Wynn 1Q17 Earnings Call Notes

Stephen Wynn – Chairman of the Board and Chief Executive Officer

Business is good for us

“Okay. You can see the numbers. Business is good for us. We’ve been joining a research and sub activity at the top-end in China. Our hotels there – we’re enjoying the continuing prosperity of Wynn Macau and the steady growth of Wynn Palace pursuant to plans and the expectations we’ve had since the inception of that project.”

Chinese are settling back into old routines

“I have a picture – I have an opinion on that. And of course, it’s just my opinion. But I’ve said in these calls in the past that it would be a mistake to misunderstand the primary underlying driver of the Chinese economy. It is a massive thing and when you say that as I have in the past that we have a very positive and bullish look forward into our long-term position in Macau, at some point the long-term vision and the short-term begin to meld as they are now.

The suppression of the VIP market was something that was the result organically of a process that the administration of President Xi Jinping thought was appropriate for the country, the elimination of corruption. And it had secondary effects on high-end products like shopping, and automobiles, and gaming was part of that. But having made a corrective move in China there comes a point when the corrective move, it sort of finishes.

And although corruption is still a major item in the PRC, the initial impact has softened, because so much of the work that they thought had to be done, was done. And so people begin to return to normal spending habits, and they are not so strongly influenced by public policy issues that involve public officials. So the people are settling back into routines that they’re comfortable with, and that includes going to Macau and buying a new car or shopping at Louis Vuitton.”