Posted 01/31/2014 05:49 PM ET
Las Vegas may still be the global icon of gambling, but Macau is the fast-growing upstart.
The casino resorts in that special administrative region of China are booming, and Las Vegas-based Wynn Resorts (WYNN) owes much of its growth to Macau, which is now the world's largest casino destination.
Wynn's Macau revenue swelled 24.6% to $1.12 billion in the fourth quarter, the company said in its earnings report Thursday. By comparison, Vegas revenue increased 2.4% to $400 million. Other operating figures also showed better growth in Macau.
Wynn is expanding in Macau, where it is building a resort with a 1,700-room hotel, meeting space, casino, spa, stores and restaurants. The $4 billion project is set to open in 2016.
Leading up to the earnings report, analysts were divided on Macau's outlook. Wells Fargo saw a strong medium-term outlook. But JPMorgan urged investors to cut exposure, citing concerns such as costs of expansion and a possible slowing in that hot market.
Wynn's earnings accelerated 9%, 24% and 94% the past few quarters. Sales growth picked up 6%, 7%, 18%.
Read More At Investor's Business Daily: http://news.investors.com/investing/013114-688463-macau-growth-center-for-wynn.htm#ixzz2sEJSG4sa
Follow us: @IBDinvestors on Twitter | InvestorsBusinessDaily on Facebook
No comments:
Post a Comment