Casino giant Wynn Resorts’ revenue declined to $953.7 million in Q1 as the firm battled with the coronavirus pandemic. Its losses were higher than analyst’s estimates.

Bigger than expected loss

The firm’s revenue declined to $953.7 million, marking a 42.3% slump. Its first-quarter loss was $3.77 per share. This is higher than the analyst expectation of $1.65 loss per share. However, the top-line figure managed to surpass the Wall Street estimate by $54 million. The company’s EBITDA was $5.3 million, which was a marked decrease from $495 recorded in the previous year. Analysts expected the EBITDA to be around $206 million.

The losses were primarily due to the shutdown of gaming properties in Macau, the company’s most important market. The market remained closed for 15-days in February before Wynn was forced to shut down its two Las Vegas Strip properties as well as the Encore Boston Harbor in the middle of March. It has opened Wynn Palace and Wynn Macau but its three integrated resorts are still closed ad has lost more than 30 days of revenue in both the US and Macau.

Working on its future

CEO Matt Maddox released a statement, saying,

“Our leadership team has been working side-by-side with our host communities, fellow industry leaders, and world-class medical experts to identify and implement strategies to mitigate the impact of the virus on our team members, our guests, and our broader communities.”

The company reported that $75.7 million of EBITDA loss includes its commitments to pay salaries, tips, and benefits for its US employees between April 1 and May 15. Maddox said that he is unsure how long this practice would continue after May 15 as there are no signs of reopening the remaining of its properties anytime soon.

The company said that Wynn Palace and Wynn Macau contributed only $489 million to its first-quarter revenue but there is progress in their Macau markets. He noted that Macau hasn’t seen a new coronavirus case in weeks. The officials are keeping in touch with their Guangdong counterparts to ensure that all health checks are in order. If convinced, they might relax restrictions on travel between Macau and the mainland.