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Wynn Macau looses US$2 million a day in April – May

The operator is confident the VIP market will drive the recovery of business.
The operator is confident the VIP market will drive the recovery of business.

The operator saw loses of US$2 million a day on average in April and May. totalling US$61.2 million per month.

Macau.- Gaming operator Wynn Macau has reported that its expects EBITDA adjusted loses of between -US$126.1 million and -US$118.8 million for the two months ending May 31.

It lost an average of US$2 million per day as the pandemic continued to impact in April and May, ammounting to a loss of around US$61 million a month.

The firm’s total operating revenues for the period were between US$17.9 million and US$19 million, down by approximately 97.5 per cent year-on-year.

The figures were released in a filing to the Hong Kong Stock Exchange, where the firm announced it would propose a new series of senior notes to investors.

The operator said: “If the Notes are issued, the Company intends to use the net proceeds from the proposed offering for general corporate purposes until business recovers from the effects of the COVID-19 Pandemic.”

“We estimate table games win percentage negatively impacted Adjusted Property EBITDA by approximately US$24 million for the two months ended 31 May 2020 compared to a negative impact of US$12 million for the comparable 2019 period.”

The filling also provided a business update on the company’s financial situation. The casino and resort operator said the pandemic had a huge impact on results in the first quarter of 2020, for which the company reported losses of US$154.1million.

The Macau casino was closed for a 15-day period in February and has since reopened but with health safeguards that restrict operations and travel bans limiting visitor numbers. Total visitation from mainland China to Macau decreased by 97.2%, 96.3% and 99.6% in February, March and April 2020, respectively, compared to the same periods in 2019.

The operator said it was confident restrictions will continue to be lifted, allowing more visitors to enter Macau. The company believes the recovery of the Macau gaming market will be driven by premium VIP guests, which Wynn Palace and Wynn Macau cater for.

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