The Wynn Resorts Second Quarter 2024 Earnings Call began with the operator welcoming participants and reminding them that the call is being recorded. The Chief Financial Officer, Julie Cameron-Doe, then introduced the speakers, including Craig Billings, who thanked his colleagues for delivering a record quarter. Wynn Las Vegas saw a 3% increase in adjusted property EBITDAR, driven by growth in hotel revenue, slot handle, and casino drop. The Boston location, Encore, also had a strong quarter with $62 million of EBITDAR.

The second quarter at the property was strong, with record slot handle and RevPAR. Demand has remained healthy through July, with increases in table drops, slot handle, and RevPAR. In Macau, the company generated $280 million of EBITDAR and maintained a strong EBITDAR margin despite a slightly lower market share and mass hold. The company remains disciplined in its OpEx and player reinvestment levels. GGR market share returned to expected range in July, supported by strong mass table drop and hotel occupancy. Wynn Macau's long-term outlook is positive, with development projects in progress. Construction is progressing rapidly on the Wynn Al Marjan Island development in UAE.

The building in the Emirate is now the tallest in the area and the company contributed $357 million of equity to their UAE joint venture during the second quarter. This included the purchase of land for potential future development. The company is confident in the demand and EBITDA potential of the project and is making progress on debt financing. They also have other exciting development opportunities in the works and are seeing improvements in their leverage profile. At Wynn Las Vegas, they generated $230.3 million in adjusted property EBITDA on $628.7 million of operating revenue during the quarter.

In the second quarter, lower than normal table game hold negatively impacted EBITDA by $5 million. Operating expenses, excluding gaming tax, increased to $4.2 million due to union-related payroll increases and higher variable costs. In Boston, adjusted property EBITDA was $62.1 million with an EBITDA margin of 29.2%, but would have increased 2% if table game hold was normalized. OpEx per day remained flat year-on-year and decreased sequentially. In Macau, adjusted property EBITDA was $280.4 million with an EBITDA margin of 31.7%, but hold negatively impacted EBITDA by $3 million. OpEx, excluding gaming tax, decreased by 19% compared to the same period in 2019. The company remains disciplined on costs and is advancing with concession commitments in Macau.

The company expects to spend between $350 million and $500 million on concession-related projects in the next few years, with a strong liquidity position of over $3.9 billion. They have reduced their debt by $1.1 billion in the past year and have a healthy net leverage ratio. The company also plans to return capital to shareholders through dividends and share repurchases. In the past quarter, they spent $94 million on villa renovations, food and beverage upgrades, and maintenance.

Craig and Brian discussed the current state of business in Las Vegas, noting that there has been a positive trend in July and some group bookings for September. However, there is limited visibility for the rest of the year, with the exception of group bookings and special events like F1. They do not have any concerns about the fourth quarter at this time.

The author discusses F1 and its marketing push for the race this month, which they believe will be well executed. They also mention their strong performance in group and convention bookings for the third quarter and the rest of the year. They have repurchased $80 million of stock and are considering accelerating buyback activity due to the compelling valuation of their domestic assets.

Craig Billings is responding to a question about the company's stock purchases and mentions they are not programmatic buyers. He also discusses their liquidity needs and balancing capital deployment, deleveraging, and returning capital to shareholders. He mentions a rebound in market share in July and an associated lift in non-gaming revenues. He also mentions the impact of luxury retail in China on non-gaming revenues in Macau and Hong Kong.

The speaker states that their company's performance is similar to their competitors, but they cannot provide specific numbers. They are pleased with the recent increase in July and acknowledge that market share can fluctuate. They are being disciplined in their reinvestment and aggressive in obtaining business. The speaker also discusses the progress of their UAE project, mentioning the establishment of a regulatory body and the awarding of a lottery license, which they hope will provide investors and financing sources with more clarity. They do not have a specific timeline for when they will receive their license, but note the momentum in the region.

Shaun Kelley from Bank of America asks about visitation trends in Macau and whether they have impacted the property's volumes. Craig Billings responds that they focus more on the quality of visitors rather than the number, and that share is more important to them. He also mentions that there has not been a significant impact on their business in the second quarter due to visitation numbers.

The speaker discusses the behavior of customers in the gaming industry, noting that the gaming business has been resilient despite economic crosscurrents. They also mention that the promotional environment in Macau is competitive and that their reinvestment may fluctuate based on their goals. The speaker also mentions that the Sphere calendar of events in Las Vegas is filling out nicely.

The speaker is asked about the impact of their proximity to a nearby venue on their business. They mention that they have seen an uplift from the customer base there, but it is hard to isolate any specific event due to the amount of activity in the area. They also mention their excitement about having the Sphere as a neighbor and their focus on high-quality visitation. The speaker is then asked about potential indicators of changes in the market and their ability to adapt. They mention high-end wine sales and club sales as possible indicators and state that they have not seen any significant changes in their business performance in the past two years.

The company is closely monitoring consumer behavior and has a playbook for different situations. They have seen progress in the UAE and Thailand markets, and are considering pursuing opportunities in Thailand through the U.S.-listed entity. However, they need more details on the regulatory and licensing structure before making any investments. The market is attractive with good tourism infrastructure and favorable operating expenses.

The company is closely monitoring their operations and is actively involved in the process. They do not have a specific target leverage range but feel good about their current level. When it comes to buybacks, they take a long-term approach and consider the stock's valuation before making a decision. They prioritize capital deployment and returning capital to shareholders through dividends.

The company is decapitalizing the business and focusing on the long-term view. The implementation of smart tables in Macau has had a positive impact on market share, and the company is now moving towards a full rollout. This will allow for better data analysis and reinvestment decisions. In Vegas, wage hikes have affected EBITDAR flow through, but these expenses will be fully anniversaried in the near future.

Craig Billings discusses the impact of not having the Super Bowl on revenue in Q1 and the lack of guidance for the numbers. He also mentions the potential market for the new UAE property, which is expected to draw customers from Europe and the surrounding areas due to its unique location and lack of competition in the region.

The speaker discusses the advantageous location of their project, with a large number of airlifts and a large local population, making it a favorable market. They also mention the importance of India and other parts of Asia as potential markets. In regards to Macau, they expect a bounce back in July, possibly due to a stabilized competitive environment or increased visitation.

The speaker discusses the fluctuation of market share in the business and the constant evaluation and reinvestment in specific segments. They also mention the success in July and the potential for growth in Las Vegas and the UAE.

The speaker discusses the importance of having a land bank and using it quickly in the gaming market, citing Macau as an example. They also mention potential development opportunities in New York and Thailand, but state that it's too early to determine the returns due to unknown tax rates. The speaker also mentions that there hasn't been much differentiation among the different levels of customers in their database in the US. They also highlight the positive impact of the current purchasing environment on their business.

The speaker discusses the growth of the non-gaming side of the market for their company and credits the team for their success. They also mention their brand and their continued growth in this area. The call is then concluded.

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