Wynn Macau Ltd, a prominent casino operator, has shown significant progress in its financial metrics according to recent analysis by CreditSights Inc. The credit and market research firm highlighted improvements in the casino's gross leverage, attributing this to enhanced earnings before interest, taxation, depreciation, amortisation, and rent (EBITDAR) over the reported period.
In a memo distributed on Monday, CreditSights outlined that Wynn Macau Ltd's free cash flow has sustained a positive trajectory. The company, which manages the Wynn Palace resort on Cotai and the Wynn Macau resort on the city's peninsula, reported a third-quarter adjusted EBITDAR of nearly USD 308.3 million.
This figure represents an increase of 17.3 percent compared to the previous year. Meanwhile, operating revenues for the firm stood at USD 1.00 billion for the three months ending September 30, reflecting a 14.8 percent rise from last year's numbers.
Analysts Nicholas Chen and David Bussey from CreditSights indicated a stable outlook for the company's EBITDAR margins, driven by a consistent focus on margin enhancement and an improved market share. "We think EBITDAR margins are likely to remain stable, amid management’s continued focus on boosting margins coupled with its recently improved market share," they stated.
Debt and Cash Flow Management
In September, Wynn Macau Ltd completed the early redemption of US$1.0 billion in principal from senior notes that were originally due in 2026. These notes, priced at 5.500 percent, were fully refinanced with a newer series of US$1.0 billion senior notes due in 2034, carrying an interest rate of 6.750 percent. Despite this maneuver, the firm's total debt remained steady at US$5.85 billion as of September 2025, following this refinancing activity.
According to CreditSights' detailed analysis, Wynn Macau Ltd generated roughly USD 162 million in free cash flow during the third quarter of 2025. This was calculated considering disclosed capital expenditures of roughly USD 46 million alongside preliminary interest expenses estimated at USD 101 million. The research firm's calculations also indicated an EBITDAR to interest coverage of approximately 3.0 times for the third quarter, which reflects an adequate coverage level.
Future Investments and Potential Challenges
Looking ahead, the Macau concessionaire maintains its capital expenditure guidance for 2025 between USD 200 million and USD 250 million, of which USD 70 million to USD 80 million is allocated for maintenance. This suggests a projected allocation of USD 90 million to USD 150 million for the fourth quarter of 2025. Despite these positive figures, Wynn Macau Ltd anticipates minor disruptions stemming from ongoing projects towards the year's end.
The ongoing expansion of the Chairman’s Club gaming area and upgrades to the Wynn Tower rooms are expected to cause slight disruptions, potentially affecting the company’s revenue performance in the fourth quarter. Markets are closely observing these developments as Wynn Macau Ltd navigates through these expansions while managing existing obligations.
Mr Chen and Mr Bussey opined, "Wynn Macau expects some minor disruptions from the ongoing expansion of its Chairman’s Club gaming area and refreshing the Wynn Tower rooms at Wynn Macau – initiated last quarter – towards year-end 2025, which may marginally impact the company’s topline in fourth-quarter 2025."
The company's strategic planning to maintain liquidity and stabilize margins reflect a robust framework to handle prospective financial and operational challenges efficiently.
Source: Wynn Macau Ltd's EBITDAR margins likely to remain stable: CreditSights, GGRAsia, November 10, 2025.
Posted by Wizard
Nov 12 2025
Nov 12 2025
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