Despite an increasingly competitive environment in Macau, gaming operator Wynn Macau has managed to defend its market share without sacrificing profitability, according to a recent report by investment bank CBRE.
CBRE points out that promotional pressures and new openings have intensified competition in the Macau gaming market, yet Wynn continues to perform well, showcasing its resilience in a challenging market.
For 4Q24, Wynn’s adjusted property EBITDAR came in at $293 million, a slight 1.4 percent year-on-year decline. However, this exceeded analysts’ consensus expectations of $272 million. Even after adjusting for approximately $12 million in favorable VIP hold, Wynn’s performance still surpassed expectations. The property’s EBITDAR margin in Macau remained steady at 32 percent, signaling effective cost management and operational efficiency.
Wynn’s investments in digital innovation also play a role in sustaining profitability. The recent installation of digital tables at Wynn Palace and Wynn Macau is expected to improve marketing efficiency, particularly in attracting and retaining players. Despite a lackluster performance during the Chinese New Year holiday, management noted that foot traffic remained prolonged and table drop was consistent with the previous year’s two-week period.
Wynn Al Marjan Island in focus
Looking beyond Macau, Wynn Resorts is aggressively pursuing international growth with its Wynn Al Marjan Island development in the UAE. The project, valued at $5.1 billion, is a key part of Wynn’s expansion strategy.
A recent $2.4 billion financing package fully funds the project, which is expected to be topped off by the end of the year.
Analysts from CBRE, John DeCree and Max Marsh, note that Wynn Al Marjan Island has already attracted significant attention as one of the most promising growth prospects in the global gaming industry.
Wynn’s recent progress on the project includes securing an official license from the GCGRA (Gaming Control and Regulatory Authority) in October, a successful investor day in Las Vegas, and major strides in construction. With project financing from a global syndicate of banks, the development is well-positioned to attract long-term capital.
During the company’s 4Q24 earnings call, CEO Craig Billings emphasized that Wynn’s current focus is on maximizing the potential of its land bank in Al Marjan, rather than expanding its Las Vegas assets. Billings explained that while Wynn holds undeveloped land in both Las Vegas and the UAE, the company’s capital and bandwidth are currently dedicated to the WAMI project. The UAE market, valued between US$3 billion and US$5 billion, represents a unique growth opportunity, and Wynn is committed to seeing it through to fruition.
Billings also discussed Wynn’s other strategic initiatives, including potential investments in Thailand, New York, and London. He pointed out that although the company has long-term plans for growth in these markets, the primary focus remains on the UAE for the time being.
Wynn’s recent acquisition of Aspinalls in London aligns with its broader strategy to establish a meaningful presence in key global markets. The acquisition strengthens Wynn’s position in the UK, a major gateway city for international tourism.
Once Wynn Al Marjan Island is completed, Aspinalls’ results will be folded into the UAE resort, helping to create a cohesive global business.
Billings highlighted the strategic importance of both properties, noting that the combined reach of UAE project and Aspinalls will serve a region home to 3.5 million people and 40 percent of the world’s millionaires. This synergy, he explained, would make the combined operation a formidable player in the global gaming industry.
