Wynn Macau operating losses expand to US$97 mln in Q1

Wynn Macau ended the first quarter of this year with US$97.6 million in operating losses, a 31 per cent expansion from the negative results reported in the same period last year, the group’s latest financial report shows.

Between January and March operating revenues registered by the gaming concessionaire dropped by 28 per cent year-on-year US$298.4 million, with Wynn Palace seeing the largest revenue decrease, some 40 per cent.

By the end of March, the group’s two properties, Wynn Macau and Wynn Palace, ended with US$4.6 million and HK$864 million in adjusted property losses.

In total, the group expanded its net loss attributable to owners of the company this first quarter from a negative US$161 million last year to US$188.4 million this year.

“Visitation to Macau has fallen significantly since the outbreak of COVID-19, driven by the strong deterrent effect of the COVID-19 pandemic on travel and social activities, quarantine measures put in place in Macau and elsewhere, travel and entry restrictions and conditions in Macau, the PRC, Hong Kong and Taiwan involving COVID-19 testing, among other things, and the suspension or reduced accessibility of transportation to and from Macau,” the group’s Chairman, Allan Zeman, says in the report.

Zeman noted also that although there have been periods during which certain restrictions and conditions were eased by the Macau government to allow for greater visitation and quarantine-free travel to Macau, “adverse conditions and evolving conditions created by and in response to the COVID-19 pandemic” may cause these restrictions and conditions to be reintroduced.

Wynn Resorts’ total current and long-term debt outstanding on March 31, 2022 was US$11.92 billion, comprised of $5.97 billion of Macau related debt, with approximately US$1.29 billion held by Wynn Macau, Limited in cash and cash equivalents.