Wynn Resorts surpassed fourth-quarter revenue forecasts but saw no significant growth, maintaining its focus on the Wynn Al Marjan project in the UAE.
During its fourth-quarter earnings call on Thursday (February 13), Wynn reported year-on-year revenue growth at Wynn Palace and its Las Vegas properties, while revenue declined at Encore Boston Harbor and Wynn Macau.
CEO Craig Billings emphasized the company’s focus on the Al Marjan project in the UAE, stating that Wynn will continue repurchasing shares until it believes the project's value is properly reflected in its market valuation. He added that the company sees a strong return potential in these buybacks.
The large-scale project, which Billings estimates will be part of a $3 billion to $5 billion market, remains on schedule for a March 2027 opening. He noted that the hotel tower has reached the 35th floor, with 4.6 million square feet of concrete and steel already in place.
Second licensee? Wynn doesn’t think so
Wynn has reached approximately the halfway mark in its construction, a key milestone when considering potential future projects in the UAE. When asked about the likelihood of new competition, Billings remained confident in Wynn’s first-mover advantage.
MGM CEO Bill Hornbuckle revealed in September that his company had applied for a UAE gaming license in Abu Dhabi. However, no other operators have publicly announced similar plans.
“We don’t believe every emirate will pursue gaming licenses,” Billings stated. “From what we’ve gathered, there doesn’t even appear to be a finalized deal for a second license. We could be wrong, but we believe our information is strong.”
Billings emphasized that developing an integrated resort takes at least four years, positioning Wynn well in the market.
“In the gaming industry, first-to-market properties tend to build a strong customer base and withstand new competition,” he explained. “We factored in the possibility of a second property when making projections for Al Marjan. In fact, we wouldn’t be too concerned if another resort were introduced—we believe in the benefits of clustering, which could strengthen the industry overall. But for now, we don’t see a clear path for a second license.”
Wynn in London seeking UAE customers
CFO Julie Camandot announced that Wynn recently secured a $2.4 billion (£1.91 billion/€2.33 billion) financing package for its Al Marjan project, calling it the "largest hospitality financing for any project in the UAE." The company also invested $99 million during the fourth quarter.
As part of its strategy to attract high-net-worth customers for Al Marjan, Wynn acquired British luxury brand Aspinal in London’s Mayfair district. In his opening remarks, CEO Craig Billings described the acquisition as a “small but strategic asset” in a location frequented by many of Wynn’s future Al Marjan guests.
During the Q&A session, Billings elaborated that Aspinal will ultimately be integrated under Al Marjan’s operations. He also noted that 40% of the world's millionaires reside within regions that house 2.5 billion people, signaling the potential for further acquisitions—possibly including unexpected ones—to strengthen Wynn’s market position.
Growth in Las Vegas?
Wynn Resorts owns a 34-acre undeveloped parcel in Las Vegas, formerly the site of the New Frontier Casino and Resort. When asked about potential plans for the land, CEO Craig Billings shared a cautious approach.
“The timing must align with our global business strategy,” Billings said. “We need to consider our entire portfolio and ensure we can execute effectively. The market is still absorbing two major openings from the past four to five years. Our goal is to attract a complementary customer base without cannibalizing our existing operations or creating Wynn Las Vegas 2.0. Market positioning is key.”
Billings noted that Wynn has conducted preliminary studies and concept designs for the site but has no immediate development plans. “For now, I’d say, stay tuned,” he added. “But we’d appreciate if everyone remained as focused on Wynn Al Marjan as we are because that project presents a tremendous opportunity.”
A look at the numbers
During the fourth quarter, Wynn repurchased 2.14 million shares for $200.3 million, with CEO Craig Billings describing the buyback as a long-term investment reflecting confidence in the UAE project’s future success.
Wynn reported $1.84 billion in revenue, surpassing analyst expectations of $1.77 billion. Adjusted earnings per share (EPS) came in at $2.42, significantly higher than the projected $1.22.
By the quarter’s end, the company held $2.43 billion in cash against $10.54 billion in debt. Wynn also announced a 25-cent-per-share cash dividend for shareholders as of 24 February, with payouts scheduled for 5 March.
Wynn’s stock closed at $80.47 on Thursday, briefly rising to $85.51 before settling at $81.10 by 8 p.m. ET.
