Wynn 2Q15 Earnings Call Notes

Competitors in Macau are very good

“Our fellow operators in Macau are intelligent, they’re extremely well-financed and they’re quick to learn and to accommodate the things that they see in other hotels and to accommodate changes necessitated by their own experience in that market. It’s a very, very sharp place.”

Las Vegas is comfortable

In Las Vegas, we’re enjoying a comfortable business, I think is the right word for it. It’s not an aggressive growth by any means, but we are enjoying non-casino revenue that is acceptable.”

Interesting discussion about the difference between where people buy chips in China vs. the US and how that changes calculation of hold percentage

“In China, and virtually no one buys chips at the cage in America, at least in our experience over the last 40-odd years, and then walks to a table and gambles. In China, they do, in fact, do exactly that. I don’t know whether it’s because they’re using their credit card or they’re cashing in whatever RMBs they have or whatever, but people go to the cage, buy chips, and then circulate around the casino and bring the gaming tokens to the table with them. That means that when we count the boxes, it’s not a measurement truly of the drop or activity in the casino. The handle, it’s referred to in the alternative.”

Vegas is a grind, particularly because of international business

“Las Vegas is, one month is good, and then you see June numbers come out, not so good here on the gaming side. So, Las Vegas is a grind right now, and we think we’re in a good spot in our position in the business. But there’s no accelerated growth going on here, in particular because of the international business.”

Rearranging the floor has meant that we win more money with less games

“I also rearranged the floor in the casino to put our specialty games that are very popular with the public that have a higher margin and I put them in the 100% location and I moved my games with less of a margin to secondary locations. Those changes have worked out favorably to us in the past three weeks, and that kind of re-examination – our slot floor has been redone. We win more money with less games now. These are some of the reasons why we make more money than anybody else in Las Vegas.”

We don’t pay very much attention to our stock price

“our stock can trade at level A or level B. We don’t pay very much attention to our stock price per se, we pay attention to the underlying performance of the company, and those factors associated with performance that are within our control, which is why every week we grind on everything in this building from the use of every square foot of our real estate and our structures, to our plans for the future.”

You’re hearing that the China stock market selloff is going to affect junket collections, but I think it’s just noise

“you’re hearing in the market that all these margin calls that are taking place are going to affect the junkets and their ability to collect the junkets themselves. Some of them were involved in the market. But all of this is in my opinion just short-term noise. And I don’t think it’s going to have any long-term effect.”

Big for the sake of big does not appeal

“As we sit here today, we’ve never had such a opportunity presented to us that we thought was acceptable. That doesn’t mean that at some point in the future such a thing couldn’t happen, or that such an M&A, to use your term, a merger and acquisition, would make sense. But big for the sake of big is not a thing that I subscribe to, as you know, and I’ve said so before. We have a certain kind of a brand. It is flexible and adjustable for sure.”

I’m more interested in tomorrow’s newspaper than yesterday’s

“I’m more interested about tomorrow’s newspaper than yesterday’s newspaper.”

For a price, you can buy anything, but it has to be 2+2=5 or it’s a lot of trouble for nothing

“M&A is the kind of option that of course always exists. I mean for a price you can buy anything, I suppose, and some people find it in their mutual best interests to join up from time to time, because the net result is that two and two equals five. But really it has to be two and two equals five. If two and two equals four, it seems to me a lot of trouble for nothing. I’d rather build our own stuff.”

We’re in the resort business with casinos included

“We build resorts that are much more extravagant and attractive than they would be were it not for the fact that somewhere down the hall there’s a gaming room. But we’re basically in the resort business that has casinos included”