Wynn Macau could generate US$917m in EBITDAR in 2023, analysts say

Analysts at CreditSights say Wynn Macau’s EBITDAR could be driven by mass market gains and improving cost efficiencies.

Macau.-  CreditSights, a division of the Fitch group, has forecast that Wynn Macau could generate approximately US$917m in adjusted earnings before interest, taxation, depreciation, amortisation and rent (EBITDAR) in 2023. That’s 2.8 per cent above its previous best-case scenario.

Analysts said the gaming operator’s product mix had shifted towards more margin-friendly mass markets, along with higher-than-expected business volumes and improved cost efficiencies. For the second quarter of this year, Wynn Macau reported consolidated income of US$127.5m, reflecting a 171 per cent increase compared to the first quarter. Adjusted property EBITDAR reached US$246.2m, up 58 per cent.

The recovery has taken off since the lifting of travel restrictions earlier this year. CreditSights highlighted Wynn’s daily mass drop, exceeding 120 per cent of 2019 levels in July. Analysts said this demonstrated the robustness of the Macau-based operations and positioned Wynn Macau favourably.

Analysts said they see Wynn Macau bonds as an attractive investment opportunity, offering a higher yield compared to US operators in the same sector.MGM China Holdings, which operates MGM Macau and MGM Cotai, has 5.875-per cent notes maturing in 2026 at a 7.7 per cent yield, while Wynn Macau has 5.5-per cent notes maturing in 2026 at a 8.2 per cent yield.