Wynn Reports Q1 Earnings; Shares Jump
Wynn Reports (NASDAQ: WYNN) reported its first quarter earnings on May 2, 2014. Shares of the company are up 7.28 percent or $15.05 per share to $221.68. Below are some key takeaways from its conference call:
We're very happy with the performance of the company and as we start this year. Today, perhaps a little differently than we have done in the past, I'm going to make a few general statements, but there seems to be a lot of appropriate interest in numbers and metrics at the moment in China as well as Las Vegas, because there's a feeling that change is in the air or that things are happening that are worth discussing in deeper detail.
But we had a healthy increase in Macau in our business. We had a great year last year, and we're up 16% in the first quarter. There are some specifics about some of the data that's available and there are changes that take place every month. And in the mass casino, we're going to address that in just a moment.
And our performance on The Strip is regardless of size, whether we have less rooms or more rooms than anyone else. Our profitability on The Strip was the highest, as it has been for quite some time.
So, there's 492 tables in the Wynn Encore 1,000-room complex on the Peninsula. We're 6 quarters away from going and adding another 552. So, we're going to more than double our business, and in terms of the mass premium business, the entire hotel is a suite hotel, which is going to give us a very nice position in Cotai as far as capturing a fair share, if that's a modest term this time - capturing a fair share of the premium market business. And we'll take our VIP business into that market as well.
I'll point out some things on our Macau results; $384 million of EBITDA with a 33% margin. Again, there were no luck impacts in direct or junket play, so that margin is stable, and what's interesting to point out is the flow through, and if you compare our flow through from revenue to EBITDA with the competitors' it's very, very strong. On the VIP side, 26% increase in turnover, 12% increase in Wynn.
Slots, again outpacing the market growth by 30% to 40%. So, our slot win was up almost 13%. I believe the overall market was around 10%, so we're continuing to take share in the slots business. And all of this, the $384 million just to point out, in EBITDA, is about 25% to 30% more per position than any of our large competitors. So, we get more bottom line money out of our units than anybody else
So, in Las Vegas, we actually felt the growth quarter-over-quarter, year-over-year in the first quarter from 2013 to 2014, if you look at the hotel, the occupancy was up. REVPAR was up.
Slots had a significant year-over-year increase, as well. If you look at it, we actually had some reduction of some of the units on the floor to just create better circulation, and so the slot win per unit was up 26%. The overall net revenue was up 7.6%.
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