Wynn's Q2: Vegas properties acting like 'a super-regional casino'

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The Wynn Las Vegas.
The Wynn Las Vegas. Photo Credit: Barbara Kraft

Wynn Resorts saw second-quarter revenue plummet 94.8%, with the company's Las Vegas properties now effectively operating like "a super-regional casino," said Wynn CEO Matt Maddox.

"Without the conventions, without the nightclub crowd, without the large shows, we've become super regional," Maddox told investors during Wynn Resorts' Q2 earnings call on Tuesday. "But our revenues are not like regional-market revenue. Two-thirds of our business is nongaming, and that [non-gaming business is] down by 60%-plus."

After temporarily closing in mid-March, the group's Wynn Las Vegas and Encore resorts reopened on June 4

Maddox reported that immediately after resuming operations, Wynn's Las Vegas properties received roughly 4,000 reservations for stays spread over a subsequent two-week period.

By early July, however, Wynn's Vegas business slowed significantly, with post-July 4 reservations down roughly 25% as key drive-in markets like California and Arizona experienced a spike in Covid-19 cases.

Wynn Las Vegas and Encore are currently seeing occupancy in the mid-50% range on the weekends and at the 30% level midweek. According to Maddox, the properties are currently leaning heavily on promotions, with the company "doing everything we can to get heads in beds in the hotel and really focus on how we can get more of our drive-in market here on a more frequent basis."

Meanwhile, Maddox touted extensive Covid-19 testing efforts in Las Vegas, which has involved the testing of all Wynn and Encore employees prior to their return to work, as well as randomized testing of 500 to 600 employees every few weeks.

Wynn Resorts reports that 98% of its Las Vegas staff has tested negative, with around 300 individuals testing positive at some point. Maddox added that contact tracing protocols indicate that 99% of those who have tested positive were exposed to the virus outside of Wynn.

Revenue for Wynn's Las Vegas operations were down 86% to $64.9 million for the second quarter of 2020.

Looking beyond Vegas

In Macau, the Wynn Palace and Wynn Macau resorts continue to be challenged by strict travel restrictions, though quarantine mandates for travel between Macau and the Guangdong province began to ease on July 15.

The Wynn Palace saw revenues drop 98.6% to $8.7 million for the second quarter, while second-quarter revenues at the Wynn Macau fell 97.8% to $11.9 million on the same quarter last year.

Wynn Resorts' Encore Boston Harbor in Massachusetts remained shuttered throughout the quarter. That property reopened on July 12.

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