Key Takeaways:
Wynn Macau Ltd reported second-quarter adjusted property EBITDAR of USD 297 million, up 17% year over year and beating estimates on stronger mass table hold.
The earnings beat was driven by higher-than-normal mass table hold, which lifted mass gross gaming revenue about 6% quarter over quarter, UBS said in a research report. After adjusting for VIP hold rate factors, EBITDA reached USD 306 million, above market expectations of about USD 280 million.
Adjusted property EBITDAR rose about 6% sequentially from the March quarter, with the property's mass-market win rate running above its historical range. The broker maintained its Buy rating on Wynn Macau with a target price of HKD 7.
The results underscore resilient premium-mass demand in Macau, where parent Wynn Resorts Ltd reported group-wide operating revenue of USD 1.86 billion for the June quarter, up 6.9% from a year earlier. Shares of Wynn Macau traded 3.1% higher on the day, while the broader Macau gaming sector drew fresh attention from investors tracking the recovery in the city's casino market.
Wynn Macau's combined Macau operations generated operating revenue of about USD 1.0 billion in the quarter, up 13.7% year over year, aided by a 21.1% jump at the Cotai flagship Wynn Palace. The property's mass table win percentage surged to 29.7% from 22.3% a year earlier, while slot machine win climbed 25.3%.
The beat signals continued strength in the premium-mass segment that has driven Macau's recovery, even as VIP turnover declined. Investors will watch whether the elevated mass hold rate persists into the third quarter, when the city's gaming operators report interim results and update on concession-related investment commitments.
This article is for informational purposes only and does not constitute investment advice.
