LAS VEGAS (KLAS) — Wynn Resorts reported a second quarter loss of $637.6 million on revenue of $85.7 million, or $5.97 per share.
That compares to earnings of $94.6 million in the second quarter of 2019, or $0.88 per share.
Wynn CEO Matt Maddox said without convention and show business, “We’re effectively a super-regional casino right now.” The company has been promoting visitation from California and Arizona to draw more customers as COVID-19 continues to prevent convention and show bookings.
Pricing is reviewed daily to make the most of tourism demand, Maddox said. Wynn hotels are currently seeing about 50% occupancy on weekends, and 30% midweek, and have found ways to maintain profitability with reduced operating expenses.
He stressed the importance of taking care of Wynn employees, an approach that cost the company millions as it continued to pay salaries and benefits while the casinos remained closed. “We knew that our brand and our culture were what were going to lead us out of this.”
Maddox said Wynn Resorts has 10 contact tracers on staff and the company continues to perform random testing. He said the company has conducted 16,750 tests — 98% of the staff tested negative, and tracing has determined that of the positive tests, 99% of the cases were contracted outside the property.
Wynn Resorts is exploring ways to bring small conventions back while making no sacrifice to the health of staff and visitors.
He said Wynn is exploring “on-site point-of-care” COVID-19 testing technology that could handle 10 people at a time with results within five minutes. Maddox believes that could be the short-term key to the return of conventions — assurance that no one inside an event has tested positive.
“That’s sort of the bridge that we need to get to … before the vaccine,” Maddox said.
“No one can predict the future right now,” he said, so groups are holding off to late spring 2021 and beyond.
With properties in Boston and Macau, Wynn’s strategy needs to extend beyond Las Vegas, and many questions during the earnings call focused on tourism returning to highly profitable casinos in Macau.