Wynn Resorts Capitalizes on Tourism, Spending Boom

Casino operator Wynn Resorts (WYNN) capitalized on a surge in tourism and retail spending at its resorts in Las Vegas and Macau to beat analyst expectations for its second-quarter earnings.

The company posted net income of $105 million, swinging from a loss of $130 million in the same quarter last year. Earnings per share (EPS) of 84 cents came in 26% above estimates. Revenue soared 75% to $1.6 billion, up from $908.8 million in the year-ago quarter, with casino revenue more than doubling to $913 million.

The casino operator benefited from surging travel demand and retail spending at its Las Vegas and Macau resorts, which drove growth in gaming, dining, and hotel bookings. Gains were particularly pronounced in Macau, as tourists flocked to the city after pandemic lockdowns were lifted in China. Performance was also strong at the company’s Las Vegas resorts, where a post-pandemic spending boom continued unabated.

Revenue at Macau-based Wynn Palace surged almost $410 million, with revenue at the nearby Wynn Macau up $243 million. By comparison, gains at the company’s U.S. resorts were more modest, with revenue at Las Vegas and Encore Boston Harbor up $17 million and $11.8 million, respectively.

“Our second-quarter results reflect continued strength in North America and Macau,” Craig Billings, the company’s chief executive officer (CEO), said Wednesday when earning were reported. He said that Wynn’s U.S. resorts in Las Vegas and Boston Harbor “continue to perform well,” while the company’s Macau resorts got a lift from an accelerated post-COVID recovery.

Wynn’s Latest Resort

Billings is also betting on a new project: A $3.9 billion gaming resort in the United Arab Emirates (UAE), the first in the Gulf region.

Construction is already underway, despite the fact that gambling hasn’t yet been fully legalized in the Gulf state. In an earnings call, Billings labeled the UAE “the most exciting new gaming market in decades” and said the company isn’t worried about the uncertainty surrounding gambling’s legality there. He is confident that Wynn Resorts will obtain its operating license for the new UAE casino in the near future.

Shares of Wynn Resorts rose more than 3% on Thursday, the day after the company reported earnings, but ended Friday lower by 3.5%. The stock is up roughly 22% so far this year, outperforming shares of rival casino operator Las Vegas Sands (LVS) but underperforming shares of MGM Resorts (MGM) over the same period.