The paragraph is a transcript from the Wynn Resorts, Limited fourth quarter 2024 earnings call. The call is being led by the company's Chief Financial Officer, Julie Cameron-Doe, who introduces the team and mentions the availability of a presentation with further details on the company's recent performance. She notes that forward-looking statements may be made during the call. Craig Billings takes over, highlighting the numerous positive changes and investments made in Wynn's Las Vegas, Boston, and Macau businesses over the past three years. These changes have included marketing strategies, technological upgrades, service improvements, food and beverage programming, and cost control efforts. As a result, the company has achieved record results in 2024, including record annual adjusted property EBITDA in Las Vegas.

The company is seeing strong operational performance and is excited about a new development project in the UAE, which is expected to boost EBITDA and diversify its business. They have reduced capital expenditure in North America and repurchased significant amounts of stock, believing it is undervalued. In Las Vegas, demand remained healthy, with gaming market share growing and slot handle increasing by 13%. However, EBITDA during the F1 event was $20 million lower in 2024 compared to 2023, mainly due to a decline in RevPAR from lower room rates, despite ADRs being much higher than nearby competitors.

The paragraph highlights the strong financial performance of Wynn Las Vegas during a 2024 event and its positive outlook for the future. Despite facing a $25 million EBITDA impact in Q1 due to not hosting the Super Bowl, key financial metrics remain strong. Looking ahead to 2025, the company expects a robust calendar filled with demand drivers and plans new food and beverage openings and targeted investments. Encore Boston also experienced growth, particularly in slot revenue, amid stable non-gaming revenue, offsetting union-related payroll increases from 2024. Demand in Boston has remained healthy, driven primarily by slot performance.

In the fourth quarter, Wynn's Macau operations generated $293 million in EBITDA, with a slight year-over-year decrease but an 11% sequential increase. The company has rolled out digital tables at Wynn Palace and Wynn Macau to improve efficiency and has expanded the Chairman's Club at Wynn Macau. New food and beverage offerings, including a destination food hall at Wynn Palace, are expected to increase visitation. Design work and approvals for concession-related projects, such as an event center, theater, and production show, are ongoing. In January, Macau experienced strong visitor numbers and activity, particularly during the Chinese New Year. Additionally, construction at Wynn's Almarjan Island project in the UAE is progressing, with significant advancements in infrastructure.

The paragraph discusses the company's positive outlook on the UAE gaming market, projecting it to become a $3 to $5 billion industry, and highlights their strategic moves to capitalize on this opportunity, including the acquisition of Aspenols in London to engage potential customers. The company is exploring additional opportunities in key markets, leveraging strategic land banks for growth. Their financial health is improving, allowing for increased dividends and share repurchases. Julie Cameron-Doe reports that Wynn Las Vegas achieved $267.4 million in adjusted EBITDA on $699.5 million in revenue, maintaining a strong EBITDA margin despite slight declines in EBITDA year-on-year and challenging comparisons from 2023. Increased table games hold and strong volume metrics contributed positively, while operational expenses were managed effectively to counteract rising payroll costs, maintaining the guest experience.

The paragraph discusses financial performance and cost management in Boston and Macau operations. In Boston, adjusted property EBITDA was $58.8 million on revenue of $212.7 million with a margin of 27.7%, despite increased labor costs. The team effectively managed union payroll increases with cost efficiencies. Macau generated $292.8 million EBITDA on $926.6 million revenue, with a 31.6% margin, benefitting from high VIP holds. Operating expenses were well-managed, and capital expenditure projects are progressing, although dependent on government approvals. Total CapEx for 2025 is expected to be $250-$300 million. The company's liquidity is strong with $3.5 billion available globally.

The paragraph discusses Wynn Resorts' financial performance and strategic initiatives. In 2024, their global properties generated nearly $2.4 billion in adjusted property EBITDA, with a consolidated net leverage ratio just over four times. The company is focused on reducing leverage and returning capital to shareholders, as evidenced by a $0.25 per share dividend approved for March 2025 and $386 million spent on share buybacks. During the quarter, they invested $127 million in capital expenditures for renovations and enhancements, including a $99 million equity contribution to the Wynn Al Majan project. Additionally, they secured a $2.4 billion financing package for the project, marking a significant hospitality finance deal in the UAE.

In this conference call exchange, Carlo Santarelli from Deutsche Bank asks Craig Billings about the win rate assumptions used for a Las Vegas project, noting that the actual hold percentage has been higher than estimated over the past two years. Craig Billings acknowledges this trend and mentions the company's conservative approach in Las Vegas and Macau, suggesting that Santarelli's observation is valid and will be considered. The discussion highlights the potential need to adjust expectations based on recent performance trends.

In the paragraph, Craig Billings discusses the positive performance in January, noting growth across key volume indicators in Las Vegas, even with cost pressures. While the Super Bowl presents a comparability issue, overall demand remains strong, and there has been good expense management. Billings feels positive about the first quarter results. When asked about Macau, he acknowledges the competitive environment but does not foresee any significant changes impacting market competition through 2025.

The paragraph is part of a discussion about the gaming market, focusing on Macau during Chinese New Year. While the market is noted to be highly competitive yet stable, Craig Billings and Julie Cameron-Doe address questions from analysts about consumer behavior. They acknowledge that the premium segment performed better than the base segment during this period. Although economic conditions are complex, with modest stimulus and overall weaker economic strength, the premium customer group has been thriving, which aligns with the company's target customer base.

The paragraph is part of a discussion during an earnings call where Shaun Kelley inquires about Wynn Resorts' recent acquisition in London. He refers to it as a unique opportunity and asks if there are other similar opportunities for expansion. Craig Billings explains that the acquisition aims to establish a presence in a key global city and, along with another property, is part of building a significant business in a region with a large population and many wealthy individuals. The conversation then shifts to John DeCree from CBRE congratulating Wynn on their successful quarter and year, before asking about gaming volumes in Las Vegas, noting strong performance despite expectations.

The conversation focuses on the performance of slot volumes in the F1 customer's market, with Craig Billings noting that the strength was broad-based across the quarter, indicating healthy demand for their offerings rather than being driven by specific events. The discussion then shifts to future milestones, such as the topping-off event planned for the end of the year and subsequent interactions with sell-side and buy-side market participants. Craig emphasizes the importance of showcasing developments in the UAE and Dubai, highlighting high-value food, beverage, and luxury hotels. John DeCree humorously indicates readiness for a potential market trip, and Craig jokes about joining as they move to the next caller, David Katz from Jefferies.

The paragraph discusses the potential opportunities and considerations for expanding gaming developments if a project in New York does not materialize. Shaun Kelley and Craig Billings mention the challenges of the US regional gaming market, which is limited by potential cannibalization from online gaming and infill opportunities. They highlight several options, including a substantial land bank in Marjohn, their activities in Thailand, and their disciplined approach to potential projects in New York. Additionally, they reference their significant land holdings in Las Vegas, emphasizing the gradual and strategic capital and development choices they must make. They also mention the importance of being prepared for time-sensitive opportunities like potential developments in Thailand, while currently focusing on Wynn Arjun, a new market.

The paragraph discusses a three to five billion dollar market opportunity that the company is focused on, particularly regarding land holdings in Las Vegas. The company is cautious about timing and execution, as the market is still absorbing recent capacity additions. They aim to address an adjacent customer base without cannibalizing existing operations and are carefully planning how the land could be developed. Meanwhile, others in Las Vegas are optimistic about growing EBITDA despite challenges, such as comparatives with last year's Super Bowl and renovation disruptions.

In the paragraph, the discussion is taking place between individuals including Brian Gullbrants, Craig Billings, and Shaun Kelley, focusing on the performance of Encore and Wynn Resorts. Craig Billings highlights strong year-over-year growth in key volume metrics, excluding the Super Bowl weekend, which was difficult to compare due to its uniqueness. There has been strong demand for transient bookings, with recent daily room bookings hitting record highs over the past two years. Retail sales increased by 3% in January despite challenging comparisons, and the restaurant and banquet business remained stable compared to the previous year, despite the absence of the Super Bowl. Although they do not provide future guidance, they feel optimistic about their position for 2025. The conversation shifts to the potential venture in Thailand, which would be pursued by a subsidiary of Wynn Resorts, Limited. Lastly, Shaun Kelley asks about changes in the Vegas market, noting that table game performance was flat, but the slot handle seemed to be growing. Craig is asked what might have fundamentally shifted in the past months, suggesting a more positive outlook.

The paragraph discusses a company's consistent positive performance and strategic improvements over the past few years, particularly in the Las Vegas market. The speaker mentions that their messaging and strategy have remained stable, emphasizing that "trees don't go to the sky" but things look very promising. The company has been outperforming the market, demonstrated by their strong EBITDA per room across various businesses. They have made improvements in their casino operations, such as expanding the high limit room and focusing on customer service. Additionally, there's a conversation about capital allocation and share repurchases, questioning if there's a leverage threshold for capital allocation, especially with stock prices at a favorable level.

The paragraph discusses a company's strategic approach to financial management, particularly in terms of leverage and stock buybacks. The company feels comfortable with its current leverage levels and is taking advantage of favorable fixed coupon rates. It plans to continue supporting its stock through buybacks, seeing them as a valuable long-term investment rather than seeking immediate market reactions. The company is not interested in real estate sales as a means to unlock value, viewing such actions as purely financial transactions. Instead, they aim to enhance stock value while specific business metrics are depressed.

The article paragraph discusses mitigation strategies for wage inflation and operating expense growth. Craig Billings notes that mitigation involves many small actions rather than a few significant ones, aimed at minimizing customer impact. He highlights a more modest increase in union-related costs for 2025 and the importance of procurement and sourcing, particularly in food and beverage, to manage expenses. Billings emphasizes their capability to handle operating expenses without harming the brand. Later, Steve Wiesinski asks about operating expenses in Macau, noting they exceeded expectations, and Billings parallels their approach to that in Las Vegas, though he declines to provide specific daily operating expense guidance.

The paragraph discusses the management of operational expenses (OpEx) and the balance between share buybacks and investing in new projects. Craig Billings highlights the impact of non-gaming programming on OpEx and stresses the importance of good management. When it comes to balancing buybacks and investments, Craig and Julie Cameron-Doe mention that they are in a strong liquidity and leverage position, allowing them to pursue both strategies. They explain that planned projects, like Amarjan, have defined budgets, and despite active buyback activities in recent quarters, they are able to manage incremental new projects, acknowledging that these require long-term capital planning.

The paragraph is part of a conversation about planned renovations and refreshes in Las Vegas. Stephen Grambling and Craig Billings discuss how the company manages the renovation process, typically scheduling it during the less busy summer period for flexibility. They aim to minimize disruption by taking out three floors at a time, including the floor being renovated and the ones above and below it. Brian Gullbrants adds that while there could be a slight impact on EBITDA and rooms out of service, they plan to launch the renovations at the end of the summer, intending to complete the process within approximately twelve months. The goal is to minimize any impact on guests and maintain a high level of service.

The paragraph features a conversation among several individuals discussing hotel operations and market conditions. Craig Billings talks about managing renovations during peak demand by utilizing surrounding floors to minimize disruption, without detailing the specifics. The conversation shifts to room rates, with Brian Gullbrants noting no significant trend change post-election but acknowledging a better tone in the market. Shaun Kelley comments on room rates being tied to market conditions and mentions a "squishier" period in the fall, but suggests improvement into the new year. Craig Billings clarifies that due to their limited contribution to the market, they can't comment on overall trends; however, he notes that the anticipated decline in Average Daily Rate (ADR) in Q1 is due to the Super Bowl, which impacted room rates significantly. Nevertheless, pricing power remained strong in Q4 and into 2025. The conversation then transitions to Chad Beynon from Macquarie, who asks about slide twenty on the CapEx projects in Macau, touching on concession arrangements.

The paragraph discusses the financial commitments and plans related to investments, particularly the $2.6 billion commitment over the next ten years, with $1.6 billion allocated to capital expenditures (CapEx). They highlight progress on a destination food hall at Wynn Palace that didn't require land use approval. However, for larger projects, they are still seeking necessary approvals. The focus is on projects aligning with the Wynn brand and intellectual property. While it's too early to specify the return on investment (ROI), the projects are expected to be consistent with the brand's standards.

The paragraph discusses the successful integration of non-gaming elements, such as casual dining options and entertainment, in properties in Vegas and Macau, highlighting their ability to increase visitation and market share. By emphasizing these elements, especially entertainment, they anticipate driving incremental revenue. Although they haven't disclosed specific returns on investment for each project, they are confident in the strategy's effectiveness. The conversation also notes that since their customers generally have significant wealth, economic changes might not impact them as heavily.

The paragraph involves a discussion about the impact of foreign exchange (FX) on international business, with Craig Billings expressing confidence that FX won't affect visitation, spending, or costs significantly. He notes that the company has become more diversified and less dependent on international business than ever before. The conversation also touches on the potential allocation of gaming licenses in the UAE, with Billings mentioning support for the company's position and indicating that not every Emirate might pursue such licenses. The dialogue includes participants like Carlo Santarelli, Benjamin Chaiken, Shaun Kelley, and Craig Billings.

The paragraph discusses the outlook for a potential second casino license, with executives expressing doubt about its likelihood and highlighting their competitive advantage by opening their facility in March 2027. They mention the significant lead they will have due to the lengthy process of designing and building an integrated resort. The discussion touches on the benefits of being first to market, including establishing a strong customer base. Although they acknowledge the potential positive impact of a competing property, they currently see no signs of a second license being issued. The conversation shifts to customer demographics and marketing strategies, emphasizing that the gaming industry fundamentally revolves around supply and demand dynamics.

The paragraph discusses the gaming industry and the business strategy of Wynn Resorts, highlighting the following key points: Gaming is an essential human activity, and being an operator is advantageous when supply and demand are imbalanced. Wynn Resorts benefits from being the only integrated resort of its kind in the region, boosting their confidence in its potential success. The propensity for spending on luxury and hospitality in the Emirates is high, making the business model more comparable to Vegas than Macau, with significant potential for non-gaming revenues. The resort's customer base is expected to consist of three main groups: existing visitors to the area, Dubai residents, and high-end travelers, including gaming customers. The company's ability to attract international high-value customers, bolstered by a recent acquisition in London, is crucial to their strategy. The paragraph concludes with Julie Cameron-Doe thanking participants at the end of the company's Q4 earnings call.

The paragraph concludes the Wynn Resorts' fourth quarter 2024 earnings call, with Shaun Kelley thanking participants and inviting further discussions next quarter. It ends by instructing attendees to disconnect and wishing them a good day.

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