Wynn Macau’s earnings surged 32% in the fourth quarter on a 25% increase in net revenue to US$1.12 billion.
The announcement accompanying parent Wynn Resorts’ results showed adjusted earnings before interest, taxes, depreciation and amortization at $374.2 million, up from $283.2 million in the year-ago period, beating the consensus of 10 analysts polled by Bloomberg, as the casino drew more big-spending cash players.
Wynn Macau (HK:1128) “gained mass-market share as it converted 12 to 13 VIP gaming tables to mass in mid-October,” wrote Deutsche Bank analyst Karen Tang.
The lucrative segment could grow further this year after the company renovates its second hotel tower, said Morgan Stanley analyst Praveen Choudhary.
The company also is expanding onto the booming Cotai resort district with the $4 billion Wynn Palace scheduled to open in early 2016.
The Macau subsidiary was the biggest driver of corporate earnings in the quarter. Net income for Wynn Resorts (Nasdaq: WYNN) nearly doubled to $213.9 million, or $2.10 per share, from $111.4 million ($1.10/share) in Q4 2012, on an 18% increase in revenue to $1.52 billion, of which $400 million was generated by the company’s two resorts on the Las Vegas Strip.
For the year, net revenues were $5.62 billion, up 9.1% over 2012. Adjusted property EBITDA grew 14.9% for a record $1.81 billion, driven principally by a record performance at Wynn Macau, where adjusted EBITDA rose 13.4% to $1.32 billion.
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