Wynn Resorts, Limited (WYNN) 2024 Q2 Earnings Call Summary

Optimistic Highlights

• Record Quarter EBITDA: Wynn Resorts reported the best second quarter EBITDA in its history at $572 million.
• Strong Performance in Las Vegas: Wynn Las Vegas delivered a second quarter record of $230 million in adjusted property EBITDAR, up 3% year-on-year.
• Healthy Demand in Boston: Encore Boston Harbor generated $62 million of EBITDAR during the quarter, with record slot handle and strong table drop.
• Growth in Macau: Wynn Macau generated $280 million of EBITDAR, with strong mass table drop and 99% hotel occupancy in July.
• Development in UAE: Progress on the Wynn Al Marjan Island project in the UAE, with construction rapidly progressing and significant land acquisition for future development.

Pessimistic Highlights

• Lower-than-Normal Table Hold: Both Las Vegas and Boston properties experienced lower-than-normal table game hold, impacting EBITDA.
• Elevated Promotional Environment in Macau: The competitive market in Macau led to an elevated promotional environment, impacting market share and mass hold quarter-over-quarter.
• Union-Related Payroll Increases: Increased operating expenses due to union-related payroll increases, particularly impacting Wynn Las Vegas.

Company Outlook

• Positive Outlook for Las Vegas: Continued healthy demand in Q3, with strong group and convention bookings for the remainder of the year and into 2025.
• Macau Market Share Recovery: Encouraged by the rebound in GGR market share in July, supported by strong mass table drop.
• UAE Project Development: Confidence in the demand and EBITDA potential of Wynn Al Marjan, with progress on debt financing expected to finalize later in 2024.

Q & A Highlights

• Q: Can you characterize the back half of the year for Las Vegas, especially considering group bookings? (Carlo Santarelli, Deutsche Bank)

  A: Q3 continues to pace very well, with August and September looking even better than July. Q4 is pacing well, expected to be the best year ever for group and convention, with strong ADR growth. (Brian Gullbrants)

• Q: How do you think about accelerating buyback activity given the current valuation? (Carlo Santarelli, Deutsche Bank)

  A: We're not programmatic buyers of the stock. We balance liquidity needs between capital deployment for growth, delevering, and returning capital to shareholders. We'll continue to be opportunistic about buybacks. (Craig Billings)

• Q: Can you provide more details on the rebound in market share in Macau in July? (Joe Greff, JPMorgan)

  A: We don't provide specific numbers but were pleased with the bounce back in July. Market share can fluctuate, and we focus on disciplined reinvestment and competitive strength in product and service. (Craig Billings)

• Q: What are your latest thoughts on the Thailand market? (Stephen Grambling, Morgan Stanley)

  A: It's still early days, but the market is attractive and conducive to meaningful investment, pending more details on regulatory and licensing structures. We're monitoring the process closely. (Craig Billings)

• Q: How are you thinking about Vegas long-term as a market to grow your footprint versus other opportunities? (Chad Beynon, Macquarie)

  A: We will grow in Vegas, taking advantage of our land bank. The highest relative return currently quantifiable is in the UAE. We balance growth opportunities with appropriate returns. (Craig Billings)