Wynn Resorts Ltd. (NASDAQ:WYNN) Q4 2014 Earnings Conference Call - Final Transcript

Feb 03, 2015 • 04:30 pm ET


Wynn Resorts Ltd. (NASDAQ:WYNN) Q4 2014 Earnings Conference Call - Final Transcript


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Good afternoon, and welcome to the Wynn Resorts Fourth Quarter 2014 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a question-and-answer session. [Operator Instructions].

I would now like to turn the call over to Steve Cootey, CFO and Treasurer. Please go ahead sir.

Steve Cootey

Thank you and good afternoon. Joining the call on behalf of the Company today are Steve Wynn, Matt Maddox, John Strzemp, Kim Sinatra, Maurice Wooden and myself here in Las Vegas. Gamal Aziz, Ian Coughlan, Frederic Luvisutto, Robert Gansmo, and Frank Cassella dialing in from Wynn Macau. Before we get started, I just wanted to remind everyone that we will be making forward-looking statements under the Safe Harbor Federal Securities Law and those statements may or may not come true.

And with that I wanted to turn the over to Mr. Wynn.

Steve Wynn

I hope everybody can hear us. Today, we've issued our earnings, which I don't think surprised anybody. I know that in Macau everybody follows the margins and the weekly casino numbers. January last year was a month in which we had extremely low hold percentage and this year we had a high hold percentage. So surprisingly we made more money in Macau in January, for example, than we did a year-ago.

Our business for the year looked great, but the fourth quarter was tough, since the golden week in October, the effects of the changes in China have had a negative effect on all of the top-end business, whether that means retail top-end like Rolex and Louis Vuitton or whether we're talking about the high-end gaming in junkets and the VIP sections. We looked at the fourth quarter and the drop in VIP business, and then we looked at the first month of this year anticipating the kinds of question we will get today, and we ask ourselves, is January -- where there any indications in January have a change.

And in terms of the VIP business, no it was off by -- turn was off by 40% odd but -- and the occupancy was high, because only we only have a 1,000 rooms in Macau and therefore, we still had occupancy it was more of our mass occupancy, a little more than the VIP occupancy, but the hotel was full. Things like Louis Vuitton, Christian Dior and Rolex were off as they were in the fourth quarter during January, even though we made $5 million, or $6 million or $7 million more than we did last year. Amusing January because we know the results of this first month and in January, we were able to make $80 million odd instead of $70 million odd.

In Las Vegas, so there was, excuse me, if I can stick with Macau for a moment, there was one change, without any adjustment for whole percentage, but making normal whole percentage comparisons, which we had last January and this January our mass business was up 26%. Slots