- Wynn Resorts lost nearly $700 million in revenue in Q1 2020 compared to Q1 2019.
- The company’s stock price dropped by $84.87 (61%) from January 1 to March 31 as well.
- Some of Wynn’s losses are attributable to its decision to pay employees despite Wynn properties being shut down by the Coronavirus.
- It might still take months to recover financially, and Wynn is hoping to begin reopening its properties as soon as possible.
LAS VEGAS – In the first quarter of 2020, Wynn Resorts, one of the biggest casino and sports betting companies in the United States, experienced a loss of $697.8 million in revenue compared to Q1 2019.
This staggering loss was primarily brought on by the Coronavirus pandemic forcing major casinos and hotels around the world to close.
The company’s stock price also fell by $84.87 per share (61%) from January 1 to March 31, although it has since experienced a slight rebound back up to $79.60 per share.
Wynn’s adjusted property earnings before interest, tax, depreciation, and amortization (EBITDA) were a net loss of $5.3 million.
This loss factors in Wynn’s commitment to paying employee salaries despite the suspension of most operations, but it is still a monumental loss from the $494.8 million EBITDA posted in Q1 2019.
The quarterly report Wynn released also details a number of moves the company will make to bolster its liquidity and maintain financial flexibility and expresses faith that the travel and tourism industries will rebound quickly.
Maddox announced on Thursday that the company would be extending pay for its 15,000 employees through May 31 — a good faith gesture that should help minimize any transition difficulties when Wynn properties are able to reopen.
When Will Wynn Resorts Recover?
Wynn’s holdings are diverse in that they cover a broad geographical footprint, but that does little good during a global crisis. Put simply, the company won’t be able to make a full recovery until most or all of its casino and hotel properties are able to reopen.
The company is still recording some income through avenues that haven’t been affected by the shutdown, like mobile sports betting through its proprietary app, but these revenue streams are minor at best.
None of the issues Wynn is facing are unique to them. The entire sports betting industry saw its revenues decrease drastically in March and there is no clear timetable for recovery.
With a vaccine still likely over a year away, all companies like Wynn can do is cut costs where possible, prioritize everyone’s safety, and find ways to stretch existing revenues.
Wynn has already begun to express an interest in reopening Las Vegas casinos and hotels, including its flagship property, by the end of May. The company opened a COVID-19 testing center for employees on Thursday to facilitate faster and safer reopening.
While it is unclear if safely reopening casinos is even possible, it is clear that Wynn’s reopening efforts are taking extensive measures to protect the health and safety of both the company’s employees and the general public.
With a dual background in English and sports performance and business analytics, Carter aims to write stories that both engage and inform the reader. He prides himself on his ability to interweave empirical data and traditional narrative storytelling. When he isn’t keeping readers up to date on the latest sports betting legal news, he’s banging his head against a wall regretting his decision to be a Tampa Bay Buccaneers fan.