Wynn is thinking about relocating to Thailand in the second quarter while its integrated resort in the United Arab Emirates works forward.
When asked about Wynn's potential entry into the Thai market, Billings gave a positive response on the company's post-Q2 results call. The government released proposed regulations for legitimate casinos in the nation this week.
Billings has already mentioned Wynn's fascination with Thailand following the company's first quarter results from earlier this year. Still, Wynn is "active" in Thailand even though the country's legal market is still a ways off. According to Billings, one possible site is Bangkok.
According to Billings, "Yes, we would pursue it out of Wynn Resorts out of the US-listed entity" during the call. "Things are looking up; progress has been made, which is encouraging, and the Thai lawmakers appear to be eager to move this along, which is fantastic."
The operator is still interested in the market, but he wants more information about the licensing and regulatory frameworks.
There is a beneficial operating expense structure, a strong service culture, and fantastic tourist infrastructure in that market. Therefore, we are actively engaged on the ground and are continuously monitoring the process.
Wynn is constructing an IR project in the United Arab Emirates (UAE) that will have an interesting future, according to Billings and other sources.
In the Emirate of Ras Al Khaimah, you'll find Wynn Al Marjan Island, which is set to open in early 2027. It will be the first IR in the MENA area and is expected to cost around $3.9 billion (£3.1 billion/€3.6 billion).
Billings recently spent several weeks in the region, claiming construction is proceeding "rapidly," and new pictures and designs for the project were released in May.
He announced that the structure has surpassed 90 meters in height, making it the tallest in the Emirate. We invested $357 million in our UAE joint venture in the second quarter. As part of this deal, we bought out our pro rata 40% stake on Island 3, the island where Wynn Al Marjan is located, which is 155 acres.
"So, our joint venture now has 70+ acres of land on the Island, in addition to the land under Wynn Al Marjan, which could be used for future development."
According to Billings, the UAE also provided a way to reach a global audience. Though he singled out India as crucial, he did say that Europe would be Wynn Al Marjan Island's most important market.
That region of the world has a massive customer base in India, according to Billings. A large number of people are present. India will be a significant market because to the country's large rich population. Markets in other regions of Asia are also significant for the UAE.
"Considering the size of Europe's population and the strength of the international airlift, I believe the catchment area is likely larger than any other project we have undertaken, perhaps comparable to Vegas."
Withdrawal of Wynn's UAE licensing still pending
The United Arab Emirates is the most promising emerging market for gaming, according to Billings, who repeated the claim after a pause. He mentioned that the establishment of the General Commercial Gaming Regulatory Authority (GCGRA) as the federal market regulator has played a role in this.
He brought up the fact that last week it was announced that GCGRA had chosen The Game LLC to coordinate the inaugural national lottery of the United Arab Emirates. More "comfort" in terms of advancement in the UAE, according to Billings, is what this should provide.
Nevertheless, Wynn's Ras Al-Khaimah licence remained unprogressed.
"I presume that they will be proceeding to the subsequent stage of our licensure," claimed Billings. "While I cannot provide you with a precise timeline, I can tell you that there is significant progress being made."
2Q revenue growth
To turn our attention to Wynn's performance in Q2, we can see that group revenue reached $1.73bn for the three months ending 30 June. Compared to the same time last year, this is an increase of 8.6 percent.
Rooms brought in $304.5m, food and beverage $281.4m, and entertainment, retail, and other $138.1m, bringing the total revenue to $1.01bn for the casino. Only in the latter did revenue decline from the previous year.
The segment that generated the largest revenue was operations in Macau, which included both Wynn Palace and Wynn Macau. Table games won 23.6% of the time and VIP table games 4.1% of the time, contributing to a 17.0% rise in income to $548.0m for Wynn Palace.
Revenue at Wynn Macau increased 11.8% to $337.3 million. Here, both the general market operations table games win percentage (17.5%) and the VIP table games win percentage (2.2%), were lower compared to the previous year.
Moving on to the United States, the Las Vegas operations brought in $628.7 million, an increase of 8.8 percent. The 21.9% victory percentage in table games was lower than previous year's 22.9% and slightly below forecasts.
But at Boston's Encore Harbour, sales fell 4.2% to $212.6 million. Although it was lower than last year, the 19.6% victory percentage in table games was in line with predictions.
Wynn Achieves Record EBITDAR in Q2
Total operating expenses climbed 8.8 percent to $1.46 billion. Operating profit increased 7.8% to $269.7m in Q2 due to revenue growth.
A pre-tax profit of $154.2m, an increase of 17.0%, was recorded by Wynn after deducting $115.5m in non-operating expenditures. After deducting $34.3 million in profit from non-controlling interests, it paid $7.9 million.
Its net profit for the second quarter was $111.9 million, an increase of 6.4%. Furthermore, Wynn set a new record for Q2 adjusted property EBITDAR at $571.7m, an increase of 9.0%.
According to Billings, "continued strength throughout our business" was reflected in the company's second quarter results, which included a new record for adjusted property EBITDAR. "Our Las Vegas, Macau, and Boston teams have my utmost admiration and respect."
First quarter revenue has increased by 19.1%
Total group revenue rose 19.1% to $3.60bn in H1. With the exception of entertainment, retail, and other, Wynn witnessed growth in all categories, including the casino, which accounted for $2.13 billion of this.
There was a 50.7% increase in operational profit to $632.6m, while operational costs increased by 14.0% to $2.96bn. After deducting $281.9 million in non-operating expenses, Wynn's pre-tax earnings increased to $350.7 million, a 161.1 percent gain.
With the exception of $66.6 million in earnings from non-controlling interests, the group forked out $27.9 million in taxes. As a result, its net profit for the first half increased by 118.0% to $256.2m. Also, adjusted property EBITDAR gained 27.6 percent, reaching 1.22 billion dollars.
