Wynn Resorts Ltd. (NASDAQ:WYNN) Q3 2019 Earnings Conference Call Transcript

Nov 06, 2019 • 04:30 pm ET

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Wynn Resorts Ltd. (NASDAQ:WYNN) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Wynn Resorts Third Quarter 2019 Earnings Call. [Operator Instructions]. I will now turn the line over to Craig Billings Chief Financial Officer. Sir you may begin.

Executive
Craig Billings

Thank you, operator and good afternoon everyone. With me today in Las Vegas are Matt Maddox and Marilyn Spiegel. Also on the line are Ian Coughlan Ciaran Carruthers Frederic Luvisutto and Brian Gullbrants. I want to remind you that we may make forward-looking statements under safe harbor federal securities laws and those statements may or may not come true. I will now turn the call over to Matt Maddox.

Executive
Matthew Ode Maddox

Good afternoon everyone and thank you for joining us today for our third quarter conference call. I'd like to get started talking about Macau. In the third quarter in Macau we generated $301 million of EBITDA. However we had a hold impact from our direct business of approximately $22 million. We held negative 1% at Wynn Palace in our direct program and 1.2% in our direct program at Wynn Macau. The way the direct programs are structured you pay commission on turnover not on win loss. So when you have abnormally low hold that revenue mix significantly impacts EBITDA and that was a $22 million impact in Macau. VIP continued to compress and we did see some customer trial out at Cotai with some of the newer products at both City of Dreams and MGM. But I believe and we all believe that that is quite temporary. Mass continued to grow. We maintained our share in mass market and slots at 14%. And I'm pleased to say that while the VIP trends and the mass trends continued into October we generated over $4 million a day of EBITDA during the month of October driven largely by an 8% growth in our mass drop during that month. Moving on to Las Vegas. We've continued to see the positive momentum that we experienced in the first quarter. We had a $13 million impact in hold in our baccarat business in Las Vegas.

But if you take a look at the strategy and the way that we made the pivot to focus on taking market share in the domestic business casino business and in slots it is working. And Marilyn and the team are doing a great job. We had 9% growth in our domestic table games drop and as well as 9% growth in slot handles during the quarter. Our hotel revenues grew by 5% during the quarter and retail is continuing to really gain traction as it was up over double digits in revenue growth during the quarter. The Las Vegas strategy is working and we are really excited about 2020. Moving on to Boston at Encore Boston Harbor. First I'd like to congratulate Brian Gullbrants as the new property President. He's been with us for over a decade and I know and we all know that he is the exact right person to lead that project. We've been open for 136 days in