CONF CALL
- Hope for improvement from CNY turned out to be incorrect
- Degradation in VIP volumes have continued even into April
- Q1 trends have continued into April
- Las Vegas softness: Asian impact on baccarat
- Dividend lowered based on soft results. Board of Directors would not hesitate to change dividend policy again going forward.
- Wynn Palace on track to open on March 2016
- Allocation of new tables depend on non-casino/casino % (Wynn Palace has most attractive non-gaming option).
- Wynn Everett: Start construction in the fall; almost completely financed with non-recourse debt
- "Don't want to div out borrowed money"
- New junket rooms did well. Other junket operators 'weren't as powerful'.
- LV Occupancy/room night fell YoY: because of ConAgg comps in March. Lot of convention business but not much room inventory in January.
- LV: May convention strong mix;
- LV: Summer trends in 2015 not pick up as in previous years due to stronger $ and weak Chinese play
- LV: EBITDA decline continued in April
- LV: Non-casino rev was flat in 1Q and will be flat in 2Q
- Macau Labor allocation: got less than what they wanted and appealed the process
- Macau: smaller inventory of rooms than their competitors so less of an occupancy drop
- Grew mid-segment of their mass segment quite nicely
- 2014 employee turnover was 11% (less than market average of 20-25%) but will not protect them in the new changes in the marketplace
- Uncertainty is the word of the day in Macau
- Social harmony affected by Cotai expansions
- Beijing policies have been unpredictable
- Dividend policy: quarterly reviewed. Want to avoid another deduction.
- Reallocated rooms from VIP to mid-tier mass. Over half of rooms are now allocated to mass.
- Slow down project in Cotai and/or Boston? Can't slow it down.
- Chinese President Xi Jinping unequivocally supports Macau
- Japan Diet: study bill appeared today. Good news.
- Macau: decline in VIP has opened a window to attract more premium mass customers.
- Wynn Palace: primarily a non-casino attraction
- Wynn has smoking lounges in the terraces, some competitors don't have some advantage
- Macau LRT bridge: should be done in 2017 or as late as 2020. Need to take care of reclaimed land issue from HK.
- Boston: making forward with permit progress. Have performed drilling on site. Hopefully get it open at end of 2017. Have spent $200m to date. Still need to spend $100m more on remediation and other fees before groundbreaking this year.
