Wynn Resorts (NASDAQ:WYNN) 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.
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%.