Wynn Macau delivered solid third-quarter 2025 results driven by its premium gaming segment. However, weakness in non-casino operations tempered overall growth, according to a report from CreditSights, a division of Fitch Group.
The Macau casino operator posted a 15 percent year-over-year increase in total revenue to $1 billion in 3Q25, primarily fueled by a 20 percent surge in gaming revenue, which represented 86 percent of total revenue. CreditSights analysts Nicholas Chen and David Bussey noted that higher-than-normal VIP hold rates across both the Wynn Palace and Wynn Macau properties supported the strong performance.
Wynn Macau’s EBITDAR grew 17 percent year-over-year to $308 million, bringing the EBITDAR margin to 30.8 percent, up 0.6 percentage points from 3Q24. The margin improvement reflects management’s ‘continued focus on boosting margins coupled with its recently improved market share,’ according to the analysts.
Management reported strong volume metrics and mass drop following the Golden Week holiday, ‘led by the premium segment,’ the analysts wrote. CreditSights estimates that Wynn Macau’s market share improved to 13 percent in 3Q25, up from 11.9 percent in the previous quarter, though still below the 14.6 percent share it commanded in 2019.
Non-gaming revenue contracts despite full occupancy
Non-gaming revenue declined 8 percent year-over-year to $144 million, representing just 14 percent of total revenue. The weakness was primarily driven by lower room revenues at both properties. Revenue per available room (RevPAR) fell 25 percent at Wynn Palace and 11 percent at Wynn Macau year-over-year, despite hotel occupancy rates remaining near full capacity at 98.2 percent and 98.8 percent, respectively.
At the property level, Wynn Palace demonstrated stronger growth with a 22 percent year-over-year revenue increase, driven by a 30 percent surge in casino revenue from higher VIP turnover and mass table drop. The Wynn Macau property saw more modest growth of 3 percent year-over-year, with a 6 percent increase in casino revenue.
Higher refinancing costs pressure financial metrics
The company’s financial position showed mixed developments. Gross leverage improved to 5.3x from 5.5x as of June 2025, though this remains well above pre-COVID levels of 3.6x in fiscal 2019. Total debt remained largely flat at $5.85 billion following the refinancing of its $1 billion 5.5 percent 2026 bond with a new $1 billion 6.75 percent 2034 bond.
The refinancing, however, pushed the company’s weighted average cost of debt higher to 5.8 percent from 5 percent in March 2025. This increase was compounded by rebounding HIBOR rates, which elevated the average borrowing cost on its revolving credit facility to 5.56 percent as of September 2025 from 3.38 percent in June 2025.
CreditSights calculated that Wynn Macau generated approximately $162 million in free cash flow during 3Q25, with an EBITDAR-to-interest coverage ratio of about 3.0x.
For the near term, analysts expect EBITDAR margins to remain stable as management continues to prioritize margin enhancement. However, they noted that minor disruptions from the ongoing expansion of the Chairman’s Club gaming area and room renovations at Wynn Tower may slightly affect topline performance in 4Q25.
CreditSights maintains its ‘market perform’ recommendation on Wynn Macau’s dollar-denominated bonds, continuing to prefer exposure to MGM China within the Macau high-yield gaming space.
