Deutsche Bank forecasts mass GGR of US$2.99bn Wynn Macau in 2024
Analysts at Deutsche Bank have predicted that Wynn Macau’s mass gaming revenue will rise 10 per cent against 2019 levels.
Macau.- Wynn Macau is expected to see significant growth in mass gross gaming revenue (GGR), according to a note issued by Deutsche Bank analysts Carlo Santarelli and Steven Pizzella. They expect mass GGR to rise 10 per cent against 2019 levels in 2024 to reach US$2.99bn.
They base their forecast on the growth of China’s GDP, relative to 2019, and a shift in Wynn’s strategy to focus more on the premium mass segment to offset the VIP shortfalls. Recent periods of intermittent growth saw mass gaming trends reach 2019 levels despite logistical challenges for travellers.
According to Asian Gaming Brief, in its previous estimate, Deutsche Bank predicted the VIP market would return to 37 per cent of 2019 levels in 2024. However, if analysts’ mass and VIP GGR estimates hold true, the mix in 2024 would shift to 76 per cent mass (51 per cent in 2019) and 24 per cent VIP (49 per cent in 2019).
In February Macau visitation and GGR values were both only 57 per cent of 2019 levels, visitation was up to 143.1 per cent and GGR at 55 per cent when compared to last year. Factors that may contribute to Macau’s recovery include the relaunch of tour groups. The Statistics and Census Service (DSEC) has recently reported that 16,200 tourists from mainland China visited Macau on package tours in the three weeks of operations.
Wynn Macau posts US$787.5m in operating revenue for 2022
Wynn Macau has reported that its operating revenue for 2022 decreased by 52.2 per cent on year-on-year terms to MOP6.37bn (US$787.5m). Operating revenues decreased by US$473.75m at Wynn Palace and US$314.8m at Wynn Macau due to decreased gaming volumes resulting from travel restrictions related to the Covid-19 pandemic.
Wynn Palace’s casino revenues dropped by 62.3 per cent year-on-year to US$255.9m, and Wynn Macau experienced a 54.6 per cent year-on-year decrease to US$216.6m. Adjusted property EBITDAR for Wynn Palace and Wynn Macau decreased by US$188.2m and US$128.3m respectively.
The company had US$3.65bn in cash and cash equivalents, excluding restricted cash, as of December 31, 2022, and US$837m in borrowing capacity.
