Wynn Macau reports third-quarter earnings of US$255.2 million

Wynn Macau’s parent company announced quarterly results last week, which included unaudited financials for the group’s Macao-based operations. 

Operating revenues for both Wynn Palace on the Cotai Strip and Wynn Macau’s peninsula property fell 8 percent during the third quarter. Combined revenues slipped to US$919.2 million from US$1.0 billion. 

Adjusted property earnings before interest, income taxes, depreciation, amortisation, and rental expenditure (EBITDAR) dropped 17.2 percent to US$255.2 million from $308.3 million, squeezing margins 300 basis points to 27.8 percent from 30.8 percent a year ago. Operating expenditure rose 5 percent to US$2.9 million a day, weighing on the bottom-line. 

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Combined VIP turnover contracted 23.7 percent to US$3.2 billion while VIP table win rates slipped 28 basis points to 3.98 percent. Mass table volumes fell 7.4 percent to US$3.4 billion. 

Results were below consensus expectations, with Morgan Stanley estimating that market share for Wynn Macau’s mass business contracted 150 basis points from the previous quarter to 12.4 percent due to the weaker drop and win rates. 

Wynn: future spending 

Construction for the 432-key Enclave project at Wynn Palace is underway and expected to be completed in 2.5 years. The estimated project budget is between US$900 million and US$950 million, inclusive of capitalised interest, according to the company. 

Once completed, the enclave will increase Wynn Palace’s room and suite count by 25 percent and 50 percent, respectively. 

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Capital expenditure outlook for 2026 is expected to be between US$350 million and US$400 million before jumping to a range of US$750 million and US$800 million in 2027. According to the filing, the aforementioned expenditure does not include the roughly US$170 million contribution to the Macao Government Guidance Fund. 

This amount, which constitutes a non-gaming investment, will be applied to Wynn Macau’s investment obligation under the current gaming concession contract and will be paid in five installments starting in the fourth quarter of this year, extending into the back half of 2028.

Note: “Earnings” in headline refers to EBITDAR, which stands for earnings before interest, income taxes, depreciation, amortisation, and rental expenditure.