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Wynn Resorts Ltd WYNN
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/25/2013

Operator: Good afternoon and welcome to the Wynn Resorts First Quarter 2013 Earnings Call. Joining the call on behalf of the Company today are Steve Wynn, Marc Schorr, John Strzemp, Matt Maddox, Kim Sinatra, Gamal Aziz, Maurice Wooden, Scott Peterson, and on the phone, Ian Coughlan, President of Wynn Macau and Robert Gansmo, CFO of Wynn Macau.

My name is Amy and I'll be your conference operator today. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session.

Now, I would like to turn the call over to Mr. Maddox. Please go ahead, sir.

Matt Maddox - CFO and Treasurer: Thank you, and thank you everyone for joining us today. Before we get started, I just need to remind everyone that we will be making forward-looking statements under the Safe Harbor of federal securities laws and those statements may or may not come true.

With that, I'm going to turn it over to Steve for some opening comments.

Stephen A. Wynn - Chairman and CEO: Well, we have these calls every 90 days and usually everybody who is on the call have seen the numbers. It was our best quarter ever in China at $330 million and we did okay in Las Vegas at $120 million. Construction in Macau is at full speed on our Cotai project which is our third hotel. The budget is still just under $4 billion and 6 million feet. We're very pleased with all of the things that have taken us two years to design.

We're in a very competitive market in China as well as Las Vegas. But in Macau we're in a situation where the licensees, the holders of those concessions, the three major concessions and the three sub-concessions are all very smart people with very intelligent organizations who are learning from one another, making sure that competition doesn't get to jump on each one and the quality of the competition has been steadily ticking upward the past several years since we opened in '06. We had certain advantages that were related to our experience, the industry, and our brand. We have fought diligently to maintain that advantage and we will continue to do so. It came to bear especially in the conception and the design of Wynn Cotai, which took two years before we would have positioned to break ground of.

We waited for our final approvals, but there wasn't a week or a day that didn't go by that we weren't bearing down, concentrating bringing to bear all of our experience and expertise of our design teams to come up with a place that would be irresistible when it opens, hopefully, for Chinese New Year in '16. Our contracts with Leighton and our builders include those dates and we believe we'll meet them.

As you know, we are competing for a license in Philadelphia and one is Boston metropolitan area, Massachusetts. Those processes are underway and we are again bringing our best game to the table. How it plays out, we will not know probably until the fourth quarter of this year and maybe a little beyond the Massachusetts, but we are making progress. We have completed preliminary designs of those new properties and we believe that the Urban Wynn in big cities give us the opportunity to introduce to those metropolitan areas new and very glamorous hotels that would otherwise not be profitable in view of today's average hotel rates, the Internet and the cost of construction. However, with the addition of the gaming room that is separate but adjacent to such beautiful hotels, food and beverage, entertainment, shopping facilities, and convention facilities, the existence of a casino room makes a new hotel in a city like Philadelphia and Boston and hopefully someday in Toronto and New York or wherever a chance for a new hotel that would otherwise not be economically feasible. We call this notion the Urban Wynn. In a complicated world full of change, things like Internet gambling, which almost defy analysis month to month, the rules, the regulations, the laws, the absence of laws, all of this makes digital gaming a little bit murky to us, but the idea of having the best hotel in Philadelphia, the best hotel in Boston, that's not murky to me or my colleagues. That's something we understand. The best hotel in major cities has a great future. Tomorrow is better than today and the day after tomorrow is better than tomorrow. We build those kinds of institutions, those brands by delivering on the promise. Our company has been well known for that for many, many years and that again is what we're bringing to bear in our applications in Philadelphia and Massachusetts.

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