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Wynn Resorts(WYNN) - 2025 Q1 - Earnings Call Transcript
WYNNWynn Resorts(WYNN)2025-05-06 20:30

Financial Data and Key Metrics Changes - The company reported adjusted property EBITDA of 223.4millionforWynnLasVegasonoperatingrevenueof223.4 million for Wynn Las Vegas on operating revenue of 625.3 million, resulting in an EBITDA margin of 35.7% [16] - Total casino revenues increased by 4% year-over-year, excluding the Super Bowl impact [11] - Adjusted property EBITDA for Macau operations was 252.1milliononoperatingrevenueof252.1 million on operating revenue of 865.9 million, with an EBITDA margin of 29.1% [17] Business Line Data and Key Metrics Changes - In Las Vegas, slot volumes increased by approximately 3%, contributing to overall revenue growth [12] - Encore Boston Harbor generated 57.5millioninadjustedpropertyEBITDAonrevenueof57.5 million in adjusted property EBITDA on revenue of 209.2 million, with an EBITDA margin of 27.5% [17] - Macau's mass drop was up year-over-year, while VIP turnover increased significantly, although lower VIP hold impacted EBITDA by about 38million[13][18]MarketDataandKeyMetricsChanges−InLasVegas,RevPARforAprilwasslightlyupfrom2024,withhealthygroupactivityandslothandle[9]−Macau′smassdropduringGoldenWeekshowedimprovementcomparedtothepreviousyear,withfullhoteloccupancy[10]−ThecompanynotedthatinternationalvisitationtoLasVegasiscurrentlyat938 million [13][18] Market Data and Key Metrics Changes - In Las Vegas, RevPAR for April was slightly up from 2024, with healthy group activity and slot handle [9] - Macau's mass drop during Golden Week showed improvement compared to the previous year, with full hotel occupancy [10] - The company noted that international visitation to Las Vegas is currently at 9% of room nights, which can be backfilled easily [32] Company Strategy and Development Direction - The company is focused on maximizing EBITDA and maintaining a healthy margin profile despite competitive pressures in Macau [13] - The opening of the Gourmet Pavilion Food Hall at Wynn Palace has driven increased visitation, with 2,400 additional daily restaurant covers [14] - The company is committed to returning capital to shareholders, having repurchased 200 million in stock during Q1 and an additional 100millioninQ2[21][22]Management′sCommentsonOperatingEnvironmentandFutureOutlook−ManagementacknowledgeduncertaintyintheoperatingenvironmentduetotariffsbutnotedthatthebusinessinVegasandMacauisholdingupwell[10]−Thecompanyremainsoptimisticaboutfuturedemand,particularlyingroupandconventionbusiness,despiteshortbookingwindows[9][34]−ManagementexpressedconfidenceintheupcomingWynnonMarjanIslandsproject,viewingitasacompellingdevelopmentopportunity[15]OtherImportantInformation−ThecompanyexpectstotalCapExspendin2025torangebetween100 million in Q2 [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged uncertainty in the operating environment due to tariffs but noted that the business in Vegas and Macau is holding up well [10] - The company remains optimistic about future demand, particularly in group and convention business, despite short booking windows [9][34] - Management expressed confidence in the upcoming Wynn on Marjan Islands project, viewing it as a compelling development opportunity [15] Other Important Information - The company expects total CapEx spend in 2025 to range between 250 million to 300million,withasignificantportionrelatedtoconcessioncommitments[20]−Thecompanyhasastrongliquiditypositionwith300 million, with a significant portion related to concession commitments [20] - The company has a strong liquidity position with 3.2 billion in global cash and revolver availability as of March 31 [20] Q&A Session Summary Question: Changes in promotions and discounts in Las Vegas - Management indicated that the observed changes correlate strongly with ADR, particularly influenced by the Super Bowl comparison [25] Question: Thoughts on international inbound and VIP exposure - Management noted that high-end visitation remains stable, while international visitation has decreased but does not significantly impact the business [32] Question: Competitive environment in Macau - Management described the competitive landscape as stable but emphasized the importance of service quality and product offerings to remain competitive [44][108] Question: CapEx projects on hold due to tariffs - The majority of the delayed CapEx is related to the Encore Tower remodel, with a total of $375 million impacted [59] Question: Group business outlook for 2026 - Management reported strong demand for group bookings in 2026, attributing it to large events scheduled for that year [62]