Wynn Resorts Q4 2024: Navigating Contradictions in Gaming Markets and Customer Trends

These are the key contradictions discussed in Wynn Resorts' latest 2024Q4 earnings call, specifically including: Gaming Market Share and Competitive Landscape in Macau, Group Bookings Outlook, Gaming Market Share and Segment Dynamics in Las Vegas, Customer Behavior and Preferences in Macau, Las Vegas Gaming Performance, Macau Market Conditions, and Wynn Al Marjan project details:



Las Vegas Performance:
- Wynn Las Vegas reported adjusted property EBITDA of $267.4 million for the quarter, despite a 1% year-on-year decline.
- Slot handle increased by 13%, while table games drop remained flat.
- The demand was driven by healthy gaming market conditions and strong non-gaming business performance, despite a tough comparison during F1 week.

Macau Market Dynamics:
- Wynn Macau and Wynn Palace generated a combined EBITDA of $293 million, a 1% year-on-year decrease.
- January in Macau saw healthy mass table drop and strong direct VIP turnover, with footfall benefiting from the prolonged Chinese New Year.
- The market remains competitive, but Wynn's discipline in maximizing EBITDA and maintaining healthy margins was emphasized.

Capital Allocation and Share Repurchase:
- Wynn Resorts purchased $200 million of stock in Q4 and $150 million in Q1, totaling $350 million.
- The buyback strategy is driven by the belief that the stock price does not reflect the value of the company's assets, and the return profile is deemed meaningful.

UAE Project Progress:
- Construction on Wynn Al Marjan Island is progressing rapidly with work reaching the 35th floor.
- The acquisition of Aspinalls in Mayfair, London, is seen as a strategic move to establish a presence in a key global gateway city.
- The project is expected to open in early 2027, with a significant impact on the company's free cash flow profile.