Wynn Resorts Ltd. (NASDAQ:WYNN) Q3 2019 Earnings Conference Call - Final Transcript
Nov 06, 2019 • 04:30 pm ET
[Operator Instructions] Our first question comes from Carlo Santorini. Sir, your line is open.
Matt you talked a little bit about the low direct hold in the period. Obviously hearing a negative number is pretty startling. Just in terms of -- and I don't know that you guys are going to answer this. But just in terms of the mix of direct relative to your junket business at the combined assets in Macau right now do you guys have kind of a ballpark that you could provide as to the mix of direct right now on a rolling-to-volume basis?
Matthew Ode Maddox
Carlo we usually don't get into the mix between direct and our junket business. And so I'd rather not get into those specifics right now. I do think that our direct will likely have more growth potential in particular at Wynn Palace going forward as we're seeing some of the smaller junket operators consolidate into the top 3. So our direct business is really on a customer-by-customer basis with our program run by Linda Chen. And I think that as we continue to ramp that piece up that -- I feel pretty good about where the direct business is going.
Understood. And then maybe just bigger picture in terms of what you're seeing in Macau on the VIP side. Obviously we're still facing some comparisons that were a little bit challenging in terms of role in the market etc. With the performance in the quarter and obviously what you've seen over the holiday period in October are you starting to see any kind of stabilization in the business maybe on a quarterly sequential basis in VIP across the market?
Matthew Ode Maddox
Well I think that you've seen that commentary in the market that there feels like there's some stabilization. I think that a lot of people are very optimistic that we're at a stabilization point and that 2020 could be a period where we're starting to see some growth. Carlo in the past we've spoken about -- just to go back to your question -- direct versus junket and it's ranged from 80-20 down to 90-10 between junket and direct. And it really is very quite volatile during the -- from quarter-to-quarter. But we think that both our direct business has growth opportunity in 2020 and that the junket business hopefully will continue to stabilize.
Great. That's helpful. And then just if I could 1 follow-up on Boston Harbor and the ramp there. When you think about kind of the -- obviously driving that slot business and kind of building that database the other side of the equation is obviously the cost side. And if I kind of just adjust for gaming taxes in the period knowing this is very simplistic and crude way of doing it you kind of arrive at $1.45 million a day or so to run the property. I assume you're not going to be willing in the near term to sacrifice the experience all that much. But over time