WYNN - Earnings call transcript Q2 2018

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Operator

Welcome, and thank you for standing by, to the Wynn Resorts Second Quarter 2018 Earnings Call. This call is being recorded.

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

Craig S. Billings

good and operator, you, afternoon, everyone. Thank

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

Matthew O. Maddox

seasonality World Thanks, visitation. us long-term X.X% period Craig. put But year year-over-year this supported lead double-digit address in growth market VIP out, first for continue year typically will Good and Macau. afternoon, The in and both by increase to quarter Macau in strong, to in let's today. year-over-year so was by thanks joining weakest actually with like Macau. to perspective. June Macau's are The win, increased mass the fundamentals in the numbers compounded and remain to XX% in is The and we April a Cup. of I'd the everything due growth

results. property individual the at Looking

Wynn We QX. in mass continue Palace sequentially our to up with business see drop at mass growth from

mass Palace's will with both share In approximately that Wynn increased XX almost consistent had revenue and fact, take I up and continue believe the would've X.X% market Palace almost to market XX% were turnover share would've was basis Wynn QX, been our X%. revenue mass VIP held Palace sequentially in $XX year-over-year. to mass million VIP. and higher points

in sits of swing Michael and will past some Lake immersive in learned the I've world; designers Vegas most what new most and Dreams best center confident, world; into The in the the people features region continue Palace. a the completing this. our the our parcel culinary for on to the to and the Macau. that develop to renowned the show responsible We're Macau it proposal attractions customers and waterfalls, the really director working us – lighting have to going The concept. is concept theater that working gardens, have in theatrical development Wynn we've of have in find seafood, be a Lisboa assembled In a going on full attractions. to entertainment-focused know Kenny amplifying various for indoor hall these planet that world it. plan best one Macau are creative entertainment taking seven-acre Macau. responsible of in adjacent develop account and and like about fact, Tree The new Woodroffe, team between that on people a food can excited one of on world we're – premium that's anyone and planning adding Las gaming destination help Curry, on to here project to with the we're so choreographers possibly to and it's going the the the excited Ortega, well-known in Patrick the we Prosperity And in this the of our from to in will top We in quarter seafood projects those we're the focus government, fourth whimsical,

to downtown. turning Now,

XXXX. year-over-year, grew drop XX% table of tough mass a Our comp in

difficult half volumes driven lower Macau experienced a of in environment junket quarter, second VIP the during several operators. of our by the However, Wynn

creating months and VIP the with of in for the credit, main new the more market reasons our the – incremental principal back many neglected and last VIP. that of rooms them got competitors game downturn during into reasons competition One is the six

operations. VIP caused through the market. an issue a and temporary We be there I reviewed that discussions should the We service property's not had partners, just note, the past. the will analysis in competition particular as expect went absorbed is this levels, junket And in supply it we with decline; this of deep new short-term really our extensive was

not on feet square rooms all space compete remains extending some with are in raising building product by retail over found. near to years And going the reconfiguring anywhere price by the the very eight revenue gains. which, market. service in it way, the producing the first ago. for future. casino, sales renovating credit short-term adding our having two or the per of time commissions world's all Macau, by to the in We're opened original new reinvestment of We in foot and the compete restaurants square We and upcoming the since best be we're strongest And additional X,XXX Encore Wynn still additional Casino, best for West

best the come. yet Wynn So years Macau are for to

XX%, our over out year-over-year growth Now, quarter sequential in and the this monthly much gotten were outperforming looking at up experiencing of second we've July, trends better that significantly market. period. actually with July We

operation per in is approximately making normal $X.X overall million EBITDA Our hold. with in Macau day

and Macau top broad-based both list for our of business properties at both in of investment, capital remains privilege the of doing our there. VIP honored experienced we have Macau the mass have in We to and strength at are in July.

property our $XXX growth evidenced which the also driving growth knows, our in beverage. Moving group million banquets, quarter. drive generated catering Las by food in in was EBITDA RevPAR and the QX to and everyone segment, Vegas. helped as We Strength of double-digit

demand customer and overall stable. Our Las Vegas remained

reasons year Las but demand-driven, with a we Vegas, and fight Kippur, Vegas. third be Last room quarter, to look quarter When to boost the at rates the in city looking at challenge. event-driven. McGregor to August, Las year. holiday, we an we necessarily the enormous quarter, also will It the and not third flat Our it'll this the Also, are here be is had third last was the the occupancy. in and Yom think

to fourth trending is to looks an than because quarter fourth indication So just event-driven over actually quarter is X% to it seeing as quarter, Vegas, now looking our grow on up space. erected last year, the year is going strong. by our I square full and RevPAR in steel at being more construction Las in that in feet think X% believe X%. right we're XXX,XXX We're overall be group we of meeting for compared Also the to third our Vegas Las additional and the it's pretty

course. We for XXXX. master expect the to of the acreage on working of open the first quarter also the that in We've golf plan been remaining

resort the discussed will the As theme park design stage, quarter, project project on early plan It's investment a from cost the more need shareholders. billion-plus to complete this defining a work significantly changed of to a our estimates $X I last add experience. year value for in refining and luxury design program. ensure this We master we rest our for still to continue significant will is and the once program with focus the to develop

less team, Massachusetts. from installed into best some the within a is lush place, Moving The the the of bank now than year We're start actually first two experienced. single miles tower every people quality I of on into floor We've to resort. actually are couple a hotel proud living the building ever of weeks. polluted opening. our We're am renovated of that next that so laying we the boardwalk. we've of ready to the site, X,XXX The is transforming of destination connects day. have construction out that the a river site and shoreline landscaping on around the almost carpet construction

passage by note, continue the ago. a We On to expect to final June in Japan. were late We Bill Implementation open of encouraged several weeks of XXXX. the

believe of years to strong the and some We aesthetic, to have been in thoughtful, numbers our We in quietly quarter. a relationships now. highlights trust myself, you competing a I'll we relationships for Wynn resonate unrelenting of will turn and I've active excellence Craig, times look country commitment it on forward matter. focus dozens been to our through in go the Japan entertainment where in there. that immersive more And to Japan. well building over

Craig S. Billings

run quickly some I'll through on quarter. additional Matt. points Thanks, the

excess negatively will revenues. per In year, These to of we of Consistent quarter, the million of in the which declining year of continuing consolidate by Wynn a shareholders. results Bad were our over some during and quarter. the quarter. billion the investments will expense. and debt EBITDA budget little the XXXX, move spend in billion issued a end, total hold of Matt which the balance VIP one-time prudently We the percentage we the of $X.XX debt of delivered forward billion, and net level. As XX, during of XXX now We with quarter bad on is joint to-date year. Since $X delivered in the of range to Boston, driven About that, million partner. a revenues XX.X%, Subsequent billion at retail of Vegas prior proceeds Las and by $X.X time our taking to million our billion. was $XXX.X earlier EBITDA venture, total last pressures used announcement Q&A. with consolidate our dividend $X.X venture Macau, quarter million million, ended see this $XX experienced joint mentioned, approximately by we with of $XX from $XXX.X XXX% $X.X $XXX.X venture financing, million business million points to normalized Macau sheet. million quarter dividend impacted swing and incurred items there strength to Vegas while during $X $X.XX billion. quarter, margin purposes, quarterly us from over look pay unique a anticipate to net capital games a to in in was proportional quarter. our the points reducing of September a second reporting XXX a normal F&B. total for to on $XXX.X Macau. in returning debt quarter basis $X.X on compared consistent $X Macau project we'll million with Wynn credit basis net Operator? returning Las the to by a We our credit driven the to the retail remain in With share, including reinvest with debt was prior shareholders this in million of of on combination we you EBITDA total published $XXX we debt cash own $X.X in hotel cost Table the hold joint at in the and in expense decline

Operator

you first Deutsche with comes question Bank. Santarelli Our from Carlo Thank

is open. line Your

Carlo Santarelli

contributions guys. made as XX% up And starters. well thanks just you you wanted I accurate? touch specifically be that Matt, one period about that in thought year-over-year. VIP was from the you the on the for Peninsula as if about a as seemed the year-over-year talk bigger comments shortfalls I July, at said? that running July for said, little perspective, bit so, a some could of to reasons the Hey, to quickly quarter-over-quarter, notably most Is you of

Matthew O. Maddox

really was saw a year-over-year up was and to grew in to XX% July, month-to-month, drop broad-based The mass was back mass. in VIP resurgence quarter, two we two sequential or over we last Sure. interesting and was What acceleration. well, weeks And see began the both the two of the to XX%. June weeks. in of the the about July the first compared XX% weeks Mass revenues

good quite been has July us. So for

Carlo Santarelli

then, could, just on Las Vegas. Great. if Thanks. I And

RevPAR in year-over-year. about given gaming marquee that a I'm flat like would You to correct that, flat bit obviously the that Is RevPAR looking looking for RevPAR reference it XQ flat a fights assume the and was little in was just likely terms would for bring. equal, the be going was down a I assuming of volumes things that talked be referencing to all you EBITDA. would XQ? XQ

Matthew O. Maddox

It That's RevPAR. right. was

Carlo Santarelli

And one last quickly. one great. Okay, just then,

budget with As of current respect meeting the feet square additional the of XXX,XXX for broader to same in space, for course, everything golf there that. it pertains the the the terms is scheme to

we'd year a for to of the you phase the I there? this of assume, little year. sometime, were going balance And I think through ideas continue design kind you would about then bit more learn next said

Matthew O. Maddox

right. That's

this a and to be we'll talking of work next have or We end master lot do on early more year. more about the that planning, the year near

Carlo Santarelli

Okay. Thanks, Matt.

Operator

comes with question next America. Shaun Our from Bank of Kelley

open. is line Your

Shaun C. Kelley

of July really the with thanks you QX. the dug the the in the Macau Hey, and It stay to color of sounds you bit were quarter. and it second good between prepared like sounds six investigate weeks around to some afternoon. guys last seeing all what Matt, like remarks. and for you And, little saw Maybe kind a of of kind maybe – the what for difference additional

question what guys have are to dropped of telling Has have is, back? people So bit? activity bit a a kind resurgence of Just react or changed about what get then the what a I back competition you key ground little you off July do kind strategy on little little July? the kind levels bit? the Did change kind driving in of of in you might the think of and tweak is

Matthew O. Maddox

a impact in up June, July. and the is you month just due Cup than Ian, what July stronger much going let to seasonality. seeing Well, you're what given I'll was World take on

Ian Michael Coughlan

It are is direct just from during new The also business program, the up. for in we players opened second other mass sometimes room. the in premium in junket show back. liquidity open market rooms saw the to addition the diverted bounce was and junkets our new rooms having World the to beginning what rooms to Cup quarter up, areas existing returned was the And new when of particularly

that the believe I that was factor. So

had a that also back well. brought in We players normalized, as in couple which hold second the and quarter low junkets of

the they're about because worried rooms Sometimes players to luck. other bad move will junkets increasing

business got just back business. the to sectors all normal levels we at of in all So basically

Palace One of is haven't in Wynn the ups plateaued. we

continue our in casino to sector, going to of and our now room business, XX% mix We from the June. up XX% is grow

Shaun C. Kelley

there. Ian adding notable? you and little there heard either VIP or tables renovating junket Great. And there at or guys possibility on bit either space Palace demand at Matt. as maybe that's or about doing the Is a additional are the some just anything We Peninsula of in side follow-up, a

Matthew O. Maddox

Yes, demand. we are. additional And there is

the tables and there six be our will within So taking next largest be the operator there. new in probably junket will weeks, a large a quite room increase

any we're further about it. on that? you really do have excited So Ian, thoughts

Ian Michael Coughlan

individual operator going street. biggest our the nicely their its Wynn of appointed area property. increase very It's front junket by count to access they're gaming XX% with and a at own attractive It's in Palace table really the at from the

would huge that believe success. that we be So a

Shaun C. Kelley

Great. Thank you very much.

Operator

next Our comes Barclays. Hendrix Felicia with from question

line is Your open.

Felicia Hendrix

lot. Hi, thanks a

but should stem and as quarter's you given on, about to share So, and us Ian, look you competition which continue see coming have be your new the that the I kind of the some plan? things you losses, to the just that market you talk you face or mean, can't of the of new to results of you the some plans can and competition? mentioned forward better whole junket work operator,

Matthew O. Maddox

market Matt. hold, it's our I out in thing Felicia, that normal our And One the No. should in point ever experienced XX%; history. all is highest we've was July, share second

with and two does opening Wynn So new next not Palace within What we restaurants this is Wynn continuing share we're new market months, have two loss. we're actually then mean the competition expansion. near point Palace we share at coming is be in still going be will to light rail the that market opening up, continue some have future. Lisboa a have to taker. We the

of the in going really that with be with putting original reinvestment the center. hub property. it the casino, become that into we're Wynn will Macau will And downtown, revitalize the We to activity

Macau so, believe Wynn share. increase And going their Wynn are I that continue to and both Palace to

Felicia Hendrix

should of us Matt, helpful Thank then, of some I give don't Craig, over think fourth guidance. when grow That's about third quarter we The should I very third at EBITDA to third. you EBITDA is to of the that, today estimates, grow third you. in kind forth quarter, know quarter were second cadence and sequentially day also quarter give question provided Okay. helps indicates and growing Macau, kind And to which second Matt, but the think quarter. given you this an that look data kind expect the quarter over the third? us the helpful. the you data, sequentially you consensus I results above important see over But the per us

Craig S. Billings

You're right, give Felicia. We guidance. don't

you from some what we've we're really saying think to trying out, And business resurgence is do what QX. in is saw on what what a July we we in seen I is right how that's and were think give I playing color now. the

Felicia Hendrix

And just Okay. final for then, Ian.

Palace. the before that you now on at get casino Wynn to like XX% you'd you've ideal are the customer at know world, I You're in mix your the mid said in Peninsula. XXs

think get nicely. along to moved take quite long there? You've How could do it you

Ian Michael Coughlan

We are share. coming it off is little to an we incredibly but ramp-up bit, will accelerated and continue softening market a grow

And ideally, to market new out very in up continue convert see. As and our will go as Matt to effectively you neighborhood. that's we to And said, we'll the from casino rooms XXX%, to take open we'll for over worked us. business high-paying continue customers, but properties

Felicia Hendrix

Okay. Do XXs? of could in you the year kind the end think you high

Matthew O. Maddox

Yes.

Felicia Hendrix

you. Okay, great. Thank

Operator

Our comes JPMorgan. from next question Joe with Greff

open. is line Your

Joseph R. Greff

Hello, elsewhere further to talked the not and about how in EBITDA? Can on everybody. the about looking on the might experience is disruptive all Matt, one that room renovating ways you the be you'll talk Peninsula. there room. that we And competitive of how positioning to and your mindful And at competing price Macau that just extent Encore renovation-related renovation and should and of be perhaps volumes timetable? disruption you're some you

Matthew O. Maddox

it we're renovation begin room much the to that to you not always much, few know, stage disruption. the as But next months as have too clearly, and will So in exists. trying

are working exact mean. out will answer what It it. will term, minimize them will through we're how what obviously. impact long of So an be we're of to to Again, the to that as commission, the trying don't be. that we and out commission we're staging short I rooms going have have are how

Joseph R. Greff

talk premium volumes look in mass of influence your do side. VIP talked the it that's your the going directionally big do mass you you on help then performance premium play? XQ? VIP. maybe that's can either think Thanks. aggregate It each sort versus would premium has in to directly property, versus And at sequentially I wise, that only then did it's just XQ whether not how me. competitors then, mean segment, of about help after picture in extent one just all XQ but when know about or XQ it'd the also at indirectly Macau, And for or I the the mass you And something what

Matthew O. Maddox

Okay.

at March, obviously, off really period. strong faded know, the in premium piece, what we was had saw, a we've So in really you particular segment, in of downtown into but terms premium mass first strong anticipated, and as quarter, had Peninsula. the July. the as come we May And back mass in really, not the May the as it we seen June

market, August, with August So believe a to but continue last the we're given is Macau that going market some that to even anticipating what be should Macau tough happened not of grow. the – comp we

Joseph R. Greff

And then, in the premium mass versus XQ? XQ the performance

Matthew O. Maddox

you do on Ian, that? thoughts have

Ian Michael Coughlan

to ramp us. solidify continue entertainment, and Joe, for events, properties at on up both us Wynn and premium in beverage is doing build really that's It's a premium we've and food What mass. our running of rich lot Palace, source we and helping business been of customers. both a in mass

So progress in very made. year-to-date, both the with looking we've properties, we're at pleased

Joseph R. Greff

just there it yours you performance flat XQ And maybe little with some a I was basically way? the the in Or look bit say, LVS specificity? which breaks talk if say, you – out, would mean at you same can about the Would sequentially. performed XQ it versus

Ian Michael Coughlan

a pace I accelerate. continue will nice think in it's grown and us for overall to a at market, the

Joseph R. Greff

Thank you, guys.

Operator

next with Nomura. comes Our from question Harry Curtis

line Your is open.

Harry C. Curtis

quick just follow-ons. Several Hi.

think pattern Peninsula. that's the Do that on the at take be to First similar you out floors a going time. three probably you here? when you renovate, Typically,

Matthew O. Maddox

rooms. on depends Tower floor. Encore are it is per rooms XXX Well, The how on many

year. based idea think Ian, And the the so, And be near plan construction any we'll that construction? have that on end on do we of when with of the you we schedule, launching finished

Ian Michael Coughlan

disruption. actually we it narrow original time have to of the the at lot And that a we Wynn ability really experience a a do with floor have loaded Tower. So and in one with doing the single building almost

So the heavy any be comfortable that disruption There will structural we're work. very minimal. isn't

occupancy addition is keys in it's XXX And we redecorating. that, to really believe too Tower said. don't much. to Encore impact it's The you as So going

Harry C. Curtis

while you, Ian, And, have historic got perspective. we some you've

makes either Some them couple a or concerned of these come have better a competitors anyway. gone a that got think is times about you market of who you have Do little they've share? different more time that taking the service this bit product a and better re-entered that

Ian Michael Coughlan

particular I experience the a think, in panic market we a Harry, enough have market when we not see to fall-off segment. in

look out business side, we As if a did find partners we there there element were junket the every with something junket to dive Matt to engaged was said, in our of the deep missing, and wasn't. at

on commissions. to increase trying our people and new So it to And game, we back and the service focus get facility EBITDA. the when pressure they that give. but we product, That's There's to that's the the rooms to always use, in at are the continue building increase leverage. leverage advances, them hurts

So we're game. not that in

Matthew O. Maddox

that's you it the been has off. XX price, you creditor And When with chase last business short-term backing every years up for and end always market. in

some product moving our in our a of with around is Wynn couple strong. junkets rooms. new We're So Macau of

so, we there. about very And our good position feel

Harry C. Curtis

historic That helpful. is perspective

Las perspective? booking a the Are with little you for why and the Just don't Vegas. take we pace but XXXX? bit much in group pricing a demand encouragement Vegas on question in longer your guys third We're all quarter, group concerned quick seeing about

Matthew O. Maddox

in And, demand it third have weak It's fall in Harry, Yom group concerned McGregor-Mayweather and to we a all. don't quarter is, one happens is not the at is are Why little strong. with we point fight Kippur quite September. the actually

year. is comment group our fact, And, strong this quite So looking in XXXX? don't XXXX why is strong. Maurice, on you demand

Maurice Wooden

and growth just as in we're of segment but the pace we're also and amount about rooms, pace that the at ADR looking So, ahead exactly. excited actually is well XXXX of well. not strong

very is XXXX healthy. So

Harry C. Curtis

Is And how more? digit that or strong? you define mid-single do

Maurice Wooden

outpacing we're our I would pace say, by forecasted XX%.

Harry C. Curtis

I don't know what's or... budget your

Maurice Wooden

for in numbers. of us our pacing budget that that toward and we we're a pace we well to order have So internal ahead work always hit internally,

Matthew O. Maddox

the tell us But it's going That's should be. pricing everything more We exactly books. XXXX. which in ahead right. our what on to have give into far going can't don't pacing, we're We you power

Harry C. Curtis

guys. perfect. That's Thanks,

Operator

go we'll Goldman to Sachs. Stephen next, Grambling And with

Your open. line is

Stephen Grambling

Hey, didn't guess the noted seem impact on VIP Peninsula. but follow-up thanks. to guess the competitive you change, Cotai. the weakness I I another on that

on long-term? fair So a the Peninsula your And between related to Peninsula share and growth they customers how properties? do this as question, you Or you the generally point? interchangeably think generally do properties see shifting your at are dedicated about from

Matthew O. Maddox

you Linda, that take why one? don't

Linda Chen

see gravitation in mass So towards does is the experience. true But still Macau the gravitation strong be products player we do both We obviously Wynn a general, Cotai the of will new the are a market, Cotai market, our downtown. for Also, opening guess quality. products believe and the make VIP. are as on towards that new that still and I

property, continue for upgrade I that we think we So as and are our Peninsula. we market sustaining both Cotai

Matthew O. Maddox

for And -term. long When just in plan to we plan, put we perspective. the it

an XX the going of is entertainment the population region which $X.X to a of city interconnected Greater GDP hub to trillion. over be Bay Macau so, million going be And with

the talks One being Macau. visited be the planet right places XX stations of Bay largest the bridge. going Greater is to most the on one outside powerful underground region this years. the built Everyone and is rail But about next over of

world. of of in and some development I'm Peninsula. Hengqin creation terms Island largest believer that scale in the Cotai, infrastructure the big a the heart a wealth area. in Macau, in in believer the am of It's really big in I in at So

Stephen Grambling

two So follow-ups I to comments. quick I guess those have

have the new capturing about that the customers peers The is in share Is marketplace? effectively when Or first would shift of breadth existing? How change incremental? further you your competitive there it from been VIP business the think your is, the more that coming in of characterize and that you among customers citing depth in away. a

Matthew O. Maddox

why you don't that? take Ian,

Ian Michael Coughlan

experiencing the Guangdong same more So the all And side, room has inventory on than opened other areas more much Cotai, greater and seen the reach thing. in a particularly as up we've region. into I think we're

stay X%, was year-over-year up heavily length Macau up from into Guangdong visitation outside to of general but increasing. by of XX%, was So overnighters, it driven is

we're rail see all Gongbei larger Island, infrastructure from primarily same we think visitor into said, a outside Matt into light China. of and greater as a thing, reach I Zhuhai bridge, airport Hengqin the And the arrival as So with the experiencing will connectivity and Macau Border and opens, Guangdong.

Stephen Grambling

offer thinking the of point a of to you're EBITDA being sneak about how peak or And hub, impact Matt, just the the your some just planned, driving that's financial being contribution entertainment as to an a traffic attractions you of property? on direct can incremental whether

Matthew O. Maddox

gaming We Anywhere, there EBITDA activity. regional forecast, we when events that popular. we between contribution. is giving we've in are month direct see attendance. will our times what a seen be – hold pickup Clearly, special of in would a a couple in Without ballroom, for significant to quite our will hold oftentimes they a acts have concerts XXX X,XXX people

really can't to the along are come more them and get longer our premium stay customers these they expecting the types often that get so, experiences with anywhere additional culinary in experiences that think And we to else region. of

based So the to the share going is And we gain. over on focus doing last feel that on been very and of those length what stay. customer help premium years, the comfortable are we've to this XX drive really additional intended

Stephen Grambling

Great. Thanks. Best the of back in luck half.

Matthew O. Maddox

Thanks.

Operator

Our with Jefferies. from question comes David next Katz

open. Your is line

David Katz

quarter Hi, past for the sort you all I and about capital of ask the the Matt. to insights the afternoon, philosophy, markets everyone. go-forward. thank around And wanted

quarters? returns Boston performed, any closer thinking and way few closer coming of capital Over and you're stock the about has in has there down, maneuvering. how to next the sharp that the are very with about kind With the been company leverage the getting revisiting conclusion, over years, any thoughts

Matthew O. Maddox

through to shareholders. focused are We on or deployment returns, capital straight that's capital returning whether

stock dividends, provides know, you and dividends. our I've believe, Recurring I As a preference stability and and growth for increasing enhances the in base. a strong we the in have had preference, shareholder always David,

that's a management something, as will also So team, focused we on. be very

David Katz

The I company hard sort believe to dividends dividends be but ruling should fast has led out time is lately, some to of in time. or has other historically, stone, but know etched options? from we're of nothing done special and we special not done the

Matthew O. Maddox

right. on That's be a volumes, it'll grow the with be dividend always I we business along that always business. That's focused like based will that but our predictable philosophy growth each something on. dividend is and year predictable

David Katz

if And ahead. it. can I – go Got ask

Craig S. Billings

to an EBITDA-based share valuation. buybacks, we're respect With

extremely long-term means So EPS focused To credit. a the But capital was would don't and that dividend. getting through the of credit Hoover it the recurring as we're Matt we predictable extent we for said, get returning lot up. very really on which obviously stock that, cheap,

David Katz

appreciate has can about other, or in role? it guess launched or ask have leadership talk point shoulder I I can you changes put taking to you that. What changed. leadership I quarter your the has of evolutions Matt, behind one since or over that initiatives, since or and change If company the what sort been a

Matthew O. Maddox

Sure.

So I'll first start deployment. capital with the

with I the a were We focused So theme resort in to launch Macau. we CEO, about on became not attraction $X a as park Vegas. before billion-plus Las were

that to shareholders. Las add and Wynn in Macau, Wynn Vegas rethinking always is expansion Las brought some I will ensure taken but role over mentioned that value focused also I've I've on intently what it creativity the the we're some behind is in gotten of the curtain and the of the on the people Vegas, so, people done to do been in And have this that going Macau, to we've side, And what here since earlier. to that on it renovating significant

of We're company. over price. the that's shifted stock our say share months the lots last continue cut refresh product. that's on, revenue, clearly, probably to build the and course Internally, going of factors there the We're a to I quickest the the be And seen that have to grow is. where feel service focus very way changes. board. were you've we external of to direction years levels to have, That's have and that and always on someone I'm not in planning changed line. get And years for to bottom single and on couple as continue going. cutting we're revenue-based going expenses we one take the focus the the product. real comfortable with So I've largest I'd best to just

the of of we've deployment our has procedures probably changes the terms policies, some biggest You've been single lots we're change. strategy our in But doing. seen had of that things and capital

David Katz

Thank it. it. you very Got appreciate much. I

Operator

Robin UBS. And go to with next, we'll Farley

open. is line Your

Robin M. Farley

Thanks. talked term come circle impact QX. back guess when Great. short in I of supply about other wanted there's you and to junket the that new at to competitive on, be more I there'll properties

for those So expectation about in that in a some shorter-term about going what does the given be comes should you're will should in supply impact QX, to that maybe not how there we you've mind of new junkets. short-term similar we keeping things respond QX? to on when be competition that be that thinking something talked the Is

Matthew O. Maddox

Again, of giving for over complete out going price. When coming pointed will we to open, going to time. their new business we're lots very, want junkets show train. Macau out, because forecast the the They right on and it's shift be don't been There's new hits It players long expand not credit rooms Yeah. a short-term. guidance to freight that QX on of very often market now Ian based rooms. We That our that don't times has product. a in on like liquidity. as

Robin M. Farley

a Vegas then question And Okay. on margins. the on

them basis You talked points. being down over XXX about

in some costs. of that going forward? think will think maybe opening due some comment bad I basis other the margin the pressure carry debt one-off that and was XXX a to Should as that your higher structure being was piece about about we remarks, cost points

Craig S. Billings

Robin. Craig. It's Hey,

You payroll are changes a should points basis general we some way. that to about incremental regulatory XXX It's COLA increase. incurring and think about it that due of

and Of are the to pressures. in modest some the leverage experiencing we'll here we operating But Vegas. over drive in short-term, grow revenue longer-term, course, continue

Matthew O. Maddox

Maurice, And you that why the what changes, regulatory don't was? let know them actually

Maurice Wooden

restaurant So any had was to exist. adjust there our couple beverage. was related pool participated changes lot do to, with of longer our as managers that more that as in nightclubs, area than now were the we outlets We well had that food a something were to, tip in, and policies had that no made to declared of that other a can and that and a

tips tip we're of and had all nightlife salary the from and some of areas the And the shift outlets so, the beverage receiving pool take food increases and away of in tip to had tools. all we that managers we all our to and some and therefore, hotel

to particular we adjustment So with something made that respect that shift have is some pricing.

to the And be we'll able short-term, we to felt ability realize so, I in the think overcome that. But pressure. that

Robin M. Farley

Okay. All right. Great. Thank you.

Operator

to Morgan Next, with we'll Allen Thomas go Stanley.

is open. line Your

Thomas G. Allen

do or renminbi do impacts I more? afternoon. influence think or mean having has And on you Hey, signs depreciating Thank currency Macau think spend an mass you. were you seeing per that? think visitor was How an do market? it like any impact, the it that the you good the VIP anything you impacts

Matthew O. Maddox

haven't and not fill seen entertainment should and talked currency thinking a decided if have please we could direct impact, time we currency business. the but an the a product the service. depreciating stick we him some Craig in. have about But internally our find Clearly, business that more we speculation correlation, our spend correlation and and and you that Thomas, about to call

Thomas G. Allen

Perfect.

on you And for on Okay. certain Thanks. there expecting there? that you other markets are things then next than discuss focused others? you're could just Japan, Are steps? what more guys Any

Matthew O. Maddox

couple are There markets think everyone's I that focused on. of

Japan service high is on best and of what a of time through what precision. developing we're plans Everything about corporates our there that's anywhere with compete about local are would working what We the in It's I many be, the there given Again, found; talking relationships lot to excited be be. our about what and think to really product's proposed spending really stand for. It's we stand we quality. for. going to

one over partner for Japan of these months. with excited XX really a licenses strong firms make we're some in So next to the and run local XX to

Thomas G. Allen

sense start? guys when will you Do any RFP the have on

Matthew O. Maddox

don't really the I want to comment process on there. government

they think ready lay I to. in detail when will they're that out it

Thomas G. Allen

you. All right. Thank

Matthew O. Maddox

Thanks.

Operator

our Anil last from question Daswani. is And

line open. Your is

Anil J. Daswani

guys. morning, Good Okay.

premium my an question, become on that change real your of Palace. CapEx quarter, a obviously, opening between of gave on us question. on second premium idea to terms Palace of Wynn you from and the tables is For me, there came if seven-acres into expect color on bit you if Lisboa mass of us any estate, a percentage the questions. center little details has the entertainment your any two first bigger focus. you on you remarks second mass? some that actually be that more the Matt, rooms And in Could give revenues the or July? mass intended you in what In piece seen us could give strength And have

Matthew O. Maddox

Sure.

the And like giving beverage means We're percentages. a coming other That's we stand our things project. and this roughly pointed We mass, premium entertainment for half facility. we're needed, over the an solely you VIP, this beverage play to, they're premiums months. typically for few know if it Needless quarter-over-quarter. entertainment slots. house. development cater be the be future about ground on, will the to So leaving that give That next we is for. currently and don't the premium there brand mass We're will working for premium on quite That CapEx not and it. food entertainment. It up about and you what but versus that not half take excited will estimates but break and be do site the we really and say, customer development focused out just premium food out yet we're to the

Anil J. Daswani

Matt. Thanks, Okay.

Matthew O. Maddox

Thanks. Okay.

Operator

concludes that session. And the question-and-answer

Matthew O. Maddox

talk We'll to much. everybody very you Thank next Okay. quarter.

Operator

Thank concludes That conference. Thank for you. participating. you today's

disconnect. now may You

Wynn Resorts, Limited (WYNN) 1 Aug 182018 Q2 Earnings call transcript