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Wynn Resort’s quarterly revenue drops nearly 95%

Casino operator Wynn Resorts Ltd. suffered a revenue loss of almost 95% during the quarter as the global gaming industry supports a long-term coexistence with the coronavirus pandemic.

Wynn Resorts on Tuesday said it lost $ 523 million in the three months ended June 30, compared to about $ 219 million in operating profit a year earlier. Wynn’s quarterly revenue fell to $ 85.7 million from $ 1.66 billion the year before. Wynn competitors Las Vegas Sands Corp. and MGM Resorts International recently reported revenue dives of 97% and 91%, respectively, as the industry rolls out of pandemic closures and depressed business and leisure travel.

U.S. casinos, which reopened beginning in late May and early June, welcomed an initial increase in patrons due to closed demand during shutdowns that began in mid-March. But a Las Vegas Strip recovery depends on the uncertain return of large conferences and deep-pocketed tourists arriving by plane.

Wynn Resorts, which paid all of its 30,000 workers during the closures until the end of May, flooded some employees last month in response to lower demand.

“There will be winners and losers coming out of this,”

; said Wynn Chief Executive Matt Maddox. “When this is over, and we come out, we want to make sure we have capital available to grow, and we have the culture in place to take care of our people and our customers.”

The company operates Wynn and Encore on the Strip, Encore Boston Harbor in Massachusetts and resorts in the gaming hub of Macau. Wynn’s quarterly sales in Las Vegas decreased by 86% while Macau revenues decreased by almost 98%.

Wynns Las Vegas resorts received 4,000 reservations daily when they reopened with limited occupancy and other pandemic security measures in June, but as Covid-19 cases rose sharply in California and Arizona, reservations fell by 25% after the July 4 holiday, Mr. Maddox said.

Casinos in Macau are open, but travel restrictions from China have restricted the flow of tourists to Chinese territory. Gross income from Macau decreased almost 95% in July compared to the year before, according to the government, the fourth consecutive month of falling peaked 90%.

Wynn posted a net loss attributable to Wynn Resorts of approximately $ 638 million for the quarter, compared to a net profit of $ 94.6 million a year earlier.

The company reported a total debt of $ 12.78 billion and total cash of $ 3.8 billion on June 30.

Write to Katherine Sayre at [email protected]

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