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Wynn Resorts Ltd WYNN Stock Quote

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Morningstar‘s Stock Analysis WYNN

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Macao Demand Set to Wake Up With Planned Easing of Restrictions; Near-Term Still Highly Uncertain

Dan Wasiolek Senior Equity Analyst

Analyst Note

| Dan Wasiolek |

Our forecast for a Macao demand recovery starting in November after China’s Communist party convention in October gathered momentum this past weekend, with the region planning to reinstate group and eVisa travel for mainland China (around 70% of prepandemic Macao visits) as early as late October. This would prove to be a material step forward in Macao’s recovery, with near-term targets to at least double visitation from recent levels to 40,000 per day. Given 2019 averaged about 110,000 visits per day, we think achieving this target could translate to Macao gross gaming revenue, or GGR, reaching 40% of prepandemic marks as soon as November. This would align with our 40%-50% level forecast for the final two months of 2022. As a result, we plan to maintain our 2022 Macao industry GGR forecast at low- to mid-20s of 2019’s level. Meanwhile, government leadership set a goal for at least 80,000 daily visits in the medium term, which we believe can equate to industry GGR of more than 70% of 2019’s amount. With the medium term undefined, we think our industry GGR 2023 forecast of about 60% of prepandemic levels with a full recovery toward the end of 2024 is still reachable at this juncture.

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Key Statistics WYNN

Company Profile WYNN

Business Description

Wynn Resorts operates luxury casinos and resorts. The company was founded in 2002 by Steve Wynn, the former CEO. The company operates four megaresorts: Wynn Macau and Encore in Macao and Wynn Las Vegas and Encore in Las Vegas. Cotai Palace opened in August 2016 in Macao, Encore Boston Harbor in Massachusetts opened June 2019. Additionally, we expect the company to begin construction on a new building next to its existing Macao Palace resort in 2023, which we forecast to open in 2026. The company also operates Wynn Interactive, a digital sports betting and iGaming platform. The company received 76% and 24% of its 2019 prepandemic EBITDA from Macao and Las Vegas, respectively.

Contact
3131 Las Vegas Boulevard South
Las Vegas, NV, 89109
T +1 702 770-7555
Industry Resorts & Casinos
Most Recent Earnings Jun 30, 2022
Fiscal Year End Dec 31, 2022
Employees 26,950

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