JP Morgan analyst Joseph Greff took a look at Wynn Resorts‘ second-quarter numbers and deemed them “a mixed bag.” The good news: Cash flow in Las Vegas, expected to be $109 million, manifested itself at $137 million. The sorta-bad 
news: There was an EBITDA miss in Macao, where an expected $355 million materialized at $343 million. VIP play was “soft” despite being 5% above expectations. But “the one sizable bright spot” was mass-market revenue, up 22%. As for the Las Vegas Strip, it “came in stronger, reflective of strong casino volumes and RevPAR [$300/room], reflective of share gains there amidst a renewed focus on domestic casino growth.” Next revenue was expected to be $436 million but was $464 million. Table game wagering was up 9%, 28% higher than expected, while slot handle was up 4% instead of being (as anticipated) flat. Slot revenue was an impressive $339/win/slot/day. Room revenues rose 8% on 90% occupancy and $333 ADRs, a 6.5% increase.
Given its strong performance during a renovation, Greff predicted that Wynn Macau is “suggesting good growth potential into 2020 when new/renovated amenities are rolled out.” Wynn had to write off $5 million in 
bad Chinese markers, so that dampened the Macanese results a bit. The company is optimistic, to say the least about Wynn Crystal Palace, scheduled to open in Macao in 2021. It’s investing $2 billion in the project and expects a 15%-20% return on investment when it hits the market. Property by property, Wynncore grossed $464 million, Encore Boston Harbor debuted with $19 million, Wynn Macau grossed $546.5 million and Wynn Palace logged $629 million. We’ve seen worse.
* With the exception of Rocky Gap Casino, which was flat last quarter at $18.5 million, Golden Entertainment continues to grow revenue. Net revenue at its Nevada casinos was $140 million, a 24% boost, and its Nevada slot routes ($71.5 million) and ones in Montana ($18 million) were modestly higher. Only the Nevada-casino comparison was spectacular but Golden continues to have a Midas touch.
* Station Casinos didn’t break out its 2Q19 numbers in any detail but Las Vegas operations were up, grossing $458 million for a healthy 16% gain. The other revenue stream, Native American casino management, was also up, 
11.5% to $23.5 million. Even so, Greff deemed the LV locals results as “generally soft,” partly due to slower-than-expected revenue growth at the Palms. That downgrade came in spite of “a lot of positive economic characteristics (jobs and wage growth, LV development on the come).” Greff projects only $45 million of cash flow from the Palms, once projected for $70 million, of which he says “ouch.” Put another way, that’s a 4.5% return on investment. Even cash flow derived from non-Palms locals play was only up 1%, with Greff adding that Station “bought” business through its Palms nightclubs and F&B amenities, which mitigates “encouraging” numbers in that sector.
