International edition
April 18, 2021

Compared to the same period last year

Wynn sees 77.5% decrease in operating revenues in third quarter 2020

Wynn sees 77.5% decrease in operating revenues in third quarter 2020
"On the development front, we have made substantial progress advancing Wynn Interactive, our majority-owned sports betting and online gaming subsidiary," said Matt Maddox, CEO of Wynn Resorts, Limited.
United States | 11/06/2020

Operating revenues were $370.5 million for the third quarter of 2020, a decrease of $1.28 billion from $1.65 billion for the third quarter of 2019; and net loss was $758.1 million, compared to the $3.5 million in the third quarter of 2019. CEO Matt Maddox said the company is encouraged by the progress made in its properties over the past several months, despite the ongoing impact of the virus and related operating limitations.

W

ynn Resorts reported on Thursday financial results for the quarter ended September 30, 2020.

Operating revenues were $370.5 million for the third quarter of 2020, a decrease of 77.5%, or $1.28 billion, from $1.65 billion for the third quarter of 2019. Net loss attributable to Wynn Resorts, Limited was $758.1 million, or $7.10 per diluted share, for the third quarter of 2020, compared to net loss attributable to Wynn Resorts, Limited of $3.5 million, or $0.03 per diluted share, in the third quarter of 2019.

Net loss attributable to Wynn Resorts, Limited for the third quarter of 2020 reflects a provision for income taxes of $407.4 million, primarily related to an increase in the valuation allowance against deferred tax assets no longer expected to be realized. Adjusted Property EBITDA was $(65.9) million for the third quarter of 2020, compared to Adjusted Property EBITDA of $396.9 million in the third quarter of 2019.

"We are encouraged by the progress we have made in each of our properties over the past several months, despite the ongoing impact of the virus and related operating limitations," said Matt Maddox, CEO of Wynn Resorts, Limited. "Encore Boston Harbor delivered record quarterly EBITDA during the third quarter, while Wynn Las Vegas continued to experience strong leisure demand on weekends with solid hotel occupancy and casino play. In Macau, visitation restrictions have begun to gradually and thoughtfully ease, allowing us to achieve EBITDA break-even in October. We are confident that Macau will continue to benefit from the return of consumer demand as we head into 2021.

"On the development front, we have made substantial progress advancing Wynn Interactive, our majority-owned sports betting and online gaming subsidiary. During the third quarter, we launched online sports and casino offerings in New Jersey to an encouraging initial customer response. Beyond New Jersey, we have secured market access in numerous other states, and are in the process of applying for licenses on a standalone basis in Tennessee and Virginia. We are also in discussions with potential partners regarding additional access agreements in other jurisdictions. Our nationally-recognized brand and unique product-led strategy position us well to generate our fair share of this important, fast-growing business over the coming years."

Operating revenues decreased $582.5 million, $422.9 million, $212.8 million, and $59.1 million at Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor, respectively, from the third quarter of 2019.

Adjusted Property EBITDA was $(65.9) million for the third quarter of 2020, compared to $396.9 million for the third quarter of 2019. Adjusted Property EBITDA decreased $239.8 million, $173.4 million, and $67.8 million at Wynn Palace, Wynn Macau, and Las Vegas Operations, respectively, and increased $18.2 million at Encore Boston Harbor.

Macau Operations

Casino operations at Wynn Palace and Wynn Macau were closed for a 15-day period in February 2020 and resumed operations on a reduced basis on February 20, 2020. Casinos' operations have since been fully restored; however, certain COVID-19 specific protective measures, such as traveler quarantines and requirements for negative COVID-19 tests before entering Macau, limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, COVID-19 negative test results requirements for entry to gaming areas, and health declarations remain in effect at the present time. We are currently unable to determine when these measures will be lifted. On September 23, 2020, mainland China authorities fully resumed the Individual Visit Scheme exit visa program, subject to certain testing requirements and health declarations.

Wynn Palace

Operating revenues from Wynn Palace were $15.7 million for the third quarter of 2020, a 97.4% decrease from $598.2 million for the third quarter of 2019. Adjusted Property EBITDA from Wynn Palace was $(77.6) million for the third quarter of 2020, compared with $162.2 million for the third quarter of 2019. VIP table games win as a percentage of turnover was 1.04%, below the property's expected range of 2.7% to 3.0% and below the 3.19% experienced in the third quarter of 2019. Table games win percentage in mass market operations was 22.0%, below the 25.0% experienced in the third quarter of 2019.

Wynn Macau

Operating revenues from Wynn Macau were $51.4 million for the third quarter of 2020, an 89.2% decrease from $474.3 million for the third quarter of 2019. Adjusted Property EBITDA was $(34.5) million for the third quarter of 2020, compared with $139.0 million for the third quarter of 2019. VIP Table games win as a percentage of turnover was 3.95%, above the property's expected range of 2.7% to 3.0% and above the 2.76% experienced in the third quarter of 2019. Table games win percentage in mass market operations was 18.7%, below the 20.7% experienced in the third quarter of 2019.

Las Vegas Operations

Wynn Las Vegas ceased all operations and closed to the public on March 17, 2020, and reopened on June 4, 2020 with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, mask protection, and suspension of certain entertainment and nightlife offerings. Beginning October 19, 2020, Encore at Wynn Las Vegas adjusted its operating schedule to five days/four nights each week due to currently reduced customer demand levels. We are currently unable to determine when certain of these measures will be lifted.

Operating revenues from its Las Vegas Operations were $186.7 million for the third quarter of 2020, a 53.3% decrease from $399.5 million for the third quarter of 2019. Adjusted Property EBITDA from its Las Vegas Operations for the third quarter of 2020 was $20.3 million, compared with $88.0 million for the third quarter of 2019. Table games win percentage was 20.2%, below the property's expected range of 22% to 26% and above the 19.9% experienced in the third quarter of 2019.

Encore Boston Harbor

Encore Boston Harbor ceased all operations and closed to the public on March 15, 2020, and reopened on July 10, 2020 with certain COVID-19 specific protective measures in place, such as limiting the number of seats per table game, slot machine spacing, temperature checks, and mask protection. In addition, certain food and beverage outlets remain closed, and hotel reservations were limited to Thursday through Sunday through the third quarter of 2020. On November 2, 2020, the Governor of Massachusetts issued a directive limiting the operating hours of certain businesses, including restaurants and casinos, effective November 6, 2020. Encore Boston Harbor may modify its operations as a result of this directive. We are currently unable to determine when these measures will be lifted.

Operating revenues from Encore Boston Harbor were $116.7 million for the third quarter of 2020, a 33.6% decrease from $175.8 million for the third quarter of 2019. Adjusted Property EBITDA from Encore Boston Harbor for the third quarter of 2020 was $26.0 million, compared with $7.7 million for the third quarter of 2019. Table games win percentage was 21.8%, within the property's expected range of 18% to 22% and above the 19.7% experienced in the third quarter of 2019.

Wynn Interactive

In October 2020, Wynn Interactive was formed through the merger of its U.S. online sports betting and gaming business, social casino business, and strategic partner, BetBull Limited. Following the merger, Wynn Resorts owns approximately 71% of Wynn Interactive and will consolidate Wynn Interactive going forward. We expect this transaction to position Wynn Resorts to capitalize on developing opportunities in digital and interactive sports betting and gaming throughout the U.S., by combining Wynn Resorts' nationally recognized brand with BetBull's digital sports betting operational capabilities and technology.

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