Overview of Wynn’s Q2 2017 Casino and Room Revenue

Wynn Resorts (WYNN) reported its second quarter 2017 earnings this evening and we will take a dive into the company’s reported casino and room revenue stats.

Casino Revenue

For the second quarter, the company on whole had casino revenue of $1.167 billion, or a 57.0% increase from the second quarter of 2016.  While this seems like an amazing growth rate, it is not an apples to apples comparisons because last year the company’s newest property, the Wynn Palace was not open, so we need to dive into the operating segments to get growth numbers that make sense.

The Wynn Macau brought in $654.7 million in casino revenue in the second quarter which is a solid 7.4% increase from a year ago.  The company’s Las Vegas operations, which include Wynn and Encore, posted a 4.8% increase in casino revenue with $139.3 million in the second quarter.  The Wynn Palace’s total casino revenue contributed $372.2 million in casino revenue, and no year-over-year comparison is available since this property was not open during Q2 2016.

Room Revenue

Company-wide, room revenue brought in $176.2 million in the second quarter of 2017, a 23.3% increase from the same quarter a year earlier, which does not include the Wynn Palace.  Wynn Macau had $25.7 million in room revenue, a 12.2% decrease from Q2 2016.  The Las Vegas operations faired better, posting a 1.3% year-over-year growth rate with $115.1 million in room revenue in the recently reported quarter.  Wynn Palace rang up $35.4 million in room revenue this quarter.

Hotel Occupancy, ADR and REVPAR

While the Wynn Macau saw its occupancy rate increase to 97.5% in Q2 2017 vs 91.5% in Q2 2016, its average daily rate (ADR) and revenue per available room (REVPAR) both decreased double digits.  In the quarter reported today, ADR came in at $258, down 19.6% versus the $321 reported in the second quarter of 2016.  REVPAR slid 14.3%, coming in at $252 in Q2 2017 vs $294 a year earlier.

Wynn’s Las Vegas properties also posted year-over-year occupancy increases.  In the second quarter of 2017 it sold 88.7% of its rooms compared to 85.3% a year earlier.  ADR and REVPAR were a mixed bag.  ADR decreased 1.9% year-over-year with an average daily rate of $302 in 2017 compared to $308 a year earlier.  REVPAR increased by 1.9%: $268 this quarter vs $263 in the same quarter a year ago.

Wynn Palace posted occupancy at 96.2% with ADR of $232 and REVPAR of $224 for the second quarter of 2017.

In after hours trading, WYNN stock is down 3.8% after releasing its Q2 2017 report.

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