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ynn Resorts reported on Tuesday financial results for the quarter ended June 30, 2020.
“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,” said Matt Maddox, CEO of Wynn Resorts, Limited.
Operating revenues were $85.7 million for the second quarter of 2020, a decrease of 94.8%, or $1.57 billion, from $1.66 billion for the second quarter of 2019.
Net loss attributable to Wynn Resorts was $637.6 million, or $5.97 per diluted share, for the second quarter of 2020, compared to the net income of $94.6 million, or $0.88 per diluted share, in the second quarter of 2019.
The Net loss attributable to Wynn Resorts for the second quarter of 2020 excludes the impact of $75.7 million of expense related to the company’s commitment to pay salary, tips and benefits continuation for all U.S. employees for the period from April 1 through May 15, 2020, which the company accrued during the first quarter of 2020.
Adjusted Property EBITDA was $(322.9) million for the second quarter of 2020, compared to Adjusted Property EBITDA of $480.6 million in the second quarter of 2019.
“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.”
Macau Operations
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. 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. On July 15, 2020, authorities eased certain quarantine requirements for persons traveling between Guangdong Province and Macau, subject to certain testing requirements and health declarations.
Wynn Palace
Operating revenues from Wynn Palace were $8.7 million for the second quarter of 2020, a 98.6% decrease from $628.9 million for the second quarter of 2019. Adjusted Property EBITDA from Wynn Palace was $(110.9) million for the second quarter of 2020, a 166.3% decrease from $167.2 million for the second quarter of 2019. VIP table games win as a percentage of turnover was (1.73)%, below the property’s expected range of 2.7% to 3.0% and below the 3.02% experienced in the second quarter of 2019. Table games win percentage in mass market operations was 32.5%, above the 23.4% experienced in the second quarter of 2019.
Wynn Macau
Operating revenues from Wynn Macau were $11.9 million for the second quarter of 2020, a 97.8% decrease from $546.5 million for the second quarter of 2019. Adjusted Property EBITDA was $(82.6) million for the second quarter of 2020, a 147.0% decrease from $175.9 million for the second quarter of 2019. VIP Table games win as a percentage of turnover was (2.00)%, below the property’s expected range of 2.7% to 3.0% and below the 3.30% experienced in the second quarter of 2019. Table games win percentage in mass market operations was 8.3%, below the 20.7% experienced in the second quarter of 2019.
Las Vegas Operations
Casino operations at Wynn Las Vegas were closed on March 17, 2020, and reopened on June 4, 2020, with certain health safeguards in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, and suspension of certain entertainment and nightlife offerings. Operating revenues from Las Vegas Operations were $64.9 million for the second quarter of 2020, an 86.0% decrease from $464.1 million for the second quarter of 2019. Adjusted Property EBITDA from Las Vegas Operations for the second quarter of 2020 was $(75.6) million, compared to $137.4 million for the second quarter of 2019. Las Vegas Operations’ operating loss for the second quarter of 2020 excludes the impact of $56.4 million of expense related to the company’s commitment to pay salary, tips and benefits continuation for all of U.S. employees for the period from April 1 through May 15, 2020, which the company accrued within operating expenses during the first quarter of 2020. Table games win percentage was 19.7%, below the property’s expected range of 22% to 26% and below the 28.7% experienced in the second quarter of 2019.
Encore Boston Harbor
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. 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) million. Encore Boston Harbor’s operating loss for the second quarter of 2020 excludes the impact of $19.3 million of expense related to the company’s commitment to pay salary, tips and benefits continuation for all U.S. employees for the period from April 1 through May 15, 2020, which the company accrued within operating expenses during the first quarter of 2020.
See the company’s full second quarter 2020 results here.
