In preparation for WYNN’s Q2 earnings release tonight, we’ve put together the pertinent forward looking commentary from WYNN’s Q1 earnings call.
YOUTUBE from Q1 earnings call
- [Market share/capacity] “We’ve got 10% of the table games in the marketplace, we have 14% of the market share. And on slots we’ve got 8% of the slots in the marketplace in the first quarter and we’ve got 22% of the market captured.”
- [Cotai project] “The cost will be in that range, between $2 billion and $3 billion…. It’s 1500 – 1580 rooms of which 900 are suites.”
- [Table allocation] “We’re up to currently around 499 games, which include 11 poker games, so we’re getting close to the table allocation but there’s a little room.”
- [Comparisons] “We want to point out that up until now and continuing until the 21st of April, the Macau numbers are comparing Encore and Wynn Macau for a total of 1,000 rooms to just Wynn. Wynn Encore in Macau opened up on April 21st, so we get our first year-to-year comparisons where the facilities are equal, starting in the last week of April and, of course, all of May and thereafter. So we are benefiting from the fact that our hotel is larger compared to its size last year and that’s going to last for another three or four days and then we’re up against an equal facility.”
- [Market trends] “I don’t see the market getting much better from the January, February numbers that LBCDA announced but we certainly have seen a different trend in terms of finding customers who not only want to stay here and they want to eat here and they want to exist at our retail stores and our showroom; and so we have been very focused on all of our hotel channels, how we think about our revenue management system, how we’re thinking about our website and we’re trying to bring in a guest who is willing to pay for the amenities that we offer.”
- [2011 visibility] “So what we’ve seen at our end of the market, the luxury end, is the second quarter still feels pretty good. July is soft, which I think you’ll hear from all the other operators, but the fourth quarter, just based on our convention bookings and October in particular also feels pretty good. So outside of large macro events, like gas going to $4.50, we feel pretty good about our position in the market the rest of the year…. The summer will be tough when we go to the automobile people. But that’s, you know, July and August. But, you know, the convention business... starts around the 10th or 15th [August] with some of the fashion and jewelry stuff.”
- [Rates] “We’re more confident now in holding our rates. So in the first quarter of this year, 20% of our business was through the leisure segment, the lowest end of the segment. Last year in the first quarter it was 32%, so we were able to shift a lot of the low end segment to our casino, to our convention area and to our promotional area which really helped us drive more cash revenue and the higher ADR; it’s a better customer.”
- [Room renovations]“We take care of the property; and we upgraded it while we remodeled it and that was another reason why we get higher rates and we’ll be able to get higher rates going forward. We continue to press ahead with increases, which will continue into next quarter.