Operator News
US – Wynn’s revenue all but disappears as coronavirus crushes second quarter
By Phil - 5 August 2020
The closures of casinos in Macau and Las Vegas saw operating revenues at Wynn Resorts fall by 94.8 per cent to $85.7m for the second quarter of 2020 from $1.66bn for the second quarter of 2019.
Matt Maddox, CEO of Wynn Resorts, said: “Our leadership team continues to work closely with our host communities, fellow industry leaders and world-class medical experts to implement and advance strategies to mitigate the impact of the virus on our team members, our guests and our broader communities. We are pleased to be up and running again in each of our markets. In early June, we reopened nearly our entire Wynn Las Vegas and Encore campus with an intense focus on cleanliness and safety. Similarly, in Boston, we reopened Encore Boston Harbor on July 12 to a positive reception as many of our customers currently prefer to stay close to home. In Macau, the authorities have begun to gradually and thoughtfully ease some visitation restrictions, and we are confident the market will benefit from the return of the Chinese consumer as we move through the back half of 2020.”
Casino operations at Wynn Palace and Wynn Macau were closed for a 15-day period in February 2020 and resumed operations on a reduced basis on February 20, 2020.
“Our casinos’ operations have since been fully restored; however, certain public health safeguards, such as traveler quarantines, limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, COVID-19 negative test results requirements for entry to gaming areas, and health declarations remain in effect at the present time,” Mr. Maddox said. “We are currently unable to determine when these measures will be lifted. On July 15, 2020, authorities eased certain quarantine requirements for persons travelling between Guangdong Province and Macau, subject to certain testing requirements and health declarations.”
Operating revenues from Wynn Palace were $8.7m for the second quarter of 2020, a 98.6 per cent decrease. Wynn Macau’s came in at $11.9m for the second quarter of 2020, a 97.8 per cent decrease from $546.5m for the second quarter of 2019. Operating revenues from Las Vegas Operations were $64.9m for the second quarter of 2020, an 86 per cent decrease from $464.1m for the second quarter of 2019.
Encore Boston Harbor ceased all operations and closed to the public on March 15, 2020, for the remainder of the first and second quarters of 2020. On July 12, 2020, Encore Boston Harbor reopened with certain health safeguards in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, and mask protection.
Mr. Maddox added: “We are currently unable to determine when these measures will be lifted. In addition, certain food and beverage outlets remain closed, and hotel reservations have been limited to Thursday through Sunday. Adjusted Property EBITDA from Encore Boston Harbor for the second quarter of 2020 was $(53.8)m. Encore Boston Harbor’s operating loss for the second quarter of 2020 excludes the impact of $19.3 million of expense related to our commitment to pay salary, tips and benefits continuation for all of our US employees for the period from April 1 through May 15, 2020, which we accrued within operating expenses during the first quarter of 2020.”
In conclusion, he said: “We are going to be focused on leading in our industry, maintaining our brand, maintaining our culture and maintaining our cash. So there will be winners and losers that come out of this. And when this is over, and we come out, we want to make sure that we have the capital available to grow, and we have the culture in place to take care of our people and our customers.”
