Wynn Resorts(US:WYNN)2025-05-06 21:32Financial Data and Key Metrics Changes - The company reported adjusted property EBITDA of $223.4 million for Wynn Las Vegas on operating revenue of $625.3 million, resulting in an EBITDA margin of 35.7% [17] - Total casino revenues increased by 4% year-over-year, despite the absence of the Super Bowl in 2025 [12] - Adjusted property EBITDA for Macau operations was $252.1 million on operating revenue of $865.9 million, yielding an EBITDA margin of 29.1% [19] Business Line Data and Key Metrics Changes - In Las Vegas, adjusted EBITDA was down approximately $11 million when adjusted for hold, with slot business showing strong performance [12][18] - Encore Boston Harbor generated $57.5 million of adjusted property EBITDA on revenue of $209.2 million, with an EBITDA margin of 27.5% [19] - Macau's mass drop was up year-over-year, while VIP turnover increased significantly, although lower VIP hold impacted EBITDA by over $38 million [14][20] Market Data and Key Metrics Changes - In Las Vegas, RevPAR for April was slightly up from 2024, with slot handle also increasing [10] - Macau's mass drop during Golden Week was up from the previous year, with full hotel occupancy reported [11] - The company noted a healthy demand outlook for group and convention business in Las Vegas, with visibility into forward demand appearing stable [10] Company Strategy and Development Direction - The company is focused on maximizing EBITDA and maintaining a healthy margin profile amidst competitive pressures in Macau [14] - Significant CapEx projects have been delayed due to tariff impacts, with $375 million in projects, including the Encore Tower remodel, currently on hold [9][23] - The company is committed to returning capital to shareholders, having repurchased $200 million in stock during Q1 and an additional $100 million in Q2 [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the operating environment due to tariffs but noted that the business in Las Vegas and Macau is holding up well [11] - The company expressed confidence in its ability to navigate competitive dynamics in Macau and highlighted the importance of service quality and product offerings [42][46] - Management remains optimistic about future growth opportunities, particularly with the upcoming opening of Wynn on Marjan Islands [15][16] Other Important Information - The company has a strong liquidity position with $3.2 billion in global cash and revolver availability as of March 31 [21] - The board has recommended an increase in the final dividend for 2024 to $125 million, subject to shareholder approval [22] - The Gourmet Pavilion Food Hall at Wynn Palace has already driven significant incremental visitation since its opening [15] Q&A Session Summary Question: Changes in promotions and discounts in Las Vegas - Management confirmed that the decrease in promotions correlates with ADR, particularly influenced by the Super Bowl comparison [26] Question: CapEx deployment cadence - Management indicated that CapEx will follow the usual construction curve, deploying funds over the remainder of the year and into next year [27] Question: International visitation impact - Management noted that international visitation is currently about 9% of Las Vegas room nights, with minimal impact from decreases in visitation from Canada and Mexico [32] Question: Competitive environment in Macau - Management described the competitive landscape as stable but noted the importance of service quality and product offerings to remain competitive [42][46] Question: CapEx impact from tariffs - The majority of delayed CapEx is related to the Encore Tower remodel, with management emphasizing that the timing of rescheduling is uncertain [58][74] Question: Group business outlook - Management stated that they are not experiencing softening in group demand, with strong pacing for 2026 driven by large events [61] Question: Development opportunities in Japan - Management expressed interest in Japan but emphasized the need for favorable conditions before pursuing opportunities there [66] Question: OpEx management with new openings - Management indicated that OpEx per day remained flat year-over-year, with careful management of costs to offset new expenses [80]