Wynn Macau Ltd raised its final dividend for 2025 to HK$0.223 per share, up from HK$0.185 last year, despite a it had a sharp drop in revenue.
Company announced about it with the full-year results, which showed net profit attributable to shareholders fell 49% to HK$1.63 billion (US$208 million).
The decline in finance income due to losses from fluctuations in fair value of derivatives. While the reduction was primarily due to external factors such as lower revenues generated through casino operations due to the COVID-19 pandemic, the increase in dividends shows that management still remains committed to rewarding their shareholders and continuing to provide returns during a very challenging market.
For end of 2025, total operating revenues increased by only 0.9% to HK$29.0 billion (US$3.70 billion). The driving force behind the revenue growth continued to be the gaming segment, which increased 3.4% to HK$24.4 billion (US$3.11 billion) due to favourable conditions in the gaming environment surrounding the Wynn Palace.
Also contributing to the growth in revenues from the gaming segment, was that revenues from mass market table games were stable, increasing 2.3% to HK$22.8 billion (US$2.91 billion); as well revenues from slot machines rose significantly by 9.7% to HK$1.82 billion (US$232 million), reflecting the strength of the mass market segment. However the decline in the revenue produced by the VIP and high end gaming segment at Wynn Macau had a negative impact as well.
On the contrary, non-gaming revenues decreased by 10.8% to HK$4.57 billion (US$583 million), which represents the continued operating challenges the company faces in the hospitality, food & beverage and retail segments.
The dividend increase was received positively by analysts; J.P. Morgan noted that payout was approximately 20% higher than expectations resulting in a full year yield of 7.7%.
Additionally, J.P. Morgan stated that, unlike many competitors, the Wynn Macau casino does not utilise a static fixed payout ratio policy for dividends, instead focusing on returning value to shareholders through attractive allocation of funds to per-share returns. As such, if the firm could keep or raise its dividend payouts to its holders at HKD 0.446 each year, the dividend yield will be roughly 8.4% at current share prices.
While profits were adversely affected by a large loss in 2025, they were protected from broader trends by a relatively solid revenue stream from very large amounts of gaming. Wynn Palace’s performance contributed overall to the company’s results; however, the company experienced slower growth from its VIP customers and non-gaming activities than other casinos.
