Wynn Resorts Macau unit losing $2 million daily, with revenue down 97.6% in Q2

Wynn Resorts Macau unit losing $2 million daily, with revenue down 97.6% in Q2

Continuing to struggle in the wake of the COVID-19 shutdown, Wynn Resorts’ Macau hotel and casino business is suffering a loss of nearly $2 million per day with revenue down 97.6 per cent in the first two months of the second quarter of the current fiscal year.

Wynn Resorts, in its latest filing with the US Securities & Exchange Commission (SEC), revealed that its Macau business continues to struggle to deal with hefty losses in the wake of the deadly corona virus induced shutdown. According to available financial stats, the company posted revenue of $17.9 million and $19 million for the months of April and May, respectively. The figures represent a fall of 97.6 per cent from the same months of last year, when the entertainment giant generated turnover of $759.7 million.

In its 8-K filing with the US securities and exchange regulator, the company said it expected adjusted property earnings before interest, taxes, depreciation & amortization (EBITDA) for its Macau unit to be in the range of $126.1 to $118.8 million for the months of April and May this year. The estimated figure is significantly down from $215.2 million recorded in the two months ended May 31 last year. The daily loss of $2 million means the Macau unit lost a whopping $120 million in both April and May. Last year, the Macau unit had reported an average earning of $3.5 million daily, or $107.6 million per month for the same two months.

The hefty losses were caused by the prolonged shutdown caused by the deadly corona virus pandemic, which originated in the mainland China and gradually spread across the world, snatching thousands of lives. Gross gaming revenue (GGR) in the Special Administrative Region of China slipped because of strict travel restrictions that were announced at the height of the COVID-19 pandemic

The casino giant’s hefty loss in Macau continues in the month of June as well, but the situation can change soon as VIP guests start returning to its entertainment venues. Following the COVID-19 shutdown, the Macau unit’s GGR slightly jumped to 25 per cent of the usual rate and daily losses slipped to $800,000 as high rollers and premium mass gamers remained loyal to the company’s casinos. Wynn Macau can break even by reaching 45 to 50 per cent of its historical GGR run rate.