Wynn Resorts posts losses to the tune of $2.07 billion for the 2020 financial year, hoping for a better 2021 and normalization of operational results.
Wynn Resorts Posts Losses Across All Fronts
Wynn Resorts International has concluded the 2020 financial year with a total net loss of $2.07 billion. The company’s operating revenue has also taken a nosedive to $2.10 billion – a drop of over 68% compared to the $6.61 billion it generated the previous year.
The substantial decline in profits is a direct consequence of the lockdown measures imposed on businesses shortly after the outbreak of the novel coronavirus pandemic. The phenomenon can be observed in a number of other businesses of all sizes and has also sharply reduced the financial performance of entire market segments.
Wynn Resorts International’s business performance has taken a hit on all fronts. Rooms revenue has dropped to $308.0 million, while revenue from drink and beverage sales declined to $329.6 million. Compared to the previous financial year, this marks a 61.7% and 59.8% drop respectively. The most sharply affected segment is gaming where revenue plummeted by a staggering 72.9%.
Business in Macau Takes Nosedive, US Relatively Stable
The gaming and entertainment giant’s Macau branch has been hit the hardest. Wynn Macau concluded the year with a revenue drop of 80.1% year-on-year. Wynn Palace, which is also situated in the Special Administrative Region of China, saw a drop of 77.1% to $474.7 million. These results are not surprising, given the heavy toll that the lockdown has taken on Macau’s gambling-based economy.
Performance on the US market is comparatively stable. Wynn Las Vegas has suffered a 54.2% drop to $747.9 million, which is again unsurprising considering the current economic situation in Nevada. Interestingly, the company’s Boston branch has actually remained fairly stable and ended the year with $361.7 in revenue.
Wynn Taps Into Online Gambling as New Revenue Stream
Wynn has already taken decisive steps in adapting its business and securing higher profitability. Back in October, the company merged its US online sports betting and social casino segments into Wynn Interactive. Through this move, Wynn hopes to tap into the booming online gambling and sports betting market that is only expected to grow this year.
Wynn currently owns 72% of the business and the rest is owned by the company’s strategic partner BetBull. The digital venture has not posted its financial figures yet. However, the company has announced plans of launching its WynnBET sports betting app into additional markets across the US.
Wynn Chief Executive Matt Maddox believes that the digital offering will only become more compelling with each release over the coming months.