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Jun 30, 2020

Wynn Resorts Q2 2020 Earnings Report

Wynn Resorts reported a significant decrease in operating revenues and a net loss due to the impact of COVID-19.

Key Takeaways

Wynn Resorts reported a 94.8% decrease in operating revenues, totaling $85.7 million, and a net loss of $637.6 million for the second quarter of 2020, compared to $1.66 billion in operating revenues and net income of $94.6 million for the second quarter of 2019. The results were heavily impacted by the COVID-19 pandemic and related closures and restrictions.

Operating revenues decreased by 94.8% year-over-year to $85.7 million.

Net loss attributable to Wynn Resorts, Limited was $637.6 million, or $5.97 per diluted share.

Adjusted Property EBITDA was $(322.9) million, compared to $480.6 million in the second quarter of 2019.

Wynn Palace, Wynn Macau, and Las Vegas Operations saw significant revenue decreases.

Total Revenue
$85.7M
Previous year: $1.66B
-94.8%
EPS
-$6.14
Previous year: $1.44
-526.4%
Adjusted Property EBITDA
-$323M
Previous year: $481M
-167.2%
Gross Profit
-$155M
Previous year: $642M
-124.1%
Cash and Equivalents
$3.8B
Previous year: $1.5B
+153.0%
Free Cash Flow
-$484M
Previous year: -$80.1M
+503.8%
Total Assets
$12.8B
Previous year: $13.2B
-2.9%

Wynn Resorts

Wynn Resorts

Wynn Resorts Revenue by Segment

Forward Guidance

The company is optimistic about the gradual easing of visitation restrictions in Macau and the reopening of Wynn Las Vegas and Encore Boston Harbor, but uncertainties remain due to the ongoing COVID-19 pandemic.

Positive Outlook

  • Reopening of Wynn Las Vegas and Encore campus with focus on cleanliness and safety.
  • Positive reception to the reopening of Encore Boston Harbor.
  • Gradual easing of visitation restrictions in Macau.
  • Anticipated benefit from the return of the Chinese consumer in Macau.
  • Implementation of strategies to mitigate the impact of the virus on team members, guests, and communities.

Challenges Ahead

  • Continued impact of COVID-19 pandemic.
  • Uncertainty regarding the lifting of public health safeguards.
  • Traveler quarantines and other restrictions remain in effect.
  • Suspension of certain entertainment and nightlife offerings.
  • Limited hotel reservations at Encore Boston Harbor.

Revenue & Expenses

Visualization of income flow from segment revenue to net income