Wynn Resorts Ltd WYNN
Q2 2012 Earnings Call Transcript

Transcript Call Date 07/17/2012

Operator: Good afternoon and welcome to the Wynn Resorts Second Quarter 2012 Earnings Call. Joining the call on behalf of the Company today are Steve Wynn; Marc Schorr; John Strzemp; Matt Maddox; Maurice Wooden, COO of Wynn Las Vegas; Scott Peterson, CFO of Wynn Las Vegas; and on the phone, Linda Chen, COO of Wynn Macau and Robert Gansmo, CFO of Wynn Macau.

After the speakers' remarks there will be a question-and-answer session.

I'd now like to turn the call over to Mr. Maddox. Please go ahead, sir.

Matt Maddox - CFO and Treasurer: Thank you and good afternoon everyone. Before we get started, I just need to remind everybody that we will be making forward-looking statements under the Safe Harbor Federal Securities Law and those statements may or may not come true.

So with that, I'm going to turn it over to Steve for some further introductions.

Stephen A. Wynn - Chairman and CEO: Hello and good afternoon everybody. Appreciate Linda staying up so late in Macau. I think we have everybody here to answer questions. I'll make a couple of summary remarks, first Las Vegas. Last year – I mentioned before we enjoy a great deal of very high limit baccarat business and that high play tends to be volatile, in the long run not so much but in the short run it can be. For example, last year during the first six months of the year, winners that is to say people who won money from the casino were outnumbered by the losers – the losers were outnumbered by the winners. That is to say the amount of money we paid to people who beat us compared to the amount of money that, folks who lost money to us, was a positive for the Company of $150 million odd. This year the people who won money in the casino were much more and the people who lost money in the casino were less and the delta was $38 million. That is to say there was $112 million difference in six months in the win of the casino associated with high limit baccarat. Last year we held 37% or something like that and this year its 17%, normalized is about 26% for that game. So when you normalize everything the trend in baccarat, Marc will remind me, in 2010, high limit baccarat won how much, Marc?

Marc D. Schorr - COO: $111 million.

Stephen A. Wynn - Chairman and CEO: $111 million and then if you normalize the whole percentage.

Marc D. Schorr - COO: In 2010 if you normalize.

Stephen A. Wynn - Chairman and CEO: In 2010, it was $125 million normalized.

Marc D. Schorr - COO: Actual is $111 million.

Stephen A. Wynn - Chairman and CEO: What was moralized last year?

Marc D. Schorr - COO: $145 million.

Stephen A. Wynn - Chairman and CEO: This year normalized at?

Marc D. Schorr - COO: $174 million.

Stephen A. Wynn - Chairman and CEO: $174 million, we actually had more business. So, all of that is academic in the matter of speaking. But it does shed some light on understanding the kind of shifts that can take place short-term in businesses that have this kind of high-end gambling. In terms of the rest of the business, it's about flat or slightly up in Las Vegas in terms of non-casino revenue. So, if you normalize everything we would have had a better result than we did. Last year, we had a premium result, because we had abnormally high hold percentages, but our business levels this year in Las Vegas are slightly better than last year, expect for hold percentage.

In Macau, for the first six months, business was flat, we were slightly ahead. The market has gotten more competitive. Two new hotels opened up in the second quarter, operated by The Sands and those two hotels added more games to the marketplace, and generally speaking, business was flat for the market. The high limit business and the VIP junket business to the total casino win, but we suffered on the top line an adjustment of a couple of points on revenue, but we didn't seem to have the problem on the bottom line.

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