• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Features
  • Industry Talk
  • Trends & Tech
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Morgan Stanley trims Wynn Macau EPS outlook

Feb 07, 2017 Newsdesk Latest News, Macau, Top of the deck  


Morgan Stanley trims Wynn Macau EPS outlook

Morgan Stanley banking group has cut its earnings per share (EPS) estimates for Macau casino operator Wynn Macau Ltd due to the firm’s “higher than expected” fourth-quarter costs relating to, respectively, depreciation and amortisation, and finance.

“We cut our 2017-18 earnings per share estimates by 4 percent to 7 percent due to 10 percent and 5 percent higher than expected deprecation and amortisation and finance costs, respectively, in the fourth quarter,” said the note from analysts Praveen Choudhary, Alex Poon and Thomas Allen.

The institution now expects 2017 EPS to be flat compared to 2016, at HKD0.47 (US$0.0606) per share. It estimates the Wynn Macau group’s EPS for 2018 will be HKD0.63 compared to its previous estimate of HKD0.65.

But the Morgan Stanley team added, regarding a possible spring dividend announcement by the casino operator: “Regular/special dividend per share of HKD0.60 (4.4 percent yield) in March would be 40 percent higher than consensus and could be a catalyst.”

In August Wynn Macau Ltd opened the US$4.4-billion Wynn Palace gaming resort in the city’s Cotai district in a challenging market affected by factors including China’s ongoing anti-corruption drive. That is said by analysts to have moderated some of the demand by Chinese consumers for high-stakes gaming in Macau – a segment in which the Wynn Macau group has specialised.

Depreciation and amortisation costs for Wynn Palace in the three months ending December 31 were US$64.7 million, while those for Wynn Macau, on the city’s peninsula, were nearly US$24 million, according to Wynn Macau’s unaudited fourth-quarter earnings statement filed with the Hong Kong Stock Exchange on January 27.

The Wynn Macau group’s finance costs in the fourth quarter were nearly US$41.8 million, compared to US$19 million in the prior-year period.

Morgan Stanley noted in its memo: “We expect continued ramp-up of [Wynn] Palace through 2017, as mass [market] table yield and margins are still at a discount to industry averages.”

“In addition, operating costs [at Wynn Palace] will come down as efficiency improves, slot and non-gaming revenues (assuming VIP to have peaked) will continue to grow,” said the institution.

Wynn Macau Ltd’s fourth-quarter revenue rose by two thirds, but profit fell 27 percent year-on-year, the firm reported last month.


  • tweet
Related articles
  • Wynn reconfiguring Macau venues, eyes more market share
    Wynn reconfiguring Macau venues, eyes...

    Feb 05, 2021  

  • Premium mass helps Wynn Macau Ltd EBITDA break even 4Q
    Premium mass helps Wynn Macau Ltd...

    Feb 05, 2021  

More news
  • Int Ent half-year loss up, mulls financing for Manila IR
    Int Ent half-year loss up, mulls...

    Feb 25, 2021  

  • Kangwon licence extension to come with tax rejig: JP Morgan
    Kangwon licence extension to come with...

    Feb 24, 2021  


Latest News

Int Ent half-year loss up, mulls financing for Manila IR

Int Ent half-year loss up, mulls financing for Manila IR

Feb 25, 2021  

Hong Kong-listed International Entertainment Corp reported a loss attributable to shareholders of nearly HKD91.1 million (US$11.7 million) for the six months to December 31, according to a Wednesday...
Read More
Kangwon licence extension to come with tax rejig: JP Morgan

Kangwon licence extension to come with tax rejig: JP Morgan

Feb 24, 2021  

Galaxy Macau Phase 3 MICE to launch in stages says exec

Galaxy Macau Phase 3 MICE to launch in stages says exec

Feb 24, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day


US$390.2 million

Net loss posted by Macau casino operator SJM Holdings for full-year 2020



Most Popular

  • Macau casino GGR soared in final days of CNY: brokeragesMacau casino GGR soared in final days of CNY: brokerages February 23, 2021
  • Pansy Ho sells off more stock in MGM Resorts for US$36mlnPansy Ho sells off more stock in MGM Resorts for US$36mln February 23, 2021
  • Macau removes last mainland cities from its quarantine listMacau removes last mainland cities from its quarantine list February 23, 2021
  • GEG in US$1.6bln construction deal on Galaxy Macau Phase 4GEG in US$1.6bln construction deal on Galaxy Macau Phase 4 February 22, 2021
  • Caesars out of Korea, ex-partner R&F asks 3yr delayCaesars out of Korea, ex-partner R&F asks 3yr delay February 19, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us