American casino operator Wynn Resorts Limited reportedly believes that its Wynn Macau Limited subsidiary has the ability to bounce back quickly once authorities in Macau lift a range of coronavirus-related travel restrictions.
According to reports from GGRAsia and Inside Asian Gaming, Wynn Macau Limited is responsible for the 1,000-room Wynn Macau as well as the even grander Wynn Palace Cotai but was forced to shutter both venues for a 15-day period in early-February as part of an effort the stop the spread of the potentially-lethal coronavirus strain.
GGRAsia reported that the subordinate has since struggled to reenergize its business in the wake of the February 20 re-opening of its Macau properties due to the near ban that remains in place for visitors travelling into the enclave from the Chinese mainland and nearby Hong Kong.
However, the Chief Executive Officer for Las Vegas-headquartered Wynn Resorts Limited, Matt Maddox (pictured), reportedly used a conference call with investors earlier today to predict that business for Wynn Macau Limited will likely improve rapidly once these coronavirus-induced restrictions are eased with high-end play initially outstripping mass-market.
Maddox reportedly told investors…
“There is clearly pent-up demand for activity. I do believe that there will be demand for Macau, without a doubt. I am also very happy that we’re in the business of the premium and high-end, which requires less people and more revenues.”
The casino boss reportedly declared that Hong Kong-listed Wynn Macau Limited’s business model does not depend on ‘100,000 people a day’ coming into its casinos because it is tailored towards ‘the premium end’ of the market, which he believes ‘will definitely be the segment that comes back first in Macau.’ He moreover purportedly stated that there are growing signs that the former Portuguese enclave may soon begin lifting some of its travel controls and that his firm is ‘optimistic about what is going to happen’.
Maddox reportedly pronounced…
“We would anticipate, as everyone else is, that progress will continue in terms of re-opening the borders in a cautious way, resuming tourism in a cautious way.”
For its part and Inside Asian Gaming reported that Craig Billings, Chief Financial Officer for Wynn Resorts Limited, used the investor call to proclaim that Wynn Macau Limited is currently burning through up to $2.5 million every day. He purportedly furthermore asserted that these losses are likely to persist ‘until the reimplementation of visa schemes and full re-opening of transit to Hong Kong’ although he is confident that the subordinate will soon be able to reach at least 45% of its fourth-quarter 2019 volumes so as to break even in terms of earnings before interest, tax, depreciation and amortization.
Billings reportedly broadcast …
“When we re-opened in February and into March, we got back to 25% to 30% of our fourth-quarter 2019 gaming volumes. Whether it’s VIP or premium mass led, we feel like the snap-back will be pretty quick and that will obviously help our cash flow position there.”