Wynn Resorts demonstrates robust CD performance in Las Vegas amidst broader tourism decline
Wynn Resorts demonstrated resilience during the summer slowdown in Las Vegas tourism in Q2 2025, thanks to strong operational results and cost efficiencies in their Las Vegas properties.
The company reported a new quarterly high for Adjusted Property EBITDAR in Las Vegas, indicating robust earnings at their local properties even during the seasonal slowdown. This strong performance was achieved through cost discipline and operational efficiencies, as Wynn successfully mitigated union-related payroll increases without compromising the guest experience.
Continued investments in property enhancements, such as expansions and room refreshes, support guest appeal and operational leverage over time, contributing to sustained performance. Wynn's solid cash and revolver availability provide a buffer that helps weather seasonal and regional market fluctuations.
Though Macau operations faced challenges with lower VIP hold impacting earnings, Wynn's Las Vegas segment offset these effects, helping maintain overall revenue and profitability in the quarter.
In Las Vegas, both drop and handle contributed to the increase in Wynn's operating revenue. CEO Craig Billings highlighted solid table game and slot machine results, as well as strong spending in luxury dining venues in Q2 2025. Billings also pointed to healthy forward bookings in July 2025 and a strong outlook for convention and group business heading into Q4 2025.
Looking ahead, Wynn plans to remodel the Encore Tower starting next spring, with a year-long project estimated at $330 million. Despite the challenges, Wynn's shares traded near $105 Friday morning, reflecting investor confidence in the company's strategic direction.
However, it's worth noting that Adjusted earnings per share came in at $1.09 in Q2 2025, missing analyst forecasts of $1.20.
In summary, Wynn's ability to combine disciplined cost management, strategic investments, and strong Las Vegas operational performance underlies its resilience against the typical summer tourism slowdown in Las Vegas in Q2 2025.
