So not running Macau at full capacity? Mass push really paying off. Wynn beat our Street high EBITDA and EPS estimates with luck a factor in LV.



  • Want to launch Wynn Palace in 22-23 months; all-suite hotel will be the conversation piece of Asia
    • Phase 2 will almost double Wynn Palace capacity
  • Do not want Wynn Encore hotel to be a 'stepchild'

Q & A

  • 1Q/2Q 2013 lagged in mass marketing in Macau.  Until they saw an opportunity or when they lagged too much, they didn't change.  They made changes in 4Q, which helped them outperform.
  • Wynn Macau Slot win > Venetian slot win even though WYNN's smaller
  • Macau:  opened new slot room and new premium mass area (15 tables) in Oct 2013; more expansions coming 
  • LV:  saw uptick in retail, convention bookings, and hotel rate and occupancy; hold % a little better than last year
  • 2014 LV will equal or exceed 2013 LV
  • But still cautious on LV
  • Wynn Peninsula capex:  
    • Additional mass space and high-end gaming will be at a level that equals or exceeds Wynn Palace
    • 2013 capex was $60MM: Wynn Tower $35MM; $10MM new junket room; $1.5MM renovated spa
    • 2014 capex will be a little more than 2013
  • Cotai:  Phase 1 and 2 will cost $10bn all together; 95%-97% will be non-gaming
  • MA:  $1.5-1.6 billion investment (borrow $900MM and invest $500MM).  Can make $300MM in equity in Boston
  • No casino player in the USA does not know the Wynn brand
  • Japan:  will only be a study bill that may be passed this year; in 2016, a decision could be made
  • New junket room accounted for the rise in number of tables in Q4.  
  • Cash:  little less than $1 billion onshore, rest is offshore
  • Adelson said if Japanese partners with an American company, it will be under American scrutiny which could be onerous.  Wynn says that could be the case but it's not automatically a problem.
  • If WYNN partners with a local company in Tokyo, company would not have to qualify for suitability in Las Vegas.  
  • Thinks NJ will find MGM suitable again 
  • MA:  Foxwoods may apply on a commercial level for a third license and agree to pay 25%, not with the compact with the state but simply as a a competitive operators like MGM and WYNN.
  • High hold affected LV by ~$20MM
  • Macau is not supply constrained; the market will absorb the new properties on Cotai nicely
  • Added new junket area 3 days ago
  • Table/slot count does not matter much; it's the person gambling that matters
  • Wynn Palace Phase 2:  Two towers/ two buildings; 1,500 additional rooms - all suites (1,400 ft per room)
    • May open two years after Phase 1