Wynn Resorts issued today its first quarter financial results, posting 42.3% drop in operating revenues, due to the closure of its properties, in February in Macau, and from mid-March in the USA.
Revenue Impact Material
First quarter revenue for the company fell to $953.7 million, from $1.65 billion for Q1 2019, nearly $700 million less, spread across its properties, $467.1 million at Wynn Palace, $294.4 million at Wynn Macau, and $77.2 million from Las Vegas operations. Encore Boston Harbor posted $140.9 million and partially offset the revenue slump for the casino operator.
Adjusted EBITDA for Wynn Resorts came out at -$5.3 million, being $494.8 million in Q1 2019, but the company explained this with its commitment to pay all its employees full salaries until May 15, a commitment the gaming and hospitality operator now expanded additionally, as Wynn Resorts CEO Matt Maddox outlined, the company would pay “full wages and benefits through May”.
“Our leadership team has been working side-by-side with our host communities, fellow industry leaders and world-class medical experts to identify and implement strategies to mitigate the impact of the virus on our team members, our guests and our broader communities.”Matt Maddox, CEO, Wynn Resorts
Wynn Resorts’ casino properties took significant hits, starting in February, when land-based gaming facilities in Macau had been shut down for 15 days, affecting the operations of Wynn Palace and Wynn Macau.
Revenue from operations at Wynn Palace fell down to $259.5 million, from $726.6 million for the first quarter in 2019, a 64.3% drop. Adjusted EBITDA fell even more percentage-wise, 95.4%, land-sliding from $222.6 million in Q1 2019 to just $10.2 million for Q1 2020.
Operating revenue from Wynn Macau also posted a significant drop, 56.2% compared to the previous year quarter, to $229.5 million from $523.9 million. Adjusted EBITDA for the property sank 88.3%, to $19.2 million, $163.9 million for Q1 2019.
Despite having its Macau operations fully restored since February 20, albeit with protective measures, including limited number of table seats, spacing between slot machines, temperature checks, masks protections and health declarations, outside factors such as travel restrictions to the Special Administrative Region were continuing to impact on revenues.
Las Vegas Drop Offset by New Revenue in Boston
Wynn Resorts properties in the US also faced closure due to the virus spread mitigation efforts, with casinos in Las Vegas closing down effective March 17, and casinos in Massachusetts even 2 days earlier, both states having no clear timetable of when re-opening would happen.
Revenue for the quarter from Wynn’s Las Vegas operations posted a 19.3% decrease compared to Q1 2019, $323.8 million and $401 million, respectively. Adjusted EBITDA went down to -$22.1 million, mainly due to the continued payments of salaries, tips and benefits to employees from April 1 through May 15, to the amount of $56.4 million. Adjusted EBITDA for Q1 2019 was $108.3 million.
Operating revenue form Encore Boston Harbor, Wynn’s integrated resort in Everett, Massachusetts, opened in June 2019, were $140.9 million for the quarter, with adjusted EBITDA -$12.6 million, including the $19.3 million of salaries for the April 1-May 15 period.