Please ensure Javascript is enabled for purposes of website accessibility

Wynn Resorts Revenue Plunges 42% in Q1 as Dividend Is Suspended

By Rich Duprey - May 7, 2020 at 9:37AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Adjusted property EBITDA craters 88% in Macao.

Wynn Resorts (WYNN 3.15%) suffered a 42% plunge in first-quarter revenue as the coronavirus pandemic slammed gambling operations in Macao and Las Vegas.

Where analysts had forecast a loss of $1.20 a share on revenue of $1.02 billion, the casino operator recorded a massive adjusted loss of $3.54 per share on just $953.7 million in revenue. Wynn suspended all dividend payments as a result.

Wynn Palace casino in Cotai

Image source: Wynn Resorts.

No dice on profits

The causes for the decline are obvious as Wynn's casinos in Macao were shut down for two weeks in early February, but failed to see many visitors when the government allowed the resorts to reopen. Traffic into Macao was still strictly controlled and the city's casinos saw gambling revenue all but evaporate from February through April, when revenue fell 97% from the year ago period. 

Wynn typically generates most of its revenue and profits from China, but in the first quarter, casino revenue fell almost 60% from its Macao operations and total revenue from the region amounted to just $229.5 million, down 56% from last year.

Adjusted property EBITDA in Macao was a measly $19.2 million, a greater than 88% decline from last year.

Las Vegas wasn't much better, but segment revenue exceeded that of Macao with $323.8 million, a 19% drop year over year, and it swung to a loss of $22.1 million from profits of $108 million a year ago.

Wynn's Encore Boston Harbor, which opened last June, contributed $140 million in revenue, while generating a $12.6 million adjusted loss.

The casino operator said the financial impact of the COVID-19 pandemic was so great it is suspending its quarterly dividend, which had been $0.50 a share and was yielding 5%.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wynn Resorts, Limited Stock Quote
Wynn Resorts, Limited
$59.51 (3.15%) $1.82

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.