Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
Wynn Macau, Limited
永利澳門有限公司*
(incorporated in the Cayman Islands with limited liability)
(Stock Code: 1128 and Debt Stock Codes: 5280, 40102, 40259, 40357, 5754)
This announcement is issued pursuant to Rules 13.09 and 37.47B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and under Part XIVA of the Securities and Futures Ordinance (Cap. 571).
Our controlling shareholder, Wynn Resorts, Limited, has on or about 6 May 2025 (2:00 p.m., Las Vegas time), released its unaudited results for the first quarter ended 31 March 2025.
This announcement is issued by Wynn Macau, Limited ("we" or our "Company", together with its subsidiaries, our "Group") pursuant to Rules 13.09 and 37.47B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and under Part XIVA of the Securities and Futures Ordinance (Cap. 571).
Our Company's controlling shareholder, Wynn Resorts, Limited, is a company listed on the National Association of Securities Dealers Automatic Quotation System ("NASDAQ") Global Select Market in the United States. As at the date of this announcement, Wynn Resorts, Limited beneficially owns approximately 72% of the issued share capital of our Company.
Reference is made to our announcement on 7 May 2025 (the "WRL Earnings Release Announcement") in respect of the release by our controlling shareholder, Wynn Resorts, Limited, of its unaudited financial results for the first quarter ended 31 March 2025. Unless otherwise defined in this announcement, terms defined in the WRL Earnings Release Announcement have the same meaning when used in this announcement.
Further to the WRL Earnings Release Announcement, Wynn Resorts, Limited has, on or about 6 May 2025 (2:00 p.m., Las Vegas time), released its quarterly report with unaudited financial results for the first quarter ended 31 March 2025 ("WRL Quarterly Report"). If you wish to review the WRL Quarterly Report prepared by Wynn Resorts, Limited and as filed with the U.S. Securities and Exchange Commission, please visit https://www.sec.gov/Archives/edgar/data/1174922/000117492225000084/0001174922-25-000084-index.htm. The WRL Quarterly Report contains segment financial information about Wynn Resorts, Limited's Macau operations, which are owned by our Company. The WRL Quarterly Report is also available in the public domain.
The financial results of Wynn Resorts, Limited, including those contained in the WRL Quarterly Report, have been prepared in accordance with the Generally Accepted Accounting Principles of the United States ("U.S. GAAP"), which are different from the International Financial Reporting Standards ("IFRS") that we use to prepare and present our financial information. As such, the financial information in the WRL Quarterly Report is not directly comparable to the financial results our Company discloses. Consequently, we offer no indication or assurance that the financial results of our Group for the first quarter ended 31 March 2025 will be the same as that presented in the WRL Quarterly Report. Shareholders and potential investors of our Company should consult their own professional advisers for an understanding of the differences between IFRS and U.S. GAAP.
To ensure that all shareholders and potential investors of our Company have equal and timely access to the information pertaining to our Company, set forth below are the key highlights of financial information and other information published by Wynn Resorts, Limited in the WRL Quarterly Report that relate to our Company and our operations in Macau (unless otherwise provided, all dollar amounts in the WRL Quarterly Report are denominated in United States dollars), some of which may constitute material inside information of the Company:
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"QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2025
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements
WYNN RESORTS, LIMITED AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
Note 1 — Organization
In the Macau Special Administrative Region of the People's Republic of China ("Macau"), the Company owns approximately 72% of Wynn Macau, Limited ("WML"), which includes the operations of the Wynn Palace and Wynn Macau resorts. The Company refers to Wynn Palace and Wynn Macau as its Macau Operations.
Note 3 — Cash, Cash Equivalents and Restricted Cash
Cash, cash equivalents and restricted cash consisted of the following (in thousands):
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Restricted cash^{(3)} | 95,390 | 95,638 |
(3) Restricted cash consists of cash subject to certain contractual restrictions, cash collateral associated with obligations and cash held in trusts in accordance with WML's share award plans, and as of March 31, 2025 and December 31, 2024 included $87.4 million and $87.5 million, respectively, in the form of a first demand bank guarantee in favor of the Macau government to support the legal and contractual obligations of Wynn Resorts (Macau) S.A. ("Wynn Macau SA") through the term of Wynn Macau SA's gaming concession contract.
3
4
Long-term debt consisted of the following (in thousands):
| March 31, 2025 | December 31, 2024 | |
|---|---|---|
| Macau Related: | ||
| WM Cayman II Revolver, due 2028(1) | $ 1,150,017 | $ 1,151,874 |
| WML 5 1/2% Senior Notes, due 2026 | 1,000,000 | 1,000,000 |
| WML 5 1/2% Senior Notes, due 2027 | 750,000 | 750,000 |
| WML 5 5/8% Senior Notes, due 2028 | 1,350,000 | 1,350,000 |
| WML 5 1/8% Senior Notes, due 2029 | 1,000,000 | 1,000,000 |
| WML 4 1/2% Convertible Bonds, due 2029(2) | 600,000 | 600,000 |
| WML Convertible Bond Conversion Option Derivative | 48,982 | 33,007 |
(1) As of March 31, 2025, the borrowings under the WM Cayman II Revolver bear interest at the term secured overnight financing rate ("Term SOFR") plus a credit adjustment spread of 0.10% or the Hong Kong Interbank Offered Rate ("HIBOR"), in each case plus a margin of 1.875% to 2.875% per annum based on WM Cayman II's leverage ratio on a consolidated basis. Approximately $239.1 million and $911.0 million of the WM Cayman II Revolver bears interest at a rate of Term SOFR plus 1.975% per year and HIBOR plus 1.875% per year, respectively. As of March 31, 2025, the weighted average interest rate was approximately 5.76%. As of March 31, 2025, the available borrowing capacity under the WM Cayman II Revolver was $353.3 million.
(2) As of March 31, 2025, the net carrying amount of the WML Convertible Bonds was $503.5 million, with unamortized debt discount and debt issuance costs of $96.5 million. The Company recorded contractual interest expense of $6.8 million and $6.8 million and amortization of discounts and issuance costs of $5.0 million and $4.6 million during the three months ended March 31, 2025 and 2024, respectively.
WML Convertible Bond Conversion Option
The conversion feature contained within the WML Convertible Bonds (the "WML Convertible Bond Conversion Option Derivative") is not indexed to WML's equity and, as such, is required to be bifurcated from the debt host contract and accounted for as a free-standing derivative, reported at fair value as of the end of each reporting period, with changes recognized in the Condensed Consolidated Statements of Income. The following table sets forth the inputs to
the lattice models that were used to value the WML Convertible Bond Conversion Option Derivative:
| March 31, | December 31, | |||
|---|---|---|---|---|
| 2025 | 2024 | |||
| WML stock price | HK$ | 5.57 | HK$ | 5.39 |
| Estimated volatility | 36.4% | 31.2% | ||
| Risk-free interest rate | 3.3% | 3.6% | ||
| Expected term (years) | 3.9 | 4.2 | ||
| Dividend yield(1) | 0.0% | 0.0% |
(1) Dividend yield is assumed to be zero in the lattice model used to value the WML Convertible Bond Conversion Option Derivative, due to a dividend protection feature in the WML Convertible Bond Agreement.
As of March 31, 2025 and December 31, 2024, the estimated fair value of the embedded derivative was a liability of $49.0 million and $33.0 million, respectively, recorded in Long-term debt in the accompanying Condensed Consolidated Balance Sheets. In connection with the change in fair value, the Company recorded a loss of $16.0 million and $16.3 million within Change in derivatives fair value in the accompanying Condensed Consolidated Statements of Income for the three months ended March 31, 2025 and 2024, respectively.
In March 2025, the Company entered into three foreign currency swap agreements (the "Foreign Currency Swaps") with the objective of managing foreign currency exchange rate risk associated with the U.S. dollar denominated 2026 WML 5 1/2% Senior Notes, 2027 WML 5 1/2% Senior Notes, and 2028 WML 5 5/8% Senior Notes. The Foreign Currency Swaps exchange predetermined amounts of Hong Kong dollars for U.S. dollars at a contractual spot rate, have notional amounts of $800.0 million, $750.0 million, and $1.35 billion, and mature in January 2026, October 2027, and August 2028, respectively.
As of March 31, 2025, the total fair value of the Foreign Currency Swaps was a liability of $9.3 million, of which $0.7 million was recorded in Other accrued liabilities and $8.6 million was recorded in Other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets. The fair values of the Foreign Currency Swaps were estimated based on recent trades, if available, and indicative pricing from market information (Level 2 inputs). Changes in the fair values of the Foreign Currency Swaps are recorded in earnings, as these instruments are not designated as hedges. In connection with the change in fair value, the Company recorded a loss of $9.3 million within Change in derivatives fair value in the accompanying Condensed Consolidated Statements of Income for the three months ended March 31, 2025.
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Noncontrolling Interests
Wynn Macau, Limited
The WML Board of Directors has recommended the payment of a final dividend for the year ended December 31, 2024 of HK$0.185 per share on its common stock payable on June 11, 2025 to stockholders of record as of June 2, 2025. The payment of the final dividend is conditional upon shareholder approval at WML’s 2025 Annual General Meeting to be held on May 23, 2025.
In connection with the offering of the WML Convertible Bonds, WM Cayman Holdings I Limited (“WM Cayman I”), a wholly owned subsidiary of the Company and holder of our approximate 72% ownership interest in WML, entered into a stock borrowing and lending agreement with Goldman Sachs International (the “WML Stock Borrower”) in March 2023 (the “Securities Lending Agreement”), pursuant to which WM Cayman I has agreed to lend to the WML Stock Borrower up to 459,774,985 of its ordinary share holdings in WML, upon and subject to the terms and conditions in the Securities Lending Agreement. WM Cayman I may, at its sole discretion, terminate any stock loan by giving the WML Stock Borrower no less than five business days’ notice. The Securities Lending Agreement terminates on the date on which the WML Convertible Bonds have been redeemed, or converted in full, whichever is the earlier. As of the date of this report, the WML Stock Borrower held 179,774,985 WML shares under the Securities Lending Agreement.
The following tables present assets and liabilities carried at fair value (in thousands):
| Fair Value Measurements Using: | ||||
|---|---|---|---|---|
| March 31, 2025 | Quoted Market Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | |
| Liabilities: | ||||
| WML Convertible Bond Conversion Option Derivative (see Note 7) | $ 48,982 | $ — | $ — | $ 48,982 |
| Foreign Currency Swaps (see Note 7) | $ 9,329 | $ — | $ 9,329 | $ — |
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| Fair Value Measurements Using: | |||
|---|---|---|---|
| December 31, 2024 | Quoted Market Prices in Active Markets (Level 1) | Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) |
| Liabilities: | |||
| WML Convertible Bond | |||
| Conversion Option Derivative | |||
| (see Note 7) | $ 33,007 | $ — | $ — $ 33,007 |
The difference between the statutory tax rate of 21% and the effective tax rate of 11.9% is due to the exemption from Macau’s 12% Complementary Tax on casino gaming profits earned by Wynn Macau SA.
Basic earnings per share (“EPS”) is computed by dividing net income attributable to Wynn Resorts by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income attributable to Wynn Resorts, adjusted for the potential dilutive impact assuming that the conversion of the WML Convertible Bonds occurred at the later of the date of issuance or beginning of the period presented under the if-converted method, by the weighted average number of common shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potential dilutive securities had been issued, to the extent such impact is not anti-dilutive.
The weighted average number of common and common equivalent shares used in the calculation of basic and diluted EPS consisted of the following (in thousands, except per share amounts):
| Three Months Ended March 31, | |
|---|---|
| 2025 | 2024 |
Effect of dilutive securities of
Wynn Resorts, Limited subsidiaries:
Assumed conversion of WML Convertible Bonds⁽¹⁾
(1) The assumed conversion of the WML Convertible Bonds had an anti-dilutive impact for the three months ended March 31, 2025 and 2024.
The Company has identified its reportable segments based on factors such as geography, regulatory environment, the Company's organizational and management reporting structure and the information reviewed by its chief operating decision maker, the Company's Chief Executive Officer. The primary profitability measure used by the Company's CEO to review segment operating results and allocate resources is Adjusted Property EBITDAR.
The Company has identified the following reportable segments: (i) Wynn Macau, representing the aggregate of Wynn Macau and Encore, an expansion at Wynn Macau, which are managed as a single integrated resort; (ii) Wynn Palace; (iii) Las Vegas Operations, representing the aggregate of Wynn Las Vegas, Encore, an expansion at Wynn Las Vegas, and the Retail Joint Venture, which are managed as a single integrated resort; and (iv) Encore Boston Harbor. For geographical reporting purposes, Wynn Macau, Wynn Palace, and Other Macau (which represents the assets of the Company's Macau holding company and other ancillary entities) have been aggregated into Macau Operations.
The following tables present the Company's segment information (in thousands):
| Three Months Ended March 31, 2025 | ||
|---|---|---|
| Wynn Palace | Wynn Macau | |
| Operating revenues | ||
| Casino | $ 444,508 | $ 275,550 |
| Rooms | 36,615 | 23,297 |
| Food and beverage | 31,738 | 18,792 |
| Entertainment, retail and other(1) | 23,068 | 12,321 |
| Total operating revenues | 535,929 | 329,960 |
| Cost of revenue(2) | 137,752 | 99,708 |
| Gaming taxes | 236,292 | 140,053 |
| Adjusted Property EBITDAR(4) | $ 161,885 | $ 90,199 |
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Three Months Ended March 31, 2024
| Wynn Palace | Wynn Macau | |
|---|---|---|
| Operating revenues | ||
| Casino | $ 473,781 | $ 346,353 |
| Rooms | 53,936 | 28,619 |
| Food and beverage | 32,070 | 21,019 |
| Entertainment, retail and other^{(1)} | 27,114 | 15,753 |
| Total operating revenues | 586,901 | 411,744 |
| Cost of revenue^{(2)} | 135,507 | 103,706 |
| Gaming taxes | 249,024 | 170,852 |
| Adjusted Property EBITDAR^{(4)} | $ 202,370 | $ 137,186 |
(1) Includes lease revenue accounted for under lease accounting guidance.
(2) Primarily comprised of payroll, cost of goods sold, marketing, promotional, facilities, taxes and licenses (excluding gaming taxes) and other operating expenses.
(4) "Adjusted Property EBITDAR" is net income before interest, income taxes, depreciation and amortization, pre-opening expenses, property charges and other expenses, triple-net operating lease rent expense related to Encore Boston Harbor, management and license fees, corporate expenses and other expenses (including intercompany golf course, meeting and convention, and water rights leases), stock-based compensation, change in derivatives fair value, loss on debt financing transactions, and other non-operating income and expenses. Adjusted Property EBITDAR is presented exclusively as a supplemental disclosure because management believes that it is widely used to measure the performance, and as a basis for valuation, of gaming companies. Management uses Adjusted Property EBITDAR as a measure of the operating performance of its segments and to compare the operating performance of its properties with those of its competitors, as well as a basis for determining certain incentive compensation. The Company also presents Adjusted Property EBITDAR because it is used by some investors to measure a company's ability to incur and service debt, make capital expenditures and meet working capital requirements. Gaming companies have historically reported EBITDAR as a supplement to GAAP. In order to view the operations of their casinos on a more stand-alone basis, gaming companies, including us, have historically excluded from their EBITDAR calculations pre-opening expenses, property charges, corporate expenses and stock-based compensation, that do not relate to the management of specific casino properties. However, Adjusted Property EBITDAR should not be considered as an alternative to operating income as an indicator of the Company's performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure determined in accordance with GAAP. Unlike net income, Adjusted Property EBITDAR does not include depreciation or interest expense and therefore does not reflect current or future capital expenditures or the cost of capital. The Company has significant uses of cash flows, including capital expenditures, triple-net operating lease rent expense related to Encore Boston Harbor, interest payments, debt principal repayments, income taxes and other non-recurring charges, which are not reflected in Adjusted Property EBITDAR. Also, the Company's calculation of Adjusted Property EBITDAR may be different from the calculation methods used by other companies and, therefore, comparability may be limited.
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| Three Months Ended March 31, | ||
|---|---|---|
| 2025 | 2024 | |
| Capital expenditures | ||
| Macau Operations: | ||
| Wynn Palace | $ 50,109 | $ 29,465 |
| Wynn Macau | 15,480 | 17,345 |
| Total Macau Operations | 65,589 | 46,810 |
| March 31, | December 31, | |
| 2025 | 2024 | |
| Assets | ||
| Macau Operations: | ||
| Wynn Palace | $ 2,819,349 | $ 2,813,190 |
| Wynn Macau | 1,399,308 | 1,412,795 |
| Other Macau | 807,672 | 778,928 |
| Total Macau Operations | 5,026,329 | 5,004,913 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
We are a designer, developer, and operator of integrated resorts featuring luxury hotel rooms, high-end retail space, an array of dining and entertainment options, meeting and convention facilities, and gaming, all supported by an unparalleled focus on our guests, our people, and our community. Through our approximately 72% ownership of Wynn Macau, Limited (“WML”), our concessionaire Wynn Resorts (Macau) S.A. (“Wynn Macau SA”) operates two integrated resorts in the Macau Special Administrative Region of the People’s Republic of China (“Macau”), Wynn Palace and Wynn Macau (collectively, our “Macau Operations”).
Key Operating Measures
Certain key operating measures specific to the gaming industry are included in our discussion of our operational performance for the periods for which the Condensed Consolidated Statements of Income are presented. These key operating measures are presented as supplemental disclosures because management and/or certain investors use these measures to better understand period-over-period fluctuations in our casino and hotel operating revenues. These key operating measures are defined below:
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Below is a discussion of the methodologies used to calculate win percentages at our resorts.
In our mass market operations in Macau, customers may purchase cash chips at either the gaming tables or at the casino cage. The measurements from our VIP and mass market operations are not comparable as the measurement method used in our mass market operations tracks the initial purchase of chips at the table and at the casino cage, while the measurement method from our VIP operations tracks the sum of all losing wagers. Accordingly, the base measurement from the VIP operations is much larger than the base measurement from the mass market operations. As a result, the expected win percentage with the same amount of gaming win is lower in the VIP operations when compared to the mass market operations.
In our VIP operations in Macau, customers primarily purchase rolling chips from the casino cage and can only use them to make wagers. Winning wagers are paid in cash chips. The loss of the rolling chips in the VIP operations is recorded as turnover and provides a base for calculating VIP win percentage. It is customary in Macau to measure VIP play using this rolling chip method. We typically expect our win as a percentage of turnover from these operations to be within the range of 3.1% to 3.4%.
Summary of first quarter 2025 results
The decrease in operating revenues for the three months ended March 31, 2025 was largely driven by decreased operating revenues of $132.8 million at our Macau Operations primarily as a result of lower VIP win as a percentage of turnover and mass market table games win, as well as a decrease in ADR across our properties.
The decrease in net income attributable to Wynn Resorts, Limited for the three months ended March 31, 2025 was primarily due to a decrease in operating revenues at our Macau Operations, partially offset by a decrease in operating expenses.
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Financial results for the three months ended March 31, 2025 compared to the three months ended March 31, 2024.
Operating revenues
The following table presents our operating revenues (dollars in thousands):
| Three Months Ended March 31, | Increase/ (Decrease) | Percent Change | ||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Operating revenues | ||||
| Macau Operations: | ||||
| Wynn Palace | $ 535,929 | $ 586,901 | $ (50,972) | (8.7) |
| Wynn Macau | 329,960 | 411,744 | (81,784) | (19.9) |
| Total Macau Operations | 865,889 | 998,645 | (132,756) | (13.3) |
Casino revenues
Casino revenues decreased primarily due to lower VIP win as a percentage of turnover and mass market table games win at our Macau Operations, partially offset by an increase in casino revenues from our Las Vegas Operations primarily due to higher slot machine handle.
The table below sets forth our casino revenues and associated key operating measures (dollars in thousands, except for win per unit per day):
| Three Months Ended March 31, | Increase/ (Decrease) | Percent Change | ||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Macau Operations: | ||||
| Wynn Palace: | ||||
| Total casino revenues | $ 444,508 | $ 473,781 | $ (29,273) | (6.2) |
| VIP: | ||||
| Average number of table games | 55 | 59 | (4) | (6.8) |
| VIP turnover | $ 4,005,041 | $ 3,921,085 | $ 83,956 | 2.1 |
| VIP table games win | $ 104,532 | $ 129,414 | $ (24,882) | (19.2) |
| VIP win as a % of turnover | 2.61% | 3.30% | (0.69) | |
| Table games win per unit per day | $ 21,096 | $ 24,276 | $ (3,180) | (13.1) |
Three Months Ended
March 31,
| 2025 | 2024 | Increase/ (Decrease) | Percent Change | |
|---|---|---|---|---|
| Mass market: | ||||
| Average number of table games | 247 | 245 | 2 | 0.8 |
| Table drop | $ 1,704,398 | $ 1,782,184 | $ (77,786) | (4.4) |
| Table games win | $ 422,392 | $ 437,323 | $ (14,931) | (3.4) |
| Table games win % | 24.8% | 24.5% | 0.3 | |
| Table games win per unit per day | $ 18,968 | $ 19,589 | $ (621) | (3.2) |
| Average number of slot machines | 650 | 573 | 77 | 13.4 |
| Slot machine handle | $ 734,869 | $ 595,621 | $ 139,248 | 23.4 |
| Slot machine win | $ 29,356 | $ 30,970 | $ (1,614) | (5.2) |
| Slot machine win per unit per day | $ 502 | $ 594 | $ (92) | (15.5) |
| Wynn Macau: | ||||
| Total casino revenues | $ 275,550 | $ 346,353 | $ (70,803) | (20.4) |
| VIP: | ||||
| Average number of table games | 30 | 30 | — | — |
| VIP turnover | $ 1,437,047 | $ 1,589,685 | $ (152,638) | (9.6) |
| VIP table games win | $ 15,714 | $ 53,906 | $ (38,192) | (70.8) |
| VIP win as a % of turnover | 1.09% | 3.39% | (2.30) | |
| Table games win per unit per day | $ 5,912 | $ 19,746 | $ (13,834) | (70.1) |
| Mass market: | ||||
| Average number of table games | 221 | 221 | — | — |
| Table drop | $ 1,542,885 | $ 1,683,151 | $ (140,266) | (8.3) |
| Table games win | $ 288,549 | $ 326,320 | $ (37,771) | (11.6) |
| Table games win % | 18.7% | 19.4% | (0.7) | |
| Table games win per unit per day | $ 14,520 | $ 16,194 | $ (1,674) | (10.3) |
| Average number of slot machines | 729 | 583 | 146 | 25.0 |
| Slot machine handle | $ 853,407 | $ 730,389 | $ 123,018 | 16.8 |
| Slot machine win | $ 24,367 | $ 26,192 | $ (1,825) | (7.0) |
| Slot machine win per unit per day | $ 372 | $ 494 | $ (122) | (24.7) |
| Poker rake | $ 3,220 | $ 5,019 | $ (1,799) | (35.8) |
Non-casino revenues
The table below sets forth our room revenues and associated key operating measures:
| | Three Months Ended
March 31, | | Increase/
(Decrease) | Percent
Change |
| --- | --- | --- | --- | --- |
| | 2025 | 2024 | | |
| Macau Operations: | | | | |
| Wynn Palace: | | | | |
| Total room revenues
(dollars in thousands) | $ 36,615 | $ 53,936 | $ (17,321) | (32.1) |
| Occupancy | 98.3% | 98.8% | (0.5) | |
| ADR | $ 222 | $ 337 | $ (115) | (34.1) |
| REVPAR | $ 218 | $ 333 | $ (115) | (34.5) |
| Wynn Macau: | | | | |
| Total room revenues
(dollars in thousands) | $ 23,297 | $ 28,619 | $ (5,322) | (18.6) |
| Occupancy | 99.1% | 99.4% | (0.3) | |
| ADR | $ 234 | $ 284 | $ (50) | (17.6) |
| REVPAR | $ 232 | $ 282 | $ (50) | (17.7) |
The decrease in total operating expenses was primarily due to lower casino expenses at our Macau Operations driven by a decrease in gaming tax expense and a decrease in depreciation and amortization expense at Encore Boston Harbor.
Casino expenses decreased $29.6 million and $11.0 million at Wynn Macau and Wynn Palace, respectively, which includes decreases of $30.8 million and $12.7 million in gaming tax expense at Wynn Macau and Wynn Palace, respectively, as a result of lower casino revenues.
Property charges and other expenses for the three months ended March 31, 2025 consisted primarily of asset abandonments of $4.8 million at our Macau Operations and contract termination costs of $5.8 million at Encore Boston Harbor. Property charges and other expenses for the three months ended March 31, 2024 consisted primarily of asset abandonments of $11.4 million at Wynn Palace and contract terminations and other expenses of $5.1 million at Corporate and other.
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Other non-operating income and expenses
We incurred a foreign currency remeasurement loss of $8.4 million and $4.7 million for the three months ended March 31, 2025 and 2024, respectively. The impact of the exchange rate fluctuation of the Macau pataca, in relation to the U.S. dollar, on the remeasurements of U.S. dollar denominated debt and other obligations from our Macau-related entities drove the variability between periods.
We recorded a loss of $29.5 million for the three months ended March 31, 2025, from change in derivatives fair value, primarily related to the conversion feature of the WML Convertible Bonds and foreign currency swaps. We recorded a loss of $17.9 million for the three months ended March 31, 2024, from change in derivatives fair value, primarily related to the conversion feature of the WML Convertible Bonds. For more information on the Company's derivative instruments, refer to Item 1 — “Notes to Condensed Consolidated Financial Statements,” Note 7, “Derivative Instruments.”
Net income attributable to noncontrolling interests
We recognized net income attributable to noncontrolling interests of $8.7 million and $32.3 million for the three months ended March 31, 2025 and 2024, respectively. These amounts are primarily related to the noncontrolling interests’ share of net income attributable to WML.
Segment Information
The following table summarizes Adjusted Property EBITDAR (dollars in thousands) for Wynn Palace, Wynn Macau, Las Vegas Operations, Encore Boston Harbor, and Corporate and other as reviewed by management and summarized in Item 1 — “Notes to Condensed Consolidated Financial Statements,” Note 17, “Segment Information.” That footnote also presents a reconciliation of Adjusted Property EBITDAR to net income attributable to Wynn Resorts, Limited.
| Three Months Ended March 31, | Increase/ (Decrease) | Percent Change | ||
|---|---|---|---|---|
| 2025 | 2024 | |||
| Wynn Palace | $ 161,885 | $ 202,370 | $ (40,485) | (20.0) |
| Wynn Macau | 90,199 | 137,186 | (46,987) | (34.3) |
Adjusted Property EBITDAR at Wynn Macau and Wynn Palace decreased $47.0 million and $40.5 million, respectively, for the three months ended March 31, 2025 primarily due to a combined decrease in casino revenues of $100.1 million, partially offset by a decrease in gaming tax expense.
17
During the three months ended March 31, 2024, the increase in cash flows from operating activities was primarily due to increased revenues from our Macau Operations and our Las Vegas Operations, which was partially offset by an increase in operating expenses associated with higher business volumes.
During the three months ended March 31, 2025, we incurred capital expenditures of $56.2 million at our Las Vegas Operations, $50.1 million at Wynn Palace, $15.5 million at Wynn Macau, and $4.7 million at Encore Boston Harbor primarily related to enhancements at our properties and maintenance capital expenditures, and $33.5 million at Corporate and other primarily related to future development projects.
During the three months ended March 31, 2024, we incurred capital expenditures of $24.7 million at our Las Vegas Operations, $11.8 million at Encore Boston Harbor, $29.5 million at Wynn Palace, and $17.3 million at Wynn Macau primarily related to enhancements at our properties and maintenance capital expenditures, and $14.4 million at Corporate and other primarily related to future development projects.
The below table presents proceeds from the issuance, repayments, and repurchases of the specified debt instruments during the three months ended March 31, 2024 (in thousands):
| Proceeds from issuance | Repayments and repurchases | |
|---|---|---|
| WM Cayman II Revolver, due 2025 | — | 149,663 |
The following table summarizes our unrestricted cash and cash equivalents and available revolver borrowing capacity, presented by significant financing entity as of March 31, 2025 (in thousands):
| Total Cash and Cash Equivalents | Revolver Borrowing Capacity | |
|---|---|---|
| Wynn Macau, Limited and subsidiaries | $ 1,490,599 | $ 353,280 |
Wynn Macau, Limited and subsidiaries. WML generates cash from our Macau Operations and may utilize proceeds from the WM Cayman II Revolver as needed. We expect to use this cash to service our WML Senior Notes, WM Cayman II Revolver, and WML Convertible Bonds, to pay dividends to shareholders of WML (of which we own approximately 72%), and to fund working capital and capital expenditure requirements at WML and our Macau Operations.
WML is a holding company and, as a result, its ability to pay dividends to WRF is dependent on WML receiving distributions from its subsidiaries. WML, as guarantor under the WM Cayman II Revolver facility agreement, may be subject to certain restrictions on payments of dividends or distributions to its shareholders, unless certain financial criteria have been satisfied. The WM Cayman II Revolver facility agreement contains representations, warranties, covenants and events of default customary for similar financings, including, but not limited to, restrictions on indebtedness to be incurred by WM Cayman II or its subsidiaries.
The WML Board of Directors has recommended the payment of a final dividend for the year ended December 31, 2024 of HK$0.185 per share on its common stock payable on June 11, 2025 to stockholders of record as of June 2, 2025. The payment of the final dividend is conditional upon shareholder approval at WML's 2025 Annual General Meeting to be held on May 23, 2025.
If our portion of cash available for repatriation was repatriated on March 31, 2025, it would be subject to minimal U.S. taxes.
We may refinance all or a portion of our indebtedness on or before maturity. We cannot assure you that we will be able to refinance any of the indebtedness on acceptable terms or at all.
Legal proceedings in which we are involved also may impact our liquidity. No assurance can be provided as to the outcome of such proceedings.
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New business developments or other unforeseen events may occur, resulting in the need to raise additional funds. We continue to explore opportunities to develop additional gaming or related businesses in domestic and international markets. There can be no assurances regarding the business prospects with respect to any other opportunity. Any new development may require us to obtain additional financing. We may decide to conduct any such development through Wynn Resorts, Limited or through subsidiaries separate from the Las Vegas, Boston or Macau-related entities.
We expect most of the revenues and expenses for any casino that we operate in Macau will be denominated in Hong Kong dollars or Macau patacas; however, a significant portion of the debt issued by WML is denominated in U.S. dollars. Fluctuations in the exchange rates resulting in weakening of the Macau pataca or the Hong Kong dollar in relation to the U.S. dollar could have materially adverse effects on our results, financial condition and ability to service debt.
In order to mitigate exposure to foreign currency fluctuations, in March 2025, the Company entered into three foreign currency swaps with the objective of managing foreign currency exchange rate risk associated with the U.S. dollar denominated 2026 WML 5 1/2% Senior Notes, 2027 WML 5 1/2% Senior Notes, and 2028 WML 5 5/8% Senior Notes. The foreign currency swaps exchange predetermined amounts of Hong Kong dollars for U.S. dollars at a contractual spot rate, have notional amounts of $800.0 million, $750.0 million, and $1.35 billion, and mature in January 2026, October 2027, and August 2028, respectively. For additional information, refer to Note 7, "Derivative Instruments" of Part I in this Quarterly Report on Form 10-Q.
Based on our balances as of March 31, 2025 and after giving effect to our foreign currency swaps, an assumed 1% change in the U.S. dollar/Hong Kong dollar exchange rate would cause a gain/loss of $12.5 million to our income before income taxes.
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This announcement contains forward-looking statements regarding operating trends and future results of operations. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those we express in these forward-looking statements, including, but not limited to, reductions in discretionary consumer spending, adverse macroeconomic conditions and their impact on levels of disposable consumer income and wealth, changes in interest rates, inflation, a decline in general economic activity or recession in the global economies, extensive regulation of our business, pending or future legal proceedings, ability to maintain gaming licenses and concessions, dependence on key employees, general global political conditions, adverse tourism trends, travel disruptions caused by events outside of our control, dependence on a limited number of resorts, competition in the casino/hotel and resort industries, uncertainties over the development and success of new gaming and resort properties, construction and regulatory risks associated with current and future projects, cybersecurity risk and our leverage and ability to meet our debt service obligations. Additional information concerning potential factors that could affect our Company's financial results is included in our published interim and annual reports. We are under no obligation to (and expressly disclaim any such obligation to) update or revise the forward-looking statements as a result of new information, future events or otherwise, except as required by law.
Our shareholders and potential investors are advised not to place undue reliance on the WRL Quarterly Report and to exercise caution in dealing in securities in our Company.
By order of the Board
Wynn Macau, Limited
Dr. Allan Zeman
Chairman
Hong Kong, 7 May 2025
As at the date of this announcement, the Board of Directors of the Company comprises Craig S. Billings and Frederic Jean-Luc Luvisutto (as Executive Directors); Linda Chen (as Executive Director and Vice Chairman); Ellen F. Whittemore and Julie M. Cameron-Doe (as Non-Executive Directors); Allan Zeman (as Independent Non-Executive Director and Chairman); and Lam Kin Fung Jeffrey, Bruce Rockowitz, Nicholas Sallnow-Smith and Leah Dawn Xiaowei Ye (as Independent Non-Executive Directors).
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