Wynn Macau halts major project expenditures for 2020

Wynn Macau has confirmed it has postponed all major project capital expenditures for the remainder of the fiscal year 2020 in light of the COVID-19 pandemic and its risk to employees. 

In the first half of 2020, the company swung to a loss of HK$3.9 billion (US$490.3 million), with casino revenues down 81.8 percent and non-gaming revenues down 63.3 percent. 

Adjusted EBITDA has swung to negative HK$1.4 billion from HK$5.1 billion in the prior-year period. 

Wynn Macau operates two integrated resorts in Macau, including Wynn Palace and Wynn Macau.

Last month, Wynn Macau non-executive chairman Allan Zeman noted that daily burn rates at Wynn Macau have been around US$2 million per day. 

Despite record low visitation over the last few months, Zeman said that the company has not reduced its staff headcount over the last two months.

The company has been in the design phase of the new Crystal Pavilion, located on a 7-acre parcel of land adjacent to Wynn Palace. 

However, it also said that it would halt all major capital expenditure for the current fiscal year under conditions to improve. 

The operator said that the COVID-19 pandemic “has had and will likely continue to have an adverse effect on our business, operations, financial condition, operating results and cash flows”.