DB lowers forecasts for Wynn Resorts

Deutsche Bank analysts have trimmed their 18Q2 forecast for Wynn Resorts, due mainly to lower than anticipated VIP volumes, increasing competition, and the impact of the World Cup.

“While we do not believe the World Cup or Euro Cup have had a meaningful influence on historical results, our checks indicate the proximity of this year’s World Cup (Russia), relative to the 2014 event in Brazil, could cause some VIP softness in June as junkets arrange trips for players,” said analysts in a note on Monday.

Additionally, Deutsche Bank noted that increased efforts from other operators in the VIP segment may also threaten VIP revenues for the operator, “though we don’t believe there to be any indication of more aggressive junket treatment in the market,” it added.

The analysts have reeled back their 18Q2 forecasts 4 percent below market consensus.