Doing the right thing big time
By Josh Resnek
Despite nothing coming in and everything going out, Encore has pledged to pay all of its employees, full and part time, through May and until the end of the pandemic.
The casino and hotel here has been closed since March 15.
Despite the $1.4 million a day cost of maintaining the site and the 4500 jobs, Wynn Resorts is showing great faith in its workforce, and is showing generosity as well.
At a time when unemployment numbers have risen to over 10 million and are expected to go higher in coming weeks, Wynn has taken a strong stand no matter the cost, to retain its employee base.
CEO Matt Maddox is certain in his belief that casino revenues around the world will come back once the virus spread has been stopped and the virus stamped out.
“Paying our people is part of our shared responsibility for the health and safety of our employees, their families and the broader community,” he said.
Wynn’s locations in Las Vegas are closed. Macau has reopened but the business climate for high end roller casinos remains fractured by the virus and its aftermath. Travel has not yet regained its footing.
Wynn Resorts generates about 70% of its total revenues at their lavish entertainment and hotel properties in Macau, near to the border with Hong Kong.
Macau revenues have tanked during the virus crisis.
Sources on Wall Street who follow Wynn stock have noted there are real possibilities that Wynn will have to forgo its quarterly dividend in order to retain cash.
Right now, Wynn Resorts stock pays an annual dividend worth 7%. Its market cap is in the $6 billion territory.
In the months before the economic shutdown, the market cap stood at about $14 billion.
Wynn stocks 52-week high was $153.
This week it was hovering around $55 per share.
Wynn’s financial stability and well-being is related directly to the city of Everett, which receives $30 million a year in lieu of tax payments from the casino giant.
Wynn Resorts has also been a generous contributor to various Everett city efforts as well as Greater Boston charities.