Wynn Resorts saw continued strength in the Las Vegas luxury market during the third quarter, with CEO Craig Billings reporting healthy demand across high-end offerings. Revenue from Wynn’s Las Vegas properties ticked up by 1%, with adjusted earnings holding steady against a tough comparison to the same quarter in 2023. Billings pointed to resilient demand from affluent consumers as the key factor behind this stable performance, despite broader economic pressures impacting other resorts on the Strip.
Las Vegas Luxury Segment Shows Resilience
Billings highlighted a 5% increase in hotel revenue at Wynn Las Vegas and Encore, with slot handle growing by 4%. Although the table drop—a measure of the amount wagered at table games—fell 3% compared to last year, he expressed confidence in the sustained appeal of Wynn’s high-end offerings. Billings noted that the luxury segment appears “resilient,” with demand remaining strong in the fourth quarter and solid growth in non-gaming revenue.
As Billings put it, “Trees don’t grow to the sky,” but he remains optimistic about the future of Wynn’s luxury positioning. He emphasized the importance of unique programming and an upscale ambiance that continues to attract some of the Strip’s most affluent patrons, which he believes positions the company well for 2025.
High-End Consumer Demand and Tough Comparisons Ahead
Facing questions from analysts, Billings reiterated that Wynn’s high-end consumers in Las Vegas remain robust, even in a tough economic environment. He acknowledged that year-over-year comparisons are becoming more challenging, especially with last February’s Super Bowl setting a high benchmark for tourism. However, early bookings for November’s Formula 1 race suggest demand remains stable. Billings expects this consistency to extend through 2025, bolstered by the luxury retail and group business segments.
- Retail-Lease Revenue: Up by 3.5% year over year, tied closely to luxury retail activity.
- Group Business: Record room nights and high average daily rates, providing another layer of stability.
Despite these positive indicators, Billings was candid about the challenges posed by a particularly competitive environment, adding that Wynn has mitigated some risk by diversifying its casino operations.
Steady Growth at Encore Boston Harbor
Encore Boston Harbor, another Wynn property, also saw steady demand in the third quarter, with slot handle up by 3%, table handle rising 1%, and non-gaming revenue up 2%. The growth in slots and tables underscores Encore’s appeal to local patrons and helps stabilize Wynn’s overall earnings amid the fluctuating gaming landscape. Billings said demand remained strong into October, noting that Wynn’s East Coast presence is a reliable revenue source.
Macau Market Remains Competitive Yet Promising
The report from Macau, Wynn’s largest overseas market, was mixed yet optimistic. Billings noted a 3% increase in adjusted earnings year over year, driven by 10% growth in mass table and slot win and 6% growth in operating revenue. However, he acknowledged the intense competition in Macau’s gaming market, which has affected EBITDA margins.
In October, Macau’s mass table drop remained solid, and VIP turnover was robust, with 99% hotel occupancy signaling strong demand. Billings is confident in Macau’s long-term growth potential, with a bullish outlook supported by ongoing investments in top-tier assets and service quality. He concluded that the competitive dynamic in Macau, though challenging, is familiar, and Wynn is well-positioned to maintain its leadership through consistent market share growth and enhanced profitability.
