Wynn Macau falls as earning disappoint

Business | Staff reporter and Reuters 9 Nov 2018

The share price of Wynn Macau (1128) tumbled 10 percent yesterday after its parent Wynn Resorts in the United States failed to meet estimates for its quarterly earnings.

The hotel and casino company reported earnings of US$1.68 (HK$13.10) per share in the third quarter ended September 30, while analysts expected US$1.69 per share, according to a survey of analysts by Refinitiv.

But the company did well in revenue generation, making revenue of US$1.71 billion and surpassing an estimate of US$1.66 billion.

The company has warned of a slowdown in its biggest market in Macau, since Golden Week in October, in which the market contributed 70 percent of total revenue.

Operating revenues at Wynn Palace and Wynn Macau - both properties in the former Portuguese colony and the only Chinese territory where casino gambling is legal - rose 39.1 per cent and 3.1 per cent, respectively.

Revenues at its Las Vegas operations slid 14.1 per cent to US$398.9 million.

However, chief executive Matthew Maddox said that while China's national Golden Week holiday proved strong, "what we've seen post-Golden Week has been a slowdown," the Financial Times reported.

He noted that since Golden Week it has been "quite choppy" midweek and weekends have been "sporadic" and said "what we've seen more recently is murky."

During the period, table games turnover in VIP operations was US$15.53 billion in Wynn Palace, a 13.4 percent increase from US$13.69 billion.

At Wynn Macau, table games turnover in VIP operations amounted to US$13.97 billion, a 4.4 percent increase from US$13.37 billion.

In October, Macau posted its highest monthly gaming revenue since 2014, bolstered by solid demand from Chinese punters keen to play in the country's only legal casino hub.

Revenue rose 2.6 percent from a year earlier to 27.3 billion patacas (HK$26.5 billion) last month, according to Macau's Gaming Inspection and Coordination bureau. This was aided in part by a week-long national holiday when most of Macau's hotels operated at close to maximum capacity and visitor numbers jumped 7 percent on year.

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