Wynn Macau Limited experiences second-quarter disappointment

Asian casino operator Wynn Macau Limited has reportedly released its unaudited financial results for the second quarter showing that it experienced a drop of 98.2% year-on-year in overall operating revenues to just $20.6 million.

According to a report from Inside Asian Gaming, the Hong Kong-listed firm used an official filing to detail that its performance over the course of the three months to the end of June had been negatively colored by the ongoing coronavirus-related restrictions that have been severely limiting travel between Macau and mainland China since mid-February.

Increasing indebtedness:

Inside Asian Gaming reported that Wynn Macau Limited, which is majority owned by Las Vegas-headquartered Wynn Resorts Limited, is responsible for Macau’s Wynn Macau and Wynn Palace Cotai venues and managed to chalk up operating revenues for the same three-month period in 2019 of about $1.18 billion. The source also detailed that the firm is currently holding debts of around $12.78 billion with its immediate available borrowing capacity standing at roughly $40 million.

Significant shortfall:

Wynn Macau Limited recorded a second-quarter adjusted earnings before interest, tax, depreciation and amortization loss of $193.5 million with some $110.9 million of this coming from the 1,700-room Wynn Palace Cotai. This figure purportedly represents a 166.3% diminution from the $167.2 million surplus logged by the company for same three-month period last year and was additionally accompanied by an embarrassing $15 million deficit in aggregated casino revenues.

Flagship failure:

The grandiose Wynn Palace Cotai property saw its second-quarter operating revenues fall by over 98.6% year-on-year to just $8.7 million with VIP turnover having dropped by 87.2% to $1.72 billion. The Cotai Strip venue purportedly furthermore experienced a comparable 98.3% reduction in mass-table drop for the period to $22 million off win of $7.2 million alongside an analogous plummet for slot win to a mere $2.4 million.

Absent excess:

At the 1,000-room Wynn Macau and the second-quarter situation was reportedly no better as operating revenues plunged by 97.8% year-on-year to $11.9 million while adjusted earnings before interest, tax, depreciation and amortization sank by 147% to a loss of $82.6 million. The property purportedly moreover suffered a 93.5% wane in VIP turnover to $607.1 million with mass-table and slot win coming in at $3.4 million and $2.6 million respectively.

Reportedly read a statement from Wynn Macau Limited…

“Our casinos’ operations have since been fully restored. However, certain public health safeguards such as traveller quarantines, limits to the number of seats per table game, slot machine spacing, temperature checks, mask protection, coronavirus negative test result requirements for entry to gaming areas and health declarations remain in effect at the present time.”

Parental predicament:

Finally, it was reported that parent firm Wynn Resorts Limited likewise experienced a dreadful second quarter as its own company-wide operating revenues fell by 94.8% year-on-year to $85.7 million with associated adjusted earnings before interest, tax, depreciation and amortization finishing the three-month period at a loss of $322.9 million.