Wynn Macau Limited experiencing slow post-coronavirus recovery

Asian casino operator Wynn Macau Limited has reportedly released its unaudited financial results for the third quarter showing that it experienced a decrease of 93.7% year-on-year in overall operating revenues to slightly over $67 million.

According to a report from GGRAsia, the prominent Hong Kong-listed firm used an official filing to detail that its performance over the course of the three months to the end of September continued to be negatively impacted by the ongoing coronavirus-related restrictions that have been severely limiting travel between Macau and mainland China since mid-February.

Confident comparisons:

Wynn Macau Limited is majority owned by Las Vegas-headquartered Wynn Resorts Limited and reportedly saw its overall earnings from the third quarter plummet by roughly 370% year-on-year to a loss of about $280.7 million. However, the source detailed that this subdued tally represented an improvement when compared with its almost $351.6 million second-quarter shortfall following an associated 98.2% crash in operating revenues to just $20.6 million.

Responsible for Macau’s Wynn Macau and Wynn Palace Cotai venues, Wynn Macau Limited reportedly also experienced a loss of around $112.1 million in adjusted third-quarter property earnings before interest, tax, depreciation and amortization, which was considerably worse than the nearly $301.2 million profit it chalked up for the same three-month period in 2019. Again, this tally was purportedly still better than the $193.6 million shortfall recorded for the three months to the end of June as associated casino revenues improved by over 363% quarter-on-quarter to hit $39.5 million.

Executive enthusiasm:

Matt Maddox serves as Chief Executive Officer for Wynn Resorts Limited and Wynn Macau Limited and he reportedly used the filing to declare that the subordinate’s third-quarter financials were ‘very similar to the second’ and that he expects this restrained trend to continue. Nevertheless, the executive purportedly sounded an optimistic note by proclaiming that mass-market table drop in Macau throughout October ‘was roughly 40% of our pre-coronavirus levels’ with turnover from junket operations sitting at ‘between 25% and 30%.’

Reportedly read a statement from Maddox…

“We were still seeing roughly 8% to 10% of our visitor volumes compared to pre-coronavirus levels. In October, we started to see those trends changing. We went from 10% of our normal visitor volumes up to almost 30%. It wasn’t just over ‘Golden Week,’ it was throughout the month.”

Parental plunge:

For Wynn Resorts Limited as a whole and Maddox reportedly stated that third-quarter net income had swung to a loss of $831.5 million as group-wide earnings before interest, tax depreciation and amortization plummeted by 116% year-on-year to a deficit of $65.9 million. He purportedly furthermore pronounced that the firm had suspended its quarterly dividend programme in May ‘due to the financial impact of the coronavirus pandemic’ and was now keen to concentrate on its newly-established Wynn Interactive Limited enterprise so as to focus on ‘digital and interactive sportsbetting and gaming throughout the United States.’