Wynn Macau earnings drop; Billings signals cautious approach to Japan expansion

Wynn Macau’s operations reported an earnings decline in the first quarter of 2025, with volatile VIP gaming results eclipsing gains in the mass-market and non-gaming segments.

Wynn Palace Macau saw operating revenues drop 8.7% year-on-year to USD535.9 million (MOP4.28 billion), while Wynn Macau suffered a sharper 19.9% decline to $330 million (MOP2.64 billion).

Adjusted property EBITDAR across Wynn Resorts’ Macau operations fell sharply by 20% in the first quarter of 2025. Wynn Palace’s EBITDAR declined to $161.9 million (MOP1.29 billion), down from $202.4 million in the same period last year.

Wynn Macau experienced an even steeper drop, with EBITDAR plunging 34% to $90.2 million (MOP720 million) from $137.2 million in Q1 2024.

High rollers cashed in big, with VIP table win percentages plunging to 2.61% at Wynn Palace and 1.09% at Wynn Macau, far below the typical 3.1–3.4% range.

Reuters highlighted that high-stakes gamblers winning more than usual caused lower earnings in VIP casino operations, leading to an operating revenue fall seen at Wynn Palace and Wynn Macau.

CEO Craig Billings struck an optimistic tone, acknowledging the VIP slump but emphasizing underlying resilience.

“While VIP hold negatively impacted results, we held market share in our expected range. Macau’s recovery trajectory remains intact, driven by strong free cash flow and healthy mass-market volumes.”

Wynn’s press release declared a cash dividend of $0.25 per share, payable May 30.

Billings emphasized that despite challenges, Wynn’s Macau business showed healthy volumes, with a 31% increase in VIP turnover and improved EBITDA margins. The company also made note of the opening of the Gourmet Pavilion Food Hall at Wynn Palace, which saw 2,400 incremental daily restaurant covers at the property.

The company anticipates steady revenue growth extending through 2026, fueled by strategic expansion plans targeting new markets. In the first quarter of 2025, the company invested $51.2 million (MOP409.6 million) in its 40%-owned joint venture developing Wynn Al Marjan Island, an integrated resort in Ras Al Khaimah, UAE, bringing total cash contributions to $682.9 million (MOP5.47 billion) to date.

Construction is progressing well, with 55% of the structural concrete completed.

Among its key initiatives, development opportunities in Thailand, New York, and potentially Japan are being explored.

Billings noted, “Japan fits that bill. There are structural challenges in the way licensure and ownership are outlined, so we’re looking carefully. It has to be right, and the setup has to be right for us.”

He also highlighted the company’s substantial land holdings, stating, “We have plenty of development opportunities. We have a land bank in the UAE, Boston, and Las Vegas.”

Japan’s inaugural casino resort, MGM Osaka, valued at $8.76 billion, is scheduled to open in late 2030, with construction commencing this April. Nadia Shaw