Wynn Resorts, Limited Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Las Vegas: Notable gaming market share gains, EBITDA growth, hotel revenue flat via ADR focus. August set all-time monthly EBITDA record. Encore Tower remodel in spring 2026 will affect room nights but aim to gain rate. F1 pricing at premium, group/convention business strong for 2026.
• Boston: Business solid, slot revenues up over 5%, OpEx tightly controlled, labor cost pressures mitigated through cost efficiencies.
• Macau: Strong results aided by higher VIP hold, mass volumes strong despite weather disruption, projects on track for Chinese New Year.
• UAE: Wynn Al Marjan Island progressing rapidly, first development with Aman Group, free cash flow inflection expected with opening.

Segment Performance

• Las Vegas: Generated $203.4 million in adjusted property EBITDAR on $621 million operating revenue, EBITDAR margin 32.8%. Casino revenues up 10%, hotel revenue flat. Saw market share gains, fourth quarter momentum, with Encore Tower remodel in spring 2026. Group and convention business strong for 2026.
• Boston: Generated adjusted property EBITDAR of $58.4 million on $211.8 million revenue, EBITDAR margin 27.6%. Slot revenues up over 5%, OpEx tightly controlled despite labor cost pressures.
• Macau: Generated $308 million in EBITDAR, including $23 million VIP hold benefit. Mass volumes up 15%, projects at Wynn Palace and Wynn Macau on track.
• Wynn Al Marjan Island: Progressing rapidly, set to open soon, with initial development adjacent with Aman Group, no competing operations expected.

Guidance

• Las Vegas group and convention business pacing to grow room nights and rate in 2026; Encore Tower remodel in spring 2026 to cause slight headwind in 2026 but aim to gain rate.
• UAE project on track for opening, free cash flow inflection expected with its opening, positive outlook for business in Las Vegas and Macau despite macro uncertainties.

Risks

• Macroeconomic and geopolitical uncertainty affecting business outlook.
• Encore Tower remodel in Las Vegas to present a slight headwind for 2026 room nights.
• Labor cost pressures in Boston impacting OpEx.

Question and Answer

Q: In Las Vegas, talk about current performance vs a few months ago and outlook for 2026.

A: Craig Billings and Brian Gullbrants discussed market reaction to summer, focus on rate over occupancy, group and convention business pacing ahead in 2026.

Q: On UAE, lay out puts and takes between base, low, and high-end scenarios.

A: Craig Billings mentioned market size and share as key factors, absence of near-term competition impacts base case.

Q: Thoughts on competitive dynamics in Macau and margin outlook.

A: Craig Billings said hand-to-hand combat in Macau, monitoring reinvestment relative to revenue, not market share.

Q: RevPAR growth in Las Vegas fourth quarter, impact of group and leisure occupancy.

A: Craig Billings and Brian Gullbrants discussed group rate compression aiding RevPAR, strong start in October, team yielding rates over peak demands.

Q: UAE marketing and game plan, learning from London acquisition.

A: Craig Billings said one-to-one marketing ongoing, mass marketing to ramp up, Mayfair acquisition instructive.

Q: Macau market dynamics, growth drivers.

A: Craig Billings said China's dynamic economy and evolving consumer tastes driving Macau growth, not pinning on single factor.

Q: Vegas drop growth disconnect from occupancy, color on premium play.

A: Craig Billings and Brian Gullbrants mentioned premium play growth due to focus on service, amenities, casino marketing, and perceived value.

Q: Free cash flow inflection in UAE and 2027 uses.

A: Craig Billings said capital returns and UAE market sizing key, combination of returns and CapEx likely.