Wynn Resorts saw its fourth-quarter results miss estimates, with operating revenues down 2 percent in 19Q4, dragged by decreasing revenues at Wynn Palace, Wynn Macau and its Las Vegas operations.
The revenue results caused a net loss attributable to Wynn resorts of $72.9 million, down from income of $464.9 million in 18Q4.
Wynn Palace, the flagship property of the company in Macau, saw its operating revenues fall 20.3 percent in the fourth quarter of 2019, whilst operating revenues from Wynn Macau fell 5.1 percent year-on-year.
Its Las Vegas operations fell 6.3 percent in the quarter.
As a result, operating revenues for the full year 2019 for Wynn Resorts decreased 1.6 percent year-on-year to $6.6 billion.
On the topic of the coronavirus, which took front and center stage during the earnings call with Wynn Resorts CEO Matt Maddox, the chief executive noted that the company is “currently focused, almost solely, on the health and safety of our employees, our customers and the Macau community at large.”
Due to the closures of casinos in Macau, Wynn’s daily operating expense burn rate is at $2.4 to $2.6 million, largely comprised of payroll expenses.
Maddox, however, commended Chinese policymakers for what he said was “quick and decisive” action in the face of the coronavirus.
Looking ahead, the company says it is opening its MICE expansion at Wynn Las Vegas in February 2020.
“Once open, the space will feature approximately 217,000 square feet of incremental state-of-the-art meeting and convention space (430,000 square feet of gross space), which will nearly double our group footprint in Las Vegas.”
The project budget for the development is approximately $425 million.