JP Morgan Securities (Asia Pacific) Ltd, Wynn Macau Ltd outperformed the rest of the Macau casino sector in terms of the sequential gain in gross gaming revenue during the fourth quarter, according to a report issued on Thursday.
This decision was brought about by the US-based parent company of the business, Wynn Resorts Ltd., disclosing its performance for the three months that ended on December 31st.
The parent company of Wynn Macau Ltd. has been concerned about the timing of potential dividend payments from the company. However, analysts DS Kim, Mufan Shi, and Selina Li believe that dividends will resume the following year, in fiscal year 2024, with payments expected in the calendar year 2025, possibly beginning in March 2025.
According to JP Morgan, Wynn Macau Ltd., the firm that oversees Wynn Macau downtown and Wynn Palace on Cotai, achieved “solid market share” in the fourth quarter, exceeding expectations, even though there is more competition for higher-value enterprises in the market. Wynn Macau Ltd.’s gross gaming revenue increased by 12% sequentially during the quarter, above the 8% growth average for the industry.
According to the experts, Wynn Macau Ltd.’s mass gross gaming income and VIP gross gaming revenue grew faster than the whole market during the quarter. While VIP gross gaming revenue rose 11% sequentially, outperforming the market’s high-single-digit growth trend, mass gross gaming revenue climbed 17% over pre-Covid levels and 11% consecutively.
JP Morgan credited Wynn Macau Ltd.’s outstanding success to its ability to stay competitive despite rivals’ recent supply ramp-ups. Two prominent instances of the new competition that has been highlighted are the Studio City Phase 2 extension by Melco Resorts & Entertainment Ltd. and the Galaxy Macau Phase 3 building by Galaxy Entertainment Group Ltd.
Furthermore, due mostly to exceptional operational performance and fortunate VIPs, Wynn Macau Ltd.’s property earnings before interest, taxes, depreciation, and amortization (EBITDA) above both JP Morgan’s projections and the market consensus by about US$297 million. The company’s productivity and profitability increased as seen by the fourth-quarter EBITDA margin, which increased to 32.6 percent from 32.6 percent in the previous quarter.
Original story by: GGRAsia
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