Release Date: May 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Wynn Resorts Ltd (WYNN, Financial) celebrated the 20th anniversary of its Las Vegas Resort, highlighting the dedication and passion of its employees.
• The company reported a 4% increase in total casino revenues in Las Vegas, even without the Super Bowl in 2025.
• Encore Boston Harbor generated $57 million of EBITDA, with slot volumes holding up well.
• In Macau, Wynn Resorts Ltd (WYNN) saw a 31% increase in VIP turnover and a 1% increase in mass drop, indicating healthy volumes.
• The company has a strong liquidity position with $3.2 billion in global cash and revolver availability as of March 31.

Negative Points

• Wynn Resorts Ltd (WYNN) delayed $375 million of CapEx projects due to current tariff rates, including the Encore Tower remodel.
• The Macau market remains highly competitive, with a focus on maximizing EBITDA and generating a healthy margin profile.
• The company faces uncertainty regarding the impact of tariffs on demand and growth, particularly in the US.
• OpEx excluding gaming tax per day increased by 4.1% in Las Vegas due to wage inflation and bad debt recovery.
• The company is experiencing a decrease in international visitation, particularly from Canada and Mexico, which could impact future demand.

Q & A Highlights

Q: Can you explain the decrease in promotions and discounts in Las Vegas during the first quarter? A: Craig Billings, CEO, explained that the decrease correlates strongly with ADR (Average Daily Rate) because a significant component of reinvestment is in the form of rooms. The decrease is largely due to the Super Bowl comparison, as ADRs during the Super Bowl were exceptionally high.

Q: How should we think about the remaining $650 million to $725 million in equity contributions for Wynn Al Marjan Island? A: Julie Cameron-Doe, CFO, stated that the contributions will follow the usual construction curve, deploying over the remainder of this year and into next year. The equity is being deployed pro rata alongside bank financing.

Q: What is the current exposure of Wynn Las Vegas to international inbound and China/Asia-sourced VIP customers? A: Craig Billings, CEO, noted that international visitation post-COVID is about 9% of Las Vegas room nights, which can be easily backfilled. The very high-end segment has not seen any implications for visitation.

Q: Can you discuss the competitive environment in Macau and how Wynn is responding? A: Craig Billings, CEO, mentioned that the market is highly competitive, particularly in the premium mass segment. Wynn relies on service quality, product excellence, and new amenities like the Gourmet Pavilion to remain competitive. The promotional environment is stable, and the company focuses on maximizing EBITDA and maintaining a healthy margin profile.

Q: How does Wynn view the potential development opportunity in New York? A: Craig Billings, CEO, stated that New York is a great potential market, but it is complicated with many considerations, including online gaming and tariffs on build costs. Wynn is prepared to submit a fair proposal but will not overextend to win a license.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.