Wynn Resorts(US:WYNN)2021-05-11 01:28Financial Data and Key Metrics Changes - Wynn Resorts reported an EBITDA of $43.9 million in Macau for Q1 2021, with operating revenue of $417 million, reflecting a strong recovery trend [9][16] - The company achieved $28.1 million in adjusted property EBITDA from Wynn Las Vegas on $178.7 million of operating revenue, indicating a significant rebound in performance [12][17] - Encore Boston Harbor generated record EBITDA of $30.4 million despite COVID restrictions, showcasing strong operational efficiency [14][18] Business Line Data and Key Metrics Changes - In Macau, gross gaming revenue per day was approximately 34% of Q4 2019 levels, with premium mass segment showing particular strength [16] - Las Vegas saw a 50% increase in REVPAR in April compared to Q1 results, with slot revenues reaching a record $25 million [12][17] - Encore Boston Harbor's daily EBITDA increased by over 30% compared to Q1, indicating robust growth [15][18] Market Data and Key Metrics Changes - Macau's hotel occupancy during Golden Week was 93%, with retail revenues up 80% compared to 2019 [10] - Las Vegas experienced a strong recovery with weekends in the 90% occupancy range, while weekdays lagged behind due to the lack of group business [13][37] - The company reported nearly $4 billion in global cash and revolver availability as of April 30, indicating a strong liquidity position [19] Company Strategy and Development Direction - The merger of Wynn Interactive with Austerlitz Acquisition Corp aims to capitalize on the online sports betting and iGaming market, projected to be a $40 billion opportunity over the next five years [5][6] - The company is focusing on converting VIP space into premium mass segments in Macau to enhance market share [10][40] - Wynn Resorts plans to proceed with a $175 million room remodel in Las Vegas to prepare for a strong 2022 [20][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery trajectory in Macau, citing new customer acquisition and strong performance during Golden Week [24][25] - The outlook for Las Vegas remains positive, with expectations of continued strength in group business and consumer demand [13][36] - Management anticipates that the VIP segment may recover to around 50% of pre-COVID levels, focusing on premium mass and mass segments for growth [54][55] Other Important Information - The company completed a public offering of 7.5 million shares, raising $842 million, which will support ongoing operations and capital expenditures [20] - Wynn Interactive is aggressively scaling its operations, aiming for over $100 million in run rate gross gaming revenue based on March results [19] Q&A Session Summary Question: Confidence in Macau's follow-through post-Golden Week - Management noted that while the government remains cautious, new premium mass customers are emerging, and they are optimistic about continued strength in the market [24][25] Question: Length of stay trends in Macau - Length of stay remains consistent at two to three nights, but the quality of customers has improved significantly [32] Question: Las Vegas room remodel timing - The remodel is necessary as rooms have not been updated since 2010, and the company aims to be competitive going into 2022 [27][28] Question: Impact of iGaming and online sports betting - Wynn Resorts is integrating Wynn rewards into its products and is prepared for potential legalization of sports betting in Massachusetts [44][45] Question: Future of VIP business in Macau - Management predicts VIP levels may stabilize at around 50% of pre-COVID levels, focusing on premium mass growth [54][55]