April and May shortfall notice from Wynn Macau Limited


Asian casino operator Wynn Macau Limited has reportedly warned investors that it is expecting to record a combined loss of up to $126.1 million in adjusted earnings before interest, tax, depreciation and amortization for the months of April and May.

According to a report from Inside Asian Gaming, the Hong Kong-listed firm used an official Thursday filing to detail that this deficit is a result of the ongoing coronavirus-related restrictions that have been severely limiting travel between Macau and mainland China since mid-February and could eventually represent a diminution of up to 157% year-on-year.

Analogous advantage:

Inside Asian Gaming reported that the anticipated loss compares with the $215.2 million profit Wynn Macau Limited recorded for the same two-month period last year. The source furthermore explained that the unveiling of this less-than-upbeat news comes just as the operator of the 1,000-room Wynn Macau as well as the even grander Wynn Palace Cotai is about to embark on a senior note offering that it is hoping will raise as much as $991.3 million.

Steady shortfall:

Majority owned by American casino operator Wynn Resorts Limited, Wynn Macau Limited reportedly also predicted that its total operating revenues for the two months will have plummeted by around 97% year-on-year to about $17.9 million with its daily average deficit in adjusted earnings before interest, tax, depreciation and amortization standing at approximately $2 million.

Reportedly read the filing from Wynn Macau Limited…

“We estimate table games win percentage negatively impacted adjusted property earnings before interest, tax, depreciation and amortization by approximately $24 million for the two months that ended on May 31 compared to a negative impact of $12 million for the comparable 2019 period.”

Operator optimism:

However, Wynn Macau Limited reportedly proclaimed that its focus on ‘premium guests’ is set to serve its post-coronavirus recovery efforts well once travel restrictions between Macau and Hong Kong begin being lifted, which could come as soon as July 8. The operator purportedly moreover pointed to the five-week period from February 20 when its gross gaming revenues were approximately 25% down on historical levels owing to the implementation of similar travel restrictions but nevertheless ‘driven primarily by our VIP and premium mass-market guests.’

Wynn Macau Limited’s filing reportedly read…

“During this period, our daily adjusted property earnings before interest, tax, depreciation and amortization loss decreased to approximately $800,000 while our daily operating costs were approximately $2.5 million during the closure period. We expect to achieve break-even adjusted property earnings before interest, tax, depreciation and amortization upon reaching between 45% to 50% of our historical gross gaming revenues run-rate.”