Wynn Resorts(US:WYNN)2023-05-09 21:38Financial Data and Key Metrics Changes - Wynn Resorts announced a quarterly dividend of $0.25 per share after a three-year suspension, indicating financial flexibility due to strong performance in Macau and North America [4][17] - The company reported an all-time record adjusted property EBITDA of $231.6 million for Wynn Las Vegas on operating revenue of $586.8 million, with hotel occupancy at 88.8%, up 1,190 basis points year-over-year [12][13] - Macau operations generated adjusted property EBITDA of $155.8 million on $600.1 million of operating revenues, impacted by lower-than-normal VIP hold [15] Business Line Data and Key Metrics Changes - Wynn Las Vegas achieved a record adjusted property EBITDA of $231.6 million, with slot handle increasing by 33.5% year-over-year and table drop up 9.6% year-over-year [12][13] - Encore Boston Harbor generated adjusted property EBITDA of $63.4 million, with a 29.3% EBITDA margin and a record $191 million of GGR [14] - Macau's mass table drop reached 82% of Q1 2019 levels, with retail sales increasing by 60% compared to Q1 2019 [8][10] Market Data and Key Metrics Changes - The overall market in Macau showed impressive GGR momentum, with mass table drop during the May Golden Week holiday period nearly 10% above 2019 levels [9][10] - The company noted that the market is currently run rating north of $22 billion of annual GGR, with expectations for continued growth [9][58] - International customer segments are beginning to recover, with group business exceeding 2019 levels [51][52] Company Strategy and Development Direction - The company is focused on balancing high-ROI development projects in Boston and the UAE while returning capital to shareholders through dividends [26] - Wynn Resorts is making significant changes and improvements to Wynn Macau to drive long-term market share gain [10][23] - The company is advancing design and planning stages for concession-related CapEx commitments in Macau, supporting long-term diversification goals [10][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current operating environment, noting strong performance despite macroeconomic challenges [5][6] - The company is closely monitoring macro factors while expecting continued strength in demand and pricing power [6] - Management highlighted the importance of maintaining disciplined cost control while driving operating leverage as the business recovers [15][30] Other Important Information - The company reported a strong liquidity position with approximately $4.7 billion in global cash and revolver availability as of March 31 [17] - CapEx for the quarter was $124 million, primarily related to renovations and enhancements at Wynn Las Vegas [18] Q&A Session All Questions and Answers Question: How much of the recovery in the peninsula is related to the work versus the overall market recovery in Cotai? - Management noted that Wynn Palace is leading the recovery, with changes being made to Wynn Macau to enhance its competitiveness [20][22] Question: What was the primary thought process behind the decision to reinstitute the dividend? - The dividend is a cornerstone of the capital return strategy, balancing high-ROI projects while returning capital to shareholders [24][26] Question: Can you provide insights on the recovery in the VIP segment? - Management indicated that it is too early to forecast the overall trajectory of VIP but noted positive turnover in both direct and junket segments [34][35] Question: How should we think about the evolution of margins over time? - Management suggested a balanced approach with a $4 billion project, expecting a healthy mix of gaming and non-gaming revenues [40][41] Question: What are the insights on the competitive landscape in Macau? - Management observed that the market is recovering quickly, with rational behavior among competitors and strong margin profiles [57][58]