The board of Macau-based casino operator Wynn Macau Ltd has recommended a final dividend of HKD0.45 (US$0.0573) per share in respect of calendar year 2018, with a proposed payment date of June 19.
The dividend – subject to approval at the company’s forthcoming annual general meeting – will be paid to shareholders whose names appear on the register on June 10, the Hong Kong-listed company said in a filing on Thursday.
Commenting on Wynn Macau Ltd’s dividend payment announcement, JP Morgan Securities (Asia Pacific) Ltd said: “Full-year dividend per share implies a 100-percent payout for fiscal year 2018, which is the lowest level in five years and materially below last year’s 134 percent.”
According to the brokerage, the payout ratio for the final dividend was “only” 73 percent in the second half 2018, “much lower” than the interim 129-percent payout in first half 2018.
“This probably suggests that management is incrementally more cautious in its outlook at this juncture (as it indicated on the last two earnings calls), as the company won’t have any material capex spend until 2021 (when Crystal Pavilion capex kicks in inearnest),” said analyst DS Kim in a Friday memo. “This could weigh on near-term sentiment for the stock.”
Crystal Pavilion has been described by the casino operator’s management as a large glass structure – offering several non-gaming features – to be built on the podium level of a new hotel tower planned for the Wynn Palace casino resort (pictured), a company property located in Macau’s Cotai district.
Matt Maddox, chief executive of U.S.-based Wynn Resorts Ltd and of Wynn Macau Ltd, said in November that the group planned to add two hotel towers to Wynn Palace.
The dividend payment announcement was included in Wynn Macau Ltd’s annual results filing. The main information on the firm’s 2018 performance already had been disclosed in January by parent Wynn Resorts. Wynn Macau Ltd reported a net profit of nearly HKD6.25 billion for full-year 2018, an increase of 68.8 percent in year-on-year terms.
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Analyst at Roth Capital Partners