Wynn Macau beats interim estimates, set to break ground on Cotai projects

Wynn Macau’s first-half unaudited earnings before interest, taxes, depreciation, amortisation, and restructuring (EBITDAR) rose 14 percent from a year ago, driven in part by a 27 percent increase at Wynn Palace in Cotai, which offset an 8 percent drag from the company’s peninsula property.

Results came in ahead of expectations. Overall win rates came in at 23.6 percent, according to CLSA analyst Jeffrey Kiang, who noted to The Bay that Wynn Palace’s hold rates were at its highest levels since the second quarter of 2020. 

[See more: Macao’s gambling revenues set for an August pickup: Jefferies]

Cotai VIP win rates at Wynn Macau rose to 3.06 percent from 2.74 percent, while yields for mass-market table games jumped to 28.1 percent from 23.5 percent. Peninsula VIP win rates fell to 1.31 percent from 2.03 percent, while mass-market table game win rates dropped to 16.1 percent from 18.0 percent. 

For the second quarter, headline property EBITDA margin expanded 80 basis points to 29.6 percent, while overall gross gaming revenue (GGR) market share rose to 13.7 percent. 

Capital expenditure at Wynn Macau

The company lowered its full-year capex forecast to US$350-400 million from US$400-450 million, shifting capital to next year and lifting 2027 expenditure estimates to US$750-800 million. The company also reiterated that construction of the Enclave hotel tower at Wynn Palace, and the Wynn Palace Event and Entertainment Centre, would begin this year.

Echoing similar comments released by Sands China and MGM China, Wynn Macau noted a rebound in momentum following the conclusion of this summer’s FIFA World Cup games. Analysts reported that average daily visitors and normalised GGR have already exceeded first-quarter pre-World Cup levels.

Based on CLSA’s estimates, Wynn Macau is trading at 11.7x EV/EBITDA multiple, with an Outperform rating.