Wynn Macau Q1 results fall on subdued visitation

Wynn Resorts’ Macau operations continue to be impacted by Covid-19 related travel restrictions and conditions, with operating revenues and EBITDA falling year-on-year. 
“In Macau, the market continued to experience subdued visitation during the first quarter, particularly in the back half of the quarter. And this is continued into Q2 with marketwide GGR in April only reaching 11 percent of April 2019 levels,” said CEO Craig Billings in a conference call on Wednesday morning (Asia). 
Operating revenues from Wynn Palace was down 31.2 percent to $163.3 million in 1Q22, whilst that of Wynn Macau fell 24.9 percent year-on-year to $135.1 million. 
Adjusted property EBITDA at Wynn Palace was negative $0.9 million, whilst at Wynn Macau the figure was negative $4.7 million. 
Billings however reiterated confidence of a turnaround once borders reopen. 
“Encouragingly, during periods when the market is accessible we see demand return very rapidly with hotel occupancy in the 65 to 75 percent range during portions of the recent May holiday.”
“Longer term we remain excited about the prospects for Macau with so much latent demand in the region.”
Analysts from J.P. Morgan on Wednesday added that Wynn’s available liquidity was around $1.5 billion, compared to $1.7 billion in 4Q21. With a cash burn of $80-85 million, this would provide Wynn with around 15-16 months of liquidity runway should recovery be further delayed.