Wynn Resorts(WYNN) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Wynn Resorts reported a record year of adjusted property EBITDA, with Las Vegas achieving another annual record [8][10] - Adjusted property EBITDA for Wynn Las Vegas was $267.4 million on operating revenue of$699.5 million, resulting in an EBITDA margin of 38.2%, down 1% year on year [24][25] - Macau operations generated $292.8 million in adjusted property EBITDA on$926.6 million of operating revenue, resulting in an EBITDA margin of 31.6% [27] Business Line Data and Key Metrics Changes - In Las Vegas, table games drop was flat year on year, while slot handle increased by 13% [11][25] - Encore Boston reported adjusted property EBITDA of $58.8 million on revenue of$212.7 million, with an EBITDA margin of 27.7% [26] - Macau's EBITDA was down about 1% year over year but up 11% sequentially, with a focus on maximizing EBITDA despite competitive pressures [17][18] Market Data and Key Metrics Changes - Demand in Las Vegas remained healthy in January, with both drop and handle up year over year, and ADR and SMB covers also increasing [13][14] - In Boston, slot handle was up 6%, setting a new all-time property record for slot revenue [15][16] - Macau saw healthy mass table drop and strong direct VIP turnover during the Chinese New Year period, with full hotel occupancy [19][20] Company Strategy and Development Direction - The company is focused on diversifying its business with the development project in the UAE, which is expected to produce meaningful EBITDA [9][21] - Wynn Resorts is committed to returning capital to shareholders through share repurchases and dividends, with a recent repurchase of $200 million in Q4 [10][33] - The company is exploring additional market opportunities in attractive gateway cities and has strategic land banks in new markets [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future, citing strong demand indicators and a robust setup for 2025 [14][102] - The competitive environment in Macau remains stable, with a focus on EBITDA and margin rather than market share [52] - Management noted that the premium customer segment outperformed the base market during Chinese New Year, indicating a healthy customer base [59] Other Important Information - The company announced a cash dividend of$0.25 per share, payable on March 5, 2025 [33] - A 2.4 billion financing package for the UAE project was finalized, marking a significant milestone [36] - The company is advancing design work and approvals for several concession-related CapEx projects in Macau [29][30] Q&A Session Summary Question: What win rate is being used for favorable hold in Las Vegas? - Management confirmed a 22% embedded table hold [40] Question: Is EBITDA growth expected in January and February despite the Super Bowl impact? - Management indicated that all key volume indicators were up year over year, excluding the Super Bowl weekend [46][102] Question: How is the competitive environment in Macau expected to evolve? - Management stated that the market remains competitive but stable, focusing on EBITDA and margin [52] Question: Can you elaborate on the acquisition in London and future expansion opportunities? - The acquisition is part of establishing a presence in a key global gateway city, with potential for further expansion [66] Question: What are the major milestones for the UAE project leading up to 2027? - Topping off of the project is expected towards the end of the year, with further engagement with investors planned [80] Question: How is the company managing operating expenses in Las Vegas? - Management emphasized a comprehensive approach to managing OpEx without impacting customer experience [128][132] Question: What is the outlook for CapEx in Macau? - The company is committed to a 2.6 billion investment over ten years, focusing on projects that align with the Wynn brand [168][172]