Casino operator Wynn Macau paints dire picture after first-half loss widens by two-thirds to US$459 million

The company’s net loss increased to HK$3.6 billion (US$459 million) for the six months ending on June 30 from HK$2.2 billion a year earlier

Given the uncertainties around Covid-19, firm ‘cannot predict’ future closures and ‘cannot reasonably’ estimate the impact on future results, it says in filing

Reading Time:2 minutes

The Wynn Macau. It is possible that the Macau government could further change or interpret gaming laws in a way that could negatively affect the firm, the casino operator says. Photo: Reuters

Published: 10:30am, 12 Aug 2022Updated: 4:44pm, 12 Aug 2022

Casino operator Wynn Macau said its loss for the first half of 2022 had widened by two-thirds, and that it expected to continue suffering because of government restrictions related to the coronavirus pandemic.

The company’s net loss increased to HK$3.6 billion (US$459 million) for the six months ending on June 30 from HK$2.2 billion a year earlier, according to an exchange filing on Thursday. No interim dividend was declared, the same as last year.

“The Covid-19 pandemic has had and will likely continue to have an adverse effect on our business, operations, financial condition and operating results, and the ability of our subsidiaries to pay dividends and distributions,” the company said in its filing.

“Given the uncertainty around the extent and timing of the potential future spread or mitigation of Covid-19, and around the imposition or relaxation of containment measures, management cannot predict whether future closures, in full or in part, will occur in our properties, and cannot reasonably estimate the impact to the group’s future results of operations, cash flows or financial conditions,” it added.

The bigger loss at Wynn Macau came after the Macau government on August 2 lifted most of its Covid-19 restrictions imposed in June and July, and limited non-gaming operations began to resume at Wynn Palace and Wynn Macau. Certain enhanced Covid-19 protective measures remain in effect.

Although there have been periods during which certain restrictions and conditions were eased by the Macau government to allow for more tourism and quarantine-free travel, adverse conditions created by and in response to the pandemic might cause these restrictions to be reintroduced.