Wynn Macau, the Hong Kong-listed unit of Las Vegas casino mogul Steve Wynn, posted a 10 per cent year-on-year increase in first-quarter profit to US$209 million.
But one analyst says the company, which has a resort on the Macau peninsula, will continue to lose business to casinos on Macau's Cotai Strip until Wynn opens its own gaming house there.
The Macau government has given Wynn approval to acquire a 20.6 hectare site in Cotai, where Wynn will build its second resort in the world's biggest gambling enclave.
CIMB Securities analyst Teng Yee Tan said he did not expect the new project to open before 2016 because Wynn usually set a high standard for its properties.
Citigroup analyst Anil Daswani agreed on the projection, saying in a research note that 'we continue to believe a new project of this scale is unlikely to open much before late 2016'.
'With the large capital expenditure expected, we believe Wynn Macau could halt its special dividend,' Daswani said.
Daswani said in another note that Wynn had a 12.9 per cent share of gross gaming revenue in Macau last month, a share that was likely to decline. Although the Macau government has recently gazetted Wynn's Cotai project, the group will continue to lose market share to [rivals on] Cotai before its own property opens,' the analyst said.