Macau Sept gambling revenues fall 33 pct, 16th consecutive monthly decline

One of the main reasons for Macau’s ailing fortunes is China’s anti-corruption campaign, which has frightened off numerous VIP gamblers the resort so heavily relied upon. Five investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, eight have issued a buy rating and one has assigned a strong buy rating to the company.

Stifel Nicolaus reiterated their hold rating on shares of Wynn Resorts, Limited (NASDAQ:WYNN) in a report released on Wednesday, MarketBeat reports.

“Despite the concern over capital flight post-Dore incident reported on September 9, which has dragged the ADR [average daily revenue] lower in mid-September, the momentum was actually picking up towards the end of the month”, said analysts Kenneth Fong and Isis Wong. These operators are hit by slow growth in VIP segment, since they have much exposure in the market. The anti-graft corruption drive undertaken by the Chinese government is keeping VIP gamblers at bay, thereby hurting Macau revenues.

In the meantime, gambling operators continue to invest heavily in the Macau market, with a number of major casino projects planned for the future, including the $1.4 billion Macau Studio City expected to open next month.

Wynn Resorts, Limited (NASDAQ:WYNN) traded down 2.65% during trading on Thursday, reaching $51.71. The 50-day moving average is $76.47 and the 200 day moving average is recorded at $103.05. Wynn Resorts, Limited has a 1-year low of $50.96 and a 1-year high of $192.45. Brokerage firms covering the stock, on a consensus basis, are expecting earnings per share of $0.79 for the quarter. The sector has also been hurt by a recent incident affecting the junket system that brings mainly Chinese VIP players to the casinos, namely an alleged fraud case involving a former employee of junket operator Dore Entertainment Co Ltd, which operates VIP facilities at Wynn Macau. Gross domestic product shrank 26.4% on the year for April to June, marking a third quarter of double-digit contractions. During the same period previous year, the firm earned $2.11 earnings per share. The Company owns 72% of Wynn Macau, Limited, which runs an integrated resort in the Macau Special Administrative Region of the People’s Republic of China (NASDAQ:WYNN). Wynn Resorts manages an integrated resort in Vegas, Nevada and owns 100% of. The company recently announced that it was contemplating shutting down its Macau operation and concentrating on other business interests. Roughly 284,000 square feet of casino space with 498 is featured by its Macau Operations table slot machines, two hotel towers and others. games and 625 Its Las Vegas Operations features around 186,000 square feet of casino space with 232 table games, 1,849 slot machines, two hotel towers and others.