- Wynn Resorts (WYNN +2.1%) CEO Steve Wynn issued a strong outlook for the Macau sector during yesterday's conference call.
- The long-time casino heavyweight said the company was generating midweek business in the mass casino in the $3M and $4M day level during a period it expected a post-New Years Day slowdown.
- Wynn also laid out why in some respects Macau is still in the early innings. "I stress to people who were interested in our company and who invest in gaming that the Macau market is still only touching a tiny percentage of the potential market that's there. And as these hotels gain public acceptance, we notice the really important changes," he noted.
- Susquehanna analyst Rachael Rothman issued a similar appraisal on the sector last week.
- "The recent acceleration in Macau's mass market growth is a positive and makes us incrementally more optimistic on the 2018 outlook for Macau," wrote Rothman.
- "The acceleration in mass market growth, if at least partially sustainable, will translate into lower cannibalization from the three new mass market casino openings in 2018, support higher EBITDA margins and cash flow, and potentially lower volatility," she predicted.
- Shares of Wynn topped $200 for the first time since 2014.
- Wynn earnings call transcript
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