In preparation for WYNN’s Q4 earnings release tomorrow, we’ve put together the pertinent forward looking commentary from WYNN’s Q3 earnings release/call.
- “We’ve seen the bottom in Las Vegas, and I don’t know how fast it’s going to get better, but I don’t think it’s going to get any worse. And we had a really nice October, too. And we had a record-breaking October in China.”
- [Cotai budget] “It’s a little early for me to say it, but I could say it’s between 2 and $3 billion, probably closer to 2.5, but I’m not sure. I’d like to finish doing the whole takeoff.”
- “The one segment where I think we’re starting to see more stability that was hardest hit coming into the recession, was the convention and group business. And so we’ve seen that improve. I feel pretty good about moving into next year as to the amount of business that we currently have on the books committed. I mean to give you a comparison last year coming into this year, we had about 35% of our convention room nights on the books, and going into next year we’ve committed about 65% of our convention room nights on the books. So we’re happy to see that that segment’s going to return to somewhere between 18, 19% of our overall occupancy. And also we’re seeing some rate improvement.”
- [Table game play in Vegas] “Length of play is what’s happening. It’s improved over the last year.”
- “We’re looking to add two or three more junkets within the next year. We have one actually coming up before the end of the year.”
- “So what I think a lot of operators do, whether it’s with credit or incentive, which is commission, is they use it for short-term purpose to increase revenue, to increase market share. So, obviously they go hand-in-hand. One is giving more incentive, which is commission back to the customer to bring the business. The second is you need credit, you need to give them facility to get the business. So they use both of them hand-in-hand to gain short-term market share, whether it’s for IPO or they’re trying to do different purpose to gain that short-term market share. However, the danger with that is first, we’re believing stability. Obviously if you give something more away on the commission then you have to cut something back, whether it’s salary or renovation dollars.”
- [Mass/VIP mix in Macau] “So in the future years to come, we hope that both markets maintain about the same percentage.”