The Wynn Resorts First Quarter Earnings Call began with an introduction from the operator, followed by a reminder about forward-looking statements. The call was then turned over to Chief Financial Officer Julie Cameron-Doe, who introduced other members of the team. Craig Billings, CEO, discussed the company's record-breaking first quarter, with a focus on strong performance in non-gaming businesses and a difficult comparison to the previous year. The quarter was highlighted by a strong February, driven by the Super Bowl and Chinese New Year.

The company's unique combination of service, property reinvestment, and programming has led to strong performance in Las Vegas, with continued growth in key metrics. In Boston, the team successfully managed challenges and saw strong demand in April, with ongoing strength in slot handle and RevPAR. However, a development project in Boston has been put on hold due to difficulties with local authorities. In Macau, the company generated strong EBITDAR and market share, with continued growth in key areas such as mass drop and hotel occupancy. Despite unfavorable weather, results during Golden Week in May were also positive.

The casino experienced a 30% increase in mass drop per day during the holiday period, and construction is underway for various development projects in Macau and the UAE. The company is also considering greenfield development opportunities in New York City and Thailand. Despite the delay in the RFA submission process in New York, the company is still interested in building a Wynn resort in Manhattan. In Thailand, the company is monitoring the legalization process and remains optimistic about the future of the company. In Las Vegas, the company is able to take advantage of the high demand and inflationary environment by adjusting hotel room prices daily.

In the first quarter of 2024, Wynn Resorts continued to perform well in Macau and Las Vegas, generating strong revenue per hotel room and significant free cash flow. They also have promising projects and potential developments in other cities. The company's leverage profile is improving and they expect to see continued growth in free cash flow. In Las Vegas, they saw a mixed impact from hold, but successfully managed operating expenses. In Boston, they remained disciplined with costs and saw a slight increase in expenses. In Macau, they estimate higher than normal hold had a positive impact on EBITDAR.

In the first quarter, Wynn Resorts saw strong margin expansion due to a favorable mix shift to higher margin mass gaming and cost efficiencies. OpEx decreased by 17% compared to the same period in 2019, and the company remains well positioned for strong operating leverage as the market continues to recover. In terms of CapEx, the company expects to spend between $350 million and $500 million on concession commitments between 2024 and 2025. The company's liquidity position remains strong, with over $4 billion in cash and available credit. In February, the company issued $400 million in unsecured notes and used the proceeds to repurchase $800 million of Wynn Las Vegas notes, reducing gross debt by $1 billion in the past four quarters.

The company's strong performance in all markets globally, with properties generating over $2.3 billion in EBITDA, has led to a healthy consolidated net leverage ratio. The company plans to reduce leverage while returning capital to shareholders through a cash dividend and reinstated dividends in Macau. CapEx in the quarter was primarily related to renovations and maintenance. The company also contributed equity to a joint venture project. The company acknowledges the competitive landscape in Macau.

The speaker discusses the company's focus on product and service and attracting high-quality guests. They mention that promotional activity by competitors is not their main concern, but rather their reinvestment in the company. They also mention the strong performance of the company in Q1 and the tough comparisons in the market for the rest of the year. They note that their pricing power is due to their strong offerings in Las Vegas.

The speaker discusses the strong financial setup of the company, which includes a target customer base that can earn 5 points on their money by putting it in the bank. This has led to strong wealth creation and a powerful EBITDA setup. The majority of the company's capital and debt is in yesterday's dollars, which is beneficial for returns and discretionary free cash flow. The speaker also mentions the current state of the company, which is good, but is unsure when it will go from "absolutely unbelievable" to "just really great." The next caller asks about the company's operations in Macau, specifically regarding the conversion of gross gaming revenues to casino revenues and how it has improved in recent quarters. The speaker attributes this improvement to the revamp of their loyalty program and giving customers more choice in how they want their reinvestment.

Shaun Kelley from Bank of America asked about the OpEx trajectory for Macau. Craig and Julie explained that they have been disciplined in managing OpEx and have been able to accommodate non-gaming expenses. In Q1, OpEx per day was $2.63 million, which is still below Q1 '19 levels. Going forward, they will continue to be disciplined and have good line of sight to events and revenue mix will be the key driver of margins. There may be some quarter-to-quarter variation, but they feel good about their management of OpEx.

In this paragraph, the speaker discusses the potential for some quarters to have slightly lower revenue than the expected $2.63 million, but overall the company is in a good place. They also address concerns about potential pushback from leisure customers in Las Vegas, but state that they have not seen any areas of skittishness or normalization in their business. They attribute this to the recent deployment of capital in the city, such as the arrival of the Raiders, and express confidence in their pricing power compared to other casinos on the strip.

The speaker discusses how the company's bookings have returned to pre-pandemic levels in 2019 and are pacing well for future years. They attribute this success to their focus on people, assets, and experiential events. When asked about Las Vegas occupancy, they explain that they aim for a balance between occupancy and rate in order to maintain a good experience for guests. Macau, on the other hand, operates differently with a high occupancy rate on the day.

The speaker discusses the potential for high occupancy rates in the Vegas market and mentions that they sometimes run higher and lower throughout the quarter. They also mention the potential for growth in Thailand, but note that it is still early and they need to understand the regulatory structure before further involvement. They believe it will be a competitive process and are confident in their capabilities.

During the ATM conference in Dubai, Craig Billings presented new renderings and photos of the Al Marjan project. The total budget for the project is around $4 billion, with a capital contribution of approximately $900 million. The budget has not changed significantly. In terms of domestic performance, February was the strongest month, followed by March and January. In order to open the casino, regulatory requirements must be met.

Craig Billings, CEO of Wynn Resorts, discussed the company's expectations for meeting regulatory requirements and receiving necessary approvals. He also mentioned that they are not building on spec and are aware of the ongoing activities of the GCGRA, the federal regulatory body for licensing and regulating gaming. In response to a question about the Wynn Macau property, Billings stated that hold has been high in the past two quarters but will normalize over time. The last caller asked about the Las Vegas market and the company's available resources.

Craig Billings, responding to a question about potential development opportunities in Las Vegas, mentions that the company has a large land bank there but is currently focused on other projects such as those in the UAE, New York, and possibly Thailand. He says that they are always considering the adjacent land on the strip as a potential development opportunity, but they want to see how other projects play out and factors like the economy and costs before making a decision.

The speaker is confident about the company's future EBITDA and free cash flow. They thank the participants and end the call.

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