One of the places where investors have been battered so far this year is in casino stocks. However, yesterday provided some relief as key gaming operator Wynn Resorts Ltd (NASDAQ: WYNN) saw shares surge 4.8%.
The company has been on a massive losing streak as stay-home orders in the US, and travel restrictions on mainland Chinese visitors in Macau dealt a double whammy to its business.
However, the stock is still down about 50% so far in 2020 (although it has doubled from its March low). The company’s latest quarter detailed the damage in more detail with revenue down an unbelievable 95%.
This spurred a loss of US$523 million for the period versus a US$219 million operating income for the year-ago period.
Competitors such as Las Vegas Sands Corp (NYSE: LVS) and MGM Resorts International (NYSE: MGM) are in the same boat yet Wynn relies more on the high rollers in its Macau offering.
However, the recent news that China was reinstating tourist visas to Macau from 23 September has provided a welcome boost.
Wynn may not get back to its previous levels in a hurry but the start of the long road to recovery at least looks to be in sight.
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