Wynn Macau Limited (1128.HK) Q2 2025 Earnings Report

Wynn Macau Limited reported QQ2 2025 revenue of HKD 13.63 billion, up approximately 94.6% year-over-year, reflecting a meaningful rebound in Macau's gaming demand as liquidity and visitation recover post-pandemic restrictions. Gross profit reached HKD 5.27 billion with a gross margin of about 38.7%, and operating income of HKD 2.02 billion, yielding an operating margin near 14.8%. EBITDA stood at HKD 3.23 billion (EBITDA margin ~23.7%), underscoring underlying operating strength even as the company absorbs elevated financing costs. Despite the top-line expansion and improving operating leverage, net income declined sharply on a year-over-year basis, reporting HKD 230.6 million for QQ2 2025 and a net margin of roughly 1.7%. The delta largely reflects heavy financing charges: interest expense of HKD 2.85 billion and a net total other expense impact of HKD 1.76 billion, coupled with sizable non-cash items. A positive free cash flow outcome (HKD 1.159 billion) and an operating cash flow of HKD 1.687 billion signal ongoing cash-generative capacity, yet the balance sheet remains highly leveraged with total debt of HKD 45.59 billion and negative stockholders’ equity of HKD -13.97 billion, resulting in a cautious overall investment stance. Taken together, the QQ2 2025 print confirms a partial Macau gaming recovery, particularly in mass-market volumes, but highlights the ongoing need to address leverage and refinancing risk. Management commentary (where disclosed) suggests focus on premium opportunities and capital preservation, while investors should monitor debt maturity profiles, liquidity headroom, and sensitivity to Macau policy and visitation shifts.