Wynn Macau braces for 44% drop in Q1 revenue
Revenue is likely to be in the range of US$912million to US$969million for the first three months of the year, down from US$1.64billion in 1Q19.
Macau.- Wynn Macau is bracing itself for a 44 per cent drop in revenues in the first quarter of the year due to the impact of the Covid-19 outbreak.
The company said in a filing delivered to the Hong Kong Stock Exchange that revenue is likely to be in the range of US$912million to US$969million for the first three months of the year, down from US$1.64billion in 1Q19.
In terms of adjusted property EBITDA, it expects to report results between US$58 million to US$65 million, a fraction of the US$484 million recorded during the same period last year.
Wynn said adjusted property EBITDA had been adjusted to add back provisional expenses totalling between US$70million and US$80million in connection with its commitment to provide wages and benefits from April 1 to May 15.
Macau ordered the closure of all casinos in February for 15 days. Although they are now open, strong restrictions were imposed such as reduced seating at tables and slot capacity, with border restrictions also in place.
This means that no visitors from outside the Greater China area permitted to enter the SAR with quarantine restrictions being imposed on those coming from Hong Kong and Taiwan.
“Until such measures are lifted, we expect to continue to incur such cash costs in excess of the amounts we are earning at our properties,” the company said.
The operator said it was still unable to predict the ultimate impact of the pandemic with any clarity.
“The current, and uncertain future, impact of the COVID-19 outbreak, including its effect on the ability or desire of people to travel (including to and from our properties), is expected to continue to impact our results, operations, outlooks, plans, goals, growth, reputation, cash flows and liquidity.”