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

Nov 06, 2019 • 04:30 pm ET

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

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Q & A
Analyst
Carlo Santarelli

when you think about the ability to take cost out of the building with some of the changes that you ultimately make do you see there being plenty of cushion in there to do so as we look out to '20 and beyond?

Executive
Matthew Ode Maddox

I don't want to say there's plenty of cushion. But clearly when you open a property you have more staff than you end up needing when you're operating in a very efficient way and also as well as how you procure items. You just get smarter. And so I would think that the $1.4 million will definitely be -- have a downward trajectory through 2020. Craig do you have any thoughts on that?

Executive
Craig Billings

I would agree with that. That's likely to be peak for the near term.

Analyst
Carlo Santarelli

Great. Thank you guys.

Operator
Operator

Thank you. Next we have Joe Greff from JPMorgan. Sir, your line is open.

Analyst
Joe Greff

Hello everybody. Craig could you give us hold-adjusted EBITDA margins at the 2 properties in Macau in the 3Q?

Executive
Craig Billings

Sure Jeff. Macau was 30.4% and Wynn Palace was 29.2% which is up about 200 basis points higher than Q2.

Analyst
Joe Greff

Got it. And was there any renovation disruption at Wynn Macau from the West Casino construction? And is that part of maybe the hold-adjusted EBITDA and the mass growth acceleration in October relative to the 3Q?

Executive
Matthew Ode Maddox

I think there's definitely disruption from the renovation. Again just walking the property two weeks ago it's hard to quantify because we're not seeing large drops in volumes coming in the door. But about half the building is behind construction walls the podium level. So there's definitely some disruption. And I think we're just going to see what the impact is going to be when we open our new facility in about 60 days. What -- it's really targeted for the premium mass customer. And Joe if know the property well the new gaming floor feels very similar to Encore in Macau but it's anchored by 2 restaurants and has 2 entrances to the boardwalk that go between MGM Wynn and SJM which is very heavily trafficked. And before it had no entrances. So we feel really confident that the way we've repositioned this property away from smaller mid-tier junket operators and to the premium mass market is going to work.

Analyst
Joe Greff

Great. That's helpful. And then as you kind of look at the growth in mass in October that 8% year-over-year growth that drove that $4 million of EBITDA per day how much of that is share gain versus market dynamics and just relative growth rates in that? And then my final question skipping over to Las Vegas. Can you remind us what some of the specific strategies in -- going after some of the domestic gaming segments versus where the focus was heretofore? And that's all for me.

Executive
Matthew Ode Maddox

Sure. So again the -- our drop was up 8% in Macau on the mass side. I don't necessarily think that's share gain. I think that we're continuing