Wynn resorts bullish on Vegas rebound

Local News

LAS VEGAS (KLAS) — Wynn Resorts is optimistic its properties in Las Vegas, Boston, and Macao will make a strong rebound in the second half of 2021, despite a recent surge in coronavirus infections in the U.S. and around the world.

The company announced its second-quarter earnings on Wednesday. Wynn Resorts reported a loss of $131.4 million dollars on $900.1 million revenue from May to July. Both numbers beat Wall Street expectations and both are significantly better than the second quarter of 2020, when most resorts were coming out of pandemic shutdowns.

Executives were quick to call the results a success, noting there was no convention activity and few foreign gambling high rollers.

Wynn executives said the pandemic has forced the company to find ways to become more efficient and to save money.

“The team in Las Vegas has done a great job of controlling costs without negatively impacting the guest experience,” said Craig Billings, Wynn Resorts’ president, CFO and treasurer. Billings said he expects to have around $150 million dollars in annual cost savings moving forward, including $75-$95 million in Las Vegas alone.

Wynn Resorts is closely watching the sudden resurgence in Covid-19 cases due to the Delta variant. CEO, Matt Maddox, predicts any new governmental restrictions will be short-term and subside in the coming weeks.

“What is clear is people want to have fun; they want to go to Las Vegas,” said Maddox on Wednesday’s investor call. “As we see conventions come back and more international play from around the world come back, I am very confident that we will continue to see growth in both Las Vegas and Boston.”

Marilyn Spiegel, the president of both Wynn and Encore Resorts, said the second half of 2021 is on pace to have the most group bookings in the company’s history.

One area of concern is a new coronavirus outbreak in Macao, which is home to three Wynn properties. Macao authorities have ordered the closure of entertainment venues but not casinos, and coronavirus tests for its 600,000 residents.

Wynn executives said they are confident authorities in Macao can quickly contain the outbreak. The mass testing is expected to last three days.

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