Wynn Resorts, Limited Q4 FY2025 earnings call

Management Statement and Operational Highlights

• Geographic Diversification: Wynn Al Marjan Island is a significant step in geographic diversification, with over 55% of revenues expected to come from non-U.S. dollar-denominated markets from developed and operated assets.
• Segment Updates: Detailed performance of each segment, including Las Vegas' robust EBITDA, Boston's strong volumes despite low hold, Macau's volume growth with low VIP hold impact, and Wynn Al Marjan's construction progress.
• Retirement Announcement: Acknowledgment of Julie Cameron-Doe's retirement and her contributions as CFO over 4 years.
• Dividend: Board approved a quarterly cash dividend of $0.25 per share, payable March 4, 2026.
• CapEx: Details on CapEx, including $171.2 million spent in the quarter on various renovations and $79.2 million equity contribution to Wynn Al Marjan Island, with total equity contribution to date at $914.2 million.

Segment Performance

• Wynn Las Vegas: Generated $240.8 million in adjusted property EBITDA on $688.1 million of operating revenue during the quarter, with an EBITDA margin of 35%. Demand for product remained healthy with drop, handle, and ADR up year-on-year, though RevPAR was slightly below prior year.
• Boston: Generated adjusted property EBITDA of $57 million on revenue of $210.2 million with an EBITDA margin of 27.1%. Low hold negatively impacted results, but casino volumes and RevPAR were strong, with slot revenues setting a new record. OpEx per day was $1.18 million.
• Macau: Delivered adjusted property EBITDA of $270.9 million in the quarter on $967.7 million of operating revenue, resulting in an EBITDA margin of 28%. Lower-than-normal VIP hold impacted EBITDA by over $16 million, while volumes were strong with VIP turnover up 48% and mass drop up 18%.
• Wynn Al Marjan Island: Topped out the tower at the 70th floor, with interior fit-out underway in all guest rooms and iconic exterior glass about 80% complete.

Guidance

• 2026 Outlook: Positive on 2026 business, with group and convention business looking strong. Encore Tower remodel in Q2 2026 expected to cause a slight headwind but expect to recapture in rate. Confident in Macau's future with premium segment leading and expansion of Chairman's Club at Wynn Palace and room refresh at Wynn Macau.
• Wynn Al Marjan: Confidence in future with opening and free cash flow inflection, reinforcing belief that best days lie ahead.

Risks

• Operational Disruptions: Impact of Encore Tower remodel on room nights and occupancy in 2026.
• Market Competition: Competitive nature in Macau affecting VIP and mass hold, impacting EBITDA margins.
• Geopolitical/Economic Factors: Multipolar world dynamics and currency fluctuations affecting travel, trade, and capital flows, which could impact business patterns.

Q: Dan Politzer on Vegas growth path A: Craig Billings mentioned group business is doing well, gaming volumes are strong, and they feel good about pricing rooms despite the Encore Tower remodel headwind Q: Lizzie Dove on Vegas margins A: Craig Billings stated they focus on top-ticking revenue and judiciously managing OpEx, not giving margin guidance but emphasizing revenue and OpEx management Q: Shaun Kelley on Macau margins and Chairman's Club A: Craig Billings discussed margins affected by VIP volumes, low hold, and OpEx, and provided details on the new Chairman's Club expansion opening by Chinese New Year Q: John DeCree on Vegas gaming volumes and F&B revenues A: Craig Billings stated gaming volumes are not from mass customers but from strategic shifts in hosting, technology, and rewards program, leading to market share gain Q: Brandt Montour on Macau VIP volumes A: Craig Billings mentioned investments in VIP hosting teams and player development driving strong VIP volumes Q: David Katz on Las Vegas long-term growth A: Craig Billings discussed Vegas' diversified demand, competitive position, and potential for future growth with land bank and wealth creation from technology and AI Q: Chad Beynon on World Cup impact and AI internally A: Craig Billings discussed World Cup impact on margins being marginal and internal AI efforts focusing on OpEx efficiency, customer delight, and reinvestment modeling Q: Steven Wieczynski on Macau normalized margins and Chinese New Year demand A: Craig Billings stated normalized margins would be around 30% and booking pace is good with confidence in Chinese New Year demand Q: Raymond Bowers on Wynn Al Marjan and Boston hotel expansion A: Craig Billings mentioned Wynn Al Marjan room sales expected late Q3/early Q4 and clarified Boston hotel plans are land lease, not development by Wynn Q: Benjamin Chaiken on UAE mix of F&B, entertainment, and gaming A: Craig Billings discussed UAE market being supply-constrained in gaming with healthy non-gaming revenues balancing the mix Q: Steve Pizzella on Wynn Al Marjan database and pipeline A: Craig Billings discussed ongoing hosting infrastructure building and database creation for mass market awareness Q: Robin Farley on Macau reinvestment and Vegas 2026 outlook A: Craig Billings discussed market competitiveness and short booking window, and clarified his 2026 comment was theoretical, focusing on share taking and EBITDA optimization rather than market-level opining