Wynn announces 94.8% drop in Q2 revenue, low COVID infections for staff


Wynn Resorts had lots to talk about in the second quarter earnings call, and not much of it was good news. The casino operator has flooded the zone with terrible financial results for Q2, an update on their plans for Japan, or lack-there-of, and some news on just how healthy their employees are.

Wynn revenues grim

wynn-announces-948-drop-in-q2-revenue-low-covid-infections-for-staffGroup-wide operating revenues are were down 94.8% in Q2, the operator reported in their latest results. That’s down from $1.66 billion for the same period in the year prior. Operating revenues were $85.7 million, resulting in a $638 million loss.

Those losses came from all across the world of course. Wynn Palace only brought in $8.7 million in operating revenue, a 98.6% drop, and Wynn Macau had $11.9 million, a 97.8% drop. Encore Boston Harbor was closed for the entire quarter and represented $19.3 million in expenses.

Las Vegas operations did slightly better, showing $64.9 million for Q2, an 86.0% decrease.

Overall, Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) was in the negative for $322.9 million.

CEO Matt Maddox commented:

“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.

“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.”

No more hope for Japan

In the earnings call for the second quarter, Maddox also admitted any dreams of a Wynn Japan in the near future are now over. “Back in March, we decided that until there’s more clarity on what the business is going to look like, what the world is going to look like, and what the regulations really are over there, we’re pretty much ceasing our efforts,” he said.

But never say never. “It doesn’t mean we’re not interested in the market, it just means that right now, it’s not a focus for our company.”

Covid 19 testing going well

He also spoke about how diligent the operation is in making sure its employees and customers are safe from Covid-19. Wynn Resorts has tested 300 employees for the coronavirus, with only 2% returning positive results.

“Each week, I sit with and talk to the head of global health security and pandemic research and her team from Georgetown University, going through our protocols and everything we’re doing,” he said. “Just last week, talking about these numbers, her response was, ‘Wynn is probably the safest place outside of home that your employees and your customers go during the day.’ That’s part of our brand. That’s who we are and that’s what we’re going to live up to.”