UBS: WYNN MACAU (01128) second-quarter adjusted property EBITDA lower than expected rating "neutral"

UBS released a research report stating that Wynn Macau (01128) majority shareholder Wynn Resorts announced that the adjusted EBITDA for the property in Macau was $254 million, a decrease of about 10% compared to the same period last year, with EBITDA reaching $266 million, lower than expected, mainly due to the lower-than-expected gaming performance. UBS maintains a target price of HK$6.1 for Wynn Macau, with a "neutral" rating. UBS pointed out that Wynn Macau's management expects gaming demand to accelerate in June and July, with an adjusted EBITDA run rate of $3.3 million per day. The management will continue with property upgrades to maintain competitiveness, including expanding the Wynn Palace Club VIP gaming area and renovating Wynn Tower guest rooms. The management expects that the construction of the activities and entertainment center will be completed after 2028, but it will require government approval. UBS stated that Wynn Macau's management has revised down capital expenditure guidance for this year by $50 million to $200-250 million, while next year's guidance remains unchanged at $450-500 million.