Pandemic results an additional quarterly loss for Wynn Resorts

Wynn Resorts Ltd., continuing the pandemic to its struggle on two continents, reported large net losses for the fourth quarter and for 2020.

Wynn President and CEO Matt Maddox on Thursday acknowledged the weak performance that is financial but stated improvements are coming when on the weekend whenever Wynn Las Vegas and Encore anticipate 50 per cent resort occupancy — the most effective since October — for Super Bowl week-end.

Wynn reported that the organization, operator of Wynn Las Vegas and Encore in the Strip, had a net loss in $269.5 million, $2.53 a share, on income of $686 million for the quarter that ended Dec. 31. It had a net loss in $72.9 million, 62 cents a share, on income of $1.653 billion within the quarter that is same year earlier.

For 2020, the company reported a staggering loss that is net of2.327 billion, $19.37 a share, on income of $2.096 billion. In 2019, Wynn reported income that is net of123 million, $2.61 a share, on revenue of $6.611 billion.

“We are encouraged by the progress we have made at each of our properties over the past several months, as we continue along the road to recovery from the pandemic,” Maddox said.

Bright spot

Evidence of that recovery is expected over this when guests arrive for Super Bowl on Sunday weekend. Maddox stated it will likely be the hotel occupancy that is highest since October.

State regulations restrict the number of guests on the casino floor at 25 percent of fire code capacity, but there’s no restriction that is such the hotel.

Analysts state Wynn’s occupancy that is fourth-quarter Las Vegas averaged 34.2 percent compared with 89.4 percent in the fourth quarter of 2019. The average room that is daily for the quarter had been $305 per night in contrast to $322 per night in 2019.

The casino limitations took a bite that is big of revenue with gross slot revenue down $46.9 million from $63.1 million a year ago, but gross table revenue at $72.3 million compared with $71.9 million a year earlier.

Maddox said his company’s casino marketing team has drawn new visitors and increased market share in Las Vegas.

Having restaurants available to hotel guests will be important to customers that are keeping once they arrive due to their remains, Maddox stated. The organization is continuing to work well with hawaii toward a return to supplying a environment that is safe trade shows and conferences, he said.

The statewide shutdown of the resort in March came within weeks of the opening of the company’s new two-story, 430,000-square-foot meeting space.

Restrictions The“gradual and thoughtful easing of visitation restrictions” allowed the company to return to adjusted cash flow profitability in the fourth quarter, with particular strength in premium mass business.

New at Encore Boston Harbor have been more severe than in Las Vegas with the hotel closed and a nightly curfew of 9 p.m. imposed on the casino floor.

Maddox said he’s encouraged that new table games at Encore Boston Harbor could eventually deliver more casino customers with craps play on the horizon.

Maddox said in Macao virus outbreaks in Asia are required to curtail visitation in Macao, where Wynn runs three resorts. The entire year regarding the Ox starts Feb. 15.

“In the U.S., our operations at both Wynn Las vegas, nevada and Encore Boston Harbor had been resilient he said.

WynnBet as we continue to deliver our industry-leading service, while remaining focused on costs rollouts

Domestically, the company’s new sports system that is wagering WynnBet, had effective rollouts in Michigan and Colorado recently and in addition is running in nj-new jersey. Maddox stated WynnBet will introduce in extra states in coming months while the item becomes better with every version that is new

“We believe our product will be increasingly compelling with each release over the months that are coming enjoy growing the company in 2021,” he stated.

Gaming industry analysts had anticipated Wynn’s results that are fourth-quarter be impacted by the coronavirus pandemic.

A consensus of analysts surveyed by Zacks Equity Research on reported that capacity restrictions in Nevada, Massachusetts and Macao are affecting the company’s casino operations.

“Dismal tuesday Visitation due to the pandemic and limited numbers of tables might have weighed on the ongoing company’s performance in the quarter to be reported,” the report said. “Dismal performance at Encore Boston Harbor, Wynn Palace, Wynn Macao, Las Vegas operations and Encore Boston Harbor is likely to get reflected in the results that are fourth-quarter. More over, money burn because of the coronavirus may have impacted the quarter that is to-be-reported performance.”

But analysts also said sports demand that is wagering assist the business later on.

“Wynn Resorts was strengthening its place within the online activities category that is betting current availability in New Jersey and Colorado, and secured market access in Indiana, Iowa, Nevada and Massachusetts,” the report said. The company has been making every effort to expand presence across more than a dozen other large jurisdictions.”

Wynn“With increase in demand for the iGaming industry Thursday Resorts shares, traded on the Nasdaq exchange, closed up 27 cents, 0.25 percent, in below-average volume. After hours, the stock dipped 69 cents, 0.6 percent, to end at $108 a share.

Contact Richard N. Velotta at [email protected] or 702-477-3893. Follow @RickVelotta on Twitter.

Wynn Resorts Ltd.

Fourth-quarter revenue and earnings for Las Wynn that is vegas-based Resorts, which runs Wynn Las vegas, nevada and Encore Las vegas, nevada, three properties in Macao, and Encore Boston Harbor. (Nasdaq: WYNN)

Revenue

4Q 2020: $686 million

4Q 2019: $1.653 billion

Change: -58.5%

Net income/(loss)

4Q 2020: ($269.5 million)

4Q 2019: ($72.9 million)(*)Change: —(*)Earnings/(Loss) per share(*)4Q 2020: ($2.45)(*)4Q 2019: ($0.62)(*)Change: —(*)

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