revenue jumped last quarter. It wasn’t the company’s best quarter by any means, yet with issues in Macau, it’s been steady. Make sure to stay tuned for more updates on Las Vegas and Macau gambling news over the next few months!