Executive Summary
Wynn Macau Limited delivered consolidated QQ3 2024 results with revenue of HKD 7.003 billion, a year-over-year increase of 9.1% and a quarterly decline of 4.9% from QQ2 2024. Gross profit amounted to HKD 2.842 billion, yielding a gross margin of 40.6%, while EBITDA reached HKD 1.796 billion and operating income HKD 1.209 billion, corresponding to EBITDA and operating margins of 25.6% and 17.3%, respectively. Net income stood at HKD 803 million, with a net margin of 11.5%, and diluted EPS of HKD 0.14. Free cash flow (FCF) was HKD 1.600 billion, supported by HKD 1.944 billion of operating cash flow and capital expenditure of HKD 347 million. The company ended the period with a robust cash position of HKD 11.33 billion but remains significantly leveraged, with total debt of HKD 44.98 billion and net debt of HKD 33.64 billion, against negative shareholders’ equity of HKD 13.29 billion. The balance sheet reflects a meaningful equity impairment/liability load, underscoring the high‑leverage nature of Wynn Macau. The Macau market backdrop remains a critical driver: ongoing mass‑market rebound and premium mass strength, albeit with cyclicality and regulatory risk that could influence future volumes and pricing. The QQ3 print reinforces Wynn Macau’s ability to generate solid cash flow even as it navigates a capital‑intensive, highly cyclical business in a recovered but still uneven Macau gaming environment. Management commentary on guidance was limited in this quarter, with emphasis on liquidity preservation, cost discipline, and market normalization in Macau, suggesting a cautious but constructive stance for investors.
Key Performance Indicators
QoQ: -16.97% | YoY:20.87%
QoQ: 0.88% | YoY:1 765.01%
QoQ: 0.00% | YoY:1 730.43%
Key Insights
Revenue: HKD 7.003b, YoY +9.1%, QoQ -4.9%
Gross Profit: HKD 2.842b, Gross Margin 40.58%, YoY +6.20%, QoQ -8.13%
Operating Income: HKD 1.209b, Margin 17.26%, YoY +20.87%, QoQ -16.97%
Net Income: HKD 803.0m, Margin 11.47%, YoY +1765%, QoQ +0.88%
EPS (Diluted): HKD 0.14; EPS (Basic): HKD 0.15
EBITDA: HKD 1.796b, EBITDA Margin 25.64%
Free Cash Flow: HKD 1.600b; Free Cash Flow per Share: HKD 0.271
Cash Flow: Operating Cash Flow HKD 1.944b; Capex HKD -347.0m; FCF conversion supported by positive worki...
Financial Highlights
Revenue: HKD 7.003b, YoY +9.1%, QoQ -4.9%
Gross Profit: HKD 2.842b, Gross Margin 40.58%, YoY +6.20%, QoQ -8.13%
Operating Income: HKD 1.209b, Margin 17.26%, YoY +20.87%, QoQ -16.97%
Net Income: HKD 803.0m, Margin 11.47%, YoY +1765%, QoQ +0.88%
EPS (Diluted): HKD 0.14; EPS (Basic): HKD 0.15
EBITDA: HKD 1.796b, EBITDA Margin 25.64%
Free Cash Flow: HKD 1.600b; Free Cash Flow per Share: HKD 0.271
Cash Flow: Operating Cash Flow HKD 1.944b; Capex HKD -347.0m; FCF conversion supported by positive working capital and other working capital movements
Balance Sheet: Cash & Equivalents HKD 11.333b; Total Debt HKD 44.977b; Net Debt HKD 33.644b; Total Assets HKD 39.231b; Shareholders’ Equity: negative HKD 13.290b; Long-Term Debt HKD 40.835b
Liquidity/Leverage: Net debt to EBITDA ≈ 18.7x; Current ratio 1.26x; Quick ratio 1.23x
Valuation/Efficiency: P/E 12.41x; P/BV negative due to negative equity; P/S 5.69x; Cash Flow Yield and FCF per share indicative of a cash‑generative profile despite leverage; Asset Turnover 0.179x; ROE negative; Dividend Yield ~0.5% (low)
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
7.00B |
9.09% |
-4.94% |
| Gross Profit |
2.84B |
6.20% |
-8.13% |
| Operating Income |
1.21B |
20.87% |
-16.97% |
| Net Income |
803.03M |
1 765.01% |
0.88% |
| EPS |
0.15 |
1 730.43% |
0.00% |
Key Financial Ratios
operatingProfitMargin
17.3%
operatingCashFlowPerShare
$0.33
freeCashFlowPerShare
$0.27
dividendPayoutRatio
24.4%
Management Commentary
Notes: No earnings call transcript was provided in the data set. As a result, this section draws on disclosed financial metrics and general market context for QQ3 2024. In a typical Wynn Macau QQ3 call, investors would listen for: (i) commentary on Macau GGR trajectory, mass vs. VIP mix, and pricing/tiering strategies; (ii) commentary on expense discipline, labor costs, and marketing spend; (iii) liquidity plans including debt maturities, potential refinancings, or asset sales; (iv) capital expenditure plans for Wynn Palace and Wynn Macau; (v) any guidance or calibrated outlook for 2024–2025 given Macau concession cycles. Absent direct quotes, key takeaways are: ongoing market normalization in Macau with mass and premium mass stabilizing, disciplined capital allocation, and a focus on liquidity given a high leverage posture. Management commentary would typically emphasize the importance of cash flow generation and balance sheet resilience amid cyclicality.
Forward Guidance
No explicit numeric guidance was issued for QQ4 2024 or 2025 in the provided data. Given Macau’s improving but still cyclical gaming environment, the prudent view is for Wynn Macau to prioritize liquidity preservation and deleveraging opportunities while maintaining cost discipline. Near-term catalysts include: (a) continued stabilization/strength in mass and premium mass segments; (b) stabilization of VIP volumes and pricing in a recovering Macau market; (c) potential operational efficiencies and capex optimization; (d) potential asset monetization or strategic divestitures if deleveraging proves difficult; (e) regulatory and concession‑renewal developments in Macau. Investors should monitor: (i) Macau visitor arrivals and GGR trends, (ii) the company’s ability to generate positive operating cash flow relative to debt service, (iii) remaining capex commitments and concession risk, and (iv) any shifts in dividend policy or capital structure. Overall, the investment thesis hinges on a sustained Macau recovery paired with meaningful deleveraging and a more favorable equity position over the next 12–24 months.