Wynn Palace facing ‘potential construction delays’

Wynn Palace, currently being built on the Cotai Strip, is still targeting an opening date of June 25 this year yet may face ‘potential construction delays’, according to Wynn Macau Ltd.’s annual report, filed with the Hong Kong Stock Exchange last week. ‘The company still expects to open Wynn Palace in the first half of 2016; however, potential construction delays could push the opening date into the second half of 2016,’ reads the filing. On a separate note, Wynn Macau’s parent company Wynn Resorts is scheduled to hold an Investor Day next Wednesday, April 6 in Las Vegas for the first time in the last decade. Brokerage Sanford C. Bernstein Ltd. analysts stated in a Friday note that they expect Mr. Steve Wynn to clarify the details of Wynn Palace’s opening and its strategic focus in a stabilising Macau market. “Investor sentiment could turn more positive on the back of management comments,” said analysts Vitaly Umansky and Simon Zhang. In addition, Wynn Macau declared a special dividend of HK$0.60 per share for the 2015 fiscal year, compared to 2014’s final dividend of HK$1.05 per share. Despite the dollar amount being lower than 2014, the company maintained the dividend payout ratio at around 140 per cent, the same as 2014. Bernstein analysts say that “this dividend announcement is a positive surprise relative to our earlier estimate of a $nil dividend for 2015…We believe the dividend commitment speaks to management’s optimistic outlook on the Summer opening of Wynn Palace”.