Wynn expands premium gaming areas as part of capex efforts

Wynn Resorts is expanding its premium gaming areas in a move to drive share gains in a market.

During the company’s third-quarter earnings call, CEO Craig Billings disclosed ongoing and planned capital expenditure projects to elevate both gaming and non-gaming experiences.

“We are currently revitalizing and expanding the Chairman’s Club, our most exclusive gaming area at Wynn Macau,” he told analysts.

“And in the design phase for a similar expansion and renovation of the Chairman’s Club at Wynn Palace. We are supporting these capital expenditure (capex) efforts with continued improvements to our recently enhanced loyalty program and are only at Wynn events and experiences across culinary, music, entertainment and sport,” he added.

Longer term, the company’s concession-related capex, including an event center and a production show “will support visitation and ultimately drive share gains in a market where unique experiences are increasing appealing.”

Wynn’s commitment to capex is significant, with plans to invest between USD350 million to USD425 million across various projects through 2025.

This includes the development of an event center, and a production show designed to attract visitors and bolster market share.

“We’ve seen the current competitive dynamic in Macau before, and we are confident that continued investment in our market-leading assets and five-star service positions us well to effectively compete profitably over time.”

The company is currently progressing through the design and planning stages of several concession commitments, which require various government approvals and present a wide range of potential capex outcomes in the near term.

This initiative comes on the heels of a robust financial performance, with the company reporting USD263 million in EBITDA for the third quarter, reflecting a 3% year-on-year increase.

The gaming operator recorded a 6% growth in operating revenue, primarily driven by a 10% rise in mass table and slot wins.

Operating revenues were USD1.69 billion for the third quarter, an increase of USD21.4 million from USD1.67 billion for the third quarter of 2023.

“Our third quarter results reflect healthy demand across our resorts highlighted by strong mass gaming win in Macau and solid non-gaming performance in Las Vegas,” said Billings.

“The investments we have made in our properties, our team and our unique programming continue to extend our leadership position in each of our markets.”.

The executive also announced it is continuing to invest in growing the business with construction on Wynn Al Marjan Island rapidly advancing.

“We are confident the resort will be a ‘must see’ tourism destination in the UAE and expect that it will support strong long-term free cash flow growth.”