High Fourth-Quarter Profits for Wynn Macau

Wynn Macau recently announced its profit earnings for the fourth quarter and they were almost three times more (year-on-year), reaching US$179.23 million. This was mainly attributed to the brilliant performance at Cotai Wynn Palace, reported the company on Monday.

 

Wynn Macau Ltd, along with its parent company, Wynn Resorts Ltd. spoke to analysts on Monday regarding the full-year results and fourth-quarter earnings. The founder of the company, Steve Wynn, was reported saying that he had tremendous confidence in the potential of their Macau unit. He said that it would definitely succeed in maintaining gaming rights access once the present concession of the firm expires in 2022. The boss also said that his discussions with the government of the country had helped boost his confidence and he had a very positive outlook for his company’s growth in Macau. He added that they had always remained bullish when it came to Macau, primarily because the foundational strength and depth of the market is phenomenal.

 

According to the analysts from JP Morgan Securities, Sean Zhuang and DS Kim, the company will now be able to go ahead with the next phase of building Wynn Palace. But no further detail is available at the moment.

 

Mr. Wynn, while on a call, said that they had been given considerable encouragement by the Macau government in various conversations relating to filing their phase 2 plans for Wynn Palace. The plans are currently being worked upon.

 

A US$0.50 per share cash dividend was declared by Wynn Resorts and will be payable to shareholders (recorded as on Feb 15) at the end of February. The total revenues of the operation for the last 3 months of the previous year amounted to US$1.31 billion, indicating a 43.1 percent increase from the earnings recorded for the same time period in 2016 (US$917.1 million).

 

Wynn Macau’s net revenues in the old downtown casino area were recorded at US$618.6 million. These revenues pertained to the final quarter of the year 2017 and were up by 27.1% from the previous year. The adjusted earnings i.e. EBITDA for Wynn Macau in the fourth quarter were US$186.0 million.

 

The total table drop for Wynn Macau was recorded at US$1.25 billion, indicating an increase of 14.1% from 2016 (same time period). The win for table games in commercial operations was recorded at US$230.1 million, pointing towards an increase of 18.6% from 2016.