Wynn Palace continues to drive performance in 17Q4

Casino operator Wynn Macau saw its net profit increase more than 300 percent in the fourth quarter of 2017, reaching $187.2 million, according to a results release on Monday.  

Total revenue from the Macau arm reached $1.3 billion in the quarter, compared to only $917.1 million recorded in the year before, while adjusted property EBITDA reached $376 million, beating market consensus.

According to the results, the revenue jump came mainly from an increase in casino revenues, which rose 46.9 percent year-on-year, compared to the fourth quarter of 2016.

In particular, Wynn Palace saw strong than expected VIP and mass.

“The ramp up at Wynn Palace was anchored by strong share taking in mass. Rolling volume at Palace was 104 percent of Peninsula, while mass GGR was 118 percent of Peninsula. Slots at Palace showed accelerating ramp up, over 31 percent quarter-on-quarter. With the newly expanded Red 8 restaurant, a converted café and continued marketing program and the opening of MGM Cotai next week, foot traffic should continue to improve,” said Bernstein.

Robin Farley, an analyst at UBS Investment Research said the above expected EBITDA was driven by VIP win rate and sequential ramp up of Wynn Palace.