Wynn remains buoyant despite first quarter struggles

Wynn Resorts has maintained confidence in its performance throughout the remainder of the year, despite revenue drops being reported across each of its key reporting segments.

Operating revenue for the period ending March 31, 2021, closed at a 23.9 per cent decrease to $725.8m (2020: $953.7m), with casino; rooms; food and beverage; and entertainment retail and other, down 9.5 per cent; 50.1 per cent; 54.1 per cent; and 19.7 per cent to $516.2m (2020: 570.7m); $76.1m (2020: $152.6m); $68.5m (2020: $149.4m); and $64.8m (2020: $80.8m), respectively.

Furthermore, revenue at the group’s Wynn Palace declined 8.5 per cent from $259.5m to $237.3m year-on-year, with Wynn Macau dropping 21.7 per cent to $179.7m (2020: $229.5m).

The continued impacts of the pandemic were also felt at Wynn’s Las Vegas operations and Encore Boston Harbor, with revenue down 44.8 per cent and 7.7 per cent to $178.7m (2020: $323.8m) and $130.1m (2020: 140.9m), respectively.

Group-wide operating loss narrowed to $175.7m (2020: $247.4m), net loss closed at $336.1m (2020: $450.2m) and adjusted EBITDA came in at $58.9m, compared to a loss of $5.3m from one year ago.

Adjusted EBITDA at its integrated resort properties increased $17.2m, $50.2m, and $43m at Wynn Palace, Las Vegas operations, and Encore Boston Harbor, respectively, and decreased $2.7m at Wynn Macau, when compared with the first quarter of 2020.

“Our first quarter results reflect continued progress in our business as consumers began to once again travel to their favourite leisure and gaming destinations,” noted Matt Maddox, CEO of Wynn Resorts

“Wynn Las Vegas showed continued strength in the casino segment, with the property remaining the destination of choice for high quality gaming customers, while forward bookings in the leisure segment improved throughout the quarter. 

“Encore Boston Harbor again delivered record adjusted property EBITDA on the back of solid execution across the property. In Macau, we experienced continued gradual improvement in visitation trends driving particular strength in premium mass casino and luxury retail.”

Before adding a further update on the planned online gaming business combination with newly incorporated blank check company Austerlitz Acquisition Corporation I: “We are also pleased to announce our intention to fuel the growth of WynnBet through a merger of Wynn Interactive with Austerlitz Acquisition Corp I,” he stated. 

“We are proud to join forces with Bill Foley as we continue to aggressively scale in online sports betting and igaming. With WynnBet now live in six states, we will be launching enhanced product features and expanding our market position in 2021.”

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