Shares of Wynn Macau (1128) and MGM China (2282) jumped yesterday by 7.2 and 9.2 percent respectively though they both reported losses in the fourth quarter of last year.
Wynn Macau saw its net loss widen by 13.3 percent to US$236 million (HK$1.83 billion) in the fourth quarter from 12 months previously. Its operating loss also widened by 43.6 percent to US$181.2 million from a year earlier.
And MGM China recorded negative adjusted earnings before interest, taxes, depreciation and amortization of HK$402 million in the fourth quarter of 2022 compared with a negative adjusted EBITDA of HK$114 million in the corresponding period in 2021.
But analysts including Andrew Lee at Jefferies believe investors' focus has turned away from Macau casino operators' financial results last year to prospects for this year, believing they are already seeing strong pointers.
Craig Billings, chief executive of Wynn Resorts, the parent of Wynn Macau, said the firm "was pleased to experience a meaningful return of visitation and demand" during the Lunar New Year holiday period. "We believe we are well-positioned for success in Macau's next phase of growth," he said.
Other Macau gaming stocks also rose in Hong Kong yesterday, with Sands China (1928) soaring 5.4 percent and Galaxy Entertainment (0027) gaining 3.2 percent.
Macau last month posted an 82.5 percent rise in gambling revenue to 11.6 billion patacas (HK$11.2 billion), which beat expectations.
Wynn Macau’s losses widened. REUTERS
