The speaker, Craig Billings, is providing an update on Wynn Resorts' third quarter 2023 earnings call. He highlights the success of Wynn Las Vegas, which saw a 12% increase in adjusted property EBITDA despite a difficult year-over-year comparison. He mentions that this growth was aided by high hold and accrued costs for a new agreement with The Culinary Union. The property saw record numbers in gross gaming revenue, food and beverage revenue, and hotel revenue, with 10% growth in RevPAR. Billings praises the team for delivering to their high standards even with high customer volumes. He also mentions that top line trends remained strong through October.

The company has a strong outlook with a strong pipeline of demand and a robust programming calendar. Boston Encore generated $60 million in EBITDAR and experienced pockets of strength in slot handle and hotel revenue. There was an acceleration in business during October, but the ongoing Sumner Tunnel construction and macroeconomic uncertainty may impact regional gaming operators. The development across the street from Encore Boston Harbor has been delayed by approximately three months. In Macau, the company generated $255 million in EBITDA, which was 85% of pre-COVID levels. Hold was mixed in the quarter, but the company plans to start normalizing for both VIP and Mass. Fully normalized EBITDA for the quarter was estimated at $266 million, or 87% of third-quarter 2019 levels.

The company has seen a return to expected levels of mass attendance at their properties in October, with strong performance in various areas such as casino mass table drop and direct VIP turnover. The non-gaming side, including retail and hotel revenue, has also seen significant increases compared to the same quarter in 2019. The company is also making progress on their development projects in Macau and the UAE, with an expected opening of a multimedia exhibit space before the end of the year. The CEO also addresses speculation about opportunities in the UAE, stating that it is unlikely that every Emirate will host an integrated resort.

During the third quarter, Wynn Las Vegas generated $219.7 million in adjusted property EBITDA and $619 million in operating revenue, with a margin of 35.5%. The quarter saw broad-based strength across the business, with hotel revenue up 10% and non-gaming businesses performing well. The casino also saw a 22% increase in GGR, driven by higher slot handle and table drop, as well as favorable table games hold. The company is confident in their ability to succeed in the new market, given their experience in competitive markets like Las Vegas and Macau.

In the third quarter of 2023, the company's OpEx excluding gaming tax per day was $4.1 million, up 14% from the previous year. This was due to variable costs associated with revenue increases, non-recurring items, and structural changes. In Boston, the company generated adjusted property EBITDA of $60.5 million on revenue of $210.4 million, with a margin of 28.8%. While business was largely stable, the Sumner Tunnel Restoration Project had an impact on business volumes. In Macau, the company had adjusted property EBITDA of $255 million on $819.8 million of operating revenue, with lower-than-normal hold negatively impacting EBITDA.

In the third quarter of 2021, Wynn Resorts saw strong performance in various areas such as mass casino drop, VIP turnover, luxury retail sales, and hotel revenue. The company's EBITDAR margin increased by 300 basis points compared to the same period in 2019. They also saw success in their non-gaming programs, including sports events, art exhibitions, and concerts. The company's operating expenses decreased by 20% and they are well positioned for future growth. They expect to spend between $300 million and $400 million on concession commitments in the next few years. Wynn Interactive also saw a decrease in their EBITDA burn rate. The company's liquidity position remains strong with over $4 billion in cash and available credit.

The company had a total cash and available liquidity of $1.8 billion in Macau and $2.5 billion in the U.S. This, combined with strong performance and annualized property EBITDA of $2.1 billion, gives the company a healthy leverage and free cash flow profile. They repurchased $400 million of their 2025 Wynn Las Vegas senior notes at a discount and approved a cash dividend of $0.25 per share. They also repurchased shares for $56.2 million and had a CapEx of $114 million. The market in the third quarter was about 8% below the midpoint of the range mentioned on the first quarter call, with Macau and Cotai properties performing at 2019 levels.

Craig Billings, the CEO of Wynn Resorts, confirms that the company's prediction of Wynn Palace reaching 2019 levels in terms of gross gaming revenue (GGR) has been met. However, Wynn Macau is lagging behind due to lower market share and the need for stability and growth. The company's non-gaming programs have exceeded expectations, leading to some extra operating expenses, but Wynn Palace's strong performance without junkets shows its structural advantage in terms of margins.

The business is well-positioned for growth in Macau as the market continues to recover. There hasn't been any significant reinvestment in the market in this quarter. The two properties in Macau are slightly behind the October 2019 EBITDA levels, but the company is not worried about it.

The speaker is responding to a question about the next steps for Wynn Al Marjan. They expect the regulations to be passed soon and the licensing process to be a two-step process. They have appointed leadership for the regulatory body, which brings certainty for financing sources and allows them to move forward with construction financing quickly. The next caller asks about the high-end play in Las Vegas, and the speaker says they have not seen anything materially different this quarter and are proud of their strong revenue numbers. They also mention that high-end international play remains mixed since the reopening from COVID.

In this paragraph, the speaker discusses the current state of their database and the success they have had in targeting high-end customers. Brian Gullbrants adds that the team is doing well and continues to gain market share. The speaker also mentions a potential $10 million impact on OpEx in Las Vegas, citing various factors such as union outcomes, cost of living allowances, and program launches. The next caller asks about the promotional environment in Macau, as some competitors have reported being more aggressive.

The speaker is discussing the recent increase in contra-revenue at Wynn Macau and how it may affect their reinvestment strategy. They also mention the upcoming F1 event in Las Vegas and how it is expected to bring in high-end customers, but they do not disclose any specific expectations for EBITDA uplift. They also mention that their expectations for the event have not changed despite comments from competitors about market expectations.

Craig Billings, CEO of Wynn Las Vegas, discusses the upcoming F1 event and how it is expected to bring in record levels of front money and credit. Brian Gullbrants, President of Wynn Las Vegas, adds that F1 is boosting all areas of their business, with hotel revenue expected to exceed their all-time record by 50%. Craig also mentions that they have had robust demand for rooms and are looking forward to an exceptional race week. The discussion then shifts to Macau, where there was some disruption earlier in the year at the Peninsula property, but it has since tapered off. Craig explains that now their focus is on gaining market-share in the mass market, which they have become more experienced in since the opening of Wynn Palace.

The speaker discusses the results of their efforts at Palace and the various factors that contribute to its success, such as the hosting team, food and beverage, and offerings. They mention that there is no one solution and that it takes incremental improvements. They also mention that the OpEx consideration for Macau is too early to quantify, but they have seen a decrease in OIBDA margin due to lower hold and an increase in OpEx due to non-gaming programming. They expect margins to stay the same at Palace and improve at Wynn Macau as business volumes increase.

Craig Billings, CEO of Wynn Resorts, discusses the company's events calendar and the impact of their concession commitments on it. He notes that there will be variations in the calendar as they continue to rollout programming associated with their concessions. Billings also mentions that it's too early to predict the seasonal cadence or split between properties, but it is important for fulfilling their commitments and building their brand in the region. The next caller, Robin Farley, asks about the potential impact on the Peninsula property's recovery.

The speaker is asked about the recovery of the mass visitor market in Macau and if it will return to 2019 levels. They believe it will be a combination of factors such as transportation issues and macro factors in China. They also mention the importance of gaining market share in the meantime. The speaker explains that they are adjusting for hold in the mass business in Macau due to the mix of their business and to provide a clearer view of performance. They are not concerned about being an outlier in this practice.

The speaker, Craig Billings, is responding to a question from Stephen Grambling about the company's margins and revenue in the upcoming year. Billings explains that they do not have a specific target for margins and instead focus on driving revenue and managing costs. He also mentions that they are prepared for any scenario due to the COVID-19 pandemic and will adjust their operations accordingly.

Craig Billings and Brian Gullbrants discuss the potential customer base for the Super Bowl and Formula 1 events at Wynn. They believe there will be overlap on the casino side, but the transient side will see heavy domestic interest and a strong demand for corporate hospitality. An analyst asks for more information on how to think about margins going forward, and Craig and Julie Cameron-Doe discuss their thoughts on the matter.

The company is managing their operating expenses tightly and using concession commitments as a marketing effort to attract customers. They expect the margin for Wynn Palace to stay the same and for Wynn Macau to improve with operating leverage. Both properties are doing well from a margin perspective and if they can yield their rooms appropriately, there could be incremental margin expansion. The addition of non-gaming elements may be a headwind to finding a comfortable margin.

Craig Billings, President and CEO of Wynn Resorts, discusses the company's capital expenditures (CapEx) and operational expenses (OpEx) in relation to their gaming business. He mentions that new additions, such as an event center or spectacle show, will have their own margins and will drive gaming customer visitation, ultimately increasing overall margin. However, it is too early to discuss this in detail. In terms of current programing, it has not had a significant impact on margin and the company has been able to maintain its margin in the third quarter. The discussion then shifts to capital allocation, with a focus on balancing liquidity needs, capital deployment, and returning capital to shareholders. The company has been opportunistic with share repurchases and debt management.

The speaker discusses the company's current financial position and potential uses for their capital. They mention restarting their dividend and maintaining extra liquidity until certain factors, such as the situation in New York and the yield curve, play out. The company's bias is to stay in a good free-cash flow position, and they plan to do share repurchases and manage their debt stack. They also mention their plans for capital deployment in building a new property in the UAE. The call concludes with the speaker thanking everyone for their interest.

This summary was generated with AI and may contain some inaccuracies.