• Las Vegas Adjusted Property EBITDA: $257.4 million on $699.5 million of operating revenue; EBITDA margin of 38.2%.
• Boston Adjusted Property EBITDA: $58.8 million on $212.7 million of revenue; EBITDA margin of 27.7%.
• Macau Adjusted Property EBITDA: $292.8 million on $926.6 million of operating revenue; EBITDA margin of 31.6%.
• Global Cash and Revolver Availability: $3.5 billion as of December 31.
• Share Repurchases: 2.14 million shares for approximately $200 million during the quarter.
• Cash Dividend: $0.25 per share payable on March 5, 2025.
• CapEx Spend: Approximately $127 million in the quarter.
• Wynn Al Marjan Project Equity Contribution: $99 million during the quarter; total equity contribution to date $631.7 million.
• UAE Financing Package: $2.4 billion financing package finalized for Wynn Al Marjan project.

• Warning! GuruFocus has detected 5 Warning Signs with WYNN.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wynn Resorts Ltd (NASDAQ:WYNN) achieved another record year of adjusted property EBITDAR, with significant growth in Las Vegas.
• The company is developing an exciting project in the UAE, expected to produce meaningful EBITDA and diversify business operations.
• Wynn Resorts Ltd (NASDAQ:WYNN) repurchased $200 million of stock in Q4 and another $150 million in Q1, reflecting confidence in the company's valuation.
• Strong demand in Las Vegas with a 13% increase in slot handle and growth in gaming market share.
• Encore Boston Harbor set a new all-time property record for slot revenue, demonstrating strong performance in the slot business.

Negative Points

• EBITDA during the F1 event in 2024 was $20 million lower than in 2023 due to a decline in RevPAR.
• The absence of the Super Bowl in Las Vegas in 2025 is expected to create a $25 million EBITDA headwind for Q1.
• Macau's EBITDA was down about 1% year-over-year, indicating challenges in maintaining growth in that market.
• Union-related payroll increases in Boston impacted overall cost structure, although mitigated by cost efficiencies.
• Higher-than-normal table game hold positively impacted EBITDA, suggesting reliance on favorable gaming conditions.

Q & A Highlights

Q: Craig, regarding Las Vegas, when you mention the headwind or tailwind from favorable hold, what win rate are you adding that back to? Is it a 22% embedded table hold? A: Craig Billings, CEO: Yes, that's right. We tend to be conservative, not just in Las Vegas but also in Macau. It's a valid point, and we'll continue to evaluate it.

Q: Should we interpret your positive comments on January and February as indicating EBITDA growth, excluding the Super Bowl period? A: Craig Billings, CEO: Yes, January was strong, and excluding the Super Bowl, all key volume metrics are up year-over-year. We've managed cost pressures well, maintaining healthy margins.

Q: In Macau, how do you see the competitive environment impacting Wynn? A: Craig Billings, CEO: The market is competitive but stable. We're focused on maximizing EBITDA and maintaining healthy margins, adjusting reinvestment as needed to drive results.

Q: Can you elaborate on the acquisition in London and its strategic importance? A: Craig Billings, CEO: The acquisition establishes a presence in a key global gateway city, complementing Wynn Al Marjan Island. Together, they serve a region with significant high-net-worth individuals.

Q: Regarding Wynn Al Marjan, what are the major milestones before its opening in 2027? A: Craig Billings, CEO: Topping off is expected by the end of this year. We'll engage more with the market and arrange trips to showcase the project's potential and the region's growth.

Q: How do you view potential new market opportunities if New York doesn't materialize? A: Craig Billings, CEO: We focus on large-scale developments. Besides Al Marjan, we have land banks in Al Marjan and Las Vegas, and we're exploring opportunities in Thailand and New York, but we'll remain disciplined.

Q: How do you manage OpEx in Las Vegas amid wage inflation? A: Craig Billings, CEO: It's about managing a multitude of small efficiencies without impacting the guest experience. We expect modest increases in union-related costs in 2025, which we'll manage effectively.

Q: How do you balance share buybacks with investing in new projects? A: Craig Billings, CEO: We're in a strong liquidity position to do both. While multiples are suppressed, we'll continue buybacks, especially as Wynn Al Marjan's value crystallizes.

Q: Can you discuss the expected returns on Macau's CapEx projects? A: Julie Cameron-Doe, CFO: It's too early for specifics, but projects align with our brand and aim to drive visitation and long-term returns, leveraging our Vegas experience.

Q: How do you view the impact of FX on your international customer base in Las Vegas? A: Craig Billings, CEO: FX changes don't significantly impact our high-net-worth international customers. We've diversified and grown our domestic gaming business, reducing reliance on international visitors.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.