WYNN - Earnings call transcript Q1 2018

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Operator

Welcome to the Wynn Resorts' First Quarter 2018 Earnings Call. All participants are in listen-only until the question answer session of today’s conference. [Operator Instructions] This call is being recorded.

If you have any objections, you may disconnect at this time. I will now turn the call over to Mr. Officer. Financial Chief Billings, Craig Sir, you begin. may

Craig Billings

Thank Operator and good everyone. afternoon you,

call I laws, come over want you On that Kim in Las are true. now Sinatra, the call securities I Matt forward-looking statements Maddox. with Vegas me may safe Wooden. harbor statements Chen, and the DeSalvio. will Linda on we Ian those to remind under or today to Also are may Coughlan, line the Bob [Indiscernible] Maurice Matt federal make and may not turn Maddox,

Matthew Maddox

for Good thank last us and been afternoon definitely earnings. an quarterly three you we joining since today. months It’s eventful reported

So are. call the who I’d to we of start by reminding like everyone

most discerning in the world. leading customers of are start operator the integrated five the We to luxury resorts catering

and designers are the and that tourist buildings of developers amenities destinations. are international global, We

florists, are Together, brand deliver performers, house-keepers, chefs, dealers, designers to They globally promise single professionals, over customers We thousands others. our thousands are million Wynn. every XX,XXX of architects, and and we XX year.

enhancing in, Over reducing in and in executive operate. the months, cards what and moment they show the surrounding people but best. operations management and record results. XX,XXX the the paying focused immediately noise do Meanwhile, where culture maintaining Their three markets experience those of in have you our is been see. score efforts in right what now on not our best available to stabilizing the the only business. done every business Being delivering customers, attention And detail, the the we with past the

about only order calls, last the that talking people we each focus of XX to wreck to we about our about we the in one business and every these are over talking growth. future. our days on the are And looking meaningful on in our on in we and mirror talking to progress and interested are not so the I’m the make I’m way, on CEO, guaranteed focused had future, As rearview

days. Just is we’ve few longer shareholder of XX a things Wynn Steve to last business. the you no that his remind a done over in

right we two are forward future. dollars It Galaxy our X%. X%, litigation by able company, fact, and of a repurchasing billions management was and it entertainment, shares at million for them great we company XX% We X financial shares to look we have wish effectively. a of it’s greatly in it well In two universal overhang didn’t our Wynn Limited personally were deal longer share. a on shareholders for future. proud increased their and of and for thirds we stock of made. mired longer the stock That are finance plus shares a that long-term solve million admire it our to distraction the risk, universal institutional time to the was and There We XX.X great at under a Resorts six company redeemed shareholders, we the that working million support. placed or XXX deal no $XX at we for a of Universal drag and Entertainment, stock and no and with in and purchased dollars it’s significant deal we financed was with with X% dividend the in quarterly litigation years Wynn by we’re his

years gaining the Wynn. with dollars we Six by work, no [Indiscernible] litigation We payment also resolve company. have

networks of an and refresh strong our executive XX to interviewed personally XX in candidates Strategic female exciting interviewed of the connections. directors are We’ve governance. to that communication, also and on these room they continued am three what’s about now their and our to our particularly in remains candidates, make to diversity public technology going skill board implement representation in search our to company S&P of company going base about on proud plus top really sure the experience hospitality, and I’m to Three is top and people board. industry a And company that female I and members and and they already board In this and our Started of board chose. initiatives that of significant our nominating significant for internally are the directors, our XX relates search great and over that of bring growing. are equality. different I our great new to terms began addition, for and our in lead to strong. that corporate new of is and members, it so days and ago. to of serious is the asset committed is XX company’s board it XXX, candidates, to what’s expand board with as boards. and I’m the their proud personally to They over our keep gender bring culture bolster board XX using committee company company the

opening For Las applications. get Vegas XXX every at we XXX increasing is now. that applications Wynn job right actually and it

and about industry They work Our our place to excited continue best half is are because they less to really assets people. the we are to the turnover this expense standard rate future. the not is we are company than and the in going of are invest of the

and be spending allocation I’m and March Japan, shareholder mentioned are going capital about resources there region preannouncement, in to more which includes I in are future excited future. that enhance on we the in we value, As intensely focused our all very more time and Macau opportunities in that Vegas development to in Las

you me a give approach. Let of example concrete this

To were space the was days, reducing than potential identify while That something the project. $XXX what which do the We savings of of timing, in type consolidating experience, we enhances bring do right. actually XX we the that March of impact simply we were some readable not back discipline house The by of scheduled million the facility. footage of to Over review building ensure enhance only we less last watched our million exactly customer able convention X%. $XX a by going focus are open company. this of is and to is everything the to to in XXXX, and changes EBITDA square

Because challenged have to theme mass-market really our want the is park I project on Golf our what going to focus addition, on wants. lagoon global luxury is we the employees before customer, at the begun were the in and focus working in has trying and really to on I look the Las more XXX I project mass-market which component with don’t Vegas. lagoon the our the team, the want that In closely into guest over and lagoon hundred -- take and development a of employee, a attract it fresh which best industry. course our is I’ve where the team, hotel on design

lagoon best make going for Vegas is because daytime And guest, Wynn to an strip. stay be hotel we continue reinvent Vegas guest Las going so the Vegas our Las amenity on place the activity and to to are to in the the Las for

our Lastly, approach, in Las lagoon. approach our development of are considering the we carefully to the Vegas

providing development to of very these large look fortunate importance cannot forward Las the overstated. details future. to have the land developments We more really Vegas sequencing assembly be prime in of and a near on are that We appropriately

be our Moving casino, This and to investment accelerated Macau. we exterior regional the will building impressive Wynn will Peninsula Macau, productive with reinvigorating we not program lot two West are $XXX opportunities will XXXX, and We space begin we -- new returns restaurants there, the our taking I have when include finished of to at that. that Macau. vibrant In in junkets think shareholders investment reprioritized a Downtown million the out casino got making a the atmosphere. quite in that’s

our Encore also We rooms. are remodel going to

all of to of the room in year. are most going Some remodel this Macau that begin popular

to to this Palace, restaurant add plan non-gaming currently on great to X that two on opened amenities working getting at the February Moving concepts The Wynn construction we Palace. year new is that Wynn to on Red we will continue team success. in

XX In addition, at Palace. what should acres with additional are conceptualizing be the doing of Wynn we land we

best shareholders also non-gaming of achieve through our and in to the division what working be increasing our for Macau. are We company, amenities for government will

of to aggressively some continue results. Palace, We share premium the to mass. take the quickly quarter strength Turning saw And we Wynn At it across mass-market. portfolio. in in the the only wasn’t

it for mass-market In fact, Wynn strength at the board are over across our time XX% year, year, so was premium over was demand we this but Palace. up at mass-market from twice up last last seeing in mass what the was

of quarter revenue mass the to XXXX. our fact, our slots of just XX% and gaming revenues, gaming XX% were compared fourth in In almost gross that including

Our during Wynn commend for strong Ian in and in volumes record maintain XX% continued property several want up the intense their share focus the the to quarter. In over XX,XXX so Las Macau and math the XX% I colleagues experienced VIP Linda on year quarters delivering over base first Macau volumes Vegas, Frederick Huron the past strongly the a to quarter everything’s remained so up future. really EBITDA. were there. up is VIP its XX% over working

fact, quarter XXXX as stronger Vegas. In for Las for what no is you if degradation look record we’ve I fact, and important bookings last overall into seeing were are room same seen think first the quarterly year. in what’s business, the revenues Wynn time XXXX And for we at of

as seeing prospects company. we continued Vegas is in I’m the feeling ever excited what So strength. are of Las future this about and as

execute service markets and coming assets in years. to strategy the the have of best industry We our all and will product on over we continue lead the our in

specifics over take Before some everyone for to I’d to in through Craig? Billings Q&A, the it we of press Craig like the turn release.

Craig Billings

we revenue impacts I’d accounting the through in I’ll on EBITDA. everyone like start historical not and new current Matt. expense periods you, does the but and guidance quarter. some quickly by our impact the quarter to that run adopted like revenue points our classifications, peers additional reminding Thank recognition

changes would a key this there are are of guidance, two like know. to I there reporting the stemming adoption from of While number changes

in to EBITDA help elimination allowances junket with these metrics key We’ll revenues impacted of distill and analyst directly with in XXX% this promotional deduction And community net break after comps. using and further an is to view determining revenues Macau. down full the of changes now other apples-to-apples gaming margins guidance. certain some this from First those by of revenues, commissions of departments of the time spend reducing is call the the the comps the second

mentioned, As $X.X Matt quarter in Macau strong this delivering on EBITDA billion net $XXX.X million of was particularly revenues.

the junkets. debt a ended and in taking That particularly year results cash prior million of EBITDA high in was We These settlement. of. total XXXX. debt and remain of than the record revenues Las quarter $XXX,XXX $X.XX Wynn compared billion to incremental quarter In hold, and were the leverage date of periods by not Boston, the prior prior expected budget. in year something a Palace time billion EBITDA during the ramping $X.X $X.X driving proud Continued on balances the Vegas comparable impacted was million the drove operating both are published of Table on consistent with debt on Las total whole revenues debt of $XXX.X the leading We project including margin improved program of at the the little $X.X $XXX.X materially billion. million incurred EBITDA to quarter by driven Macau a and credit Palace was total in the investments in $X.XX strength billion, XXX.X across total holding to to mass current reflect over we million Bad property. $X.X in and note in to direct in $XXX,XXX year. universal with the we spend Vegas million and net Those Macau. quarter. of with XX our cash and delivered games percentage the cost of of payment end last range billion quarter QX, higher

XX. to However, were note March motion transactions it’s several financing in important that on

arranged not the facility now at XX, previously Also bridge will quarter Bridge repay settlement million universal used at had When closed. stock partially million used Galaxy on Entertainment we $XXX end. April equity that, the were With X, that of outstanding was to of to sale Q&A. of Our million note to proceeds been but pay and closed transaction had $XXX.X the the mentioned move to yet loan. $XXX March

Operator

Thank comes with first from Kelley Shaun you.[Operator question Instructions] of Bank Our America.

Your is line open

Shaun Kelley

on afternoon of everyone. on Hi, Matt, the good run thanks for through the sort the strategy. overdue

update there lot everybody. others has latest would an potential there clearly to I talk mean too, Maybe about you for where speculation budget, really lot give a been stand helpful project since just Massachusetts, strategy could swirling a it you the you press thinking been got it one on it’s could think your I on area be any specifically relates has but specifically? and about with as of the us around outcomes of

Matthew Maddox

that our to Boston growth entered the we a ability And location it five was were we think ago. today, really till like is market, excited When market later Sure. company. We some the opportunity. actually about years that generate five prospect We for of the good years the and Greater it area market. still

have in at could will Vegas our any Still take any to look company, there shareholders contagion our again, love is was the we billion to to be our rhetoric, billion Las risk into company if and However, best are ever what we a Macau, Massachusetts hard market. and and that $XX from value. we due there a heightened $XX protect

to We and But with regulators our to move and shareholders time, we be at same going protecting are forward. continue the cooperate actively will always employees. our the there,

Shaun Kelley

on summer, pointing understanding your an maybe early can give you investigation update you sooner timeline a not wrap up towards your outcome having that the a something like know is And concrete there? could is with more an little been some or people that on there’s as what what part thoughts open-ended maybe just on are more, Matt, of maybe possibly consistent early as but discussion

Matthew Maddox

quite is that it’s to wouldn’t but yours mid, we consistent early want are the understanding regulators like with moving with the process actively in think forward or our cooperating smoothly. I feels that summer. I it speculate and is

Shaun Kelley

for Great. I’ll else. open for Thank you my everyone up taking questions. it

Operator

Thank you Mr. Kelley.

Deutsche Next, Santarelli Bank. Carlo we have from

open. is line Your

Carlo Santarelli

in the refers to note, Yes, taking equity an Matt, note referenced promissory the out you thanks cost of the equity X% of the assuming the my taking what there? Galaxy hi X% behind X%. remarks I’m with decision for investment with earlier and so, if question. and with the your that was going

Matthew Maddox

interest instead X% interest $X.X being So those the you rate, it of that’s Universal of $X.X note two time the when over And from we billion with that instead would X% year be at the five the recalculate a things it agreed at that $X.XXX are totally that billion period, rate. was why it billion. separate. a was What number too outstanding was

expense. XXX the dollars million plus So incremental interest extra was

Carlo Santarelli

that’s sorry remember that. correct. Right, I

cost Now use you as but decision there? thought terms bit Galaxy in of the the potentially process just little the to talk lower and opposed to transaction could debt, after-tax equity in a a of about that

Matthew Maddox

two Galaxy. I’m that and and what company. does partners million into long-term of done, category he’s on strategic this so X shares that investors. [Indiscernible] admirer is owners from having they a as focused Wynn so Steve Sure, The investors I’ve long-term what are long been and of fit buy

is that a so billion of of getting not think in is the and do all the was the debt $X.X the having which big is the shareholders. parent I’m at lots only debt very advertising $X the parent, for parent, capital debt, enhances existed. very Also, billion company parent, in It future. I a really rid for our of flexibility more to where this the company so Carlo fan good long-term equity, And of stable move at

Carlo Santarelli

know Las the I I then Craig a thought but hold theoretical Macau? that Hold and mind quantify that Matt lower did than was you Thanks don’t million Great. you Vegas apologize VIP did if I mentioned benefit missed the you you $XX impact in if

Craig Billings

low because material in I impact Macau, high and in direct have junkets. held it didn’t the is we that What mentioned and really

really only was So in Vegas. impact the

Carlo Santarelli

very Thank much. you

Operator

Santarelli. Thank you Mr.

Felicia we from Hendrix Next have Barclays.

open. is line Your

Felicia Hendrix

if that afternoon. community time Hi, I thank addressing you overview Matt, appreciate since your company’s was wondering through your you you – the But you over thought the I frame was quarter. you company the longer that just response mean this and are be the big very step just to capital to investment the in accomplishment the could governments, first really term you just see obviously is I and but organic of the back your know evolving know growth, near a prepared bit, if it helpful. remarks the touched would return in good and us your forward and vision, walk picture, term this CapEx in upon you looking could over time? the how and both regards helpful. review I do

Matthew Maddox

is strong. base in asset current company’s the believe. quite our is best the so And profile business growth the Sure, I

our we where we growth. spend doing on And based to more is so can are what we we are capital immediate reprioritizing we want where think get

That re-prioritized In those So in customers project money going we projects and so longer. hard going are new was it have the at what budget attracting customers those keep and at customer. our at spending what’s actually billion. to properties keep to and our sustainable looking previous was Macau, taking over Vegas, here look our is what’s $X Las attract I and and in a not sustainable,

So Las January, those it lagoon? going, opportunity a lot now are going we’ll our the studying what on so investment we purchased that of will is Will lagoon in be and with the and it and on of with be things we coming I’m future development be. Vegas and we year on. a Will time where are a we property the Las next the to spend this strip be in back with later forward community are to are big were Vegas moving the believer

It’s focus to potential for of we am really getting, development, be story really that. to think time is are time consortium is talking on focused going more opportunity. – I We enhancing terms have that I spending great a on think we’re In we’re ripe the we to investment and team we there something additional getting future Japan our and partners. already

couple locations. are to We time, people the I are accomplish. how a governments and in there, dedicated they understand that that full terms developers it on are want focusing what is of to work of have that with

So is the to vision we developing. going keep are

top We are going to be market. the of at the

properties shareholder We are highest to team use and standards our to our development XXX going that in the drive execute design people going returns. are to at

Felicia Hendrix

to Right. the view the of increase capital dividends long-term of on of that is And kind I return assume beginning shareholders? a

Matthew Maddox

It is.

going in the increased We invest going and buyback is to in teams drive and be that dividend ongoing that will and something review be paydown was something basis we management by that. our more and on value. what his are Craig the increase to Those board XX% consistently -- The are ground, dividends. business our stock, debt, continuously reviewing easily team will is reviewing sustainable an

Felicia Hendrix

I helpful. know switching gears you. that’s the and last of thorough Ian Steve and But ask I continue to came investors gave events. And and quarter. about and up said Macau then actually you be And I on the helpful as Linda just that. upcoming these And pretty to perspective renewals thought concession the concession, concerned call well. question on Thank was it think

I what of might partners. think having brought investors some be? up of your bring there even renewal in wondering Most share be of you thoughts was or of you the chances to on just requirements the you So some both think for of one required, kind either payment if could could

given different kind both Right it and So, I in just on your of know the could scenarios. thought this that but there take we brains it's heart now unknown of you're are I thing? I they discuss

Matthew Maddox

that? take go Ian, why and you don't ahead

Ian Coughlan

Matt. Sure. Thank you,

future So, we Macau. to the are of committed completely

the reinvest to properties. continue We in

industry the lot employees. will the in care to have of very governments citizens. we We and engaged. great and for always here great the good Our take Macau. place of indication as stage as industry future Macau players. all that been year and this current collegiate our We stability relationship a brought We've of an take We at with economy success have every created a process and very some has industry an we

and lot a non-gaining concession very continue address's to focus given need Matt have So waiting We're in there remarks. more to discussion town opening Macau balance we're to been future that a Like revenues. the marketplace result our with detail committed some and about to of to that his reinvestment of focus future. has of developed for the we on the be partners the other casino specific for in provide

Felicia Hendrix

you. Thank Okay.

Operator

Ms. you, Thank Hedrick.

is question next JPMorgan. from Joe with Our Greff

open. is line Your

Joe Greff

presume your that Hey, everybody. of project gains market XQ – construction And of about what due one from questions just related to I couple MGM were open the in mass extend in they second To traffic the you general, property. A turning more implications into with to wind respect half -- would any can power, in MGM Cotai, -- to referenced quick walk just an were here, earlier the Cotai? you positive extend call. what share

Matthew Maddox

I'll first the to there? increase take it and I'll but We're seeing an customers. over seeing quality think of I Ian, then our that it in turn what we're

you we the Palace but an look the takes which it what Wynn now get So big sign room if comp, the quality quite traffic up the of haven't basis a a significantly daily customers. buildings, average theoretical telltale is is in of from a going to seen that really at coming foot uptick into

Wynn an over benefit that and customers our seeing the Linda we're walking outsized line. obviously at to MGM, that's you revenue to to staying facilities, want are on premium do Ian Palace to or mass So enjoy that? as add

Ian Coughlan

to ramp-up. seen we a We've with this Chairman's in continue the Wynn gain our sticking customers Club continues, way Palace. our Premium we are mass and to our areas. significant Club beating just what customers Diamond So, call

the keys casino of went casino this look rooms XXX, We customers. are of XX% of the year if XXXX went effectively our of In the QX quarter using customers. much rooms more and XX% you at to inventory

room even have So we to more there. grow clearly

is the up and of is in room. The CO type are XX%. first standing customers that for quarter up are per listed XX% nice have construct We tables, the room

the finest marketplace. room the We customers quality better getting we're product the got in in room. So

in with the go are holidays more So the miracles MGM that to effective MGM, happen property, through. go steps town, The there's traction, There's we upside. same the still you no the that are visitors the ramp-up gaining when have getting of more property. increased since up our gondola cleaned visitation opened is is referenced. into was XX% have so negate property light And X%, up a Matt on we is seen street. traffic there up to open the MGM a that significantly. And visitation that more through lots as small more properties people the are people familiar rail will The of X%

and for between We got tower to for them But to cross the QX City upside Macau, neighborhood of take the [Indiscernible] lots open are up. on focused customers, waiting premium tightening the of bridge general in. the open in opening XXXX, ourselves so announced in Dreams. room since mass they'll very [Indiscernible] later of and is then summer lots in Wynn We've up Palaces

Linda Chen

address I to grew their events consorts the every base think we've room and mass and lot and casino have new of it's market and our relationship. shows we event, what food expand Cortai has back first client accomplish coming the aggressive specifically address when in specifically and on may up done sale thirdly use there'll marketing and a of even in how the absolutely its whether our or open. increase course we then mentioned frequency And we've evens that existing new Cortai. beverage or increased as our [Indiscernible] definitely to the sales. mass, hiring events for by more guest we sales request we been leverage casino all to customers those And putting and downturn data premium and secondly before, on what will in And you both able was spike current target different doing casino through so is room the more sales than we that base. stay facility as of are that and to of the downturn property growth then to market. aggressively different we've strong The is each customer in of their that We've promotion the the and to customer added

Joe Greff

on I Galaxy's And Resort. a comments in some follow-up older investment Great. Matt Wynn your have on then, of

You better some of holder I talked about long investment in you having the ways the totally strategic? help capital Resort us consequence understand all other Wynn the structure, strategic is get. so and term call having a of what think of Galaxy a and benefits Could the

Matthew Maddox

both and very in and on up to jointly could to a open Because work operating potentially and do those. as think potentially together certainly quality Wynn and are both focused on styles that, agreements I something valued could operators made future. Galaxy to experience, philosophies be jurisdiction we our We but that any haven't the international examine companies similar it's that

Joe Greff

you Thank much. very

Operator

Thank Greff. you, Mr.

Harry Nomura Curtis have we Next Instinet. from

Your line is open.

Harry Curtis

Hi, good afternoon.

Matthew Maddox

Harry Hi,

Harry Curtis

Matt. Hi,

at a in a your opinion. in they question XXX%? First in camping Fontainebleau Vegas, they are could you give Are sense of household projects teams

Matthew Maddox

doesn't hate doesn't but XXX% there, Fontainebleau. from and up feel cranes guy so to XXX%. all like drives I'm some like I out, have them. It that it's look everyday to go are There there ask really some it bide a a them. people But ramped actually about to I think you not it work, for sure not to would speculate would a are empty to

Harry Curtis

be not running would reason ask it that's seems Well, there these image at what if you are I the room but it some guess the growth discussion I hearing media capacity concerns XXXX, and or are to about we're is XXXX in there from the they not that projects that's really full in ramping and up I'm wondering sense collectively your that really capacity? getting agree I'm about and

Matthew Maddox

much be and a are additional to long would shot. XXXX capacity further would like me in they projects We These XXXX agree definitely that awaiting feel that.

Harry Curtis

they the Who Macau, strategy things to repurchase turning from possible the then that I it Macau? ownership a purchase there your quarter Wynn in shares. that about of is is it was parent XX% And its to Wynn thought Macau it purchase interesting one long-term And in to reduce is they proposing from? of Okay. And perhaps the the company?

Craig Billings

Harry, it's Craig.

other Hong all any a every Kong of few routine not It's we years. much that and So repurchase procedural intent. is and reflective listed really companies seek authorization more that

Harry Curtis

see. I

Well There ask on some an of timing your what's light question. those? other let impact us been then, well system Ian, view question could Okay. bridge me is if as disagreements of high infrastructure again one when to more timing maybe the wonder be the and Hong give the operational, of Ian. kind your on the view you really of Kong about rail I as

Ian Coughlan

the in for have is civil in doing bridge like it open completed. everything over stage test is the immigration bridge. general The customs things points between then rescue excise – of and getting into issue all Macau and three and how infrastructure The will traffic organized, been engineering traffic and getting different at getting enters some sense coordinated entry. was parties Key different the driving with dealing that services, summer the simple the the support people organized

don't border being the Hong which So Kong ease up we'll Kong take three side, so significantly an central extra look with burden ferry now and impact magnificent chaotic think activity through the that's certainly different it’s see is terminal on will authorities It I work structure. be it over a travel right initially. huge a and situations to the through particularly to in forward we Macau time. to getting the all time the Hong from at that will teaming from

perspective visitors will integrated Chek our the end biggest bring for the from city people. be I airport customers Kong's itself get of time extra in airport to still But our would to and convenient Lap Hong very to considered it Macau ferry result and higher Kok, ability from that the gain will think closeness to our the resorts. be

forward to looking we're that. So

Harry Curtis

rail. light And

Craig Billings

wise that rail The and have which depo The disputes back light been extra very testing XXX.X light very up the to scheduled had getting getting rolling stuff rail, quickly in and had its close was an they're structural locating for some the the completions. the again think and I drag job speed. far that excellent that on government is They contractual done

thing the again huge so property open neighborhood. our have opportunity we property, for So, particular the it right the with sides station a great of Palace outside it for year. next to and on traveling in Wynn hope Clearly a two it's

Harry Curtis

a Okay. Perfect. Thanks lot.

Operator

Curtis. you, Thank Mr.

Sachs. Next we have Stephen Grambling from Goldman

Your line is open.

Stephen Grambling

Japan, And rules Can few talk I your as market could opportunity given little to solidify latest and follow-ups. there? bit. you're think guess rolling versus a with big this think thought how you is capital some on up partner Thanks. allocation about someone I even such to of a just that earlier? afternoon. I How seemingly a Good have mentioned the first would be? you bit you lever as what Galaxy

Matthew Maddox

Sure.

some that down of finest we're in is Japanese market. the food tourism Japan is for the some that hospitality world. terms world, the best which of believers in the architecture stands Everything best the world, hands in of in in big So, the the

which the things with of do, over world more Japan experience are luxury think more in to in fit particular those all from people what and an we traveling All is resorts, we every really integrated and year. Asia

but working consortium that its going with do So looking you be we to of and of industry to want in opportunity one will we're companies, be large moments be – very interested would not we missed. our there the scale a at

and are so make that watch focused we're regulations rules clearly good that it's but to very to conducive the environment, And operating always one sure on. we're

Stephen Grambling

And what your see think do organization? stabilizing how want you follow-up creating your mentioned question remarks look that to and do own about you In prepared as you a you clarify I the we throughout to the and the for Matt. changes legacy Can culture. guess you future

Matthew Maddox

like because things seen negativity and XX of far reinvesting and almost talking We all a people and are they [Indiscernible] what on I've does and their bright initiatives read is how XX,XXX exist been Sure. future not it and the is from employees our people. who we're for There's how the about halls going focusing didn't we hosting or town company And the to long an so that Las in is employees they and problems, I should in been for for sale what implemented think about just them media. been actually were doing we're destabilizes I've are we're of time onslaught that coming how Vegas, of that and immediately have. had so some that sale keep it

supervisor continue want leadership way want line grow. manager. level to things programs we We've and to to simple We've that some development because a big we've for provide out are supervisor it staff initiated. there to like to that to for make our so rolled initiated And that opportunities then people in that

everybody really say. what So We're to is likes the matter Wynn. what is future just better we reminding are we're and the that doing very strong media no the than past,

Stephen Grambling

for it One helpful I sneak in That's Craig. color. last if can

color five quarter whether can further quarter types baccarat on of we as base customer leisure Vegas out provide is in convention for game it On or you drove only additional look versus what guess the I the any customers example, spillover? the but not international or or it's strength the primarily

Matthew Maddox

like Actually grab President Maurice Wooden, to I'd that. our Property

Stephen Grambling

Perfect.

Maurice Wooden

to yes, So quarter to mean, year. on from the of the continue rest first strength I

we're a XXXX very you if I throughout have at convention and base the year significantly We healthy of already. very this look outpacing numbers rest XXXX, actually

to side, the European great to our as far facing floor numbers Far performance. on and year see domestic East slot a the had our casino slot last casino front respect the we record and in markets. we're and on very We're As performance the especially business similar last we international goes continue markets year's on our the very our with strength stable

So, our our looks healthy very of year here this XXXX. business business and And healthy. trend into base is forward very

Stephen Grambling

All super helpful. luck year. Best of this

Matthew Maddox

if outside numbers thing point piece a much. it in and our hotel There's the at Vegas, out other up very look look non-gaming I'd to that of other One like like doesn't reason. you Las is

been unprofitable change out. and Our retail revenues moving retail operating moving in into retail because of stores We've strategy. XX% that's leasing were of and experts almost that in out but a down

our were retail income in up that revenues down the was in our XX% while almost quarter. department for So XX% almost operating

that be internally. make wouldn't we So things are but to those moves that transparent press the in continue release

Stephen Grambling

you. Thank Helpful.

Operator

Thank Grambling. Mr. you,

Mr. Jefferies. Next Katz David we from have

is line open. Your

David Katz

about to but Hi. report, it I a press effort. strategy. not asking I'm repurchase capital Congratulations Macau There to you the just not the and suggest quarter. ask allocation was specifically wanted a it, share on confirm did or deny

talk could you. Peninsula, about could prepared in through your helpful? the in you you on indicate spending some priorities specifically be allocation because that Thank you talk through Macau, If capital your would remarks did

Craig Billings

Craig. Matt. and start then I'll I'll it's pass to David, Hey, it

authorization that in we're mentioned Kong done way seeking of as is earlier in Hong by all So I and procedural companies Q&A most is the purely and share any that intent. repurchase is reflective not

at proposals. and filings You actually their and look very very see our peers similar

Matthew Maddox

to dividend and and The we will investment to relative the of those drive on design our that capital free flow. to at additional And our continue continue and because Macau like Macau opportunity customers non-gaming there there. policy allocation those accelerating there's we'll always is feel strategy amenities cash revisit focus to investments to great

David Katz

one land your more, Vegas thinking that across in Nevada the there presence there, and opportunities given that in and the Las out outlook And that? Vegas are street. you your since relative you're other specifically to the others you about the How rank would qualitatively just of and domestic are that in how underway Right. opportunities Las have some are strength which sort

Matthew Maddox

Las Vegas. believers We are in internally big

we with will bright. last and think with it and we with the the focused been Vegas for Las Wynn the on customer luxury that I years. very consistent XX the that future build be What have of is is brand

accelerate expedited development we moving or development believers just in years it to are the whether forward street, then we're lot should we looking And done international number of is because forward the opportunity on be, what with forward we are at Macau we've more in on been ideas always and working that move Las in that begin basis. we the across to Vegas. a What development. but try lagoon and of with moving lagoon we're next over So for are next ideas our opportunity reevaluating a new

comes or and returns and is a and rules monitoring another great for is focus. regulations look has company that But pursuing three potentially place now all to Japan up than its all So at like and the and something a pick aggressively better we're have we'll opportunity large if shift three.

David Katz

Q ask I are appear XQ in pro under just Right. new format. at the question, some formas or and can X-K? going And an one we point may if that to in get XQ, of sort Craig, Is that XQ something housekeeping the

Craig Billings

to it to in we'll talk give that. XXX Macau. sense kind and walk you to after the margins has it X EBITDA a David, this of for what modest basis you does point through primarily changes We're a call about going you where impact

David Katz

the to and taking forward look my I'll walk you thank Understood. for questions.

Craig Billings

Sure.

Operator

Katz. Mr. you, Thank

we Next have Robin from Farley UBS.

open. is line Your

Robin Farley

thing falling the been may have to of the actively may forward lagoon and think considered? back the Ellen the March kind only timing in of XXXX remarks convention because talked then planned already. kind just Maybe as about just your construction scope being active that so on former to behind going questions with not actively that now budget sort about doing you expect would being is forward kind as what reevaluate of to my that something asked of clarify the way and date, in of right versus the in [ph] right could up or the end you're Parcell from And opening still Most Vegas going center? stepping Great.

Matthew Maddox

not it. way that's about to right No, no, the think

underway. lagoon underway. enhance convention customer and out We experience. of centers the the million is got $XX So that budget The

our the to on XB. lagoon restaurants do will going lightly. hotel to programmed want Wynn to for rooms great We're Las some fun that have are have next be XXXX re-examining The be resort is next focus across that of full at we in restaurant, resort. right for daytime do and integrated targeted going activity we are reinvent we're we It's that to an being what our to examining as is Las that customers. to I So some That's a we was as beachfront, focus bars. want going water Vegas phase be what Vegas. street new the don't or for rooms, to watercraft, amenity sports, the multibillion-dollar development before decide, there now, going new that and here the really to say place

Robin Farley

Okay, great.

it months few helpful. ago? that's is timeframe as a Now lagoon for and last then the is And that the forward going same for when the was discussed budget that

Matthew Maddox

is. is. It It

Robin Farley

you. Thank Great. Okay. All right.

Matthew Maddox

Sure.

Operator

have we Stanley. next And Morgan Allen Thank from Thomas you.

Your line is open.

Thomas Allen

Hi.

be how for accelerated return for on purposes any there the the will thinking be spent? Macau any those about will renovation will you're dollars the then on on term? And So, there investment investments, Thanks. short impacts modeling

Matthew Maddox

longer. the those what returns overall quantify and be to integrated are to will really because the we our to think keeping be it's resort going going customers not on about returns Clearly adding We're the strong.

that terms not the teams of In all XX% we're of products runs most know Encore with the Macau, occupancy. because renovation that the to jeopardizing one at mean, over popular of working tower ensure remodel, room carefully room it's I tower I in business.

now delicate working through we rooms the on taking business. impact So, the to sure we're dance and to that make minimize is try to a remodel out

Ian Coughlan

we It's manage did it it also refurbishment, with so occupancy We much. can hurting that a soft too don't Wynn We the very foresee effectively. Tower.

Thomas Allen

than you talked you in helpful. in? been quality bringing about even thinking Very the on at helpful. Macau. So, you. -- around us potential color about that give comp could you then bringing would metrics And see continuing just any follow-up mix opportunity ramp-up customers Thank any more How other are you to really do Palace? a higher had Where be you and there

Matthew Maddox

and in why about comp talk you the don't mix Linda Ian, hotel? the Sure.

Ian Coughlan

quarter addressed Well, the of Wynn first that at listed are some of as first the year. earlier, we've quarter number the in to casino-related, in year rooms XX% Palace I this last XX%

customers to continue customers. in in, casino to bring high space we have high-end more end property the So,

So, that's our opportunity.

gets new efforts familiar players, with making lot a all more we're more business, have repeat are property marketing customers bearing we the introduced, fruit. As being are the

continue So, we're and believe doing. still ramping the we're just that we things We up. on lift-off that

Linda Chen

quality of product the the the in top market. is Also, actually, room really our

of progressively and able they move before. products haven't to experienced to up So, even room that next level the suite customer we're our

new, the lot a actually if have of penthouse you the for customers. are experience and we So, villas, those mass may, premium and the

get on been that able facility So, progressively flight to experience. the based they we've their to increase

Ian Coughlan

talk Wynn good a just of be as cannibalize not may It is of one Ciaran for Macau. at the mass focus the to opportunity And to Macau strength key Wynn about well.

Ciaran Carruthers

we've staying but and and that moving customers had or where business running of Macau, Wynn a us, yield. business. seen pull better about our the And our seen, the room segment. quality mass has And -- been used unnecessarily. very there growth cannibalize product long previously very, our are for to the strategy, not obviously XX% lodging anything that Not and these exceptionally us case, casino of getting product the that for hotel has better in in really, high good at quality in customers room we business the despite casino that time we're the of job a into just -- And optimization in better with been rooms of gravitational not has continued -- market lot done done So, of the rooms. utilization move in Cotai a by seeing across the XX% we've the in Wynn the Palace obviously, and

customers that Cotai customers the lot Wynn now now Macau. enjoying have and of gone the Wynn across to a there, moved that have been have customers Wynn have that that moved Palace, We properties, both enjoy across have experience customers and

about really it's utilizing optimizing us, in for room. So, of the customer quality the the and been

Linda Chen

the is we've Wynn to at reactivate Macau been lot Wynn where to we able lost customers that Wynn the facility to Palace inactive downtown Macau Cotai Also, market. actually leverage experienced at a we our from of

and customers. company brand our actually after we once our So, been have Wynn is Palace those available, property reintroducing to

now across both So, come they've properties.

past Wynn that the may, a if has reactivation years. So, visited you Macau hasn't of in couple customer of, lot experienced

Matthew Maddox

Thanks. Okay.

Thomas Allen

If quick just follow-up. I could one

the that I said So, long-term Peninsula; mean, the I but that highlighted guess, XX% comp, is Ian, XX%. to it's XX% opportunity? at you Ciaran

Ian Coughlan

long-term the with want high Palace Wynn to every That where a If we goes room be. a field, at and that's casino is to one opportunity. customer

Matthew Maddox

than But the Cotai Peninsula. mix is different

the wrong So, to same setting do. for mix you room Peninsula. Cotai That, as we're start the as to targets not the is be going thing Tom know, just to the

way room to bottom-line. maximizing So, our we'll appropriate mix an the so in continue we're that increase

Thomas Allen

all. you Good. Thank

Matthew Maddox

question. Next

Operator

you. Thank

Next we from have Citi. Anil Daswani

open. Your line is

Anil Daswani

a of plan you you of for you Wynn you suggest line my taking that? that that that could things, timelines additional what any of guys any there you do for could or update an Palace. Couple land on XX CapEx time Thanks over suggest call. have Is give could guys. us Hi, to all, acres with first for the

Matthew Maddox

beginning of in No, global quarters the we it the to Prosperity the actually to beginnings at They start in a able Vegas phase. We're we with actually Tree conceptualize leading non-gaming be of that people and that some we're before amenities. of to Dreams are really will it. designers work the Macau for world here articulate its and in some too were animatronic of of the in interesting conceptualization the Lake early, past. we're bringing and number Las in in But responsible of them

Anil Daswani

willing looking thing Yokohama. be Okay. type you And looking I that up couple granularity to prepared prepared Japanese to commit, that give commented is that CapEx thinking? You'd market? similar at are they're are others at know to Osaka, some Wynn's Japan. of second you invest could more of Are have a Matt, the you already you us guys to make on to trillion commitment yen, it What

Matthew Maddox

without like the number are. lead consortium returns the rules what location, expected looks the knowing the and never play, We with what all in the

putting ROI to out So, on thin make clearly a know that air. trillion until an we But sense. into budgets we're throw yen back things be anybody and going those based can out not

Osaka is in and the we partnerships region of we're doing either is Bay What cities what Tokyo carefully our to it one those move with So do, markets? working explaining forward that the and and on working qualifications.

Anil Daswani

Thanks, Matt.

Matthew Maddox

Sure.

Operator

no Thank questions. you, there are And Daswani. Mr. further

Matthew Maddox

call. very the We speaking look you after Thank forward much Okay. to everybody.

Operator

all in for Thank participating today's you conference.

line or a You and have great evening. great day may disconnect your

Wynn Resorts, Limited (WYNN) 24 Apr 182018 Q1 Earnings call transcript