Strong Profit Upsurge for Wynn Macau in 2024 Financial Year
Cashing in on Macau's Casino Boom in 2024
In the pulsating heart of Asia's gambling capital, Wynn Macau gleefully counted its wins in 2024. With profits more than doubling compared to the previous year, the casino giant left its competitors eating dust. The secret behind this triumph? A robust market share, flourishing gaming income, and a dash of exceptional brand appeal.
Wynn Macau outshone its competitors, with owner-attributable profit soaring from a modest HK$1.17 billion in 2023 to a staggering HK$3.2 billion in 2024—or an impressive $409 million. The casino's revenue stepped up its game, increasing by a crisp 23.6% year over year to hit HK$23.6 billion.
With its non-gaming income steady at HK$5.12 billion, the cherry on top was an impressive 24% increase in adjusted EBITDA, climbing from HK$6.6 billion in 2023 to an impressive HK$8.2 billion in 2024.
A Winning Hand, Because Why Not?
In celebration of this remarkable run, Wynn Macau's board recommended a final dividend of HK$0.185 per share for 2024—more than twice the HK$0.075 payout in '23. This massive payout added up to a total dividend of HK$0.26 per share, a 43% payout ratio, as determined by JP Morgan analysts. The dividends will be paid on June 11 of 2025, with recipients being those on the books on June 2 of the same year.
"Wynn's [Macau Ltd] dividend was a pleasant surprise," quipped JP Morgan Securities (Asia Pacific) Ltd.
Despite fierce competition from newer, flashier properties, Wynn Macau held onto its market share, predominantly by catering to the high-rolling elite. The prestige of the Wynn brand, according to analysts DS Kim and Selina Li from JP Morgan, was still the talk of the town among "high-end and aspirational players."
After ending 2024 with a slight asset deficiency of HK$13.29 billion, Wynn Macau stood tall and mighty with HK$11.33 billion in cold, hard cash and another HK$2.75 billion in loan-friendly borrowing capacity up its sleeve.
Despite the negative asset position, Wynn Macau didn't bat an eye. They flexed their financial muscles, asserting confidently that "Given the Group's liquidity position as of December 31, 2024, the Group believes it will be able to support its continuing operations," in their official statement.
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- Investors looking to capitalize on Wynn Macau's success in 2024 may find the company an attractive prospect, given its robust financial performance and promising dividend.
- In 2024, Wynn Macau's outstanding performance in the casino-and-gambling business was reflected in its impressive HK$3.2 billion owner-attributable profit, a significant increase from the previous year.
- The dividend of HK$0.26 per share recommended by Wynn Macau's board for 2024 is more than double the payment in 2023, making it an appealing investment opportunity for those interested in the casino-games sector.
- As Wynn Macau continues to attract high-rolling elite clients and maintain its prestigious brand appeal, it remains a strong contender in the competitive casino-and-gambling business in Asia.
- With a positive cash position and adequate borrowing capacity, Wynn Macau appears financially well-positioned to navigate the future challenges and opportunities in the industry, including the ongoing recovery of the gaming sector and increasing tourism.
