The casino operator's stock price has rebounded strongly from its lows in March but remains around 50% below the level at the start of this year.
Wynn Resorts, in partnership with nearby University Medical Center, conducted mass testing for COVID-19 for all 15,000 of its employees and announced the results of this testing in mid-September. Around 3.6% came up positive. It's a reminder of how difficult it is to provide assurances of safety for all guests. August saw 1.5 million people visiting Las Vegas, a 57% year-over-year decline, and all conventions remain on hold.
In other bad news, the six licensed casino operators in Macao (including Wynn) reported that gross gaming revenue plunged by 94.5% year over year in August, the fifth consecutive month where declines exceeded 90%. Although China is largely virus-free and Macao has eased visitor restrictions, the territory has been unable to attract the high rollers.
In a message on the Wynn Resorts website last week, CEO Matt Maddox announced that the company is building a COVID-19 lab that can accomplish fast and accurate testing. Wynn is working with UMC to create a facility that will be able to conduct thousands of tests daily with same-day results.
It sounds like an ambitious project, but it may be the catalyst needed to instill confidence in the Strip again. Should the company succeed with this, its shares could represent great value at current levels.