Wynn Macau said it expects a drop of as much as 44 per cent in Q1 operating revenue due to the impact of the Covid-19 pandemic and expects to continue experiencing cash burn.
The company said in a filing with the Hong Kong Stock Exchange that revenue is likely to be in a range of $912m to $969m in Q1. That’s down from $1.64bn the prior year.
In terms of adjusted property EBITDA, it expects to report a range of about $58m to $65m, a fraction of the $484m the prior year. Wynn said adjusted property EBITDA has been adjusted to add back provisional expenses totaling between $70m and $80m in connection with its commitment to provide wages and benefits from April 1 to May 15.
Macau ordered the closure of all casinos in February for 15 days. Although they are now open, they are operating under stringent safety requirements, which have reduced seating at tables and slot capacity.
However, the biggest hurdle currently facing Macau operators is the border restrictions, with no one from outside the Greater China area permitted to enter and quarantine restrictions on those from Hong Kong and Taiwan. During the closure period, Wynn incurred approximately $2.5 million per day
Source: Asia Gaming Brief
