The coronavirus pandemic has hit Wynn Resorts’ Q1 performance hard, with the firm reporting a net loss of $402m versus a net income of $104.9m year-on-year during the period ended March 31, 2020. Q1 operating revenues of $953.7m were down 42.3%, or $697.8m, from $1.65bn in Q1 2019.
Adjusted property EBITDA, meanwhile, was $(5.3)m for the first quarter of 2020, which includes the impact of $75.7m of expense accrued during the quarter related to Wynn’s commitment to pay salary, tips, and benefits continuation for all of its US employees for the period from April 1 through May 15, 2020. Adjusted property EBITDA was $494.8m for the first quarter of 2019.
CEO Matt Maddox told investors: “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 sanitization and customer safety.”
Maddox, commenting on the firm’s long-term business prospects, said steps had been taken to bolster its already strong liquidity position by opportunistically issuing $600m of unsecured notes and increasing its 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,” he said.
Focusing on Las Vegas operations, the report revealed that Q1 operating revenues in that segment were $323.8m, a 19.3% decrease from $401m for the first quarter of 2019. Adjusted property EBITDA from its Las Vegas operations was $(22.1)m versus $108.3m year-on-year.
Elsewhere, operating revenues at the firm’s Encore Boston Harbor facility came in at $140.9m, while adjusted property EBITDA was $(12.6)m. Table games win percentage was 20.8%, slightly above the property’s expected range of 16% to 20%.