CC Commentary: best ever July in LV is good. Best July ever in Macau since 2011 is not that big of a deal - Wynn's market share is up (high hold) YoY with a market that's slightly down.
- Wynn Cotai: 18 months out; on budget, on schedule. On track to open CNY 2016.
- Comparisons against Sands China
- Sands have 10x rooms as Wynn Macau has, twice the EBITDA as WYNN
- $17k retail per sq ft. (Sands: $2,400 retail sales sq ft)
- Win per slot: $105k (Sands: $36k)
- Win per table $2.1m (Sands: $1.5m)
- ADR: $334 (Sands: $210)
- LV EBITDA per room: $33k ($9.6k - competitors)
- Macau EBITDA per room: $304k ($80k - competitors)
- Do not want to cannibalize Peninsula. Occupancy is 98%
Q & A
- Macau margins: $21M incremental labor expense ($6m of that is one-time); going forward, $5-7m incremental expense per quarter.
- Held low on direct play (100bps lower than norm)
- Saw slowdown in June, particularly among smaller junket operators
- Business picked back up in junket operators in July (best July ever in LV and Macau)
- Macau: Best July since July 2011; stabilizing on VIP, growing on mass/slots
- LV affecting Macau? Only anecdotal - Hedgeye research shows no correlation between LV and Macau Baccarat volumes
- LV: have an edge on casino marketing on Asian/Latino players
- Pushing $50m in July in Las Vegas; would like to target $500m for 2014
- Macau non-gaming revenue: weakness in launch boutique areas
- Construction on whole south end of Wynn Macau: $60m, renovation scheduled to finish CNY 2015; lower slot counts due to the renovation. May or may not bring back those slots in the future...focused on profitability per slot
- Peninsula promotional expenses going higher? Margins have remained very steady on mass and slots
- Demand for WYNN product are more elastic, relative to their competitors
- High-end Chinese consumers looking at gaming as part of their normal entertainment budget. Seeing more new VIP customers. Bodes well for the long-term.
- LV: domestic gaming have not grown since 2007; other segments have done well
- Macau table metrics: VIP per unit/day: 32k, MASS per unit/day: 17k
- Macau table count: 263 vip, 191 mass (#s down due to construction)
- Parisian/MGM Cotai construction in Macau: non-existent or stalled