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WYNN 1Q2010 CONF CALL "NOTES"

Great quarter but call wasn't as entertaining as recent earnings conference calls.

Q&A:

  • Cotai timing/positioning: Wynn Encore Macau--has " extended space" as biggest asset;  we will build on Cotai "if we are encouraged to do so... and we will be encouraged..... won't happen until early 2014"
  • LV room rates trends in 2Q: not really seeing any improvement...very stable; growing capacity impacting rates
    • comps in LV was tough; beach club construction closed down the front of Encore; construction will finish in 4 weeks.
  • Wynn Macau strong 1Q: higher mix of direct vip; non-gaming revs up significantly; hold % was "a little below normal" (historical hold is 2.85%)
  • Thinks government deficits will continue to adversely impact US economy
  • Sustainability of high growth rates in Macau/China: Chinese people's "good life is going through Macau"--not just gambling, but also shopping and dining.
    • Asian markets are very aware of "top brands". Wynn needs to meet that demand
    • Government pulled back on visas to discourage people who can't afford to gamble.
    • "We increased Chinese ownership in our company by listing on HK Exchange"
    • Steve believes market share should be derived from fair share ratio
  • Cost of living in Macau is not improving.  Wynn increased Macau workers' wages by 10%.  Infrastructure contribution is 4% of revenues
  • Macau government limiting of licenses/construction activity in Cotai; construction will be done at a slower pace for resorts.
  • While checking out regional casinos, Steve impressed by River City Casino (PNK);
  • Next project will be in China unless there is a Massachusetts opportunity.
  • Reception on Macau Encore: "Nicest property in Macau. Good supply in the market helps everyone"
  • Wynn Encore: wants to attract customers who are willing to dish out $350 per night for hotel luxury living.
    • Encore fulfills "non-gaming" customer requests, learning from customers--Steve calls it "organic growth."
  • Zero impact from MBS's opening.
  • "It is appropriate for us to spend more time and focus on Macau"
  • Philly renewal license: yes, Steve would be interested if opportunity pops up.
  • LV Baccarat trends: YOY change should be up but not at levels seen during peak of US economy.