From The Bottom Of The Barrel: Wynn Resorts Reports 94.8% Drop In Revenue

Article by : Eva Reed Aug 17, 2020

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Q2 2020 became a real nightmare for Wynn Resorts. According to official information, the casino has witnessed the most substantial financial losses. It looks like plans to expand market share in Japan are now in jeopardy. Though the online operator was quick to inform about the record low level of coronavirus infection among staff.

Bad News Travels Quickly

According to official information announced by Wynn, the operating revenues of all assets of the company showed a decrease of 94.8% in the second quarter of 2020.

The same figure for 2019 was $1.66 billion more. Also, the operator recorded a drop in operating profit to $85.7 million. As a result, it is already becoming apparent that the total loss reached $638 million.

However, before making final conclusions, it is worthwhile to understand that we are talking about the indicators of absolutely all gambling establishments that are scattered around the world. If you look at each of the markets separately, the situation looks like this:

• The fall for the US market was 98.6%.
• Wynn Macau saw a 97.8% decline, with total revenue reaching just $11.9 million.
• Encore Boston Harbor was no exception, with a total cost of $19.3 million.

Perhaps the tiny ray of hope is the Las Vegas market, where the company reported $64.9 million. Compared to 2019, this figure looks 86.0% less. The Wynn Las Vegas Resort features a full casino with over 1,800 slots and 26 poker tables. There is also a wide variety of other gambling games available here. This luxury resort is located on the Las Vegas Strip.

According to CEO Matt Maddox, the company is taking all necessary steps to implement the required recommendations to reduce the risk of Covid-19 disease for visitors and employees. Wynn Resorts is currently actively testing its employees for the presence of coronavirus. The overall results seem to be very optimistic. Of the 300 employees who passed the Covid-19 tests, only 2% received positive results.

Moreover, the CEO noted that the Macau authorities have decided to reduce the restrictions on visitors to gambling establishments gradually. Such steps can prove to be very useful for the fastest possible market recovery and flow of visitors from mainland China. The company appears to have very high hopes for this positive news and financial results of the second half of 2020.

Low Chances Of Success In Japan

According to the official information provided in the income statement for the 2nd quarter of 2020, the operator’s plans to open a division in Japan have been finally suspended. This decision was made back in March when the company’s management did not have a clear idea of ​​how the business would look and what consequences the brand would experience because of Covid-19.

However, this does not mean that the casino will stop considering this market as one of the promising areas for brand development. In any case, global strategies for expansion will change one way or another. At the same time, the company’s management finds comfort in the hope that the situation can change for the better. It seems that the casino operator has taken a wait and see attitude, which will allow it to take a breath and choose the optimal strategy for further actions.

Recall that Wynn Resorts, Limited is one of the largest US public corporations. Its headquarters are located in Paradise, Nevada. The brand is currently developing software and promoting luxury casinos and hotels. The company was founded back in 2002 by former Mirage Resorts Chairman and CEO Steve Wynn.