During the first quarter of the year, Wynn Resorts recorded a major hit with sales dropping nearly fifty percent and losses plummeting to nearly half a million dollars.
The casino developer and operator headquartered in Las Vegas announced that workers will earn maximum compensation and benefits during this month, with a “detailed reopening plan” already in effect since April 19 as the company seeks to “play a leadership role in the industry’s re-emergence.”
The company’s operating revenue for the first quarter of 2020 was $953.7 million, marking a drop of 42.3 percent from $1.65 billion, with net loss swinging to $450.2 million from $104.8 million in income.
Adjusted EBITDA for the period was $5.3 million (2019: $494.8 million), which includes the effect of $75.7 million in expenses accrued during the quarter due to a pledge to continue paying wages, tips and benefits to all US employees for the period April 1 to May 15, 2020.
Matt Maddox, CEO of Wynn Resorts explained: “Our leadership team has been working side-by-side with our host communities, fellow industry leaders and world-class medical experts to identify and implement strategies to mitigate the impact of the virus on our team members, our guests and our broader communities.
“In mid-March we led the industry by identifying the need for short-term closure in Las Vegas and Boston, thereby doing our part to ‘flatten the curve.’ Concurrently, we decided to invest in the health and safety of our approximately 30,000 team members globally by committing to pay their full wages and benefits through May.
“We continue to play a leadership role in the industry’s re-emergence, most recently producing a detailed reopening plan on April 19, developed in consultation with medical experts from Georgetown and Johns Hopkins Universities, which we believe will be the gold standard for sanitisation and customer safety.
“At the same time, we have also been focused on our long-term business prospects, taking steps to bolster our already strong liquidity position by opportunistically issuing $600m of unsecured notes and increasing our financial flexibility.
“While the current environment is clearly challenging, we are confident that travel and tourism will recover in both the US and China, and our industry leading assets, fortress balance sheet and talented team members position the company to thrive in the years ahead.”
uCasino operations at Wynn Palace and Wynn Macau, closed in February 2020 for a 15-day period, before resuming operations on a reduced basis on February 20, 2020, with certain safeguards for the public health.
Those include traveller quarantines, restricting the number of seats per table game, slot machine spacing, temperature tests, mask security, and statements of safety at this time remain in place. Where such controls will be lifted is still undetermined.
The Palace’s operating revenue fell 64.3 percent to $259.5 million (2019: $726.6 million), with its sister property dropping 56.2 percent from $523.9 million to $229.5 million.
Operations in Las Vegas, which stopped and closed to the public on March 17, 2020 and will remain closed until approved to reopen under US and state regulations, saw revenue decline from $401 m by 19.3% to $323.8 m.