Wynn puts off dividends

Wynn Macau (1128) swung back into the black last year, driven by a strong recovery for Macau's gaming industry, but the casino operator indicated there was no timetable for resuming dividend payouts just yet.

The gaming firm posted an adjusted property earnings before interest, taxation, depreciation, amortization, and rent of US$953.9 million (HK$7.44 billion), compared to a loss of US$220.6 million in 2022, according to the earnings of its parent Wynn Resorts.

Operating income at the Macau business came in at US$465.7 million, compared to a loss of US$627.6 million in 2022, when China - the biggest source of visitors to Macau - was still grappling with Covid and lockdowns.

In the fourth quarter of 2023, Wynn Macau booked a better-than-expected adjusted property Ebitdar of US$297 million, as compared with a negative figure of US$59.1 million a year ago. Operating revenue for the quarter was US$169.8 million, compared to a loss of US$181.3 million over the same period of 2022.

Craig Billings, chief executive of both Wynn Macau and its parent, said the Macau gaming firm would focus on repaying debts and covering its capital expenditure before considering the resumption of dividend distribution in the next 12 to 18 months.

The company expects its annual capital expenditure to be between US$350 million and US$500 million before 2025.

Wynn is committed to investments amounting to US$2.2 billion, including US$2.05 billion in non-gaming operations, over the next 10 years when it signed shortened contracts with the Macau government to extend its concession by 10 years in late 2022.

Shares of Wynn rose 3 percent against the market yesterday, while the performances of its peers were mixed.