Wynn Eyes Bangkok for Potential Expansion
Craig Billings, CEO of Wynn Resorts, has expressed interest in pursuing integrated resort opportunities in Thailand, particularly in Bangkok. Following Wynn’s Q1 results, Billings noted the company’s heightened focus on the Thai market as it moves closer to legalizing casino operations.
“We’re actively engaged in Thailand and considering Bangkok as a potential location,” Billings stated. “Although it’s still early, we’re encouraged by the progress and the strong desire from Thai legislators to advance this initiative.”
Billings highlighted that while the regulatory and licensing details are still being clarified, the Thai market is very promising due to its exceptional tourism infrastructure, robust service culture, and favorable operating costs. Wynn continues to closely monitor the situation and remains active in the region.
Wynn Prepares for an Exciting Future in the UAE
Craig Billings, CEO of Wynn Resorts, provided an update on Wynn’s integrated resort (IR) project in the UAE during Q2. Set to debut in early 2027, Wynn Al Marjan Island, located in the Emirate of Ras Al Khaimah, is poised to be the first IR in the Middle East and North Africa (MENA) region, with a projected cost of approximately $3.9 billion (£3.1 billion/€3.6 billion).
New images and renderings for the project were unveiled in May. Billings noted that he recently spent several weeks in the region and reported that construction is advancing rapidly. “The building now stands just over 90 meters, making it the tallest in the Emirate,” he said. “In Q2, we contributed $357 million in equity to our UAE joint venture, including acquiring our 40% share of the 155 acres on Island 3, where Wynn Al Marjan is situated.”
The joint venture now controls not only the land for Wynn Al Marjan but also an additional 70-plus acres for potential future development. Billings highlighted the UAE’s access to a global customer base, with Europe and India being key markets. “India is a major market with significant wealth, and other parts of Asia are also important for the UAE,” he added. “The catchment area for Wynn Al Marjan may rival that of Las Vegas, given Europe’s large population and strong international travel connections.”
No Update on Wynn’s UAE License
Craig Billings emphasized that the UAE represents one of the most exciting new markets for the gambling industry in decades, largely due to the establishment of the General Commercial Gaming Regulatory Authority (GCGRA) as the federal overseer. He highlighted the recent selection of The Game LLC to manage the UAE’s first national lottery as a positive development that could pave the way for further progress.
Despite this, there has been no advancement regarding Wynn’s license for Ras Al-Khaimah. Billings stated, “I anticipate that the licensure process will continue to move forward, but I don’t have a specific timeline. However, the ongoing momentum in the region is evident.”
Revenue growth in Q2
Turning now to how Wynn performed during Q2, group revenue for the three months to 30 June hit $1.73bn. This is 8.6% more than in the same period last year.
Casino revenue hit $1.01bn, with rooms revenue at $304.5m, food and beverage $281.4m and entertainment, retail and other $138.1m. The latter was the only area to see revenue fall year-on-year.
Breaking down revenue by segment, operations in Macau – spanning Wynn Palace and Wynn Macau – drew the most revenue. Wynn Palace saw revenue increase 17.0% to $548.0m, with table games win percentage at 23.6% and VIP table games 4.1%.
As for Wynn Macau, revenue climbed 11.8% to $337.3m. Here, table games win percentage in mass market operations was 17.5% and VIP table games 2.2% – both lower year-on-year.
Turning to the US and Las Vegas operations drew $628.7m in revenue, a rise of 8.8%. Table games win percentage hit 21.9%, slightly below expectations and lower than 22.9% last year.
However revenue at Encore Harbor in Boston slipped 4.2% to $212.6m. Table games win percentage meeting expectations at 19.6%, though this was behind the previous year.
Wynn Reports Record EBITDAR in Q2
In Q2, Wynn achieved record adjusted property EBITDAR, reaching $571.7 million, a 9.0% increase from the previous year. Despite a rise in total operating expenses by 8.8% to $1.46 billion, revenue growth pushed operating profit up by 7.8% to $269.7 million.
Non-operating costs amounted to $115.5 million, resulting in a pre-tax profit of $154.2 million, a 17.0% increase. After paying $7.9 million in taxes from a discounted profit of $34.3 million from non-controlling interests, Wynn reported a net profit of $111.9 million, up 6.4%.
Billings expressed pride in the company’s performance: “Our second-quarter results, including a record EBITDAR, demonstrate the ongoing strength across our operations in Las Vegas, Macau, and Boston.”
H1 Revenue Up 19.1%
For the first half of the year, Wynn’s group revenue rose by 19.1% to $3.60 billion, with the casino segment contributing $2.13 billion. All areas saw growth except entertainment, retail, and others. Operating costs increased by 14.0% to $2.96 billion, leading to a 50.7% rise in operating profit to $632.6 million.
Non-operating costs of $281.9 million resulted in a pre-tax profit of $350.7 million, up 161.1%. After accounting for $27.9 million in taxes and $66.6 million in non-controlling interest deductions, Wynn’s net profit for H1 was $256.2 million, up 118.0%. Adjusted property EBITDAR surged by 27.6% to $1.22 billion.
