According to analysts, Wynn Macau should be cautious despite its strong financial position.<\/p>\n\n\n\n\n\n\n\n
Macau.- Despite reporting a strong liquidity profile and high cash balance, Macau casino operator Wynn Macau should not resume dividend payments too quickly because it would be highly credit negative, analysts say.<\/p>\n\n\n\n
According to a report from Singapore-based research firm Lucror Analytics, Wynn Macau’s current financial situation should support the casino operator through the Covid-19 crisis, but it should “remain cautious”.<\/p>\n\n\n\n
Lucror Analytics said it considered there were risks associated with Wynn Macau’s ownership by Wynn Resorts given the Macau unit\u2019s \u201chistory of paying large dividends to the parent company\u201d. US-based Wynn Resorts owns a 72 per cent stake in Wynn Macau.<\/p>\n\n\n\n
Analyst Leonard Law wrote: “Our fundamental credit bias on Wynn Macau [Ltd] is \u2018negative\u2019, on account of its weakened earnings. We expect the company\u2019s financial profile to deteriorate materially in fiscal-year 2020, before recovering slightly in fiscal-year 2021.<\/p>\n\n\n\n
“We foresee fourth-quarter revenues will recover to 45 per cent of pre-pandemic levels, which should allow the company to generate slight positive EBITDA.<\/p>\n\n\n\n
\u201cAssuming a zero-revenue scenario, the company will incur operating losses of US$2 million per day, or circa US$60 million per month, Still, Wynn Macau has sufficient cash balance to withstand 24 months of cash burn with zero revenue, after accounting for capex and interest.\u201d<\/p>\n\n\n\n
Wynn Macau runs the Wynn Macau complex on the city\u2019s peninsula and the Wynn Palace casino resort in the Cotai district.<\/p>\n","protected":false},"excerpt":{"rendered":"
According to analysts, Wynn Macau should be cautious despite its strong financial position.<\/p>\n","protected":false},"author":2,"featured_media":11336,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Analysts advise Wynn Macau to exercise caution regarding dividend resumption, despite its strong liquidity, as it could be credit negative. Lucror Analytics highlights risks associated with Wynn Resorts' ownership, given past large dividend payments from the Macau unit to its parent. While Wynn Macau can withstand significant cash burn, its earnings remain weakened, with a projected recovery in FY2021.","focusai_entities":"Wynn Macau, Wynn Resorts, Lucror Analytics, Leonard Law","focusai_location":"Macau, Singapore, US","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Dividend Policy Impact","query":"What specific credit rating implications could arise if Wynn Macau disregards analyst recommendations and resumes dividend payments to Wynn Resorts prematurely?"},{"label":"Macau Market Recovery","query":"How do current Q4 revenue recovery projections for Wynn Macau compare to the broader Macau gaming market's trajectory, and what are the key drivers or inhibitors for sustained recovery into FY2021?"}],"footnotes":""},"categories":[160,16338,163],"tags":[257,20777],"class_list":["post-11334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-east-asia-news","category-finance-news","tag-macau","tag-wynn-macau"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/11334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=11334"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/11334\/revisions"}],"predecessor-version":[{"id":11343,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/11334\/revisions\/11343"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/11336"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=11334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=11334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=11334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}