WYNN - Earnings call transcript Q2 2021

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Operator

Welcome to the Wynn Resorts Second Quarter 2021 Earnings Call. All participants are in a listen-only until the question-and-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 would now like to turn the meeting over to Craig Billings, Chief Financial Officer. begin. may you Sir,

Craig Billings

And everyone. operator. good you, afternoon, Thank

federal Ciaran On Marilyn Las Spiegel with want me Linda Vegas. Holaday. and Matt Maddox, today are Chen, may the you remind not Maddox. I Coughlan, now turn and harbor Ian on come over line may the and to Frederic those statements under make I the true. Luvisutto to laws, forward-looking Jenny call Also are Carruthers, Brian Gullbrants in statements call Matt we safe that securities may or will

Matt Maddox

EBITDA everyone, was Thanks, thank in was what joining And stronger were like $XXX month Starting Craig. the in I'd about which Vegas. great in to America, off you, all quarter than Las results for our Vegas. Las was us with. last. each happy made in with And today. the second very we start We North million

We we occupancy the and April. all night volumes. EBITDA fact, in apparent from restaurants our that We double clubs and continued week-over-week, gaming had experienced play, grow into almost $XXX our to past our what to our in able without And international our and high-end million of which of hotel, XX% saw strength been was without to quite our the achieve In conventions. was results EBITDA segments were July. June's across continue trend

the And sure over had but rate. we're $XXX continuing week, the a month on the mid-XXs it occupancy opened and ADR July, customers we Las get on results. the here in single right we have Wynn We during EBITDA Vegas make in since in - still and right the we weekend, XXs fact, for focused to XXXX. its was were the In getting weekends. the able We experienced in to up achieving to were on largest we

each month Boston. Boston $XX last. stronger a was saw to million. record than be can Same at on quarter in We the Moving thing said. It

is accelerating rapidly quite there. database Our

the fact, best compared same In the Rewards Harbor. quarter, Wynn in for first month second quarter for our up XX% record again, record on sign-ups new Boston to Encore month, and our our story, July, program were XX%,

in the So quarter interesting when it's be very results a our second look say, I think that's could America, peak? to North short thinking. at And I that, term

is come. generate properties The quite is able our clear. We've to peak. to understand second preview our structure, what's quarter out ability the expense not a significant all assets and these of been a to streamline to how of EBITDA It's yield better,

happen, from going that our continue we and which in variant's now. to want to is Boston. of a Delta Vegas to conventions the Now clear in be in subside. curveball am go come both we Vegas. And will is I as back, is Las people around will more to bit clearly, little results a to will what And right Las have growth and back, play fun. short international see world want throwing and the But come then term, very that it confident see They

sort after experienced May $XX Guangdong quarter strength outbreak during that day achieved of a was Golden been small quickly we talked but weeks, period. out within in call, steps there made the earnings EBITDA just had that our region Macau. in Clearly, back. million we where a a in in stepped demand Macau, Week, the couple last we've for travel And in indicates we've Macau that restrictions. of first comeback has region. million to July at On the of that Looking continuously EBITDA quite getting the in that about quarter. was step go been just $X restrictions we stamped one terms forward, call, the two the however, and Then, really all results, start significantly days see middle of to outbreak volumes in there's there's slight suppressed have the close May to And in up April that pent-up real the results about which been the did greatly the where June. to We a over another were that reading few to in during

Greater I to that And within quickly. been Bay think government remedy matter of experienced weeks. a in all the is has these have decisively Macau good things thing now able it and that we usually, the and acts the Area

and how people days millions this to test action, is what's really region a going continue decisive far, rate the the millions the the And while So ability the know within we of does focused really just us hope pass. great don't of accelerating the in will with to long - give vaccination last, to in experience Macau is this in we're of thus region. matter on what that

rate And stabilized so are we stated goals that by the we hopefully see of operating normalized year, while and it's the and accelerate the right as vaccination continues hopeful that to begin to more to a end impossible predict environment. are now, the will achieved quite

Looking the at interactive space, Wynn Interactive.

and to that's offer be going S-X to detail it. player a closely right that confident working But rolling really the program this going doubt. about full upcoming is put able an now live space be We our there. out talk new what with you with program market. out We're put the NFL Day Craig with are to excited no a what we're that and more excited will there's we this in are lot excited at be our with Analyst and are we we robust together share product, our will is we product Austerlitz very that marketing of a And together, we're to about. about forward quite and on more brand very year moving in little this call. we an have real with on competitive, for that delivery The we're SPAC, well, team We that a

turn going I'm and Craig ahead that, it more get with to over to go to some into detail. So

Craig Billings

Matt. Thanks,

As revenue. delivered operating in $XXX.X EBITDA Matt million $XX.X operations of Macau noted, million the our on of quarter

and driven non-gaming was controls in XX% led performance strength May. EBITDA in premium 'XX, was gaming particular April by with solid of XQ and day QX per with 'XX the by Our revenue mass cost approximately Gross gaming combined encouraging segment.

the OpEx, was Our This revenue. $X.X respect slightly in than XQ up down tax the With of XXXX in results million million Macau the quarter games in increase were despite impacted from fourth only cost $X day is normal by that table gaming in by normalized XX% per controls, from EBITDA and VIP day per a quarter. $XX positively increased higher million level. hold our sequentially excluding to approximately

property segments XX% Wynn to $X Las the XQ decreased revenue across 'XX. the of we strong and of per gaming fourth The to adjusted second 'XX. OpEx per taxes we In well in from impacting per below be based continue XQ generated experience, guest key only quarter day recovers. XX% with EBITDA particular business XX.X% quarter. quarter above million drive We team weekends. again property $X.X done broad the the the costs million on as of record day saw to 'XX slot excluding million XXXX day, million levels leverage Vegas, casino, in positioned job on in has a Vegas strength with $XXX.X of operating handle delivering strength the $XXX.X table a dropped the operating At margin adjusted of EBITDA controlling in negatively without Las great of X%

and day, to day the with a quarter 'XX first property leverage. disciplined 'XX, quarter, volumes operating nearly In per Boston, EBITDA operating of While in mentioned, very million doubled, the of decrease of driving OpEx excluding side EBITDA Matt on the and approximately business million XX% a of margin strong with another over in have QX million $X.X tax to XQ XX% modest in increase Las we increased adjusted relative hours. back of OpEx a revenue improved XX.X%. cost per increased sequentially compared Similar gaming we $XX.X generated the on from Vegas, quarter $X.X on as of to remained $XXX,XXX record record 'XX

which to season. our new Tennessee, of Howard the highlights the Cumulus and strengthened Virginia, aggressively also Detroit the applications we Johnson, party web in and our third We've Chad past Jersey to We our brand features launch and come. robust expect recent include including ahead time. months and Rockies marketing several few to Tim user spent advancing campaign through New ambassadors, drive acquisition over also the with partnerships much with Strategic the Indiana, Colorado, Turning announced building a of high over of football profile XXXX Colorado agreements help Media. Interactive. more Wynn Lions, We've quarter product the

and anticipate modestly product to We particularly several spend. in with unique new few Wynn Podcasts to sports Austerlitz develop Wynn which over our now announced by run to continue the and the from converge, underpinning exceeded published Additionally, XXX results just remainder campaign gross out in revenue we thoughtful Las QX de-SPAC creators, our May as sports programming the and We scheduled including the quarter, million July. at our expected of projections acquisition a as and than Long, our we've engaging despite is accelerate Blue with user connection content sports open to powered rating Interactive Chris themed in in fourth is year, features. annualized revenue roll over the as with is the new partnered employees studio in marketing lower Wire $XXX of Vegas, weeks. media unique

acquisition spending a that brand's on higher declined exceed posted the September, look along our per lower at be customer. on believe testament details for IR spend acquisition forward a spend total to this revenue analysts more drive to with website ability to our slide that sharing projections to is a time. retention presentation deck we planned during sell-side on Our and to our average business will We ability sequentially, and

Turning to the sheet. balance

of Borrowings cash existing and and bank liquidity group remains for existing XX. senior revolving liquidity unsecured with banks. daily US, billion liquidity participation available compared $X June mature by our 'XX. in credit of first Wynn strong quarter and position including a substantially billion Macau. with senior to availability $X.X of billion approximately XX. commitments broad very of Limited billion includes international to global $X.X our In over of used new supportive arrangement on cash that lenders, facility on we received under June June the $X.X of revolver The of burn approximately in XXXX. facility, facility had subsidiary as a In secured be Macau, we the hand, will credit Macau, new will local retire as refinance along of this globally total the a week, Earlier with had XXth, lower cash Our

confidence further in was Finally, with we recovery. prudent our $XX to the respect Operator? over With remain in to that, the it CapEx gain turn we Q&A. and while CapEx now quarter million, will we

Operator

Thank first you. [Operator Santarelli Instructions] [Deutsche you. Our from Carlo Bank]. question Thank comes

Your line open. now is

Carlo Santarelli

to obviously, here start thinking Matt, Macau. Craig, you terms relevant in anything happened we're back getting normal, to ground things couple guess, have things guys last the on maybe tracking weeks it of been a kind could are the in get of way of there has that told to? I when to to reopened as is are maybe But benchmarks or folks all how lot your accustomed in pertains the about as a in

Matt Maddox

to turn comment Ian. I'll sure. Yes, and over it then

the hard I think vaccination end very because when are really getting The year. stated stamp to of and that the out the predict. they they to is and it focused decisive over those variant the goals accelerated Delta lock it by quick And on down. they is take there right everyone actions now, rate

you don't clarity change. more any don't But that? Ian, think on I on have other is we the really Ian, will as to so are that Or quite you mute? did have And encouraging. pace you when of I do vaccination thoughts - drop?

Ian Coughlan

me you Matt? now, Sorry, hear can

Matt Maddox

Yes.

Ian Coughlan

normal so agreement Kong So clearly out, a you getting back the vaccinations, going of can we've to it's Macau than a pace but linked within also to we that a bubble of very and within level experienced. the tripartite PRC, pointed higher get and as Hong us and

a Delta managed we're the have confidence a travel weeks. had well. confident the but of of on desire part couple the is couple small reopen lift We the pullback three day business days, There government be cluster going will to Macau And one obviously a The for of vaccine due people small huge last the of in within mass it's that there's in into whenever PRC possible. very but outbreak a will held back We're having PRC alert in of allow deemed very is we're has be cluster will very a the testing a control rollout. in Macau Macau the course, for that consequence under through linked be the vaccination population Kong. it very over some we of with and entire current that encouragement period. We've at to safe. similar it a go them of Macau to on in could XX% vaccine This now, city, to the vaccinated. Hong they getting Right because get an is rate

lift coming and hope in to the we considerably that So weeks months.

Carlo Santarelli

over well And very guys points Thank margins, basis XX%, of Craig, have cost the clearly that's commentary than higher XX% of of out XXXX, kind Las X,XXX Vegas. the Obviously, Great. property lot the And you. aggregate in believe I of revisiting better. just business. helpful. period, then, level your taken of know, you kind a you on

and on in ramp profile guys a haven't yet forward ago group incremental the on potentially on use acknowledging you space, look while margin brought meeting what does business does of As or that are put a convention in bringing the kind but the basis?

Craig Billings

Sure, Carlo.

where may able the And back you America, might last cost better we where in have been understand we call. this saves costs to has back a on and bit as business will North touched really, the come come So permanent little recall, in. we've on some

we of those as than some the $XX that Boston. we QX, not because back ultimately between margins call, million over we course business talking annual million Vegas and increases. is of we're last of did of ongoing on saves we that really $XX comprised the saw more costs about US, what had You revenue terms corresponding the million say $XX to expected is in dependent. million said in But and in $XXX of mix in come cost revenue But and somewhere $XX in million and

Carlo Santarelli

Thanks. Thank you, guys. That’s helpful.

Matt Maddox

question? Next

Operator

comes (sic) Our Thomas Allen Stanley]. from [Morgan Morgan Stanley next question with

is line Your open.

Thomas Allen

of you Vegas? you're seeing in what Thank just in a group bit little you. Can Thanks. us terms give on color more bookings

Matt Maddox

Sure. you to Marilyn, that? take want do

Marilyn Spiegel

a to Sure. The for than are we was will when have normal half think had run - of almost August And about we that is the year. each quarter, going to sequentially year, back the bookings second more this we month second month our higher. first rate bookings. But ever be in you group group

had So just a we're of in now. right handful good We've shape cancellations.

pickup in week, comes and that group largest our have We next the is solid.

that. about good really feel we So

what true XXXX, XXXX for XXXX, For we and the ADRs the higher And we in are is from above were and XXXX. are same pace in XXXX.

The So we accelerated. feel of good about that also group business been leads in pace addition. has

new. is relatively week is know don't in the a COVID be of the what So what ago, seeing. that's of status terms just to We we're going future But like.

Thomas Allen

when follow-up just start thinking Perfect. the the latest on as Helpful. then my And closing and to capital? transaction WynnBET, deploying on of the expect Thanks. the you what's

Craig Billings

Sure.

pretty of through They review. the with were expeditious it's really its because SEC. we another instance make will last need to So way - would expect have S-X SEC the we dependent that the

late hope We get would as which to mind, business QX. to regulatory and would protocol, is from have then shareholder vote in to funds that hope really Keep would of early take in mid we essentially that advance we ability we be then September. the the part would and back the just Resorts in Wynn proceeds. close that approvals, So

and appropriate deploying would going us where not closure it's prudent, to from So in capital expect stop we sometime but QX.

Thomas Allen

Craig. Thanks,

Craig Billings

Sure.

Operator

next comes with Goldman Our question Instructions] [Operator you. Sachs. Thank Stephen Grambling from

is line Your open.

Stephen Grambling

in and allocation plan I question standpoint? know related from are to been latest bit the trying answer a But around a or concession to you expectations is that the to And thanks. how a capital this Hi, of renewal Macau? necessarily. always what's conversations tough

Matt Maddox

is Ian then This there's over Matt, I'll to as it on turn no really comment new to news But Sure. that well. and front.

expansion being closely So we met part and local region with to growth central a and we do relationship are facilitate Macau of and in facilitate destination Greater continued government very Macau. working ensure good local the Macau the what tourist have that with being really in as a goals can a the of government. help We're that that to the Bay

our on of do and So good or position a corporate Macau. Ian you Macau any as other really that? Linda, we feel citizen future thoughts the in good have about

Ian Coughlan

Yeah. the that primary of the pandemic, the focus revision. any in addressing a managing is occasions they the take have doesn't government's first of a local on place is which law half unpredictability will that work in on gaming referenced the necessary isn't The second the primary place mean behind consultation focus. that of year. it public clearly that's the the is start elections step before the But of taking in government The There's scenes. a process September, also process number completion

a activity on taking but consideration No pandemic. place. So of yet, is Primary managing behind there lot the the going is conversations is COVID work official scenes.

Stephen Grambling

Thank ability you. we Macau. to to a were full And VIP to maybe the about parts back liquidity think should profile to you that support year? any get its in way I as how half assess market, the looks is mass on the a even or there that rebound of follow-up, in support premium in the focusing light guess green of if

Matt Maddox

And couple seeing will I already. of the profile stated, about our we're on liquidity very structurally direct and of that we in changed. VIP more And premium customers I've be to converting lot calls that mass VIP and are there optimistic a is that core Yeah. mass. are certainly think, last customers,

as, think back So on. But comes end to you the point the - to foregone I overall and going market that's would its green that's robust I will idea the customers high happen. revert be levels, previous not VIP light a that quite think out, clearly

Stephen Grambling

much. so Thanks Great.

Operator

you. Thank

Katz Jefferies. with Our question from next David comes

open, is line Your

David Katz

of that ask presuming but wanted that of when, obviously the clear a all of us et cetera? the about takes, and taking ramp trajectory can would customers like the you can't We exactly flow afternoon. sort puts Thanks normalcy, tell that reopen an what for look state my question. Macau. Hi, there is understand to and know, of come to with help and it would what and be some like I

Matt Maddox

you that from know, happened lot Golden But - in it's hard It's in to very to we we shows just is we what out, for is a it how million you than Week witnessed over demand of business around went And pent-up as it's day the do of April the everywhere I EBITDA world, demand when a what ever David, point just not period, that predict. May, the stronger think been. $X with real.

continuing So what to be that limited was, it up will XX% side - and building premium I double ever it's Palace. clearly, destination to been. to VIP to idea retail our than stronger Wynn large-scale XX% to won't you'll roaring going which the retail very and in With to seen things our is quite we've when stores back. are facilities be as a we the visitation, this but down the partners come in back see mass on come than anticipate fully And speak, goes side tourist where invest, more that mass on revenues really

that Ian, you a the be those some about fact, time bit talking of and retail opening In of how excited soon brand offerings spend little just why don't going partners are? to are new

Ian Coughlan

have around. Palace And we shut of Palace. been of and been quarter, first X arrival LVMH the getting we've Wynn actually, the into moved stores had second that during X down quarter, So have brands and the Wynn had

got Bulgari an stores opening week. X recently. they're Fendi end different opening. Dior So and and stores, the of Christian this at with We've opened men's X women's, LV

Wynn the properties. top So in with there's brands huge represented be desire to both a

my We space that either to have of long get of [ph] properties. are the brands arm queue a at as as trying

Matt Maddox

think, so just to but point robust customer that EBITDA, and to to that mass going that portion what start indication the successful And it's as is things is, my in tourist an a that's clear. a Macau of very are clearly, be, small premium seeing David, destination for our of I people region

David Katz

the it are be labor Thank just can Ian things follow-up if the might you here in and like more labor Macau? for for is we've is seen constraints. that.. quickly one And situation of I What

Ian Coughlan

attracting from finding And workforce of PRC, of at is our We residents. our import Macau Macau have So issues this workforce. haven't workers. import have Macau will working XX% is had that have our predominantly the issues do local so with no we labor, don't but labor And I we point. believe majority population any based the issues with comes any

David Katz

Okay. very much. Thank you

Matt Maddox

that in been. we a EBITDA the America, We to us, hasn't like in I'd set And in for But our that have happened our are for industry. the we record point but North workers it service had hospitality a thing's Boston clearly, challenge been And has additional just to make Encore we levels sure attracting on brought Las people we Vegas margins at July. out also board same an XXX keep Harbor. maintained. then And where them

versus So seen the labor really a coming clearly think that the tight, people time had us people. have properties for forward. be question. Operator, going finding market time last our going to extraordinary. I interviewing we to one applicant that's a but flow And benefit big we've has for is hard We've been

Operator

Thank you.

Robin last with comes Our question UBS. from Farley

is open. line Your

Robin Farley

those how these like parking QX in of fully ask question. or the if quarter? in strong margins. margins - that there's anything about amenities some that might amenities look all there in already sort here may may Vegas Are wanted a if baked If you of little in be could from layered expectations of into our of bit Great. had Thanks I that just that QX the manage the QX? with you kind some that sequentially for lower-margin to weren't or come back there valet about taking buffet in

Marilyn Spiegel

think have at we opened July. buffet. buffet, when the opened the Well, It the of about you beginning

days week. five that is so a And open

guests that also at for guests our We in our to choose parking Wynn suites Resorts. or complementary valet tower have is who park

August. are restaurants other some the opened wide be fee opening parking Delilah a but park for for there's All side, free We open. July. amenities in resort additional the garage. in parking, in On We'll they

And will in our labor. So that additional opening on brought new Mexican restaurant Casa be August. then Playa

you'll that. on, coming And FTEs additional the see revenues to appropriate so support but also

Craig Billings

referenced mentioned, a to as the what Marilyn about being talked And on and a are last can just the parking vary of which million little to tremendous our the bit and refer despite earlier, and July back of then is $XX Boston, would mentioned. Robin, million saves cost into EBITDA open I we Vegas $XX Matt call think kind to you $XX and of margin. amount kind in we dynamics we in in permanent back I of $XX that generated the buffet model all and the you just

Robin Farley

when Okay. thanks. to I clarify, group, wanted make understood. sure were about one talking Great, other comment. And just I you just I to want Marilyn,

You or most like just something. was coming the like the periods. said in to ever the group bookings make group sure I will I second for something understand. happening have It And future or want half new events

Marilyn Spiegel

of bookings second groups the the the coming XXXX experienced half are at group highest Robin, - number books of group we've The the in on Wynn.

so group most happen the second And and first quarter. bookings will in of the typically,

is reasons pushed groups into in XXXX for One, are there were that. And of XXXX. -- the - couple were so scheduled in a that

were into the have of And held. second pushed some but of half the they those groups year,

for half. And number so of it's second a bookings a group large

Robin Farley

be this would point, that XXXX not of imagine expected But at but is I that that or... - or ahead

Marilyn Spiegel

Correct, it is.

ever bookings we've group books year. on pace for the the at the most So time this the had XXXX is in

in 'XX. pacing especially hit quite very chance and our group new us very in 'XX in much with it have are then because use well we We're optimistic and COVID opened about business, to we didn't which XXXX. up a asset, well really we So the

group the we good So feel about back. coming very business

upon that future of all our course, the depends in COVID lives. Of

Robin Farley

Okay, great. you much. very Thank

Matt Maddox

us Thank everybody, joining next quarter. you for you, today. see We'll

Operator

That call. your participation. Thank for concludes you today's conference

You may time.+ at this disconnect

Craig Billings	President and Chief Financial Officer
Matt Maddox	Director and Chief Executive Officer
Marilyn Spiegel	President, Wynn Las Vegas, LLC
Ian Coughlan	President, Wynn Macau, Limited
Linda Chen	President, Wynn International Marketing, Ltd
Ciaran Carruthers	Chief Operating Officer, Wynn Macau
Frederic Luvisutto	Chief Operating Officer, Wynn Palace
Jenny Holaday	Executive Vice President
Carlo Santarelli	Deutsche Bank
Thomas Allen	Morgan Stanley
Stephen Grambling	Goldman Sachs
David Katz	Jefferies
Robin Farley	UBS

Wynn Resorts, Limited (WYNN) 5 Aug 212021 Q2 Earnings call transcript