Wynn Resorts lost $758.1 million during the third quarter, due primarily to the company’s performance at its two resorts in Macau. Before COVID-19, the Macau resorts provided Wynn between 65% and 70% of its quarterly revenue stream.
The issue isn’t unique to Wynn, of course; coronavirus has decimated the entire Macau casino market, which has seen gaming revenues decline more than 90% in six of the past seven months.
“The third quarter was pretty much the same as the second quarter, not much to talk about,” Wynn CEO Matt Maddox said Thursday during the company’s quarterly conference call with analysts.
Maddox added, however, that there were positive trends emerging in Macau, where the government is loosening travel restrictions and COVID-19 infections have declined compared to the U.S.
“The government of Macau is working hard and taking a very deliberate and thoughtful approach,” Maddox said. “It feels like the market is going to get better. It’s one of the safest places on the planet. The mood is quite good.”
For now, the company’s efforts are focused on Las Vegas and Boston. Both locations, while seeing revenue declines in the quarter that ended Sept. 30, had a positive cash flow, $20.3 million in Las Vegas and $22.3 million in Boston, respectively.
“We are encouraged by the progress we have made in each of our properties over the past several months, despite the ongoing impact of the virus and related operating limitations,” Maddox said.
During the quarter, revenues companywide fell 77.5% to $370.5 million, compared to $1.647 billion a year ago. Las Vegas revenues were off 53.3%, to $186.7 million.
In Macau, Wynn Macau saw an 89.2% revenue decline, to $51.4 million, while Wynn Palace revenues declined 97.4%, to $15.7 million.
Encore Boston Harbor revenues fell 33.6%, to $116.7 million.
The net loss of $758.1 million is compared to a net loss of $3.5 million a year ago.
“Encore Boston Harbor delivered record quarterly (cash flow) during the third quarter, while Wynn Las Vegas continued to experience strong leisure demand on weekends with solid hotel occupancy and casino play,” Maddox said.
The CEO added that Wynn Las Vegas wants to have the “highest room rates” on the Strip, and the company’s flagship casino is seeing new customers that are coming “from our competitors.”
In October, Encore Las Vegas started limiting its operating schedule to just four nights a week, due to reduced demand. In Boston, starting Friday, Encore – and Massachusetts’ other two casinos – will close between 9:30 p.m. and 5 a.m. each day due to overnight curfews mandated by the governor after the state’s COVID-19 cases spiked.
Maddox called the mandate “a temporary setback,” saying that the property was “hitting its stride” after reopening in late June.
“We’ll do the right thing for Massachusetts,” Maddox said.
Maddox and Wynn CFO Craig Billings provided an update on the company’s foray into sports betting through Wynn Interactive, which was formed through a merger with BetBull. Wynn Resorts owns 71% of the venture, which includes sports betting and online casino games. The company invested $80 million into the business.
Wynn Interactive is operating in nine states and is looking into seven others, including applying for licenses on a standalone basis in Tennessee and Virginia.
“We have made substantial progress advancing Wynn Interactive,” Maddox said. “We are also in discussions with potential partners regarding additional access agreements in other jurisdictions.”
Shares of Wynn Resorts, traded on the Nasdaq, closed at $80.13 Thursday, up $4.01 or 5.27%
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
