• 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

Wynn Palace to outperform Cotai competition: Fitch

May 25, 2016 Newsdesk Latest News, Macau, Top of the deck  


Wynn Palace to outperform Cotai competition: Fitch

Fitch Ratings Inc expects the US$4.2-billion Wynn Palace “will outperform” other casino resorts opening in Macau’s Cotai district.

The credit ratings agency forecasts the property to generate around US$580 million in earnings before interest, taxation, depreciation and amortisation (EBITDA) in 2017.

U.S.-based Wynn Resorts Ltd and its subsidiary Wynn Macau Ltd have yet to provide a date for when in the third quarter the under-construction Wynn Palace casino resort (pictured in a file photo) will open. The project was previously scheduled to open on June 25, after a plan to launch it on March 25 was dropped.

The opening of Wynn Palace is considered by several investment analysts to be a major milestone for Wynn Macau and parent Wynn Resorts. The group currently only has one property in operation in Macau – the Wynn Macau casino hotel.

Wynn Resorts’ management said in April it expected Wynn Palace to generate 2017 EBITDA of between US$630 million and US$850 million. Some investment analysts covering the firm considered at the time that to be a “very bullish” forecast.

MGM China’s under construction new resort on Cotai (pictured) is scheduled to open in the first quarter of 2017, according to an announcement in February. MGM Cotai was previously slated for a fourth quarter 2016 launch.

Sands China Ltd’s chairman and chief executive Sheldon Adelson said, on a conference call with investment analysts in April, that his firm was targeting a mid-September opening for its US$2.7-billion Parisian Macao on Cotai.

“Fitch’s stronger confidence in Wynn Palace takes into account Wynn Resorts’ ability to transfer underutilised resources to Cotai from [the Wynn Macau casino hotel in the] peninsula including approximately 50 tables and US$100 million of annualized labour costs,” the credit ratings agency stated in a Tuesday note.

Fitch stated its optimistic view on Wynn Palace also factored “Wynn Macau’s relatively healthy mass market utilisation statistics throughout the recent downturn.”

It noted that mass market win per table per day at Wynn Macau casino hotel declined by 38 percent since the Macau market peak’s in the first half of 2014, “which is decent considering the number of mass table games at Wynn Macau increased by 28 percent and market-wide mass market revenues declined by about 30 percent.”

Fitch said its forecasts assumed Wynn Macau’s share of the Macau gaming revenue market would increase to about 13 percent by 2018 compared to 10 percent in 2010.

“We expect Wynn Resorts to consolidate market share in Macau with its Wynn Palace opening in the third quarter of 2016 and grow revenues at a faster pace than the market in 2016 and 2017,” the credit ratings agency stated.

A Monday note from brokerage Sanford C. Bernstein Ltd said, regarding the prospects for Wynn Palace: “Should [Macau] VIP rebound faster than expected, it could disproportionately benefit the company as Wynn will possess coveted VIP-oriented product offerings.”

In its Tuesday note, Fitch affirmed its issuer default rating for Wynn Macau at ‘BB’, i.e., below investment grade. Wynn Macau’s rating outlook was labelled ‘stable’.


  • tweet
Related articles
  • Yokohama announces RFP timeline for casino bid
    Yokohama announces RFP timeline for...

    Jan 22, 2021  

  • Sands China sixth Macau op to pledge staff extra payment
    Sands China sixth Macau op to pledge...

    Jan 21, 2021  

More news
  • Digital yuan eventually for Macau mass bets mulls Bernstein
    Digital yuan eventually for Macau mass...

    Jan 22, 2021  

  • Macau Covid-19 case no bar to mainland travel ties
    Macau Covid-19 case no bar to mainland...

    Jan 22, 2021  


Latest News

Digital yuan eventually for Macau mass bets mulls Bernstein

Digital yuan eventually for Macau mass bets mulls Bernstein

Jan 22, 2021  

Were China’s central government-backed digital yuan (CNY) to be adopted in Macau for casino chip transactions, it could in the long run benefit mass and premium-mass play, as cross-border money...
Read More
Macau Covid-19 case no bar to mainland travel ties

Macau Covid-19 case no bar to mainland travel ties

Jan 22, 2021  

Mohegan seeks govt nod to delay Inspire opening

Mohegan seeks govt nod to delay Inspire opening

Jan 22, 2021  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Partners

Pick of the Day

"The entire company is eagerly anticipating the launch of our newest themed destination – The Londoner Macao"

Wilfred Wong Ying Wai

President of Macau-based casino operator Sands China



Most Popular

  • Sands China sixth Macau op to pledge staff extra paymentSands China sixth Macau op to pledge staff extra payment January 21, 2021
  • Londoner Macao first phase launch Feb 8 says Sands ChinaLondoner Macao first phase launch Feb 8 says Sands China January 21, 2021
  • Wynn and Melco also flag bonus for Macau staffWynn and Melco also flag bonus for Macau staff January 19, 2021
  • Investors see 2H Macau gain, rebound 2022: BernsteinInvestors see 2H Macau gain, rebound 2022: Bernstein January 19, 2021
  • Melco likely to take on more debt for expansion: Moody’sMelco likely to take on more debt for expansion: Moody’s January 20, 2021
Copyright 2014-2020 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us