WYNN - Earnings call transcript Q3 2024

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Operator

Welcome to the Wynn Resorts Third Quarter 2024 Earnings Call. [Operator Instructions] This call is being recorded.

If you have any objections, you may disconnect at this time. I will now turn the line over to Julie Cameron-Doe, Chief Financial Officer. Please go ahead.

Julie Cameron-Doe

good and operator, you, afternoon, everyone. Thank

come Holiday call Brian those may Gullbrants the are we Chen, [ may not with you statements or to on federal me and Billings Linda securities Jennie and Luvisutto safe Craig make are Frederic I in that statements true. line want remind today the On ]. under Las harbor forward-looking Also Vegas. and laws, may

I Craig turn Billings. will the to now over call

Craig Billings

Thanks, Julie, everyone. and good afternoon,

I About business Marjan development today. of us business month joining in see this was through. particular. for hope through you thank opportunity general Las and pipeline many always, we that confidence came host It call Wynn and the you to that the our a in in had Wynn our our to in our current and at As ago Island great all, on and take Vegas and you to here folks

markets, most authorization about the capital our in Our the highlighting to the we conviction that give great leadership Wynn development position us return in continued gaming repurchase prudently billion, UAE, increased our world's in Board to announced all attractive future share existing our in investments has to the To properties, $X end, that Resorts. our our of targeted commitment shareholders.

healthy and hotel in handle here. Turning continued year-over-year comps. to X% the essentially on the a X% we X%, comps, revenue was on And healthy basis, drop those see by slot Vegas. starting normalized was Despite in casino. remained quarter tough very about to EBITDA and and flat Demand very revenue table up grew by Las tough year-over-year

with in remained drop the fourth handle, strong demand. nongaming recently, Demand stable healthy in More growth has and solid slot quarter

trailing with sky, and XX-month and with high-end of and challenging, Encore, many we're of remains consumer Now performance $X around billion pleased grow the stable on EBITDA business. in to trees have of the increasingly said Vegas extremely year-over-year comps Wynn $XXX demand times our between but from these capital are calls, I million don't Las on the the ground

programming positioning leadership ahead, to most customers, move to luxury to continue continue us resilient affluent and Looking the market's well therefore, into and positioning strip as most our our the on XXXX. we unique appeal

Turning growth to nongaming year-on-year demand up comp. handle and million across the Demand has the in with against strong generated up and by revenue, X% through Encore Boston, nongaming led More X%. handle and slot $XX of up year-on-year slot recently, October, X% stable EBITDAR, remained was strong during table another up business quarter. X% tough drop healthy revenue

table the Turning mass $XXX million quarter, slot We combined during EBITDA XX% healthy year-on-year. generated revenue year-on-year operating by growth to Demand third in growing X% X% of remained led and Macau. up wins. with and

in is rather purely continue environment competitive share. we market on Macau clearly intense, than the to focus While maximizing EBITDA

that in end, initiatives in support beyond. that market XXXX will To leadership product we and natural drive and expect our service place and focus on we share that several have

new concepts, of opening innovative X reimagined design currently casino, The our of and continue Wynn Palace. at at in revitalizing food including venues Wynn our the expansion And with similar renovation Drunken area ]at for [ Wynn Pass. at Club hall Macau. Chairman's Palace. Wynn at and Wynn The the destination are phase most Club, gaming the to opened we beverage renovated our the exclusive and First, Chairman's recently food we a expanding in mid-XXXX Fish programming Macau elevate and recently

ultimately only show entertainment at gains experiences Wynn an appealing. and drive center where concession-related We enhanced production term, visitation CapEx, in across are and efforts Longer these supporting recently music, sports. increasing and including continued are and culinary, with a unique a loyalty program improvements our CapEx event to experiences share and our events market will are support

We've current profitably mass Macau in over our recently, continued and October was time. before, table by service More direct dynamic market-leading turnover investment compete confident assets characterized well that are we position drop competitive hotel in healthy VIP effectively occupancy. and us seen strong to the XX% and X-star

Week. strength holiday our the compared particular So last during where mass drop year's XX% Week to increased Golden table period almost Golden

for Our work in front The to on long-term design outlook our development production in Macau Event advance and we remains show continue decidedly Wynn Macau, Palace. Center bullish.

I X work and early production weeks Shanghai show, in for was our ago production. in reviewing initial the pleased was In the fact, I with reversals very

and were a issued license we Marjan few back receive analyst at the update Las mentioned, And Wynn I in were delighted go. about as GCGRA here we in first to more share the Island October. honored development by the our Vegas the gaming to details to UAE meeting investor and and Turning land-based early

concrete tower of rapidly feet is steel X.X place. reaching of and project hotel Construction in progressing square work on floor million the the with the now and over XXth now

As billion and industry to the market market we $X for in decade. certainly update ago, believe $X gaming be billion our most discussed the several weeks a our will in we new UAE exciting

bullish remain the company. of incredibly I about future our

most best team business. We have world's the and markets, premier our the in in team the gaming dedicated assets is the

exploring industry. an well in additional opportunities we cities, over our banks land gateway growth high underway, Outside investing UAE, have opportunities ROI greenfield with of exciting in in for time. provide each our which strategic that are is development in We potential are and of attractive unique we markets development long-term

shareholders of increase Meanwhile, share our leverage us cash improve repurchases. capital flow the continues as and free return recurring profile opportunistic to to dividend to the through allowing grows,

lie best Our ahead. days

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

Julie Cameron-Doe

property $XXX.X Las At EBITDA Craig. margin quarter, Wynn XX.X%. you, the Thank delivering revenue we operating during of generated in of adjusted million Vegas, million $XXX.X EBITDA on an

$X year than the EBITDA of The in positively guest million continued the noted, with to in experience. around higher hold on prior by EBITDA in million lower-than-normal the QX was cost up tax essentially table Vegas year strong $X.X period. tune team 'XX per prior day million 'XX, impacting As normalized X% without the excluding basis, $X.X negatively to and to hold management impacting gaming flat $XX impacting EBITDA year Craig games a on QX million was quarter. OpEx, in exercise compared Las normal

OpEx sequentially. Turning disciplined X% to $X.XX Boston. very We $XX on of day million, adjusted million, the generated with of year-on-year property We've up cost of million X% less XX.X%. EBITDA up year-on-year down slightly of $XXX.X EBITDA margin stayed revenue and with than per on an

a not experience. impact union-related that in the do the business also mitigating of The done payroll cost efficiency has guest Boston great job team increases areas with

the range operations Macau property $XXX.X during operating million $XXX.X quarter. on Our games EBITDA the normal million adjusted of table delivered of quarter in with hold in revenue the

day but costs as grow a margin increased staying approximately team gaming and an The great quarter, per was $X.XX business in leverage variable on basis. million to X% XXX to time. a well strong market job has tax on reflecting XX.X% sequential QX, XXXX. increase higher operating year-on-year, basis of disciplined OpEx, volume excluding EBITDA to and drive positioned the higher done primarily flat continues was costs, we over remain points up the relative The in QX payroll on

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

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

to the on Moving balance sheet.

cash position. in global XX. revolver very Our billion availability This balance few comprised our been with sheet debt and billion months of liquidity past active as total improve The position profile liquidity available $X.X billion in of remains and perspective as continue a U.S. at cash Macau of $X.X to have and maturity strong extend the $X.X and we was September leverage our from

In by in of fact, billion October, early few $XX year-on-year, savings. for $X.X interest in approximately forma expense reduced resulting pro debt annualized a million gross we've transactions

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

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

the increase for as capital billion, Board shareholders. recently to continued to We highlighting million also an share repurchase under of opportunistically noted, Craig X.X authorization million to repurchased prudently returning approved quarter. just the shares $XXX commitment $X our our And

CapEx business. concession-related renovations biller million, beverage our Las the maintenance related and CapEx Vegas, the win was course Macau the Finally, $XXX enhancements across primarily in and food and normal that quarter to in

to and during island. total equity Island Additionally, We to pro $XXX Wynn loaded we the million of improvements the contributed interest to estimate the $XXX.X to equity $XXX contribution the required certain fully of million. date rata and $XX.X equity XX% Marjan our quarter remaining approximately is share million our to million bringing project on capitalize fees

of interest Importantly, project a group debt internationally. as well with banks diverse the both in we've also the significant locally as made meaningful region from the financing on for progress

be We you and expect update this completed will in June. financing we will later year, the

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

Operator

Deutsche comes Carlo question Bank. from Our Instructions] [Operator of from line the Santarelli

Carlo Santarelli

of kind the as Craig, are perhaps your if look maintain maybe increases point? across control outlining what XXXX margins, some out could of of kind are [indiscernible] just to you the you the start cost regions, that in at Julie, everyone. this guys of for forecasting to required revenue Craig, you some

Craig Billings

Sure, Carlo.

up question. second your I got but You for to chopped a gest there,

a So aggressively times overriding and don't before, we've costs, brands many I that always margin. manage statement taking revenues, we many, guess, We the we the said aggressively into manage with as account. to first, manage

hold you Vegas, or look and our consumer -- the think to Vegas high-end I in primary across X if the markets, consumer, continues you up. Macau, today's if across look markets

calls. We are tough on been out pointing facing quarter incredibly after these which we've quarter comps,

the increases. We've lapped largest the union payroll of

little of nothing while is there so a significant. And pressure, it's bit wage nothing

Vegas see about up QX. is guess indicates was now that X.X% retail mean, tied year-over-year that good to I heavily really in retail all revenue which lease we is stead. I So demand everything geez, we're and luxury pretty XXXX in in our

not but because, comfort revenues, here, are about and we So we good strong getting here. and comps gives see continue us feel it the to tougher is. again, what that comps is consumer it a But in tougher which

from In QX unique bit margin from a margin a was focused since Macau, you were little a margin perspective. on

GGR quarter-over-quarter, was market I'm because down talking sequentially, GGR Our now. but about market was stable was share down

because in Second, was VIP flat. was GGR VIP VIP turnover had though commissions we the even higher quarter up

extra an day revenue day declined OpEx. in and retail about quarter, million, we by Third, of extra $X an had the had we so then

bit kept it little and in So by in day basis. the line, way, we Macau, Macau. was per a But unique a in on

nature So good. XXXX. really looks in again, to up there competitive versus We Macau, share into again, down pretty market I it good. comes market and the of EBITDA to as think we set it feel the But

Carlo Santarelli

follow-up. could, if I then And just Great. X

As quarter of to frame you the for in from you talked Vegas. the comp the guys -- Super of some obviously, as of Craig, kind you about last To several Bowl headwind quarters in that Las at well will lot kind extent the that looking guys first you've the be the challenges market a year. can

able any parameters around that? If to you'd put be

Craig Billings

No.

a certainly, EBITDA put haven't that is nicely Super shaping And incremental any the FX QX perspective, that with but for comp experienced We we we from haven't numbers. out year. us. and actually about quite Bowl up Super a headwind talked last

pricing be premium relative significant a our at rates room rates, You the we -- at thought on can than later see it's posted we strip. our shaped to said and up. pretty last window call, anyhow as last it's our would we're good year's competitors that we to the although stead in I of rest very think booking published . look FX, a room And the we

Operator

Joe line the of to go from Greff JPMorgan. we'll Next,

Joseph Greff

Macau. on starting just Craig,

today least competitive F&B with it summer. at or you're the the to at competitive better a mentioned than programming, it little on feel reinvestment changes what the to in was where today of You we and in and versus the the does and programs doing various market to where venue touched at vis-a-vis of that is the beginning relative beginning environment and loyalty different if address bit you it business Macau pressures market-wide summer the is look

Craig Billings

to would slightly I it's still how stable -- better, very characterize I would Yes, But guess, -- competitive. it. I it's

Joseph Greff

the starting of obviously bit does And period? we to -- as Understood. Week does the to then improvement year? a like the terms see subsequent rest with great earlier of it since visitation of beginning and at saw Golden little follow-up we're spend that. feel in week then, after. it relative what just or a the the normal a October, month was in to feel like Or Does

Craig Billings

think provide view quarter to October don't Well, from in-quarter prepared my than other comments the our I tend on or stand, we main script remarks. guidance

prepared we so by And guess stand are was I -- my said the the Week in remarks, the We seen And greate. I you've Macau. . fine feel what would in rest in I October numbers market-wide with where total. Golden you've seen of

Operator

we'll of line CBRE. Next, the John go to from DeCree

John DeCree

was drop maybe XX%. quite Macau to has this well, I Craig, quarter, specifically the Wynn done ask mass particularly I about wanted table there think where business up market gaming

Macau, Koki to any or ], you curious color seeing on as you're to what a And recovers Wynn [ but Macau? at discussion give could lot around us visitation as the peninsula so if happens of insight

Craig Billings

a Sure. our it's mean, I really team. to testament

benefit really, rewind execution of so. past focus kind those, visitation on course Macau. those I so that it visitation improve executed mentioned execution of They have year. you on my market experience, beverage transient the food that to the the team over had physical we remarks, experience of we the really fact down and really, again, course -- is would the or the the more drive that we year If at more downtown will we have where I a share. But of and things much identify disproportionately a like Wynn given over the the the good of year that customer, know put that or areas prepared nature you done could we've past the the It ago, the in are a and number identified

John DeCree

Vegas on Craig. drop. That's helpful. Las a follow-up table And maybe

I your I is from the think high-end you've down drop mentioned but in healthy that trends little. you're still a customer, remarks prepared seeing really table think

quarter peers your mentioned, of maybe in and table then One didn't talked drop some that up. this up is players big about you think, quarter-to-date show Vegas I

seeing if wondering bit from you're So of kind like of give you color what a in could on play that? shift more customer high-end kind Q-on-Q trends just us been little there's in anything the if any table or

Craig Billings

let's of shifts a note. of in perspective. put historical significant guess, shifts it No I

overall. X casino a Vegas, play. to of things and clock had a you relates to over table drop shows And number beauty subject and We got deliberate numbers. sure, business Vegas several a diversify years people share, could extreme very, If years diversification. that still Las the grow X, X It's you lend a the right? model, volatility impact But Las the quarter, it exposure lot rewound X from was as could have lot lot we've business. high-end dampened the past years, market that of volatility. high-end of the our X ago done of that's in to the I you think really of in casino course past the or very any table very of And we've it given the But to

up, the hotel steady a up, to just It's a running couple slot business. not So parcel handle and drop revenue part of -- down with just it's points. broader table trend. It's

Operator

Farley from UBS. Robin the of Next, we'll to go line

Robin Farley

comps gaming of I was revenue when more also on VIP gaming well? was down guess kind sort at -- making domestic decline just difficult Or of -- play? your a revenue some there that you follow-up look question Vegas, domestic international the as in

Craig Billings

you that? to take Julie, want

Julie Cameron-Doe

I take of take account you comps, you Sure.Robin, really think at when to look I'm to hold. have the Look, that. happy

you a when that hold the that big year-over-year, difference makes calculation. to normalize So

that the increase of And the bear terms if increased country in normalize our about of So you applied mind year-over-year. ADRs X% then about think revenue have hold. first GGR, in

So GAAP line. rooms the that that increases that the of hotel meaningfully through cost go comped

account, a those there's really because take [indiscernible]? time, just Or you all higher and see hold do things function there? analysis of into is no trend can the you X when So the we it

Craig Billings

drop handle X.X%. look just I and X.X%, handle at Yes. drop dropped I down up Robin, would slot mean year-over-year

So answer. is with of That really of in about And trend. not I million the broader what but indicative be was great. is kind it's question slots the can a couple of $X.X talking X.X a people, last

So feel we great high-end where gaming is about business again, consumer the hold here. continues that to And there. in

Robin Farley

just Okay. follow-up. And as a

give could increasing. just any you us was of outlook year. You I talked about comments business And your group some sort for for quarter QX if bookings on last yes, that. group and for next wondering

Craig Billings

that? do you to to. want Brian, take Sure. Happy

Brian Gullbrants

quite Rob, and year this of fairly record And , room Yes, the to at remains allowed as really the outlook ADRs. manage we towards strong we're a more remainder team yield Sure. year. as crowd base before, pacing a really business nights point and rest where the then said to our for for for other year as That's forward, group healthy you to out us we've get look in a build solid group the the valuable for book of segments. can to in terms XX, the we of business. you And rooms start rooms, more

have we'll Encore So year out a Tower for room of room XX,XXX year our renovation. service particularly in next around nights where

of we overall, to a nights, 'XX group we'll expect team room look So as our lot on do. to how push knows 'XX terms but like in rate

well pacing we quite like were pacing and So this year.

Craig Billings

'XX intention by . looking 'XX like Looking

Brian Gullbrants

Correct.

Operator

from Fargo. to Dan go the we'll Politzer Next, Wells of line

Daniel Politzer

lines, as how in about you to you opportunistically this allocation CapEx going domestically along -- you increased programmatic your capital those that think deploy think share Macau. about repurchase Can as needs, authorization quarter if well or about you're both You your pretty how and markedly. talk or

Craig Billings

CapEx. for game Julie cheap. back is the particularly be stock, the stock buyers Opportunistically capital when to the to feel of buy allocation like programmatic theory name us. we of I'll Sure. and tends cover We're not cover tend and then the we

we saw $XXX purchased million you So quarter. during the

looks We like over balancing years and return couple capital. continue the always at liquidity believe deployment management. attractive past We're capital for been needs of current growth course raise of the stock levels, then, BAE, authorization. that's to We've the of the delevering why and between debt course,

Julie, you major to cover do CapEx? want

Julie Cameron-Doe

clear think not And covering targeted Vegas we here a versus because more there's projects. invest in a said continuing we're given we've yes, really to obviously, prepared our age Marjan. maintenance remarks, we're on what to Sure. From on really, perspective, add now lot high-return numbers and

mentioned, So I on now And side, the enhance renovation the of pillars we're continuing villas the spa the as we've program with project we're to that food and beverage renovating ]. offerings. remaining new the completed [

we have Tower the replacing with rooms also renovate So which We're during planning hotel we to refresh [indiscernible], restaurant a have Lakeside. X Encore bond will be 'XX.

neighborhood So total to in remainder $XXX expect of for we the be the million. CapEx project in Vegas

Vegas taken of covered outside million. And maintenance a that, that range $XX normal million we've $XX Macau, the CapEx down in I prepared to is little the remarks, course I bit. think

getting as period work also getting well. and close close that we're Now more numbers certainty around we're

going that range continues So has to CapEx what's in we look about commitments Normally, bit maintenance XX% concession and for tightened Macau on a there. the at the little on be. then

Daniel Politzer

that I changed terms on the property? just or turning Anything that's Got or the mass relates Macau. ground it. Wynn the then revenues of there evolved volumes think in to really as to volumes touch. it And environment down were to gaming Palace,

Craig Billings

so. think I No, don't

Wynn it's state apply regarding the to throughout remarks I the the pretty consistent. that Macau we applied to have think All of Palace. made call

So no, really. not

Operator

Stephen from of to go Grambling we'll the Morgan Stanley. Next, line

Stephen Grambling

as Just follow-ups Macau on a of couple well.

RevPAR segments. hotels the both in the down think I First, for were

hotel you smart then Just any we what if And as out forward going to on feedback smart the started the tables early and there's from are impact into out look I the side? in believe call tables Is also roll anything next on those potential year? quarter. expectations the And to curious there there.

Craig Billings

a you we've on and comp essentially XXX% it's not very occupancy, a of of because running so read-through much high RevPAR occupancy -- much there. to very, know, read-through Not close been as levels, Sure. XXX%

in the tables midst We've about tables. the side, it XXXX. you're of got Chinese and out Year have rolling New table On we expect by rollout of Smart we right, full our smart covered, X/X are to

marketing then to a to on the bet forward We're There's respect -- data that the not at require clearly But utilize benefits by of bunch benefits call. data customers. of human of abundance to super that how about an there's a talked about need to the complete which bet complete that not to a error, marketing prevention -- before. And because the to innovative you have real intend benefits we we precise game rollout customer. going and obviously talk of due with very clear of bring substantially side, our security, on view be of some primarily you

say a little point, at on to way. early this our we're So but too

Stephen Grambling

clarify, So time? is some period I just guess, is now? data for a rollout collect . you Or set when to complete of that need to

Craig Billings

Chinese Year Next New Chinese Years New -- XXXX.

Operator

Next, go Jefferies. line we'll . Katz of David the from to

David Katz

-- you've some or specific from that sure is not discussable any this been And/or there drives is far that there's what about so the context? confidence But the Macau. impact stimulus given -- evidence confidence? in I'm any expressed

Craig Billings

a encouraging, prepared through would bit positive substantial past, just you'll but XXXX during were as at and I to this I to in impact. my was the think encourage a XX% recent pretty mortality. early I you talked both was little early that on the an running probably October scale. it's Golden having look remarks. see say Week it's would early visitation testing most think But and And there I a that be impact in GGR. point example of -- Demand we about it's say occupency, The

David Katz

I buyback, you the any Got you sort with the the did Along whether detail. X just or end the share post count acquired of same indicate whether ask had it. follow-up quarter-to-date quarter? is the ending And can if quarter of

Craig Billings

in November. the October on the first comment of I few did days month not over

Julie Cameron-Doe

more Thanks, David. we'll caller. . X Operator, take

Operator

from from the Montour line comes of question final Brandt Barclays. our And

Brandt Montour

of went wider that prior range. think from we from moving what guess expectations standpoint? CapEx just comment if changed I a see unusual, sort you it you before, CapEx can competitive but Macau And more Can was just a the of of guidance, on direction. it it's guess I down in

Julie Cameron-Doe

timing actually, We've certain changed more about terms under is in very concession really timing. of dependent think really it standpoint. particular, the quarter words those. mentioned, using on is Sure. nothing's about the made full approvals, -- of other about getting don't And done. CapEx. And this I I've number I'm commitments the this Brandt, of every our from over a we're and control competitive in same to we the have the Really, land And use

So drives terms of in wide that range of quite a outcomes CapEx.

about that saying talking for tightened And been period, the as that how end through I'm while, of remainder to closer of and just the we've 'XX. a we've getting up much 'XX that we're range. And and

that more the nothing time currently. get than were going given done by that. to seemed 'XX, at say of So where be I in able everything end to unlikely to just we're that we

Brandt Montour

unrelated a just follow-up New then process. on And the Okay. quick York licensure

any weigh that you as making about on opportunity? specifically, If you that about thoughts you And well having comment around if think some guys iGaming with to that of one when that? has competitors something a your and regards have legislation hesitation

Craig Billings

desire everyday I that implications. gaming who taxes serious from your resorts, posted to And -- resulting folks -- on primarily generate from a and believe is understand Yes, I for to very look, First, margin. heard XX% game. And who revenue folks work we gaming. about subject the sure in decline in referenced. land-based online revenue the LinkedIn due any half cannibalization March, from Honestly, declines back there's But do. land-based states comments I you online in fact, about it on the quickly I was

So that you're the going people as affected many to extent game. to by not employ nearly being you're online

real. potential there's blowback. for longer-term think Second, that's I regulatory And the

and As gaming world, there's point, certain in look in for worked around when at I market Australia, a blowback. of societal Australia And in a number gaming proliferates we've markets to years. seen regulatory the the

capital something it's issue. on you're think that, yes, yes, I a So -- And to you the dollars we're of then of of so answer, deploying and thousands watching be fact it. layer an long talking top has people, employing of billions it about that but yes, that

Julie Cameron-Doe

Well, We the next everybody. talking to and thank forward your now we With in appreciate look you, we'll thank Resorts, call. you and again that, Wynn you, Brandt, quarter. close interest to

Operator

participating the time, That Wynn for Earnings and in your a you this Resorts rest disconnect Quarter XXXX today's day. at Third concludes Call. Please conference. Thank have wonderful all of

Wynn Resorts, Limited (WYNN) 4 Nov 242024 Q3 Earnings call transcript