• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here


    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

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