JP Morgan projects Wynn Macau to generate property-level EBITDA of $1.20 billion in 2024

According to JP Morgan Securities LLC, property-level earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$1.20 billion is anticipated from Wynn Resorts Ltd.’s Macau operations in the 2024 fiscal year. This estimate represents an increase of 26.4 percent over the previous year, based on projections from the brokerage.

JP Morgan announced a higher estimate for full-year 2024 property EBITDA on Wednesday. This estimate is 5.3% higher than the brokerage’s prior projection.

The Macau market had caused several of the analysts, Ryan Lambert, Samuel Nielsen, and Joseph Greff, to reassess their assessment. They continued by saying that the sequential growth of Wynn Resorts’ Macau segment in 2024 would be aided by an improved fourth-quarter basis.

Wynn Resorts runs the Wynn Macau casino resort on the Macau peninsula and the Wynn Palace in Cotai via its subsidiary Wynn Macau Ltd.

In the three months ending on December 31, Wynn Resorts’ Macau operations are predicted by JP Morgan to produce property-level EBITDA of US$291 million, a sequential increase of 14.1 percent. This amount is 4.7% more than the brokerage’s initial projection.

The analysts did note that Wynn Macau’s gross gaming revenue (GGR) would rise if market share matches the third quarter of 2023, albeit emphasizing that their predictions are not best-case scenarios. They said that their margin forecasts are modest given the expected sequential increase in higher-margin retail sales.

Wynn Resorts is expected to report its fourth-quarter financial results on February 7 (U.S. time).

Additionally, according to a note released on Tuesday, Fitch Ratings Inc. has downgraded Wynn Resorts and a number of its subsidiaries, including Wynn Macau Ltd., to a first-time “BB-” issuer default rating with a stable outlook.

Original story by: GGRAsia