Deutsche Bank said, for its first 40 days, Wynn Palace achieved GGR of US$185m, implying 6% market share, largely in-line with expectations given strong VIP. But property EBITDA of US$25.5m is below DB's estimate of US$30m.
The research house noted that Wynn Palace's mass table GGR was only US$52m, though thankfully, Wynn Peninsula's mass table GGR was rather resilient at US$205m. Wynn Palace's VIP roll reached US$4.15bn, while Wynn Peninsula's VIP roll got cannibalized only slightly from US$11.8bn in 2Q to US$10.9bn in 3Q.
DB said all this affirms its view that the new casino is successful with VIP but has failed to attract premium & grind mass. It thinks the key debate now is how long it will take mass to ramp up, especially after the recent management change.
But DB is not optimistic. It maintained its "hold" rating on Wynn Macau (01128), with a target price of HK$13.
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