Reporting that they have contained operating expenses and costs at both Encore Boston Harbor and in Las Vegas, Wynn Resorts reported that both Encore and their Las Vegas properties recorded record earnings for the second quarter (April to June).
Once again, the casino operating revenues at Encore outdid the Las Vegas properties – and with Macau (China) under new COVID-19 restrictions – the Everett casino nearly outdid the Chinese properties as well.
For the second quarter, Encore’s casino operations were at $135.4 million in operating revenues, which was a record quarter for the property. The casino operations in Las Vegas were at $112.7 million. By comparison, Wynn Macau casino operations were at $142.4 million and Wynn Palace (Macau) was at $212 million for the quarter.
Encore also recorded a record EBITDA earnings report of $46.9 million – which built upon a record EBITDA of $30.3 million in the 1st Quarter of 2021. EBITDA stands for earnings before interest, taxes, depreciation and amortization, and is a standard way to measure revenues in public companies. With much more in earnings for hotel rooms, food & beverage and retail offerings, Las Vegas EBITDA was a record $133.2 million.
CEO Matt Maddox said they believe that the success in North America – both Everett and Las Vegas – is just a peek into the demand that exists.
“We were able to achieve $133 million in EBITDA at Las Vegas without international play, which usually makes up about 20 percent of our results, and we did that without conventions too,” he said. “That has continued into July. In fact, in July Wynn Las Vegas experienced it’s single largest EBITDA per month since we opened in 2005…In Boston, the same thing can be said as was said in Las Vegas. It was a record quarter in Boston at $46 million. We do see that each months is stronger than the last. Our database is accelerating quite rapidly (in Boston). In fact, our new sign-ups from the Wynn Rewards program was up 70 percent in the 2nd quarter compared to the 1st Quarter. In July, it was a record month – the largest on record for Encore Boston Harbor.”
He said they don’t believe that they have hit the top of the mountain in terms of gaming interest in North America.
“It could be asked if the 2nd Quarter was a peak,” he said. “I think that’s very short-term thinking. I don’t think it’s a peak, but a preview of what’s to come. We’ve all been able to streamline our expense structure and understand how to use our properties better. That there is the ability to generate significant EBITDA here is quite clear. Some say it’s short-term and will subside. What is clear is that people want to have fun…I’m very confident we’ll continue to see growth in our results in both Las Vegas and Boston.”
The casino operations in Boston are robust and continue to be, and that comes without any poker offerings at the Everett casino.
Las Vegas shows stronger only because of the restaurant, retail and hotel operations that have picked up as conventions and regional travel come back from COVID-19.
The hotel at Encore continues to run only from Thursday to Sunday, but nonetheless, did report an occupancy rate of 87.8 percent in the quarter, and an average daily room rate of $304. Occupancy rates in Las Vegas were only 67 percent in the quarter, with an average daily room rate of $333.
The Wynn sports betting and mobile gaming operations were reported to continue to grow, with more than 300 employees in the venture now and great excitement as locales like Massachusetts consider legislation to allow sports wagering.
Wynn official Craig Billings said they are working to gain competitiveness in a very competitive space, and are about to roll out a promotion in regards to the upcoming NFL season.
“We will be rolling something out for the NFL this year and we’re excited about it,” he said. “The space is very competitive, but we are very confident with what we’ve put together with our product and our brand and what we’ll be able to achieve and we’re confident we’ll be a player in this market.”
In Massachusetts, the House recently passed legislation to allow sports betting at brick and mortar casinos and through online applications. That has moved to the Senate, where it isn’t expected to be taken up for hearings until the fall – with a potential start date, if passed, by the first weeks of 2022.