Caught in the net of scandals, the Wynn brand needs revitalization. The Q3 Wynn Resorts, Limited financial performance seems enough to prop up the company, with $219.8 million posted as net income in the third quarter, which has doubled the company’s profits year-over-year.
Wynn’s Profits Double in a Year
Wynn Resorts, Limited has managed to pull off a commendable achievement. The company finished September, 2017, registering $106 million net income, which was more than doubled between July and September this year. The exact figure is $219.8 million in net income.
The attributable net income hit $156.1, or a 96% jump on the results posted in the third quarter last year. Wynn’s strong results were occasioned by none other but Macau’s booming gambling sector, which has been faced with a plethora of problems in recent month, from sterner regulation to an intensifying trade war.
However, the happenings of the world seemed to have little to no effect on the financial prospects of institutions, such as Wynn Palace and Wynn Macau. In fact, the Las Vegas revenue of the group had fallen, an official statement claimed, whereas Macau propped up any omissions in the results.
The operating income of both properties was posted as the respectable $260.5 million, or 70% higher than Q3, 2017. Operating revenue was posted at $1.71 billion, which constituted a more modest increase, but a significant one nevertheless with the results going up 10%.
EBITDA stood at $504.4 million or a 6.6% gain from the same period last year. Shareholders have what to be happy about as the share is priced at $1.68 earnings. A small wrinkle here is the fact that shares did fall short of the original forecasts, but not nearly enough to send scares across the market.
Even though the company started with slightly worse results than it had expected, by the third quarter, more positive results were piling up and today the operating revenue stands at $5.03 billion as reported for Q3.
More Changes on the Horizon
With the strong results in Macau a fact, the brand is also carrying out some flourishes back home with Wynn Las Vegas allocating 430,000 square feet for meeting rooms and expos. The resort is also working on a golf course, all of which will be ready by 2020.
Wynn CEO Matt Maddox spoke about the future plans of the company, explaining why a large lagoon project was scrapped and the efforts were focused on revitalizing the golf course and more multi-purpose facilities.
That project was over $3 billion looking at it today with construction costs, and it included the convention center that we are building right now. – Wynn CEO Matt Maddox
Meanwhile, the company is also going to add to its Wynn Macau property, bringing the total number of mass tables to 40 in a move which will cost the company over $60 million.
With the strong revenue performance, Wynn has indeed beaten a few forecasts, demonstrating the company’s ability to overcome both internal strife and internationally unfavorable environment, making the casino business more challenging than ever.