Gaming operator Wynn Macau is estimating to report between US$17.9 million (MOP142.8 million) to US$19 million in total operating revenues for April and May, which would represent a 97.5 per cent year-on-year reduction from the US$759.7 million registered on the same period last year.
Between April and May, Wynn Macau operations have also reported an average daily Adjusted Property EBITDA loss of approximately US$2.0 million and an average monthly Adjusted Property EBITDA loss of some US$61.2 million.
‘The impact of the Covid-19 Pandemic has persisted into the second quarter of 2020 […]. We expect to continue experiencing the adverse effects of the Covid-19 pandemic throughout the second quarter of 2020,’ the group’s announced in a Hong Kong Stock Exchange filing.
The group noted that total visitation from mainland China to Macau having decreased by 97.2 per cent, 96.3 per cent and 99.6 per cent in February, March and April of this year with travel restrictions and quarantine requirements continuing to weigh on visitation to Macau.
Still, as of May 31 Wynn Macau had unrestricted cash and cash equivalents of US$1.71 billion and US$24.1 million in available borrowing capacity.
The group also stated that it believed Macau’s recovery will be driven by the premium guest market, with its Wynn Palace and Wynn Macau mainly catering to premium VIP and mass market guests.
‘For example, in the five-week period following the reopening of our properties on 20 February 2020, gross gaming revenues were approximately 25 per cent of the historical gross gaming revenues run-rate, which was driven primarily by our VIP and premium mass market guests, despite significant travel restrictions,’ the group indicated.
‘During this period, our daily Adjusted Property EBITDA loss decreased to approximately US$0.8 million while our daily operating costs were approximately US$2.5 million during the closure period. We expect to achieve break-even Adjusted Property EBITDA upon reaching between 45 per cent to 50 per cent of our historical gross gaming revenues run-rate’