Wynn Resorts Ltd reported a 60.9% fall in revenue to US$489 million from its Macau subsidiary, Wynn Macau Ltd, in the three months to 31 March 2020, impacted by the 15-day closure of its casinos in February and subdued business due to COVID-19.
With the group slipping to a net loss of US$402.0 million, down from net income of US$104.9 million in 1Q19, it was Macau where the majority of the pain was felt with the company noting that, while casino operations have been fully restored, “certain public health safeguards, such as traveller quarantines, limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection and health declarations remain in effect at the present time. We are currently unable to determine when these measures will be lifted.”
At flagship property Wynn Palace, operating revenues declined 64.3% to US$259.5 million while Adjusted Property EBITDA plummeted 95.4% to US$10.2 million. VIP turnover fell 62.0% to US$4.79 billion with a lower win rate resulting in a 71.7% decline in VIP win to US$139.6 million.
Mass table drop fell 63.6% to US$475.2 million with win of US$130.7 million while slot handle was down 56.4% to US$424.7 million with win of US$18.4 million.
At Wynn Macau, operating revenues fell 56.2% year-on-year to US$229.5 million. Adjusted Property EBITDA dropped 88.3% to US$19.2 million.
The peninsula property played lucky in VIP, with turnover down 70.9% to US$2.96 billion but win down 58.5% to US$122.6 million. Mass table drop fell 57.2% to US$578.2 million with win of US$117.9 million, while slot handle declined 53.9% with win of US$13.3 million.
Wynn Resorts’ group-wide revenue was down 42.3% to US$697.8 million from US$1.65 billion in 1Q19, while Adjusted Property EBITDA fell to a loss of US$5.3 million, which included the impact of US$75.7 million in expense accrued as a result of the company continuing to pay the salary, tips and benefits for all of its US employees for the period from 1 April through 15 May 2020.
Operating revenues at Wynn’s Las Vegas operations were down 19.3% to US$323.8 million.
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