Wynn Resorts(US:WYNN)2026-02-12 22:30Financial Data and Key Metrics Changes - Wynn Las Vegas reported an adjusted property EBITDA of $240.8 million on operating revenue of $688.1 million, resulting in an EBITDA margin of 35% [13] - Boston's Encore generated adjusted property EBITDA of $57 million on revenue of $210.2 million, with an EBITDA margin of 27.1% [14] - Macau operations delivered adjusted property EBITDA of $270.9 million on $967.7 million of operating revenue, resulting in an EBITDA margin of 28% [15] - The company maintained a strong liquidity position with global cash and revolver availability of $4.7 billion as of December 31 [17] Business Line Data and Key Metrics Changes - In Las Vegas, demand remained healthy with drop, handle, and ADR all up year-over-year, although RevPAR was slightly below last year [6] - Boston's performance showed strong fundamentals with RevPAR, table drop, and slot handle all up year-over-year, despite lower-than-normal table hold [9] - Macau experienced significant volume growth with VIP turnover up 48% and mass drop up 18% year-over-year, although low VIP hold impacted EBITDA by over $16 million [10] Market Data and Key Metrics Changes - The company anticipates that over 55% of revenues will be generated in non-U.S. dollar-denominated markets as it diversifies geographically [5] - The premium segment continues to lead the market, with the expansion of the Chairman's Club at Wynn Palace expected to strengthen the company's position in Macau [11] Company Strategy and Development Direction - The company is focused on geographic diversification, with the opening of Wynn Al Marjan Island seen as a significant step in this direction [3] - Wynn Resorts aims to become one of the most globally diversified companies in the industry, leveraging its brand and customer focus [5] - The company is investing in technology and artificial intelligence to enhance customer experience and operational efficiency [76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook for 2026, citing strong visibility into group and convention business [7] - The company is optimistic about the future of Macau following sustained double-digit market-wide GGR growth in the latter half of 2025 [10] - Management acknowledged the challenges posed by the Encore Tower remodel, which is expected to impact room availability and revenue [8] Other Important Information - The company announced a quarterly cash dividend of $0.25 per share, payable on March 4, 2026 [18] - The total capital expenditure for 2026 is expected to be between $400 million and $450 million, with ongoing projects in Macau and Wynn Al Marjan Island [17] Q&A Session Summary Question: Outlook for high-end luxury properties in Vegas - Management remains confident in the high-end customer segment and expects to continue pricing rooms effectively despite the impact of the Encore Tower remodel [21][22] Question: OpEx growth expectations for Vegas and Macau - OpEx in Vegas is expected to remain disciplined, with projections of $4.3 million to $4.5 million per day outside major events [25] - Macau's OpEx is aligned with expectations of $2.7 million to $2.9 million per day, influenced by strong business volumes [26] Question: Margin expansion potential in Vegas - Management does not provide specific margin guidance but focuses on maximizing revenue and managing OpEx effectively [30] Question: Impact of the World Cup on business - Management has a targeted strategy to leverage the World Cup's proximity to boost business, particularly in Vegas [72] Question: Insights on the new Chairman's Club space - The expansion of the Chairman's Club is expected to triple its size and enhance the experience for high-value customers, with an opening planned for Chinese New Year [44][45] Question: Updates on Wynn Al Marjan Island - Rooms are expected to go on sale in late Q3 or early Q4, with ongoing construction and a strong transportation strategy to attract visitors [94][95]