Pretty much what were expecting with the exception of better slot play in vegas and lucky table play.
CONF CALL NOTES
- The day after CNY, WYNN Cotai can begin the main construction (drviing of piles, building the foundation, etc). Process will take 36 months.
- Not focused on revenue share in Macau
Q&A
- Wynn Cotai
- Started construction on Wynn Cotai this week. They are creating the foundation now.
- In 2014 and 2015, they will get the structures and the interiors installed
- No labor issues
- Like to look at 'Urban Wynn' integrated resort opportunities as opposed to 'slots in a box'
- Vegas: feel good about 2013; tracking ahead in room nights and rates. Similar trends in 2014. Hopeful for a great 1Q given Super Bowl and CNY
- Not interested in racinos; don't trust slots in box.
- 75% of $2 billion cash was held at the Macau sub
- New junkets on 1st floor have been performing very well--they reshuffled 14 tables from elsewhere to increase yield
- Having a very healthy January in Macau--a $100 million month (balanced throughout all segments)
- Better margins: enhancements of service quality and maintenance of the facility; good technological improvements in gaming systems
- WYNN recently designed a high limit slot room in 3 phases
- Phase 1 is complete. Phase 2 will begin after CNY and finishing in April. Phase 3, which includes the addition of private slot suites, will finish in August
- Will open next week
- Sees opportunity in Philadelphia and Boston
- Spoke with MGM and LVS and the consensus is that China is healthy.
- 'Murder tough' competition in Macau but healthy
- WYNN COTAI: 1st spot on Cotai (from ferry and airport); building a Bellagio-like hotel
- Not too concerned about the smoking ban; all junket rooms have exterior smoking terraces.
- Continue to grow mass business
- Confident they will get tables for their Cotai hotel.
HIGHLIGHTS FROM RELEASE
- Adjusted net income: $118.2MM ($1.17 per diluted share)
- Net income was negatively impacted by a $47.9 million increase in tax expenses due to the timing of the payment of dividends from Macau, stock option exercises and capital expenditures.
- Declared cash dividend of $1.00 to shareholders as of Feb 28
- Macau
- VIP turnover: down 6.6% to $27.7 billion
- VIP hold: 2.96%
- Mass drop: up 1% to $699.3 billion
- Mass hold: 31.1%
- Slot handle: down 16.4% to $1.1 billion
- WPD: $635, 15.3% lower
- REVPAR: $303, compared with $304 last year
- 504 tables (289 VIP tables, 205 mass market tables and 10 poker tables) and 840 slot machines.
- Cotai budget: $3.5-4.0 billion
- Vegas
- Table turnover: up 14.3% to $679.4 million
- Table hold: 26.8%
- Slot handle: $758.4 million, up 14.9%
- Non-casino revenues: $258 million, up 4.6%
- REVPAR: $201, up 1.8%
- Cash: $2.0 billion
- Total debt outstanding at the end of the year was $5.8 billion, including $3.1 billion of Wynn Las Vegas debt, $749 million of Wynn Macau debt and $1.9 billion at the parent company.
