Wynn Considers Thailand Expansion as UAE Construction Progresses
Date: 2024-08-08 Author: Alex Crawford Categories: EVENTS
Wynn Resorts CEO Craig Billings has indicated that they are considering expanding their business in Thailand after the government introduced a bill to legalize casinos. During the Q2 earnings call, Billings expressed a positive outlook on the matter, noting that Wynn is already active in Bangkok.
Discussing Thailand Expansion
Billings said that Wynn is considering entering the Thai market through its U.S. entity. He noted that while the process is still early, the Thai government has shown serious intent to move forward with the matter. The company is closely monitoring developments and is actively working on the ground.
Billings also highlighted the attractiveness of the market due to its well-developed tourism infrastructure, strong service culture, and favorable operating cost structure.
Progress in the UAE: Al Marjan Island Development
In parallel with its plans in Thailand, Wynn is making significant progress on the integrated resort on Al Marjan Island in the emirate of Ras Al Khaimah, scheduled to open in early 2027. The total cost of the project is approximately $3.9 billion, and it will be the first integrated resort in the MENA region.
Billings said construction is well underway, with the building already reaching 90 meters, making it the tallest structure in the emirate. During the second quarter, the company invested $357 million in a joint venture in the UAE, acquiring a 40% stake in the land on the island, providing significant room for future development.
Financial Results for the Second Quarter
In terms of financial performance, Wynn Resorts recorded revenue growth of 8.6% to $1.73 billion in the second quarter of 2024. The casinos were the main contributor with revenue of $1.01 billion. Hotel revenue was $304.5 million, F&B revenue was $281.4 million, and entertainment and retail revenue was $138.1 million.
Macau operations were the biggest contributor, with Wynn Palace up 17.0% to $548 million and Wynn Macau up 11.8% to $337.3 million. Las Vegas revenue was $628.7 million, up 8.8%.
Record EBITDAR in Q2
Overall operating expenses increased 8.8% to $1.46 billion, but revenue growth helped operating profit increase 7.8% to $269.7 million. The company’s net income for the second quarter was $111.9 million, up 6.4% from a year earlier. Adjusted EBITDAR reached $571.7 million, setting a new record for the second quarter.
H1 2024 Results
In the first half of 2024, Wynn's revenue grew 19.1% to $3.60 billion, with operating income increasing 50.7% to $632.6 million. The company's net income for the half was $256.2 million, up 118.0%.
Billings expressed satisfaction with the results and highlighted the contributions of the Las Vegas, Macau, and Boston teams in achieving these results.
