Wynn Resorts (WYNN) Q3 2020 Earnings Call Transcript

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NASDAQ: WYNN

Wynn Resorts

Market capitalization Change of today Arrow Shin Down (2. 88%) $ 2. 20 Current price $ 78. 46 Price as of 4:00 pm on September 13, 2024 (Eastern the United States)

Wynn's financial results briefing session in September 2020.

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Win Resorts (Wynn 2. 88%) 2020 Financial Financial Restrictions Briefing 2020 November 05, 4:30 P. M. et

Contents:

• comment
• Question and answer session
• Caller

Prepared Remarks:

Operator

Welcome to Win Resorts's 3rd quarterly financial results briefing session. [This call has been recorded. If you have any objections, please cut it at this point. Let's turn the line to Craig Bings, president and highest finance manager.

Please start.

Craig Bing s-President and Supreme Finance Officer

Hello the operator. Today's calling partner is Matt Madox and Marilyn Spiegel in Las Vegas. We also receive calls from Ian Coffran, Linda Chen, Kiaran Calars and Frederick Lwistt, and Brian Galblantz. Based on the Federal Securities Law Safe Harbor, we may publish a statement on future outlook.

Then call Matt Maddx.

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Matt Mado x-Sea

Thank you, Craig. You are now nailed to TV and see this exciting election result. Then, I will tell you the results immediately. I want to start from Macau.

So the third quarter in Macau was really similar to the second quarter. There was nothing to be talked about. Compared to before COVID, the number of visitors is still about 8 % to 10 %. And it wasn't really a big deal.

But as we've all seen, the Macau government is working hard to keep Macau open with its planned approach and steadfastness. Macau is probably one of the safest places on the planet, and we haven't had any COVID cases in the last few months. And everyone there is really excited about the progress that's being made. For example, Macau's EBITDA for August was negative $40 million.

Our team is doing a great job being more efficient, saving where we can, while protecting local jobs and all our employees. But then we got into October, and that started to change. We went from 10% of normal visitor numbers to almost 30%. And it's not just Golden Week.

In fact, it was that way all month. In fact, I looked at the visitor data for November 2nd, 3rd, and 4th, before I got here. It was 18, 000 people before COVID. And that trend that we saw in early October has continued into November.

On the revenue side, in October, tableside mask drop was about 40% of what it was pre-COVID. And on the junket business, everybody is saying, what's going to happen? Are we going to survive? Where are we going to go? It's obviously changing. If we get through this, it's obviously going to be smaller than it was before, but it's still very real.

In the junket space, we had 30% revenue, roughly 25% to 30% compared to pre-COVID levels. And so, we had positive EBITDA in October. So, when you think about it, we had a pretty big swing from negative $40 million in August, similar in July, to positive $6 million in October.

What gives us optimism in Macau is that everything has been handled in a way that it's not one step forward, one step back, one step forward. It's been a very cautious, thoughtful approach. And we -- and the market is going to continue to get better. We just don't know how fast.

I don't know how fast it will be, but the overall mood, attitude and trajectory is very good. In fact, if you look at our sales in October, they were pretty flat compared to last year. And our top five Macau properties are up 25% compared to last year. So consumer demand is bottoming out.

It's going to take some time for the Macau market to continue to expand, but we feel very good about the current trajectory in Macau. Moving on to North America. As I said in our last conference call, we're not going to sacrifice our brand or culture to make a few extra dollars here and there. That means we're operating at a five-star level in Macau and in North America, even though we have significantly less staff than we did pre-COVID, about 7, 400 less globally.

We're focused on securing the highest room rates in the market. We're also focused on continuing to break even or make a profit. In Las Vegas, we were able to make $20 million in revenue in the third quarter, close to $28 million on an adjusted basis. In Las Vegas, we are also encouraged that we are gaining share in the casino division.

We are gaining new domestic customers that we have never seen before, customers that were previously regular customers of our competitors. And I think it is because of all the reasons that we have put forward, from the security protocols of checking everyone when they come in, to the COVID protocols, to all the restaurants being open. We are gaining share in the casinos. We are gaining market share in the casinos.

The slots in the market were down over 33% during the quarter, we were down 16%. The tables were down 35% during the quarter, we were down 25%. So, we are growing business. We are also seeing more high-end customers, not as many, but we are gaining share.

October in Las Vegas was actually our best month. Our EBITDA was about $14 million in October. We were a little unlucky, about $2 million. But overall, it was a very good month.

Las Vegas has seasonality, we are going through a slow season. COVID cases are increasing in the US. And November and December are pretty slow in Las Vegas and it's very group-dependent, so our team... well, we're not going to have a repeat of October in November and December.

But the way we've restructured our expense lines shows that if we have any business at all, the amount of operating leverage translates quickly from revenue to EBITDA. And we're focused on staying EBITDA positive as we slow down a little bit in the winter months. That's what we're aiming for in Las Vegas. We intend to do that in Las Vegas.

But I think that Las Vegas was definitely the top, if not the most, most profitable integrated resort casino on the Strip at the time. So our strategy is working. We're maintaining the brand, maintaining the culture, and making money bit by bit. Relocation to Boston

Encore Boston Harbor is really starting to get off the ground. Our EBITDA for the quarter was about $26 million, our highest ever. Our team really learned how to be a super regional operator. During the shutdown period, we focused on how to operate Encore Boston Harbor differently than we've ever done before.

So we've been laser-focused on the casino segment. What do casino guests want and how do we deliver that? If you look at our results, our daily slot volume, our overall daily volume, is up from last year. That's amazing. We opened 1, 800 slot machines in this third quarter, compared to 3, 000 last year.

Our winnings per machine were $407 for 1, 800 machines, compared to $219 million last year, so I think it was over $400. So Encore Boston Harbor is starting to understand what its market is and how to market to that customer and how to monetize it. Massachusetts announced this week that it will close restaurants, bars, casinos, etc., starting at 9:30 p. m. on weekends. Obviously that's a setback for us, but it's very temporary. And I'm not sure if it's the right thing to do from a health perspective.

The Massachusetts State government did a great job on this matter, from Governor Baker to the Massachusetts Gaming Committee. So I think it's a temporary retreat, but it's not enough to worry. Our business model is healthy, I think the profits of Angkor Boston Harbor will increase, and EBITDA will continue to increase. I will transfer another topic.

This is a new topic for us. In the gaming world, various things are happening, especially for sports betting, especially online sports and betting. We've been paying attention to this topic for the last few years, but have been silence. In 2019, cooperated with Craig Bings, who helped to operate this initiative.

We first wanted to focus on products. In other words, how can we provide the best products regarding sports betting and online sports betting? We searched around the world and found a company called BETBULL in the UK.

The founder and operator of the company were very suitable for our culture. They are the founders of BWIN and PARTY, and we understand this deeply. And they created a very social product in the UK.

So the engagement with customers was not normal. So their KPI was really really good. When you see your friend bet, a po p-up is displayed on your mobile phone. Do you follow your friends? There are so many pearly.

You can move to the chat room immediately. It's fun. Very fun. And user acquisition costs and LTVs in the UK were very attractive compared to industry standards.

And the user acquisition cost and LTV in the UK were very attractive than the industry standard. So we invested in the company in 2019 and started working on the US development. After that, I bought the company.

Currently, we own 70 % of the company and are completely integrated. There are 150 employees in the Win Interactive company and have begun to deploy in the United States. Secretly, we can talk about it.

In the United States, a market access contract has been signed in nine states. This is equivalent to about 25 % of the whole market. Many of the analysts attending the conference are said to be equivalent to $ 20 billion to $ 30 billion. We have already accessed 25 % of them, and in seven more states, we are making very aggressive dialogue and definite documents.

Therefore, Win Interactive believes that in a very short period of time, you can get more than half of the entire market that can be addressed through market access transactions. In New Jersey, we launched Win Bet. We have released products every two weeks and are learning a lot. Craig will talk a little more about this.

Our CPA is very good, and what we see is encouraging. So we intend to develop this product in a variety of accessible markets. For the next few months, we have invested $ 80 million in the company to focus on user acquisition and continuous development. Along with Craig, I have concentrated on making wonderful products, gaining true business opportunities, and developing them.

Currently, Win Interactive sales are about $ 20 million, but this figure will grow further in the future. This figure will grow at an exponential speed as we move forward. Then, I want Craig to talk a little more about the quarter.

Craig Bing s-President and Supreme Finance Officer

Matt, thank you. First of all, I would like to talk about fluidity and operating costs. As of October 31, our cash and fluids around the world have exceeded $ 3. 4 billion, and we have gained a great deal of power to survive pandemic. As of October 31, Macau has a liquidity of about $ 2. 2 billion.

As of October 31, it has a fluid of about $ 1. 2 billion as of October 31, and its daily cash burn is decreasing significantly as demand has begun to return to each market. On the other hand, we continue to pay close attention to operating expenses. Compared to the fourth quarter of 2019, our global FTEs have decreased by about 7, 500 (30 %), and costs other than global salaries and variable costs have decreased by about $ 200 million (34 %), and each day consolidated. Oppex (including corporate tax and gaming tax) was $ 4. 8 million, compared to $ 7. 6 million in the fourth quarter of the 19th in 1919. These decisions are often difficult, but many of the changes made to achieve these reductions are permanent, and the business leverage will increase as the amount of business recovers.

Please note that the 3Q OPEX numbers I just mentioned and the numbers I will mention below do not include the benefit of the reversal of salary and incentive provisions totaling approximately $50 million. In Macau, as Matt mentioned, we had a strong October performance with both gaming and non-gaming performance and continued focus on cost management, resulting in positive normalized EBITDA. Total daily gaming revenue in October was approximately 33% of 4Q19, with premium mass strengthening in the second half of the month. In terms of cost management, OPEX excluding gaming taxes and accrued expenses excluding the reversal of certain performance-based incentives was approximately $2 million in 3Q19. This is down from approximately $3 million in 4Q19. Wynn Las Vegas generated adjusted property EBITDA of $20. 3 million, or approximately $28 million adjusted for lower than normal holds from business weighted toward lower occupancy. In the casino, both table drop handle reached 78% of fourth-quarter 2019 levels during the quarter, with broad-based strength across major segments. We remain focused on cost discipline in Las Vegas, with daily opex, excluding gaming taxes, decreasing from $3 million per day in fourth-quarter 2019 to $1. 8 million in third-quarter 2020, excluding the release of performance-based incentive reserves.

In this environment of subdued group demand, we expect recent trends to broadly continue through first-quarter '21. We believe the combination of meaningful permanent cost savings and increased group demand will enable us to accelerate our recovery into the second half of '21. In Boston, we reopened with safety-related operating restrictions in July. As Matt mentioned, our reopening plan in Boston was focused on operating only the amenities that support the casino.

Overall, we saw encouraging trends in casinos, particularly slots, with daily operating volume per business day up approximately 5% versus 4Q19. Similar to Las Vegas, we made a number of operational and staffing adjustments that resulted in daily opex in 3Q20 down approximately 40% from 4Q19 to approximately $750, 000 per day. Capital expenditures for the quarter were $69 million. As stated last quarter, the majority of our capital expenditure plans remain on hold and we are moving forward only with our highest priority projects.

Finally, in October, we completed a series of transactions that resulted in the merger of several Wynn-owned entities with our strategic digital gaming partner, BetBull, to create Wynn Interactive. We would like to welcome the BetBull team to the Wynn family. This new subsidiary, 71% of which is interactively owned by Wynn Resorts, is well positioned to drive our sports betting and online casino business through 2021. Our sports betting and online casino application, WynnBET, has been live in New Jersey for a few months now.

It's still early days, but the initial return on user acquisition dollars has been encouraging. We plan to go live in Colorado, Michigan and Indiana in the next two quarters. We've posted slides on our IR site about Wynn's interactive business. We look forward to sharing more details about it as it develops in 2021.

Now we'll open the time for questions and answers.

Operator

Questions & Answers:

Operator

Carlo Santarelli -- Deutsche Bank -- Analyst

Hello. Hello. Matt, you said that as we're seeing Macau starting to get up and take shape, obviously premium mass performance is picking up through October. So when you think about the VIP environment and the premium mass environment, looking one to two to three years into the future, through 2019, what do you expect for the mix of those two segments within the GGR channel?

Matt Maddox -- Chief Executive Officer

Matt Mado x-Sea

A lot of people want to point out different issues. But when we think about Macau, we think about the positioning of Macau, the importance of Macau in the Greater Bay Area, and Macau's development into a global destination in the Greater Bay Area, a global tourism destination. We have a very good feeling about our positioning for the next few years, especially on the premium mass side. We have the right product.

On the junkets, again, there's been a lot of talk about junkets, but the junket business is not dead as some people say. It's bounced back to 25% to 30% levels that it was before. I believe that this business will continue to be consolidated by some of the larger operators, and we intend to continue to participate in this business. So I don't expect the junket business to go back to 2019 levels.

But the Macau market as a whole is very likely to be a top destination in Asia for the next three years.

Operator

Operator

Joe Greff -- JP Morgan -- Analyst

Good afternoon, everyone. Can you talk about the trends in Macau for October and cumulatively? Is there a significant difference in premium mass compared to a year ago in terms of minimum bets, length of time bets, ease of travel between the Peninsula and Cotai hotels? And is there a significant difference in recovery rates between the Peninsula and the Cotai? Tell us about that.

Matt Maddox -- CEO

Matt Mado x-Sea

Ian Coughlan -- President

Both properties are doing very well in premium mass, and they're different destinations, but one isn't growing at the expense of the other. So we're very encouraged by the premium mass activity at Wynn Macau and Wynn Palace. The most noticeable driver is the length of stay in terms of the type of player, the size of their wallet, the length of stay.

Previously it was around two nights. Over the last six weeks we've seen it increase to three nights, four nights. So that's very encouraging. Both of our hotels are niche luxury products, absolutely targeted at premium mass and VIP.

Market share also increased. Looking ahead, we expect the premium mass of both properties to continue to grow.

Joe Greff -- JP Morgan -- Analyst

Good afternoon, everyone. Can you talk about the trends in Macau for October and cumulatively? Is there a significant difference in premium mass compared to a year ago in terms of minimum bets, length of time bets, ease of travel between the Peninsula and Cotai hotels? And is there a significant difference in recovery rates between the Peninsula and the Cotai? Tell us about that.

Also, how many capitals have you found on Colorado, Michigan, Indiana, and other markets?

Craig Bing s-President and Supreme Finance Officer

Craig Bing s-President and Supreme Finance Officer

We have launched a business for $ 80 million, but we will invest in marketing as long as it continues to promote the appropriate customer lifelong value.

Matt Mado x-Sea

Matt Mado x-Sea

Joe Gree f-JP Morga n-Analyst

Good afternoon, everyone. Can you talk about the trends in Macau for October and cumulatively? Is there a significant difference in premium mass compared to a year ago in terms of minimum bets, length of time bets, ease of travel between the Peninsula and Cotai hotels? And is there a significant difference in recovery rates between the Peninsula and the Cotai? Tell us about that.

Matt Mado x-Sea

Matt Mado x-Sea

I am happy to have a partner.

Operator

Operator

Felicia Hendri x-Berkrais e-Analyst

thank you. First of all, in October, there was something like "I can't hear it", and this time has passed, but please tell us about EBITDA after adjusting Macau's hold for this quarter.

Craig Bing s-President and Supreme Finance Officer (CFO)

Craig Bing s-President and Supreme Finance Officer

Felicia Hendri x-Berkrais e-Analyst

thank you. First of all, in October, there was something like "I can't hear it", and this time has passed, but please tell us about EBITDA after adjusting Macau's hold for this quarter.

Craig Bing s-President and Supreme Finance Officer

Craig Bing s-President and Supreme Finance Officer

thank you. First of all, in October, there was something like "I can't hear it", and this time has passed, but please tell us about EBITDA after adjusting Macau's hold for this quarter.

So as we're trying to model looking forward, how should we think about assets assuming some of those costs come back?

Craig Billings -- President and CFO

Craig Bing s-President and Supreme Finance Officer

As we adjusted the operating hours, particularly for Encore Las Vegas, we believe that this opex level is reflective of the current environment and is sustainable for the foreseeable future. In Macau, we saw a slight increase in variable daily expenses as business volumes returned in October. Accrued expenses increased a little over 10% versus the $2 million per day that we talked about in the third quarter. Of course, we had more revenue growth than that, so EBITDA was positive.

Longer term, we expect to sustain a large portion of the cost savings that we've implemented. This is particularly true in the US, where we're actually operating the business differently than we have in the past, while still maintaining the right level of brand standards. So it's a little early to give guidance on what parts will come back, but we expect significant portions to exit the business.

Felicia Hendrix -- Barclays -- Analyst

thank you. First of all, in October, there was something like "I can't hear it", and this time has passed, but please tell us about EBITDA after adjusting Macau's hold for this quarter.

On the impact of the curfew, what is the customer mix typically at night versus during the day? Are you significantly busier during the day, or is it just that there is more traffic at night? And what is the impact of the curfew?

Matt Maddox -- CEO

Matt Mado x-Sea

As a result, operating expenses will be significantly reduced. As a result, the number of FTEs will decrease by about 1, 000 to 1, 000. So we will continue in the future. I think EBITDA will continue to be positive, but it is unknown how much.

This is because more than half of the revenue occurred when closed. So I think that some of them will occur at the time of opening and will offset it with expenses. I'm President Brian of Angkor Boston Harbor's. Brian, do you have anything to add?

I will continue to make a marketing effort. We have not changed anything. We concentrate on promoting business while controlling all expenses. So the team did a great job, and I will continue to do it and adjust it as needed.

Felicia Hendri x-Berkrais e-Analyst

thank you. First of all, in October, there was something like "I can't hear it", and this time has passed, but please tell us about EBITDA after adjusting Macau's hold for this quarter.

Operator

Operator

Sean Kell y-Bank of America Merrill Lync h-Analyst

Hello. Thank you for answering my question. Matt or Craig, but think about Macau from a slightly longer perspective.

What kind of segment is there? Also, considering the products in the market, I don't think you can return to the regular market share like before, but do you think there is any special reason? Is there anything that has changed so much that the market share that was in the past could no longer be expected? Or do you think it's okay, especially when the junket pieces are recovered and the product is considered?

Matt Mado x-Sea

Matt Mado x-Sea

This is because more than half of the revenue occurred when closed. So I think that some of them will occur at the time of opening and will offset it with expenses. I'm President Brian of Angkor Boston Harbor's. Brian, do you have anything to add?

I will continue to make a marketing effort. We have not changed anything. We concentrate on promoting business while controlling all expenses. So the team did a great job, and I will continue to do it and adjust it as needed.

Hello. Thank you for answering my question. Matt or Craig, but think about Macau from a slightly longer perspective.

thank you very much.

Operator

Craig Bing s-President and Supreme Finance Officer

Sean Kell y-Bank of America Merrill Lync h-Analyst

Hello. Thank you for answering my question. Matt or Craig, but think about Macau from a slightly longer perspective.

Hello. Thank you for answering my question. Matt or Craig, but think about Macau from a slightly longer perspective.

Matt Mado x-Sea

Operator

This is because more than half of the revenue occurred when closed. So I think that some of them will occur at the time of opening and will offset it with expenses. I'm President Brian of Angkor Boston Harbor's. Brian, do you have anything to add?

I will continue to make a marketing effort. We have not changed anything. We concentrate on promoting business while controlling all expenses. So the team did a great job, and I will continue to do it and adjust it as needed.

Felicia Hendri x-Berkrais e-Analyst

Craig Bing s-President and Supreme Finance Officer

Operator

The next question is from Sean Kelly, Bank of America. Thank you for waiting.

Sean Kell y-Bank of America Merrill Lync h-Analyst

Hello. Thank you for answering my question. Matt or Craig, but think about Macau from a slightly longer perspective.

I will continue to make a marketing effort. We have not changed anything. We concentrate on promoting business while controlling all expenses. So the team did a great job, and I will continue to do it and adjust it as needed.

Matt Mado x-Sea

Matt Mado x-Sea

As the marketing teams, including Linda Chen and candy, have been focusing, they are doing very good work. Linda Chen, Candy, and our marketing team are doing a very good job. I don't think Macau will return to 100, 000 people a day in the short term. So, I think focusing on the hig h-end of the premium segment where we are will be advantageous in terms of EBITDA and EBITDA share in the market.

Sean Kell y-Bank of America Merrill Lync h-Analyst

Operator

I also understand that there is no room for negotiations about the personnel, but some mix shifts will occur here because there is a possibility that it may be related to squares and VIPs and others. So, do you think there is a prospect that the Macau margin will rise in the future? Also, how do you think at least about the Oppex part before tax?

Craig Bing s-President and Supreme Finance Officer (CFO)

Of course. First of all, the team has been doing a wonderful job to continue to support local employment and deal with contro l-ca n-tone Oppex. With an approach of one dollar, we have implemented a lot of programs. We are very happy with their efforts.

Matt Mado x-Sea

Sean Kell y-Bank of America Merrill Lync h-Analyst

Craig Bing s-President and Supreme Finance Officer

Operator

The next question is Thomas Allen of Morgan Stanley. The line is open.

Thomas Alle n-Morgan Stanle y-Analyst < Span> Marketing teams, including Linda Chen and candy, have been focusing, but they are doing a very good job. Linda Chen, Candy, and our marketing team are doing a very good job. I don't think Macau will return to 100, 000 people a day in the short term. So, I think focusing on the hig h-end of the premium segment where we are will be advantageous in terms of EBITDA and EBITDA share in the market.

Sean Kell y-Bank of America Merrill Lync h-Analyst

Craig Bing s-President and Supreme Finance Officer (CFO)

I also understand that there is no room for negotiations about the personnel, but some mix shifts will occur here because there is a possibility that it may be related to squares and VIPs and others. So, do you think there is a prospect that the Macau margin will rise in the future? Also, how do you think at least about the Oppex part before tax?

Craig Bing s-President and Supreme Finance Officer (CFO)

Of course. First of all, the team has been doing a wonderful job to continue to support local employment and deal with contro l-ca n-tone Oppex. With an approach of one dollar, we have implemented a lot of programs. We are very happy with their efforts.

As a result, there are certainly fewer parts that have been reduced than the United States, but as you mentioned, the flexibility of the labor is low. Some of them will be permanent. He said that the number of ordinary income of over 10 % returned in October, compared to $ 2 million per day per day, but some of the variable costs returned as the player returned. It reflects that.

Craig Bing s-President and Supreme Finance Officer (CFO)

thank you very much.

Craig Bing s-President and Supreme Finance Officer (CFO)

The next question is Thomas Allen of Morgan Stanley. The line is open.

Thomas Alle n-Morgan Stanle y-Marketing Teams, including Analyst Linda Chen and candy, have focused, but they are doing a very good job. Linda Chen, Candy, and our marketing team are doing a very good job. I don't think Macau will return to 100, 000 people a day in the short term. So, I think focusing on the hig h-end of the premium segment where we are will be advantageous in terms of EBITDA and EBITDA share in the market.

Craig Bing s-President and Supreme Finance Officer

thank you. It is follo w-up of the same theme. In other words, Craig, you explained the statistics of operating costs and talked about Vegas. But maybe Macau could optimize a little more?

Matt Mado x-Sea

Craig Bing s-President and Supreme Finance Officer (CFO)

Of course. First of all, the team has been doing a wonderful job to continue to support local employment and deal with contro l-ca n-tone Oppex. With an approach of one dollar, we have implemented a lot of programs. We are very happy with their efforts.

As a result, there are certainly fewer parts that have been reduced than the United States, but as you mentioned, the flexibility of the labor is low. Some of them will be permanent. He said that the number of ordinary income of over 10 % returned in October, compared to $ 2 million per day per day, but some of the variable costs returned as the player returned. It reflects that.

Sean Kell y-Bank of America Merrill Lync h-Analyst

thank you very much.

Craig Bing s-President and Supreme Finance Officer (CFO)

The next question is Thomas Allen of Morgan Stanley. The line is open.

Thomas Alle n-Morgan Stanle y-Analyst

thank you. In the interactive side, there is a debate about how competitive the New Jersey market is, but I have operated a little in New Jersey, and I have operated the Craig, its team, and XP Win teams in Europe. Are you worried about that point? And can you talk a little about a partnership with NASCAR? thank you.

Matt Mado x-Sea

Operator

We have a great brand. The brand believes that social casino segments can be earned at a lower price than the entire market. We intend to use this brand. We intend to use lan d-based assets that can be used to increase competitiveness.

Call participants:

Craig Bing s-President and Supreme Finance Officer

Matt Mado x-Sea

Hello. Hello. Matt, you said that as we're seeing Macau starting to get up and take shape, obviously premium mass performance is picking up through October. So when you think about the VIP environment and the premium mass environment, looking one to two to three years into the future, through 2019, what do you expect for the mix of those two segments within the GGR channel?

Good afternoon, everyone. Can you talk about the trends in Macau for October and cumulatively? Is there a significant difference in premium mass compared to a year ago in terms of minimum bets, length of time bets, ease of travel between the Peninsula and Cotai hotels? And is there a significant difference in recovery rates between the Peninsula and the Cotai? Tell us about that.

Both properties are doing very well in premium mass, and they're different destinations, but one isn't growing at the expense of the other. So we're very encouraged by the premium mass activity at Wynn Macau and Wynn Palace. The most noticeable driver is the length of stay in terms of the type of player, the size of their wallet, the length of stay.

thank you. First of all, in October, there was something like "I can't hear it", and this time has passed, but please tell us about EBITDA after adjusting Macau's hold for this quarter.

Hello. Thank you for answering my question. Matt or Craig, but think about Macau from a slightly longer perspective.

I will continue to make a marketing effort. We have not changed anything. We concentrate on promoting business while controlling all expenses. So the team did a great job, and I will continue to do it and adjust it as needed.

Craig Bing s-President and Supreme Finance Officer (CFO)

Craig Bing s-President and Supreme Finance Officer (CFO)

Thomas Alle n-Morgan Stanle y-Analyst

Matt Mado x-Sea

Craig, how about?

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NASDAQ: WYNN

Wynn Resorts

Market capitalization Change of today Arrow Shin Down (2. 88%) $ 2. 20 Current price $ 78. 46 Price as of 4:00 pm on September 13, 2024 (Eastern the United States)

This is Marilyn. The international demand of Casino Side is limited to those who have already come to the United States. So, I am satisfied with the business of Baccarat and are coming back frequently. Those from Southern California and Japan.

About international convention business? there is no.

Stephen Granblin g-Goldman Sach s-Analyst < Span> Thank you for squeezing. I have two questions. First, about win interactive. Looking at the very early results, how do you compare and contrast the customer base with the existing customer base? Also, what do you think about the opportunity for sports betting and the possibilities of interactive games?

Matt Mado x-Sea

A global hit

Craig, how about?

Craig Bing s-President and Supreme Finance Officer

Of course. We are a casino brand. It is a very strong casino brand.

Striking out on sports

So I think I casinos have a great chance. In terms of customer acquisition, brands have a clear competitive advantage. This is true for other companies in the same industry, but I think so, especially in consideration of our brand's national recognition and premium properties. So I believe this will be an acquisition advantage.

In terms of sports, we have clearly operated our own sportsbooks for many years. We understand trading. We understand what excites our customers and where the market is, and we cooperate with teams and Betbull teams who understand it like us. So, in terms of duplication of databases, it's not enough to expand digital sports and betting businesses.

You have to understand what customers are looking for, create products that match them, and expand their scale. In New Jersey, it is in its early stage.

A roll of the dice

Steven Granblin g-Goldman Saxophon e-Analyst

I see. Next, about Las Vegas, how do you see international demand and the recovery of conventional demand for group customers?

Marilyn Spiege l-President

This is Marilyn. The international demand of Casino Side is limited to those who have already come to the United States. So, I am satisfied with the business of Baccarat and are coming back frequently. Those from Southern California and Japan.

About international convention business? there is no.