Wynn Resorts, Limited (WYNN) 7 May 242024 Q1 Earnings call transcript

Welcome to the Wynn Resorts First Quarter Earnings Call. [Operator Instructions] This call is being recorded.

If you have any objections, you may disconnect at this time.

I will now turn the line over to Julie Cameron-Doe, Chief Financial Officer. Please go ahead.

good and operator, you, afternoon, everyone. Thank

call Brian Gullbrants the are Chen, Jenny with on me and Billings Linda Holaday. and Luvisutto Craig are Frederic in line today the On Las Also Vegas.

that you federal not harbor and come remind to laws, want we make under securities or forward-looking may statements may those true. safe statements may I

will turn the now call Billings. I over to Craig

Good Thanks today. for Julie. joining always. afternoon, as everyone, Thanks, us

all-time proud XXXX record generated we the throughout thank as in on million we one-of-a-kind service to into the members XXXX. delivered of of delivering EBITDAR The quarter momentum that heartfelt and focused you each team experiences during property XXXX business remain $XXX of of of continued our so to our you. A X-star who first I'm all incredibly guests.

quarter the a property adjusted Las year-on-year on difficult here million in a and X% starting EBITDAR, $XXX delivered and up Vegas. very Vegas to Wynn of first record quarter Turning comp.

our of Year drove the EBITDAR last Bowl New combination Chinese As as we the month. and during call, of February in noted the the all-time was in most on Super concentrated quarter action record

reinvestment yet all cylinders remained Las another hotel on volumes year-on-year, with unique our Quarter our revenue along XX% property with trends and RevPAR handle April all performance growth in the best Only led of revenue at fire Wynn here our comp. combination the drop, in up on continue More healthy in in top in we recently, continuous programming, was by in Vegas. difficult healthy across line our nongaming year-over-year and to with the market, growing casino. XX% our characterized strong by businesses Through levels service

with and weather handle the team remained strength There revenue $XX as during demand January million and slot in quarter EBITDAR with hotel revenue. confluence Boston. More in and handle particular at poor of in in encouraging recently, of quarter pockets to and The were the record strong EBITDAR Turning pressures slot year-on-year. successfully were through the year-on-year of inflationary navigated strength Boston during a quarter. stable Encore has the April in generated growth largely healthy RevPAR. property

this for it's to Harbor, time redirect On the we numerous being disappointing, an put have as deploy across the Encore on capital been projects unable reach we hold from we in can Boston we have financial agreement certain authorities globally where we local development Though terms. have development intended other development to on the Boston. with

of the GGR million in was our market and Turning held above above range. on XXXX above exit. that to $XXX We the quarter We Macau. expected share EBITDAR both generated prior quarter our

mass would a in on basis, strength side, XX% per April our approximately QX. been was increased business In So drop into the The fully casino, our continued $XXX And in hotel our day April versus has nongaming XXXX. have the normalized XX%. EBITDAR million. on occupancy

in healthy Overall, with strong also the performance, Golden particularly weather region. were of light control disciplined April. We in OpEx during with top Week, May margins drove pleased the combined during unfavorable results line

comparable period In per the Chinese levels holiday versus and drop XX% casino, mass Year. New the increased day approach during last seen XXXX

destination demolition we front on construction second initial Macau, On food and project, concession-related the in development our work our began hall.

entertainment well showroom. including center commitments, for are and new a concession-related planning our We design CapEx theater into major other unique our and and and events

of fourth project. Construction to this UAE. of Marjan in constructing Wynn as the we are the the advancing floor currently the is tower. hotel Al on Turning week, rapidly And

later this have ahead of week convention further we a this recent I press we will the the update find taking can And issued renderings and of Dubai. a on travel you project Wynn place advances images we in release expect Al You year. Marjan in major made yesterday on

Yards Despite actively intrigued are the we state. integrated York, greenfield a the meaningful believe employment in submission elongation York in of development considering full-scale tourism by in Wynn we a of New the RFA New process Hudson and tax In potentially resort drive Wynn in the in resort York, opportunities we and Finally, will City Manhattan. Thailand. prospect incremental New revenue, remain

closely Thailand, of In service a significant structures. legalization and it's days, see process. a the world-class infrastructure continue destination we is have and culture with to we yet regulatory will Thailand tourism already tourism and early licensing monitor to advancement the so major

demand the future remain environment we bullish to company. of in what our I we our in the reprice the that with inflationary take have we demand. hotel In tremendous rooms for offer. incredibly the And order every this, of luxury Vegas, being advantage market of of about an day at pinnacle to able Las remain like

In per share punch market substantial meaningful room Macau, we our to above continue and on free a weight generating basis revenue cash flow. hotel discretionary

cities. along gateway We attractive with potential greenfield in also have other UAE a developments the underway project high-ROI meaningful in

Meanwhile, as our continues profile our free flow. future leverage cash improve outlook does on to

lie best ahead. days Our

With that, the additional over Julie quarter. I on through to some run it will now Julie? to details turn

Thank you, Craig.

bit million benefit on given $XXX.X hold in million than in At of the Wynn a adjusted revenue $X Sportsbook, estimate Las property Vegas, million from operating EBITDAR mixed we delivering quarter normal we Hold bag net was in EBITDAR the quarter. higher generated a XX.X%. during of of $XXX.X margin results a and an the

and we was year-over-year in per line increase OpEx, pressures. excluding X% gaming programming, $X.X OpEx and Bowl tax in with as inflationary up related revenues to payroll XXXX, the Super absorbed million incremental in operating QX successfully day, increases other union-related

up mitigating the in per guest done has job with generated payroll Turning business $X.XX of around adjusted $X on OpEx and, a margin stayed great We've to the the cost side of in that from do impact EBITDAR benefit onetime We excluding XX%. an not XXXX, X% revenue a with very areas increases The property $XXX.X was cost experience. year-over-year. QX day on million disciplined million million a million item, $XX union-related team EBITDAR efficiencies of of Boston.

property delivered Our operations million operating $XXX.X in Macau the of on $XXX.X quarter adjusted million of revenue. EBITDAR

impacted hold by the table on million hold to range primarily estimate positively Palace's Wynn impact Craig related hold the than mass higher As normal in $XX alluded hold VIP EBITDA we largely normal than with quarter. was games. the to, normal around higher during

margin leverage cost by to higher-margin XX% to the margin in been efficiencies. increase relative EBITDA our basis and favorable points strong relative was the XXXX. quarter, basis mix combination XXXX an relative shift QX Overall, has on of and operating mass expansion of XXXX driven a gaming to points to XXX XXX QX

disciplined decrease the operating drive recover. day on million done and in $X.X XX% excluding XXXX. well team positioned great compared to job a in costs, tax, a has a in operating Our increase to staying we continues strong leverage approximately OpEx of as was remain gaming XX% well million OpEx, revenue. the $X.X to X% The basis, on QX market increased below per QX, sequential

stages in of And of few we government terms these CapEx a concession range wide CapEx In as we're potential near of noted the of currently number commitments. and a the term. require Macau, on in approvals, design past several advancing the our outcomes creating planning through quarters, projects

in to commitments $XXX continue the of CapEx and we million total end to such, between between concession to our million XXXX. $XXX XXXX range expect As related and

the on to Moving sheet. balance

of Our availability in This billion XX. billion billion cash as revolver global of was of nearly liquidity March $X.X position and U.S. remains approximately in and and of very strong available cash $X the Macau $X.X total comprised with liquidity

and with proceeds On Vegas Resorts the capital maturing of of repurchase markets net Finance $XXX unsecured to XXXX issued tender front, notes Las to along the XXXX. a notes on we used cash Wynn in February, in March hand million million Wynn the $XXX add-on fund with

gross approximately billion. Over past the debt quarters, reduced X we've $X by company-wide

robust strong very EBITDAR, globally, the cash net ratio consolidated with of it of properties combination performance together, just XX-month our Xx. over markets with trailing each $X.X position, together creates a over leverage all property billion in healthy of Bringing generating of our our

leverage shareholders. on approved XXXX the May of returning capital of Our strong of us that as stockholders flow XX, dividend $X.XX reduce and per to allows XX, To liquidity free while cash XXXX. to payable end, share May to cash a Board record profile

Board XX share $X.XXX shareholders dividend in to returning and recommended both commitment prudently to March, U.S. the at capital Wynn in reinstatement USD our the per the Additionally, highlighting Macau. Macau late or million of a

and in our CapEx $XX.X and CapEx concession-related the beverage renovations Finally, Vegas, at business. Las quarter across course food enhancements was Wynn and Villa maintenance to normal related million the Macau the primarily in

during of Additionally, Wynn we the quarter, Al Island contributed to approximately date contribution total million. project to JV the to bringing equity million $XX $XXX Marjan equity the

we now Q&A. With the to call will up that, open

Instructions] Santarelli Bank. from [Operator Deutsche Carlo

Everything had seemed what seeing you're in in obviously, strong nicely. just through of you a flow very to quarter. Craig, terms guys Macau,

more or market characterize seeing into you're seeing the terms kind to could specifically, competitive what of you quarter at? now In that quarter, you're the [indiscernible] last perhaps landscape of May relative fourth what's

Carlo. Sure, Yes.

cut out focus best been end, You know, attracting has market. question. focus we on there of and Macau a bit always is as and on at your product but and I currently And got guests little you the a market. the competitive service, we gist in the the

around seen the So and the lot commentary activity. questions promotional I've a of

promotional can you strength want can remains XX really But of activity points product to quarter that see tell in that margin. achieve. in reinvestment any in both trying results QX we think you basis and I speak upon the our service. given our can are what don't to by XX, and to core I others move I But market. our our depending with And competitive the

remarks Helpful. to And then, back your going Las Craig, just Vegas. on

the calling quarter. You out of February point primary kind the being made a driver of of

April kind comparisons You handle, with then up mentioned of drop, all kind way. in the follow along tougher that of RevPAR up and

very, of obviously, balance through the is comp foresee you in of as what do move this How the year you a market? stack kind tough

share doubled as specifically of and lot and to first, XXXX handle Well, a drop to we've that from was almost Sure. it taking. handle, XXXX, relates

so drop to don't sky. table too know, not XX% almost I've period trees And that's calls, several same in on you shabby. as have up grow said the We the

comps getting calculator online, power you $X.XX as the you a being about that purchasing March But of will the all that to the said, $X And same if are today of tougher. CPI find XXXX. is go in

surprised us that every day and we reflect shouldn't good. whose So hotel a results pretty reprice compared today dollar, like rooms look to can the be of gaming operator customers the for value current when the past a who casino bankrolls and

what in that Las top-notch by service and best course, the here power pricing program. physical experience best the offer the is quality, with strength exacerbated Of of Vegas we

bank, can You wealth past money powerful it can that in has over several putting just earn pretty they points now strong by that the of target our EBITDA the creation X layer base, a quarters, customer seen that on setup. and on top their pretty it's

deployed our is here of Of majority dollars. and our yesterday's capital debt way, course, by the the vast in

that flow. EBITDA for also and setup wonders free returns discretionary works So cash

I unbelievable did digress with slightly, as prepared I but to absolutely really I it's we're The is in that. when know do right what to and I remarks seeing to do just a from picture best give good. clear you can the April, go of my respect things answer now don't great?

Our is JPMorgan. caller with Greff Joe next

first the hold of versus has quarters you? the is sequence that fourth them Carlos' function XQ, in of maybe quarter. a the over for some My quarter differently your who of gross clip couple relationship question. last Macau-related up maybe question all of much the at business seeing improvement revenues by promotional that on for year follows If was of on peers better Macau high are less it favorably operating maybe the was of sequential to just you're at gaming is it last conversion a casino and a revenues How of Macau and than we than look than

the of our terms It choice reinvestment. that Joe. Thanks, Yes. want how customers with and do lot revamp the we given to their have they has program loyalty our a fact of in

And those choices any quarter, so in given change.

of And some and contra choices choices those to flow of flow revenue those OpEx. some to

really aggregate a indicative reinvestment. change in the of systemic the primary that's not driver. It's So

Bank is Our caller Shaun Kelley America. with next of

inflation. you've to the see maybe bit Macau expect is But of continue I normalizing you driven as or to we're expense trajectory. growth market, get to operating leverage like there. or to Obviously, pretty a just Julie, for OpEx sense it great tougher wanted in little underlying about us and core -- still Craig probably some sounds ask sort a of just that it's

How expect So to much any half the year? level you'd start little of that a year-on-year normalize as bit? to on and to off comments maybe annualize things a in of basis kind the back

that Shaun, one. Sure. I'll take

it and concession disciplined how to bit and in how Yes, accommodate that we've talked our we managing to nongaming OpEx to we've have meet about commitments. been a spend the very we've quite been able OpEx

So QX. had per million day of OpEx $X.XX we've really We been disciplined. in

still it's it's and well levels, sequentially. 'XX So up below only QX X%

events. big terms a the operating -- Q revenue. OpEx we of XX% what was in in And is the It well we've had increase call it's obviously, below tentpole sequentially

had there. flow-through -- we we were So pleased the really with

forward, to really Going OpEx. be going we're to around disciplined continue

we'll and We have good to sight the continue line how that. incorporate events of calendar to

have and going key properties forward. our QX as be at EBITDA we levels both revenue driver our margin we well to really expect margins So of OpEx above mix were 'XX the controlled,

in We're inside to what be as quarter, we that of roll But that. we to good maybe quarters managed programming. events be land a out on good variation And we outside million. $X.XX the in about we've quarter-to-quarter going and slightly place. we OpEx. continue bigger a have for to pretty different some see overall, some to see But might And slightly with feel it potential of we're calendar,

perfect. some looks been in many some leisure the like when mix pushback maybe of and perfect as even executives, sure kind product is And these back this go there conversations what struggling some about just And of just follow-up, Vegas Las I Craig, industry Wynn with, leisure you're some us I'm comments on many out Super. to have my with isn't I of -- familiar high it of end, think there -- cases, the think to with mean, macro in commentary, metrics. sort is I at -- the

But I'm the of the the skittishness? or alive you are mean, you else business, see may around just any KPIs your did area that would consider that dynamics somewhere the outside across area right there to I see we look change Las curious, strip all or well through across and now? or the be Vegas movement truth of as any you is consumer in and just looking to again, need normalization

really. Yes. Not Sean. Sure,

of So in in if what's so capital. happening hasn't course so Vegas, capital past been years, much Vegas those at least industry. X the It think much -- have innovative you actually about deployed hasn't the actually the who it been over

been about a have It's in heard and of smaller the impactful all been it's been as sphere, driven to And well, deployment you've It's market. our still the competitors kinds market. but has that demand raters. the talk this here position capital we the unique

power grow again, to the relative to and and certainly say we sky I'll time. get feel But So of trees tougher don't the over comps it, the tougher perspective, from a rest strip. great, pricing

any Brian, this window in we're do point? seeing you the at have booking comments on what

the our have that 'XX across was board. I 'XX year pace to it result to over back seeing bookings. in ever look in group, which mean, when and what pace Yes. but a best And continue and to ever, 'XX, are we much respect group, was the pretty is at retreated of XXXX of with you year nicely, our just not pacing we're everything best to

focus continuing us all drive together experiential to to on our channels. we put think balance just really our people, our to allow I events our assets, and price So that continue

what that a And means by reverted normal it it's a normal booking very XXXX to -- is process.

windows and booking back nice. it's The are normal, quite to

caller Our Dan Fargo. is Politzer Wells next with

quick Las Vegas. one one Just on

pushing high run mean looks your XXs fundamentally, it up It -- getting mean balance as that in a reason of want. terms in close but to rates in the know much you you run mean you're I keep just rate as as occupancy occupancy couldn't different to Macau occupancy is there. structurally like any modestly? I go the you property, there, you that typically at seems I higher in Vegas that property Just properties XX%? I relative like where there's

Sure.

for a So first room true type position to them. this available don't their their have never in walk and we is want because have we someone foremost, we company-wide, or and we don't where to be have room

Second, use get you XX% on actually to the the at an experience occupancy. extreme some if property degrades point,

experience balancing property. but the to revenue a in always also on great we're results drive occupancy maintain So and order rate strong

different. the is decent Macau very occurs occupancy there is amount that on day. of Macau, a

that So you we up so very, offer very they're them you people in-market while have XXX%. that to are occupancy and in-market will drive the ability have room to a close

So it's dynamics. a really market just difference in

quarter Sure, lower. in And washes run could. Vegas? question just maximizing that. at a revenue. It's and higher can later do could And experience really We where we and run do. run we we the We higher in it out the on-premises do of times, we then

to days Maybe that this think level And do Thailand. know great. you be about early terms it. size, it's project opportunity incremental just a I Got in just would bit could potentially? color little how be? you high timing, Any talk of switching then process but would competitive quite

very that Sure. we the regulatory licensing personally with that -- Yes, date. first, a the we on that be going I be jurisdictions cetera, really it's to mean, further think consistent understand early. considered the I et structure, to are they information very, will other precedent structure, first things best-in-class. our all structure, involvement. bidding condition are have But the need that's to we based to

a that reasons very It's great today. And prepared market strong infrastructure, tourism remarks, it in described for a sector lots competitive an think I interesting process. of will I be my the

being confident given I think find in it folks have are in exists of in business. the we in there. as that I to we portfolio and very today And market talent the think of you're going has like dynamics, our capabilities that that, a lot are that the any strength those interested this

CBRE. is Our John with next caller DeCree

of contribution changed that's and photos construction remind budget in updated and renderings you renderings Dubai. that of could or cost if total ATM new some if since project. capital and introduced you've of at in Craig, Al all front here you've kind Curious us for the maybe, conference one, the First Marjan

there budgets substantial Sure. budget movement, depends is round our call capital leverage. billion. the construction contribution $XXX million. it, be, move and If numbers, no heavily The total That on here but around $X will

the midst we're the But XX% So debt be can figure in we then would you now. equity. like and figuring out of that of something equity XX-XX to

one And on get Las to Understood. a helpful. back maybe perhaps little Got Vegas it. in then granular, the quarter. That's domestically

out could You April I going look that if out you was the strong. We But size you quite guess event-driven as on any And was color year-over-year be parse knew February. quarter like. an called of wondering January of January comments about coming XQ, out relative I March, terms to some and But of kind to month. March of in performance. up what kind specifically and

I What in out, February, January. Sure. order, the was, as month is be it -- would rank be And say quarter. the called this. of course, would then March it strongest we and would of

Our next Farley caller with is Robin UBS.

just on regulatory Al just operating could it a the you for can actually anything the construction any that clarify wonder done perspective to approval start I were has before tomorrow if touch to casino, that. from at happen If Marjan level.

Robin. Sure,

required are are jurisdictions, requirements we can Just there other doors. before regulatory like that open the

And receive so those course. necessary will we and approvals requirements in that the expect meet we regulatory due

or what be anything have any meet there to terms a legalized of licensing? we perspective anything just in from that level has do is But to to separate from at

that not building put We're spec, way. on it

license regulatory a due are seen issue think GCGRA's have body get -- federal in regulations with of aware you've approvals issue and created GCGRA all And and activities what we'll The to operators the I ongoing, course. are. order that you've are hopefully, seen and necessary the associated we -- license gaming. So they in of they

Our Mizuho. next with caller is Ben Chaiken

in the current normalized great. quarters? this the hold be think seen the Macau. was in gaming of below after one property, quarter have holding in quick XX% time. you as to there period few normal would Any row we've enough at what long last variability hold, At Wynn one volumes the a mass property second Macau are a more around for for Do Just color such your in

a the Sure. function quarter. And game. has to the end the ebb subsequent A of lot to high-end and of really that play. of then is the held with flow normal of do of just high volume It we the

there's over so to lot not -- there And hold and, really normalize. time, nothing see a will there's really

one this take last we'll Operator, question one. after

comes And that with Katz David last caller from Jefferies.

touch what and [indiscernible] in that have. have just given of on developing you wanted some wonder would are volumes Vegas you the comps what Las might under resources the I excess look you I forward? in to happen market Vegas, the given have to circumstances at moving just available Las

Thanks, David.

You I gist a up I chopping the there your got of bit, were question. think but

bank addressing very know. the now opportunities development -- in were you the Vegas, reality choices have you substantial we perspective. Las are replacing we the that from a think But as land I in here. we land have a is development that do we And

well. got a in We've looking at will projects way, bank the By on going obviously we land UAE. the have We're as the there York. New

We as Thailand that are evolves. considering process

free And things at have our cash EBITDAR the in moment increase of base. going the a to and meaningfully so flow that hopper we are our lot

always strip are the development a out. land really some to other we particularly the play opportunity, things want considering on potential these how see We of but as adjacent

the some on happen of or Las these to right move this And nature to forward my and just after move would fall Vegas? comes is forward what have out question to want that. Would have for sort of -- you that of to was

think I to nuance what that trying a was I was to just get at.

Sure. Yes.

it's things. -- the many is So reality

what design pushed opportunities, happens what cost, many of opportunities economy, borrowing are through cost what how and to happens given then can macro our be happens and team in the to So the point at other in time. to development any build what those our

in I XD right know, get York. observing don't on into we're know and a But guess. don't So of if New question, the We're we're questions can UAE. now, there. there's Thailand, dimension. the focused it's in fifth a the And constructing of you I -- midst I lot

cash moment. We and free So flow like the development pipeline at we at our our profile future the EBITDAR moment. like

tuned. So stay

for operator. interest bring this Thank that, talking next a again you thank to your to to company and thank look you. call you We we'll the you, close. forward in And With quarter.

everybody. Thanks,

call. you for on conference thank participating today's And

may now disconnect. You