Analysts at CreditSights say Wynn Macau’s EBITDAR could be driven by mass market gains and improving cost efficiencies.<\/p>\n\n\n\n\n\n\n\n
Macau.- \u00a0CreditSights<\/strong>, a division of the Fitch group, has forecast that Wynn Macau could generate approximately\u00a0US$917m in adjusted earnings before interest, taxation, depreciation, amortisation and rent (EBITDAR) in 2023. That’s 2.8 per cent above its previous best-case scenario.<\/p>\n\n\n\n Analysts said the gaming operator’s product mix had shifted towards more margin-friendly mass markets, along with higher-than-expected business volumes and improved cost efficiencies. For the second quarter of this year,\u00a0Wynn Macau<\/a>\u00a0reported consolidated income of US$127.5m, reflecting a\u00a0171 per cent increase<\/strong>\u00a0compared to the\u00a0first quarter<\/a>. Adjusted property EBITDAR reached US$246.2m, up 58 per cent.<\/p>\n\n\n\n The recovery has taken off since the lifting of travel restrictions earlier this year. CreditSights highlighted Wynn’s daily mass drop, exceeding 120 per cent of 2019 levels in July. Analysts said this demonstrated the robustness of the Macau-based operations and positioned Wynn Macau favourably.<\/p>\n\n\n\n Analysts said they see Wynn Macau bonds as an attractive investment opportunity, offering a higher yield compared to US operators in the same sector.MGM China Holdings, which operates MGM Macau and MGM Cotai, has 5.875-per cent notes maturing in 2026 at a 7.7 per cent yield, while Wynn Macau has 5.5-per cent notes maturing in 2026 at a 8.2 per cent yield.<\/p>\n","protected":false},"excerpt":{"rendered":" Analysts at CreditSights say Wynn Macau’s EBITDAR could be driven by mass market gains and improving cost efficiencies.<\/p>\n","protected":false},"author":176,"featured_media":25750,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"CreditSights forecasts Wynn Macau's 2023 adjusted EBITDAR at US$917m, exceeding prior estimates, driven by a strategic shift towards margin-friendly mass market segments and enhanced operational efficiencies. The robust recovery post-travel restrictions, evidenced by daily mass drop exceeding 2019 levels, positions Wynn Macau's bonds as an attractive investment opportunity compared to sector peers.","focusai_entities":"CreditSights, Fitch group, Wynn Macau, MGM China Holdings, MGM Macau, MGM Cotai","focusai_location":"Macau, US","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Mass Market Sustainability","query":"What specific operational or marketing strategies is Wynn Macau implementing to sustain and further grow its mass market segment's contribution to NGR, particularly given potential future shifts in VIP or premium mass dynamics?"},{"label":"Capital Structure Implications","query":"How might Wynn Macau's improved EBITDAR performance and attractive bond yields influence its future capital structure decisions, including potential refinancing strategies or capital expenditure allocations for non-gaming diversification?"}],"footnotes":""},"categories":[16338,163],"tags":[23906,20777],"class_list":["post-777008160","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-finance-news","tag-macau-casinos","tag-wynn-macau"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777008160","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\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777008160"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777008160\/revisions"}],"predecessor-version":[{"id":777008173,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777008160\/revisions\/777008173"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/25750"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777008160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777008160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777008160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}