Wynn Macau swings to loss in 20Q1

Hong Kong-listed Wynn Macau saw its operating revenues decrease 62.9 percent in the first quarter of 2020, due to the impact of the coronavirus, including a 15-day casino closure in Macau.

Said operating revenues reached MOP397.7 million (US$49.8 million) in the quarter, compared to MOP1.1 billion in 19Q1. The company recorded a loss of MOP108.8 million, compared to a profit of MOP242.5 million in the prior-year period.

Analysts from Jeffries commented that the adjusted EBITDA decline of 92 percent will unlikely be a surprise given Macau sector GGR fell 60 percent in the quarter.

VIP turnover fell 62 percent to MOP4.8 billion, whilst the mass market table drop fell 63.6 percent to MOP475.2 million. Slot machine handle fell 56.4 percent to MOP424.7 million.

Wynn Macau said that while its casino operations have been fully restored since February 20, it continues to be impacted by certain public health safeguards, such as traveler quarantines, limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, and health declarations remain in effect at the present time.

"We are currently unable to determine when these measures will be lifted," it said.

However, management believes there is strong pent-up demand from mainland China, particularly in the VIP and premium mass segment.

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