Wynn Resorts is reporting losses of $ 2.07 billion in fiscal 2020, looking forward to a better 2021 and normalization of operating results.
Wynn Resorts is losing money on all fronts
Wynn Resorts International closed fiscal 2020 with a total net loss of $ 2.07 billion. The company's operating revenue also fell to $ 2.10 billion, down more than $ 68% from the $ 6.61 billion it generated in the previous year.
The significant drop in profits is a direct consequence of the blocking measures imposed on companies shortly after the outbreak of the new coronavirus pandemic. This phenomenon can be observed in many other companies of all sizes, and has also significantly reduced the financial results of entire market segments.
Wynn Resorts International's business results hit all sides. Revenue from rooms decreased to $ 308.0 million, while revenue from the sale of beverages and beverages decreased to $ 329.6 million. Compared to the previous financial year, this means a decrease of 61.7% and 59.8% respectively. The segment that was most affected by this are games where revenue fell by a staggering 72.9%.
Business in Macau is getting tougher, the US is relatively stable
The Macao gaming and entertainment giant's division has been hit hardest. Wynn Macau ended the year with a revenue drop of 80.1% year-on-year. The Wynn Palace, which is also located in China's Special Administrative Region, saw a decline of 77.1% to $ 474.7 million. These results are not surprising given the heavy toll the blockade has had on Macao's gambling-based economy.
The results on the US market are relatively stable. The Wynn Las Vegas dropped 54.2% to $ 747.9 million, which is also not surprising given the current economic climate in Nevada. Interestingly, the company's Boston branch remained fairly stable and ended the year with revenues of $ 361.7.
Wynn Taps Into Online Gambling as New Revenue Stream
Wynn has already taken decisive steps to align its business and ensure higher profitability. In October, the company merged its US sports betting and social casino segments into Wynn Interactive. With this move, Wynn hopes to enter the booming online gambling and sports betting market, which is set to expand only this year.
Wynn currently owns a 72% stake in the company with the rest owned by the company's strategic partner, BetBull. The digital venture has yet to publish its financial data. However, the company has announced plans to bring its WynnBET betting app to additional US markets.
Wynn CEO Matt Maddox believes the digital offering will become more attractive with each release in the coming months.