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    Wynn Resorts Ltd (WYNN)

    New Share Buyback Program

    Business Description

    Wynn Resorts, Limited is a designer, developer, and operator of integrated resorts that offer luxury hotel accommodations, high-end retail spaces, dining and entertainment options, meeting and convention facilities, and gaming experiences. The company operates in key locations such as Macau, Las Vegas, and Boston, with plans for expansion in the United Arab Emirates . Its revenue streams are diversified across several product lines, with casino operations being the largest contributor, followed by rooms, food and beverage, and entertainment, retail, and other services . Additionally, Wynn Interactive focuses on digital sports betting and casino gaming .

    1. Casino Operations - Operates gaming facilities in Macau and Las Vegas, contributing significantly to the company's revenue.
    2. Rooms - Provides luxury hotel accommodations across its integrated resorts in Macau, Las Vegas, and Boston.
    3. Food and Beverage - Offers a variety of dining options ranging from casual to fine dining experiences within its resorts.
    4. Entertainment, Retail, and Other Services - Includes high-end retail spaces, entertainment options, and other resort services.
    5. Wynn Interactive - Focuses on digital sports betting and online casino gaming.

    Q3 2024 Summary

    Initial Price$89.76July 1, 2024
    Final Price$99.45October 1, 2024
    Price Change$9.69
    % Change+10.80%

    What went well

    • Strong performance in Las Vegas high-end market: Despite tough comparisons, the high-end consumer continues to hold up in Las Vegas, with retail lease revenue up 3.5% year-over-year in Q3 . The company feels positive about demand in 2025 .
    • Increased share repurchase authorization and confidence in stock value: Wynn Resorts increased their share repurchase authorization, buying back $118 million during the quarter, and believes the stock is attractive at current levels .
    • Growth in Macau mass market and execution improvements: In Macau, mass market table drop was up 10% , and the company has improved guest experiences over the past year, leading to increased market share .

    What went wrong

    • Intense competition in Macau is putting pressure on margins and revenues, as the company acknowledges the challenging competitive environment in the region.
    • Challenging year-over-year comparisons in Las Vegas are impacting growth, with management noting increasingly tough comps and potential pressure on revenues due to planned renovations that will take rooms out of service in 2025.
    • Higher VIP commissions in Macau are affecting margins, with increased VIP turnover not translating into higher Gross Gaming Revenue (GGR), leading to margin pressure.

    Q&A Summary

    1. Macau CapEx Reduction
      Q: Why has Macau CapEx guidance decreased?
      A: The Macau CapEx guidance was reduced due to timing issues with approvals, especially land use, which are beyond our control. While we've committed to full CapEx under our concession, it's now unlikely we'll complete everything by the end of 2025, so we've tightened our CapEx range. There is no change in our competitive stance.

    2. Share Repurchase Strategy
      Q: How do you approach share repurchases and capital allocation?
      A: We opportunistically buy back shares when we feel the stock is particularly cheap. This quarter, we purchased $118 million worth of shares, and we've increased our authorization because we believe the stock is attractive at current levels. We're balancing liquidity between growth projects, debt management, and returning capital to shareholders.

    3. Macau Competitive Environment
      Q: How is competitive pressure in Macau evolving?
      A: Competitive pressures in Macau are stable to slightly better compared to the beginning of the summer, but the market remains very competitive.

    4. Las Vegas Gaming Trends
      Q: Are there shifts in high-end table play in Las Vegas?
      A: We've seen no significant shifts. While table drop is down about 4.4% year-over-year, slot handle is up 3.5%. The decrease in table drop can result from a few high-end players' activity but isn't indicative of a broader trend. Our high-end consumer remains strong.

    5. Group Bookings Outlook
      Q: What is the outlook for group bookings in Las Vegas?
      A: Group business remains healthy for the rest of the year, pacing towards a record in room nights with strong ADRs. In 2025, we expect group room nights to be similar to 2024 by intention, as we balance group bookings with other valuable business segments. We'll push on rate as our team excels at doing.

    6. 2025 Margin Outlook
      Q: What revenue is needed to maintain margins in 2025?
      A: We don't manage to a margin but focus on aggressively managing revenues and costs, while considering the brand. In Las Vegas, the high-end consumer continues to hold up, with retail lease revenue up 3.5% year-over-year in Q3. Wage pressure exists but is insignificant. In Macau, margins were unique this quarter due to factors like higher VIP commissions and a $3 million decline in retail revenue. Overall, we feel good about demand in 2025.

    7. Online Gaming Impact
      Q: How do you view online gaming's effect on land-based casinos?
      A: We recognize that online gaming can cannibalize land-based revenue, potentially causing a 15% revenue decline, which equates to half our margin. This affects employment levels and could lead to regulatory backlash, as seen in markets like Australia. We're cautious and monitoring the situation closely.

    8. Capital Expenditure Plans
      Q: What are your CapEx needs domestically and in Macau?
      A: In Las Vegas, we're investing in maintenance and high-return projects, including renovating spa villas and enhancing food and beverage offerings. Total project CapEx in Vegas will be around $300 million, with maintenance CapEx of $75–$85 million. In Macau, we've tightened our CapEx range due to timing but continue with our commitments under the concession.

    9. Wynn Macau Performance
      Q: How is Wynn Macau performing amid visitation recovery?
      A: Wynn Macau's gaming business has performed well, with mass market table drop up 10%. Improvements in physical experience and food and beverage have driven market share gains. Increased visitation benefits Wynn Macau due to its downtown location, but it's mainly due to our team's execution.

    10. Macau Visitation Trends
      Q: How was demand during October Golden Week?
      A: Demand during Golden Week was encouraging, with 99% occupancy. While it's early to say if stimulus measures had an impact, similar events in early 2016 led to substantial increases in visitation and GGR. We feel confident about our position in Macau.

    11. Smart Tables Rollout
      Q: What's the status and impact of smart tables in Macau?
      A: We've rolled out smart table technology to about a quarter of our tables and expect full coverage by Chinese New Year 2025. Benefits include game security and precise bet data, enabling innovative marketing. It's too early to see the full impact, but we're progressing as planned.

    12. Wynn Palace Environment
      Q: Any changes at Wynn Palace affecting mass gaming volumes?
      A: There's nothing significant changing at Wynn Palace. The environment is consistent with the rest of Macau, and previous remarks about Macau apply to Wynn Palace as well.

    13. Super Bowl Comp Headwind
      Q: How will last year's Super Bowl affect Q1 comps?
      A: We haven't disclosed the incremental EBITDA from last year's Super Bowl, and while it's a headwind from a comp perspective, we haven't provided specific numbers. However, Q4 and Formula 1 are shaping up nicely, with our room rates at a significant premium to the Strip.

    Key Metrics

    View all financials →
    Revenue by Segment - in Millions of USDFY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    Macau Operations600.1769.94819.8910.563,100.4998.6885.3871.75
    - Wynn Palace369.4468.35524.8524.251,886.8586.9--
    - Wynn Macau230.7301.59295.0386.211,213.5411.7--
    Las Vegas Operations586.8578.07619.0696.732,480.6636.5628.7607.17
    Encore Boston Harbor216.3221.93210.4217.17865.8217.8212.6214.12
    Corporate and Other-----9.96.40.28
    Wynn Interactive20.525.8822.815.9285.1---
    Casino767.0912.99972.51,065.913,718.41,121.51,008.91,018.75
    Rooms272.5276.51289.3347.391,185.7327.4304.5284.77
    Food and Beverage232.6257.04267.4271.561,028.6266.9281.4262.6
    Entertainment, Retail, Other151.5149.28142.7155.72599.2147.1138.1127.21
    - Less: Promotional Allowances--------
    Total Revenue1,423.71,595.821,671.91,840.486,531.91,862.91,732.91,693.32
    Revenue by Geography - in Millions of USDFY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    Macau Operations600.089769.943819.8910.553,100.38998.65885.318871.747
    - Wynn Palace369.363468.350524.8524.331,886.84586.90548.049519.790
    - Wynn Macau230.726301.593295.0386.211,213.53411.74337.269351.957
    Las Vegas Operations586.764578.072619.0696.772,480.61636.55628.654607.172
    Encore Boston Harbor216.306221.932210.4217.15865.79217.78212.608214.121
    Wynn Interactive20.52025.87522.815.9485.13---
    Corporate and Other-----9.936.3520.283
    Total Revenue1,423.6791,595.8221,671.91,840.56,531.901,862.911,732.9321,693.323
    KPIs - Metric (Location)FY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024
    Table Games Win Percentage - Las Vegas Operations24.322.926.025.4-25.921.923.3
    Table Games Win Percentage - Encore Boston Harbor21.722.320.822.0-22.619.621.3
    Table Games Win Percentage - Wynn Palace Mass Market22.120.323.323.6-24.523.623.9
    Table Games Win Percentage - Wynn Palace VIP2.973.304.103.04----
    Table Games Win Percentage - Wynn Macau Mass Market17.017.716.519.1-19.417.518.5
    Table Games Win Percentage - Wynn Macau VIP4.373.392.193.61----
    Table Games Win Per Unit Per Day - Las Vegas Operations$6,994$5,997$7,340$7,816-$7,357$5,529$6,256
    Table Games Win Per Unit Per Day - Encore Boston Harbor$4,452$4,573$4,079$4,621-$4,970$4,186$4,507
    Table Games Win Per Unit Per Day - Wynn Palace$13,868$24,728$18,386$17,381-$24,276$18,484$18,614
    Table Games Win Per Unit Per Day - Wynn Macau$6,586$13,257$12,638$22,233-$19,746$13,905$15,692
    Slot Machine Win Per Unit Per Day - Las Vegas Operations$711$688$771$752-$677$757$757
    Slot Machine Win Per Unit Per Day - Encore Boston Harbor$459$458$447$446-$437$448$439
    Slot Machine Win Per Unit Per Day - Wynn Palace$481$517$429$594-$464$497-
    Slot Machine Win Per Unit Per Day - Wynn Macau$341$319$351$494-$463$428-
    Poker Rake - Las Vegas Operations$4,114$6,460$5,669$9,477-$4,522$7,501$4,629
    Poker Rake - Encore Boston Harbor$5,211$5,224$5,389$5,781-$5,307$5,334-
    Poker Rake - Wynn Macau$3,205-------
    VIP Turnover - Wynn Palace$2,293,358$3,042,338$2,866,469$3,161,083-$3,921,085$2,810,016$3,199,140
    VIP Turnover - Wynn Macau$1,144,224$1,390,272$1,192,610$1,405,523-$1,589,685$1,164,075$1,201,516

    Executive Team

    NamePositionStart DateShort Bio
    Craig S. BillingsChief Executive OfficerFebruary 1, 2022Craig S. Billings has been the CEO of Wynn Resorts, Limited since February 1, 2022. He joined the company in March 2017 as CFO and served as President from March 2019 until May 2020, when he became CEO of Wynn Interactive. He is also the CEO and an Executive Director of Wynn Macau, Limited, and serves as a director of Applovin Corporation .
    Julie M. Cameron-DoeChief Financial OfficerApril 2022Julie M. Cameron-Doe is the CFO of Wynn Resorts since April 2022. Previously, she was the CFO of Aristocrat Leisure Ltd from 2018 to 2022 and held senior finance roles in entertainment and e-commerce companies in the UK and Australia. She graduated with a B.A. in Economics from the University of Durham in the UK .
    Ellen F. WhittemoreExecutive Vice President, General Counsel, SecretaryJuly 2018Ellen F. Whittemore has served as EVP, General Counsel, and Secretary of Wynn Resorts since July 2018. She is also a Non-Executive Director of Wynn Macau, Limited. She announced her retirement, effective January 31, 2025. She has led the company's global legal affairs and other activities since 2018 .
    Jacqui KrumExecutive Vice President, General Counsel, SecretaryDecember 1, 2024Jacqui Krum was appointed as EVP, General Counsel, and Secretary of Wynn Resorts, effective December 1, 2024. She previously served as General Counsel and SVP at Wynn Resorts' Encore Boston Harbor. She joined Wynn Resorts in 2013 and was part of the team that secured the gaming license bid in Eastern Massachusetts .

    Questions to Ask Management

    1. Given the intense competitive pressures and reinvestment happening in Macau, how does Wynn plan to sustain or grow its market share while maintaining profitability, especially considering the recent 10% increase in mass market table drop at Wynn Macau?
    2. With the significant capital expenditures planned in Las Vegas, including $300 million in project CapEx and $75-85 million in maintenance CapEx, how will these investments impact your free cash flow and ability to continue share repurchases and dividends?
    3. As you enter the UAE market with Wynn Marjan Island, what risks do you foresee in operating in a new regulatory environment, and how are you mitigating potential challenges associated with launching in what you describe as the most exciting new market in decades?
    4. Considering your concerns about online gaming potentially cannibalizing land-based revenues and causing regulatory blowback, how do you plan to address these issues in markets like New York where iGaming legislation is being considered?
    5. With fluctuations in Las Vegas table drop partly attributed to high-end customer volatility, what strategies are you implementing to stabilize this segment and ensure sustainable growth, especially given that table drop was down slightly this quarter despite healthy demand from high-end consumers?

    Share Repurchase Program

    Program DetailsProgram 1Program 2
    Approval DateApril 2016 November 1, 2024
    End Date/DurationNo expiration date No expiration date
    Total additional amount$1.0 billion $1.0 billion
    Remaining authorization$247.7 million N/A
    DetailsDiscretionary repurchasesIncreased authorization by approximately $766 million

    Past Guidance

    Q3 2024 Earnings Call

    • Issued Period: Q3 2024
    • Guided Period: No specific period in 'Q# ####' or 'FY ####' format
    • Guidance:
      • Macau CapEx Guidance: $350 million to $425 million between 2024 and the end of 2025 .
      • Debt and Leverage: Reduced gross debt by $1.2 billion year-on-year, with a net leverage ratio of just over 4x .
      • Share Repurchase Authorization: Increased to $1 billion .
      • Dividend: $0.25 per share .
      • Macau Market Outlook: Positive long-term outlook .
      • Las Vegas and Boston Operations: Stable demand expected .
      • Group Business Outlook: Similar expectations for 2025 as 2024 .

    Q2 2024 Earnings Call

    • Issued Period: Q2 2024
    • Guided Period: No specific period in 'Q# ####' or 'FY ####' format
    • Guidance:
      • No specific forward-looking guidance metrics provided. Discussions included performance in Las Vegas, Boston, and Macau, and development projects in the UAE, without detailed financial projections .

    Q1 2024 Earnings Call

    • Issued Period: Q1 2024
    • Guided Period: No specific period in 'Q# ####' or 'FY ####' format
    • Guidance:
      • Macau Operations: Continued strong performance expected .
      • Capital Expenditures: $350 million to $500 million between 2024 and the end of 2025 .
      • Development Projects: Advancing projects in Macau and UAE, with a budget of around $4 billion for the UAE project .
      • Financial Position: Strong liquidity with $4.2 billion available .

    Q4 2023 Earnings Call

    • Issued Period: Q4 2023
    • Guided Period: Q1 2024 and general expectations for 2024
    • Guidance:
      • Las Vegas Outlook: Strong February 2024 expected .
      • Macau Operations: Continued strong performance anticipated .
      • Group Booking Trends: Positive outlook for group business .
      • CapEx Plans: $350 million to $500 million from 2024 to the end of 2025 .
      • Dividend and Share Repurchase: $0.25 per share dividend and share repurchase of 1.6 million shares for $139 million .
      • Macau Retail Sales: Strong sales with a positive long-term outlook .

    Latest news

    Recent developments and announcements about WYNN.

    Corporate Leadership

      Leadership Change

      ·
      Nov 27, 2024, 9:31 PM

      Ellen Whittemore is leaving her role as Executive Vice President, General Counsel, and Secretary of Wynn Resorts, Limited. She will transition to the role of Executive Vice President until her retirement on January 31, 2025. Jacqui Krum is stepping up as the new Executive Vice President, General Counsel, and Secretary, effective December 1, 2024 .

    Financial Actions

      New Share Buyback Program

      ·
      Sep 20, 2024, 12:00 AM

      Wynn Resorts has announced a new buyback program involving the issuance of $800 million in 6.250% Senior Notes due 2033. The proceeds from this issuance will be used to redeem existing 5.500% Senior Notes due 2025 and for general corporate purposes. The Notes are redeemable at the Issuers' option, in whole or in part, at any time prior to September 15, 2027, at a redemption price equal to 100% of the aggregate principal amount plus a "make-whole" amount, plus accrued and unpaid interest. After September 15, 2027, the Notes can be redeemed at specified prices. The Notes are subject to disposition and redemption requirements imposed by gaming laws and regulations .