Moody’s upgrades Wynn Macau outlook

The agency has affirmed a B1 rating for the operator’s senior unsecured notes.

Macau.- Moody’s has announced that it has updated the outlook of Wynn Macau and its parent, Wynn Resorts Finance, from stable to positive. The agency also affirmed a B1 rating for senior unsecured notes.

The institution said the confirmation of the rating and the positive outlook indicates its expectation of enhanced leverage for Wynn Resorts Finance within the mid 5x debt/EBITDA range for 2024 bolstered by the recovery of Macau’s gaming market and strong performance at Las Vegas and Encore Boston Harbor in the United States, contributing to revenue and EBITDA growth.

The rating agency said the outlook reflects a recent reduction in debt and its belief that the company will sustain solid liquidity backed by substantial cash reserves. It assigned a B1 corporate family rating to Wynn Resorts Finance.

A primary credit concern are that revenue and cash flow are “heavily reliant” on Macau operations. The rating agency said Wynn will seek additional large resort development opportunities globally, such as its project in the United Arab Emirates. Consequently, the company’s leverage may occasionally rise due to debt-financed developments.

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Wynn Macau reports US$871.7m in revenue for Q3

Wynn Macau reported revenue of US$871.7m for Q3, down 1.5 per cent from the US$885.3m posted in the second quarter but up 6.3 per cent in year-on-year terms. The company recorded adjusted earnings before interest, taxation, depreciation, amortisation and rent (EBITDAR) of US$262.9m, down 6.2 per cent sequentially.

On a property basis, Wynn Palace saw revenue of US$519.8m, down 0.9 per cent year-over-year. Adjusted Property EBITDAR was US$162.3m, down 8.3 per cent year-on-year. Casino revenue was flat at US$418m, while VIP turnover was US$3.19bn, up 11.6 per cent. The mass table drop was US$1.69bn, down 1.8 per cent.

The table games win percentage in mass market operations was 23.9 per cent. The VIP table games win as a percentage of turnover was 3.04 per cent, below the property’s expected range of 3.1 to 3.4 per cent and below the 3.42 per cent experienced in the third quarter of 2023. The venue had 57 VIP gaming tables and 247 mass-market tables in operation. Hotel occupancy was 98.3 per cent.

Wynn Macau‘s revenue was US$352m, up 19.3 per cent year-over-year and 4.4 per cent sequentially. Adjusted property EBITDAR was US$100.6m, up 29.1 per cent year-on-year and 4.9 per cent quarter-on-quarter. Casino revenue grew by 28.9 per cent from last year to US$296.8m while VIP turnover was up by 0.7 per cent at US$1.20bn. The mass table drop was US$1.51bn, up 9.5 per cent year-over-year.

The table games win percentage in mass market operations was 18.5 per cent. The VIP table games win as a percentage of turnover was 3.61 per cent, above the property’s expected range of 3.1 per cent to 3.4 per cent and above the 3.52 per cent experienced in the third quarter of 2023.

The Macau property had 30 VIP gaming tables and 222 mass-market tables in operation during the period. Hotel occupancy was 98.9 per cent.

Total casino revenue for the group, including non-Asian operations, was slightly up in year-on-year terms at US$1.02bn, while overall revenue was US$1.69bn. The company narrowed its loss from US$116.7m a year ago to US$32.1m. Adjusted Property EBITDAR was US$527.7m, down 7.7 per cent in quarter-on-quarter terms.

The agency has affirmed a B1 rating for the operator’s senior unsecured notes. Macau.- Moody’s has announced that it has updated the outlook of Wynn Macau and its parent, Wynn…