Tuesday, May 28, 2024 - Login

Palace performance offsets weaker Peninsula


Casino operator Wynn Macau Limited reported net profit of $90 million in the third quarter of 2017, pushed up by strong performance from Wynn Palace.

Total operating revenue reached $1.2 billion in the three months to September 30, up from $682.7 million in the prior year period.

Adjusted property EBITDA for Macau operations was $321.4 million, up 82 percent year-on-year, in line with analyst estimates.

Analysts from Morgan Stanley said the biggest surprises came from Palace EBITDA ramping up faster than expected, but warned that the fast ramp up could mean slow growth trajectory in 2018/19.

The analysts also noted that Cotai properties have been stronger than Peninsula properties this quarter, opposite to the trends seen in the first half of the year. The same was observed from Sands Macao vs other Sands properties, said the brokerage.

The brokerage also noted that Wynn had reported a $19 million charge for typhoon damages, which suggest they did not have the same level of insurance cover as that of Sands, who did not take any charge in the quarter.

As for the parent company, Wynn Resorts, net income came in at $79.8 million in the third quarter. The net income is an upswing compared to a net loss of $17.4 million recorded in the third quarter of 2016.

Net revenues for the group were $1.6 billion, an increase of 45.4 percent, while adjusted property EBITDA was $473 million, registering an increase of 54.8 percent.

The casino operator said the increase in revenue was the result of an increase of $390.7 million from Wynn Palace, as well as increases of $79.3 million and $32.5 million from Wynn Macau and its Las Vegas Operations, respectively.

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

Contact us

ASIA GAMING BRIEF
PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264

Asia Gaming Brief