Wynn mass expected to grow
Macau’s overall economy should grow 5.2 percent in 2017 and 5.3 percent in 2018 according to the Economist Intelligence Unit, reported the Macau Daily Times.
The publication by the EIU based its forecast on increased gaming revenues and improvement of the total economic climate. Macau’s gross domestic product declined for the third straight year in 2016, but the second half saw year-on-year growth and the final quarter of the year saw growth of 7 percent, the Times reported.
A 26-month declines that started in summer 2014 finally eased in August 2016, with February recording the highest growth in the preceding seven months, up 17.8 percent to MOP 22.991 billion (US$2.873 billion). Accumulated gross revenues in the first two months of 2017 came to MOP 42.246 billion (US$5.280 billion), a 10.6 percent increase year-on-year.
The Asia Gaming Brief cites analysts who predict that gross gaming revenues will “moderate” in March. Buckingham Research Group expects March GGR growth of 10 percent to 12 percent. Sanford Bernstein is expecting a range of 9 percent to 11 percent.
“With respect to individual operators, the devil remains largely in the details regarding the breakdown between VIP and mass and overall market shares,” wrote the Bernstein team.
Wynn Macau Ltd., which was viewed as primarily a VIP property, “could see meaningful mass market share gain” in 2017, according to a new report from investment bank Morgan Stanley. The Morgan Stanley team forecast that mass table gaming revenue growth at the new $4.4 billion Wynn Palace in the Cotai district could rise 14 percent year-on-year.
“Since the opening of Wynn Palace, management has made a number of strategic and operational changes to drive increased awareness, traffic and mass gaming volumes,” the investment bank said. “Management has reconfigured its casino floor at the Palace, including adding two themed slot sections and a new poker area, increasing the property’s mass appeal. Management has also reduced the overall casino square footage, which it believes is helping drive higher energy on the floor.”
