Casino Giant, Wynn Resorts Ltd, and US-based company published their Q2 financial report on the 5th of August 2020 while the results were released on the 4th of August 2020. In the report, Wynn Macau Ltd, operating the Macau casino, stated a loss of nearly US$351.6-million in the Q2 of 2020. Compared to the previous year, which witnessed a profit of US$168.6-million, it is quite a staggering loss owing to the COVID-19 outbreak early this year.
It is no secret that the pandemic has had a major impact on the entertainment and hospitality industry. While casinos contribute to this sector, most of them were shut down following the outbreak of the pandemic.
Wynn Macau Ltd also stated that the Macau casino’s revenue for the Q2, which ended on the 30th of June was negative, owing to the negative VIP hold by around US$15.0 million compared to the positive revenue of over US$1.0 billion in the Q2 of 2019.
While reaching losses of close to US$193.6 million, the Wynn Macau Ltd had to adjust its property earnings before EBITA or the interest, taxation, depreciation, and amortization turned negative for 2Q this year accounting to losses of close to US$193.6 million, which when compared to the EBITA of Q2 of 2019, reported above US$343.0 million.
Wynn Resorts Ltd on the whole reported a net loss of US$637.6 million in the second quarter of 2020, which when compared to the equivalent of 2019, was an income of almost US$94.6 million. The adjusted EBITA reported a loss of US$322.9 million, as opposed to a positive EBITA in Q2 reported last year recorded at US$480.6 million.
The operating revenues of Wynn Palace in Macau were recorded at US$8.7 million in the Q2 2020, which was a 98.6% drop when compared to the US$628.9 million of Q2 2019. Also, the adjusted EBITA reported a loss of US$110.9 million when compared to the EBITA of US$167.2 in the 2Q last year.
The Wynn Macau property’s operating revenues were recorded to be close to US$11.9 million on the 30th of June 2020, which was a 97.8% decrease when compared to US$546.5 million for the equivalent period in 2019. Also, the Wynn Macau property reported an EBITDA adjustment loss of US$82.6 million when compared to EBITA of US$175.9 million in the Q2 of 2019.
To conclude, despite the losses reported in Q2 2020, Wynn Resorts is expecting a positive trend in the second half this year, reasoning the return of Chinese visitors to the casinos.