Wynn Resorts Q2 2023 Earnings Call Transcript

Quartr
Provided by Quartr
August 9, 2023

There are 14 speakers on the call.

Operator

Welcome to the Wynn Resorts Second Quarter 2023 Earnings Call. All participants are in a listen only mode until the question and answer session of today's conference. Call. This call is being recorded. If you have any objections, you may disconnect at this time.

Operator

I will now turn the line over to Julie Camarendot, Chief Financial Officer. Please go ahead.

Speaker 1

Thank you, operator, and good afternoon, everyone. Call. On the call with me today are Craig Billings, Brian Gilbrentz and Steve Whiteman in Las Vegas. Also on the line are Linda Chen, Frederick Lupusuto and Jenny Holliday. I I want to remind you that we may make forward looking statements under Safe Harbor Federal Securities Laws and those statements may or may not call comes through.

Speaker 1

I will now turn the call over to Craig Billings.

Speaker 2

Thanks, Julie. Good afternoon, everyone, and thanks for joining us today. Call. Well, what a quarter. Who would have thought just 6 months ago that we would be run rating $2,200,000,000 of property EBITDA?

Speaker 2

Call. To put that in context, peak annual property EBITDA for the company was $2,000,000,000 in 2018. Yet here we are today. We have a more diversified business with the addition of Encore Boston Harbor. We have a business in Macau that is running structurally higher margins into a Surging Market, a business in Las Vegas that is more relevant than ever and is producing nearly double its 2018 EBITDA on much higher margins.

Speaker 2

And we have a very substantial growth opportunity in the UAE, the most exciting new gaming market in call. I see tremendous value in our business and I know our brightest days are ahead of us. Our path is the clearest it has been in years call. And our team is committed and energized. Turning to the quarter and starting in Vegas.

Speaker 2

Wynn Las Vegas delivered $224,000,000 of expected property EBITDA. On a hold normalized basis, our EBITDA was up 3% on a very difficult year over year comp. We saw strength all over the place, the casino, the hotel, the restaurants, retail, you name it, call, all supported by a consumer that seems more than willing to continue spending on unique luxury experiences. Call. Now we obviously have a very particular customer type, skewing heavily to luxury, and we continue to closely monitor whether or not interest rates inflation begin to impact that consumer.

Speaker 2

But so far, so good. In fact, drop, handle and RevPAR are all up year over year in July. And that's obviously before we get into the latter portion of the year, which has a number of tailwinds from citywide programming. Call. Turning to Boston, like Vegas, Encore had a strong quarter, generating $69,000,000 of EBITDAR, an all time property record.

Speaker 2

Call. We generated record GGR in the casino led by strong growth in slot handle and the addition of retail sports betting earlier this year. Call. On the non gaming side, we delivered strong hotel revenue driven by both ADR and occupancy. On the development front in Boston, we're advancing our East 72% of pre COVID levels.

Speaker 2

Hold was a bit of a mixed bag in the quarter as we held high in our VIP business, but that was more than offset by low hold on the mass table side. We saw strength across the property with several components of the business above 2019 levels. In the casino, mass table drop increased 4% versus Q2 2019, despite the fact that portions of Wynn Macau's Casino were closed for renovation during the quarter. The quality of our product and service, the relaunch of our loyalty program call consistent with our share as we exited 2019. On the non gaming side, our retail business continues to be incredibly strong with tenant retail sales increasing 47% relative to 2Q 2019.

Speaker 2

Looking forward, as you have seen, market wide GGR commitment to the customer. The strength has continued into Q3 with mass drop per day in July exceeding what we experienced call. In each month in Q2 and reaching 120 percent of daily mass drop in 2019. Call. In July, we also continue to experience robust hotel occupancy and very healthy tenant retail sales.

Speaker 2

Call. On the development front, we are deep into design and planning for our concession related CapEx commitments, which we believe will help support Macau's long firm diversification goals and be additive to our business over the coming years. Lastly, construction is now underway on Wynn El Marjan Island, Our planned integrated resort in the UAE with our secant walls and soil compaction complete and over 40% of the required hotel piles in the ground. Call. As I said earlier, this is the most exciting new market opening in decades and we will bring our A game to this development.

Speaker 2

Call. Our 40% equity ownership and management license fees will drive a very healthy ROI for Wynn Resort shareholders. Call. With that, I will now turn it back to Julie to run through some additional details on the quarter. Julie?

Speaker 1

Thank you, Craig. Call. At Wynn Las Vegas, we generated $224,100,000 in adjusted property EBITDA on 578 $100,000 of operating revenue during the quarter, delivering an EBITDA margin of 38.8%. Slightly lower than normal hold negatively impacted EBITDA by $2,000,000 in Q2 and hold normalized adjusted property EBITDA was up 3% year over year. Our hotel revenue increased 6% year over year to $177,800,000 a new second quarter record on the back of an increase of 24,000 occupied room nights due to rooms that were out of service for renovations in Q2 2022.

Speaker 1

ADR occupancy and RevPAR were all up slightly compared to Q222, despite the increase in available room nights, highlighting the appeal of our newly renovated room product. Call. Our other non gaming businesses saw broad based strength across food and beverage, entertainment and retail. In the casino, our GGR increased around 2% year over year, driven by a 14.8% year over year increase in slot handle and table drop that was roughly flat. Call.

Speaker 1

Turning to Boston, we generated adjusted property EBITDA of $69,100,000 an all time property call. EBITDA margin was 31.1%, up 80 basis points year over year. We saw broad based strength across casino and non gaming during the quarter. In the casino, we generated $193,000,000 of GGR, a property record with strength in both tables and slots. Our non gaming revenue grew 3.8% year over year to $55,100,000 with particular strength in hotel and food and beverage.

Speaker 1

We've stayed very disciplined on the cost side with OpEx excluding gaming tax per day of approximately $1,150,000 in call. As you may have seen in the press, we were pleased to recently sign new union agreements that provide our employees with competitive wages, business and a best in class working environment that reflects our wind service standards. We expect the incremental OpEx from the new agreements to be partially offset by cost efficiencies we have identified in areas of the business that do not impact the guest experience. Additionally, I would like to note that business volumes in Q3 call are temporarily being negatively impacted by the Sumner Tunnel Restoration Project the City of Boston is conducting that will be ongoing through August 31. Call.

Speaker 1

The impact is primarily being felt in our table games business as both slots and non gaming revenue continued to grow year on year in July. Call. Our Macau operations delivered adjusted property EBITDA of $246,200,000 in the quarter call. On $769,900,000 of operating revenue. As Craig noted, we held high in our VIP business, call.

Speaker 1

But this was more than offset by lower than expected hold on the mass table side. We were encouraged by the meaningful uptick in visitation and demand we experienced during the quarter, with particular strength in mass casino drop, direct VIP turnover, luxury retail sales call and hotel revenue, all above Q2 twenty nineteen levels. EBITDA margin was 32% in the quarter, an increase of 2 Q2 2019 with Wynn Palace's margin reaching 33.4% or 6.90 basis points Q2 2019 levels. EBITDA margin strength was driven by a combination of a favorable mix shift to higher margin mass gaming and operating leverage on cost efficiencies. In fact, our OpEx excluding gaming tax was approximately $2,200,000 per day in Q2, call, a decrease of 29% compared to $3,200,000 in Q2 2019 and down 2% from Q1 call.

Speaker 1

Despite the meaningful sequential increase in business volumes, the team has done a great job remaining disciplined on costs and we're well positioned to continue to drive strong operating leverage call as the business recovers over time. In terms of CapEx, we're currently advancing through the design and planning stages on our concession commitments. Call. And as we noted the past few quarters, these projects require a number of government approvals, creating a wide range of potential CapEx in the very near term. Call.

Speaker 1

As such, for 2023 through 2024, we expect CapEx related to our concession commitments call to range between $300,000,000 $400,000,000 Turning to Wynn Interactive, our EBITDA burn rate decreased both sequentially call and year over year to $15,000,000 in Q2 2023. Our team continues to stay disciplined on costs call while driving improved marketing efficiency. Moving on to the balance sheet, our liquidity position remains very strong call. With global cash and revolver availability of approximately $4,700,000,000 as of June 30. This was comprised 1,800,000,000 of total cash and available liquidity in Macau and $2,900,000,000 in the U.

Speaker 1

S. Importantly, call. The combination of strong performance in each of our markets globally with our properties run rating approximately $2,200,000,000 of annualized property EBITDA together with our robust cash and liquidity creates a very healthy leverage profile for the company globally. We're also pleased to announce that the Board approved a cash dividend of $0.25 cash payable on August 31, 2023 to stockholders of record as of August 21, 2023 highlighting our commitment to returning capital shareholders. Finally, our CapEx in the quarter was $92,000,000 primarily related to the spa villa renovation business and food and beverage enhancements at Wynn Las Vegas and normal course maintenance across the business.

Speaker 1

With that, we'll now open up the call to Q and A.

Operator

Call. Thank

Speaker 2

you.

Operator

Agenda. Please limit yourself to one question and one follow-up question. Our first question comes from Carlo Santarelli from Deutsche Bank. You may go ahead, sir.

Speaker 3

Hey, Craig, Julie, everyone. Thank you for call. So Craig, just on the Macau front, obviously, the reduction sequentially And daily OpEx was a little bit of a differentiator relative to what we've seen in some peer reports. Call. Can you talk a little bit more about that?

Speaker 3

And also, it looks as though your implied commissions, discounts, etcetera, as a percentage of revenue were down nicely sequentially. Do you expect kind of that trend to continue going forward?

Speaker 2

Call. Sure, Carlo. Well, first on the OpEx side, I think that we're always moderating modulating OpEx based on business volumes and what we need to get done in any particular quarter. I think the distinction between us and perhaps some of the other folks that have reported that you have seen call is that we opened with a full complement of folks. And so we weren't dragging floors, we didn't have rooms out of service, etcetera, etcetera.

Speaker 2

And so we came out of the gate call. With the full OpEx that you're seeing today and any movements between quarters is really going to be a function of business in that quarter. On the commissions and discounts, there hasn't been any substantial change to how we do that. So again, that's going to be, quite player specific based on the parameters of player. And so again, I wouldn't read too much into it.

Speaker 3

Great. And then if I could, Craig, a follow-up, turning to Las Vegas, obviously, Very strong performance, on the especially on the cost discipline side. Can you talk a little bit, I believe your labor contract So I wouldn't have expected any impact, but could you talk a little bit about how You guys intend to kind of accrue for what may be a settlement and some new terms going forward or anything that was present in the 2Q perhaps?

Speaker 2

Call. Sure. How much time have you got, Carlo?

Speaker 3

It's time. Plenty, I guess.

Speaker 2

Conference call. Well, first what I'll say is this. 1st and foremost, the team at Wynn Las Vegas is the heart and soul of the place. Call. They're very important to me and it's the same reason that we paid everybody during the closure, during COVID.

Speaker 2

And if you look over the term of the last union contracts. Their contractual wage increases initially outpaced inflation and then of course lagged inflation over the course of the couple of years. Net net, over the last contract, they were actually flat versus core CPI. But unfortunately, and it's a reality, call. Rent in Las Vegas has increased more than CPI over that same period and it's very important to me call.

Speaker 2

So I expect there'll be some back and forth as we work with culinary to call. It's pretty early in the process, so we're not really even close to quantifying dollars yet or talking about accruals. But rest assured, we'll figured out in a way that's positive for the business over the medium and long term.

Speaker 4

Call. Thank you.

Operator

Thank you. And our next caller is Joe Greff with JPMorgan.

Speaker 4

Call. Good afternoon, guys. Craig, when you look back at the 2Q, would you say in Macau, would you say When Macau and the Peninsula was had a meaningful amount of renovation disruption to the EBITDA line that you would call out? Or do you think you were able to effectively shift What would otherwise have been disrupted to either other parts of the casino or to your property in Cotai?

Speaker 2

Well, the renovations thanks, Joe. The renovations that took place were smack dab in the middle of the casino call. So certainly there was a level of disruption. I think the more call. Macro point would be that a lot of the visitation that has come back, particularly for us, has come back in Cotai.

Speaker 2

Call. And we've if you think about a world where there are no longer any junkets, yet we're holding market share, I'm incredibly proud of what we've been able to do on a combined But certainly, we have work to do in terms of share downtown. And the business will go as that share goes. It's pretty simple business, your market share times the market minus taxes, minus OpEx equals EBITDA. So our focus call is on driving share downtown and really that's the way that we think about the business going forward.

Speaker 2

And that's why we did the renovations in the 1st place. So call. I don't want to give you the impression that the quarter's results were entirely a function of the renovation because they're not. But certainly on the margin they were impacted. Call.

Speaker 4

Okay. And I'm presuming the renovation was completed at some point in June. If you can confirm that, but would you expect That Cotai and Peninsula would be more in balance going forward similar to 2019? Or do you think visitation dynamics are such Where the Cotai region is just going to get a little bit more traction?

Speaker 2

Confirmed and the latter.

Speaker 4

Call. Got it. Okay. And then you called out as others did in the 1Q and parts of the 2Q this reporting season talking about low hold on the mass side. We can see the hold percentages the last couple of quarters versus what you did in 2019 at both

Speaker 2

properties. What is that

Speaker 4

a function of? Are players betting side bets or are they playing differently? Or is it really just a couple of quarters of No, aberrations and expected table hold percentages.

Speaker 2

Yes, you're right. And historically, by the way, we haven't normalized for mass hold. And That was that made sense when the business was more balanced between mass and VIP. So that's something we're going to rethink going forward. But to your question very Specifically, it's really a function of 2 things and it was most acute at Wynn Macau rather than Wynn Palace.

Speaker 2

It's function of volumes and normal course volatility. So you mentioned just normal aberrations and certainly that's part of it, but volume inherently smooths volatility. So when you had tour groups and you had core mass and you had just more bodies coming to Macau, the impact of volatility was inherently muted and that's just not the case right now. So I would expect to continue to see volatility. Call.

Speaker 2

Sometimes it will be to our benefit and sometimes it will be to the players.

Speaker 4

Great. Thank you.

Operator

Call. Thank you. Our next caller is Shaun Kelley with Bank of America. You may go ahead.

Speaker 5

Hi, good afternoon, everyone. Thanks for taking my questions. Call. So Craig, maybe one more about Macau. But just wondering if you could give a little bit of color about sort of segments of business, what you're seeing across, call.

Speaker 5

Particularly behavior wise across premium mass and VIP. And I'm really thinking kind of spend per visit relative to what's left to recover call. On the visitation side as you look to see things normalize?

Speaker 2

Yes. I'm going to not comment on VIP because it's obviously call. We've seen length of stay decline, which makes sense because during COVID, if you made the commitment to come, you were coming for an extended period, but we've seen spend per customer actually go up. And so frequency has increased, length of stay has decreased and spend per customer has gone up, which call. It's great because that gives you the opportunity to make efficient use of your rooms And is generally good for business.

Speaker 2

But I don't really have a comment on VIP.

Speaker 5

Very helpful. And then maybe one for you or Julie. Just wanted to ask about call. The CapEx comment in the prepared remarks, I believe the call out was around some of the concession commitments and something around $300,000,000 to $400,000,000 The question is, call. Was that a per year number or is that a total number across kind of 2023 2024?

Speaker 4

And if you

Speaker 5

can just remind us call. How you're thinking about sort of the CapEx versus possible OpEx components related to the that concession process? Because I know it's a little different

Speaker 1

call. Sure. Thanks, Sean. I'll take that. Yes, that number we've given out, the 300 $400,000,000 is the $23,000,000 to $24,000,000 number.

Speaker 1

And really, we've done that. I think we've always foreshadowed that the process takes some time Because of all the different approvals that are required. So we were hopeful that we would get more on this year, but actually now we're looking at the 300 to 400 over the 'twenty three 24 period in total. In terms of how we're thinking about the concession, it's more than half of the commitment we made more than half of the $2,000,000,000 is CapEx related. And we do expect that to be front end loaded.

Speaker 1

Call. Obviously, it was 300 to 400 in the 1st 2 years and then a similar clip to that for a couple of years after that.

Speaker 2

And then I would just point

Speaker 6

out that on the OpEx call. I would

Speaker 2

just like to remind you that there's a lot of things that we do in the business today that already support non gaming. And so we don't Expect all of that to be incremental.

Speaker 5

Very clear. Thank you, everyone.

Operator

Thank you. Our next caller is Stephen Grambling with Morgan Stanley. You may go ahead, sir.

Speaker 7

Hi, thanks. Maybe a clarification on July in Macau. Call. Cal, I think you said the run rate was 120% of 2019 levels on hold. Should we think of that as true call.

Speaker 7

For hold adjusted win rate comparing versus 2019 and any reason to believe that the $2,200,000 in OpEx per day Would be similar or different during that month versus the quarter as we build going forward?

Speaker 2

The 120% sure. The 120% that I referenced was drop. Call. So it has no so wind obviously has no impact. And OpEx, No expectation of any material changes in OpEx.

Speaker 7

And then maybe as a follow-up on capital allocation, I think if we take the 2 point $2,000,000,000 run rate EBITDAR less the concession spend, some other CapEx in Vegas and the dividend. It looks like there could still be some free cash flow call. Leftover, is that the right way to think about it? And is there appetite and or ability to ramp capital return? Or do you generally think the pandemic has altered how you think about liquidity and bridge.

Speaker 2

Julie, do you want to take the first portion of that and I'll take the second.

Speaker 1

About the CapEx?

Speaker 2

About the free cash flow.

Speaker 1

Call. Sure. Yes, you're quite right. We're now with the $2,200,000,000 run rate and interest under control and all of that. We have sizable discretionary free cash flow.

Speaker 1

And so we're very focused on what we'll be doing in terms of delevering, returning shareholders and of course all of the exciting projects we have in front of us.

Speaker 2

Yes. We're well capitalized at the moment and I expect we will maintain some liquidity until we really see how a few things play out. First is New York, the second is The macro economy and the third is the yield curve. And we're always looking at the markets, capital markets and thinking about when to refinance and whether to do it dollar for dollar or modestly delever And when to return capital to shareholders, primarily by adding to the dividend. So call.

Speaker 2

We're in a bit of a wait and see approach at this moment. But if you think about it, we've got a great project in the UAE that is going to be a stunner. Call. We've reinitiated our dividend and our leverage is well under control. So we feel pretty good about where we are.

Speaker 2

Fair enough. Thanks so much. Call.

Operator

Thank you. Our next caller comes from David Katz with Jefferies. You may go ahead, sir.

Speaker 8

Good afternoon, everyone. Thanks for taking my question. I am hoping for just a little more insight on margins in Macau. It's been one of the questions that trying to figure out what the new normal is or could be longer term as we think about the future, call. Largely driven by revenue mix.

Speaker 8

I wonder what updated thoughts you may have versus what we would have had 90 days to go or more than that when I was over to visit where it was the prevailing question? Thank you.

Speaker 2

Sure, David. Not really. I mean, I think a little bit like what happened in the U. S, we call. Learn to run our business differently.

Speaker 2

So you mentioned primarily related to business mix and certainly that's a component of it, but we're running the business really, really well. The quality of service is as it should be and as it has always been, yet our OpEx has call come down pretty meaningfully. And I think it's a testament to Linda and Frederick and Craig Fullilove, our CFO over there call and everything they've been able to do with the business. So really what you're seeing is particularly at Palace, you can see it in the margin. Call.

Speaker 2

What you're seeing is the impact of both sides of it with operating leverage coming through from business volumes and And pretty robust expense control.

Speaker 8

Right. And leaving it to us to decide on the order of magnitude, call. But it is fair to assume that there still should be some margin upside in Macau still to be captured as volumes return, correct?

Speaker 2

Well, call. I haven't been in an Excel model in probably 15 years. But if I were doing one, I would probably hold margin At Palace, relatively constant, just to be conservative. I mean, it's in the low 30s today, which is pretty darn good. Call.

Speaker 2

And I would assume that Wynn Macau's margin increases as we aggressively fight for share.

Speaker 8

Okay. I'll take it. Thank you very much. Appreciate it.

Operator

Thank you. Our next caller is Brandt Montour with Barclays. You may go ahead, sir.

Speaker 9

Hey, good evening, everybody. Thanks for taking my question. So in Las Vegas, call. Obviously, a great result there. RevPAR and ADR were flat to up small year over year.

Speaker 9

Call. Just curious how you're feeling about taking rate from these levels that you're at today. Obviously, occupancy is pretty full. Call. And looking out in the back half of the year, how do you feel about your comparisons, sort of cadence 3rd quarter, 4th quarter, call as well as the sort of financial impact or the hotel impact from F1 in the Q4?

Speaker 2

Sure. I'll start and then I'll ask Brian to comment. Call. We have grown ADR pretty meaningfully, certainly since the property reopened from the closure in 2020, and I'm incredibly proud of our ability to do that. It really speaks to the product that we offer.

Speaker 2

And we've held those rates, call. And we've continued to have a rate premium to the rest of the town. Our ability to continue to take rate really depends call. And as I mentioned in my opening remarks, the best I can do is call. Give you a clear picture of what we're seeing right

Speaker 6

now and it's good.

Speaker 2

But as I've said before, we have a 2023 playbook for really and 2024 for every scenario. So I'm not really going to forecast whether we think we can continue to take rate given how dependent it is on the overall economy, call. But we're feeling great about our business. Brian, do you want to talk about pacing? Sure.

Speaker 10

Yes. I mean, if you look at a forward looking, demand indicators are really remaining quite healthy. The room bookings we have are pacing up year over year. And as far as group pace, call. It continues to be strong.

Speaker 10

We've mentioned it on previous calls, Q3 and Q4 call. Continue with the same pace that we've had thus far this year. So 2023 will wind up being a record group year and 2024 continues to pace ahead of that. So we keep looking for the signs, but lead volume is there and our team does a great job of converting.

Speaker 9

Call. Okay. That's super helpful. And then for Elmer Jean, appreciate the comments. Obviously, an exciting property.

Speaker 9

Can you give us an update on the casino license and sort of the pathway there and just an update if If you have everything you need for the sort of full plan that you'd laid out in your initial projections.

Speaker 2

Sure. Call. We have everything we need to operate gaming in at El Marjan. And I think there's confusion here because there's a lack of understanding regarding individual Emirates or legalization at the federal level, thereby covering all Emirates, I expect that we will have our license call. Actually imminently.

Speaker 2

But there should be no concern that there is a legalization process that needs to occur in order for a broader legalization process in order for gaming to occur in that property.

Speaker 9

Call. Crystal clear. Thanks for the comments. Sure.

Operator

Thank you. Our next caller is Dan Blotzer with Wells Fargo. You may go ahead, sir.

Speaker 6

Hey, good afternoon, everyone. Thanks for taking my questions. On prior calls, I think you mentioned that you could get back to a run rate EBITDA and I think it was the 26 $27,000,000,000 range for GGR. I mean given what you're seeing in terms of mix and margin, is that still achievable? And going back to that July under 20% data point that you gave.

Speaker 6

Is this something that maybe is achievable in the back end of this year?

Speaker 2

I mean, it depends on the market. Again, The model there is, as I said, pretty straightforward, your share times the market minus taxes minus OpEx. Call. So, it really depends on which way the market goes. The market estimate where we think we would get back call.

Speaker 2

Remains as you described, probably closer to 27 versus 26 based on the share we turned in this particular quarter, but generally that call.

Speaker 6

Got it. And then just for my follow-up, in terms of Wynn Macau, you mentioned you're going to be fighting for share there.

Speaker 10

Is that is it fair to To say

Speaker 6

that margins maybe come down a little bit from these current levels and I guess more broadly as it relates to premium mass, are you seeing an uptick in promotions within that segment?

Speaker 2

Call. On the second question, no, the market has been pretty disciplined and we're certainly pleased with that. Call. On the first question, I don't think you should expect margin to go down at Wynn Macau. If the subtext of your question was, will we need to get promotional in order to drive business to win Macau?

Speaker 2

No, you should not assume that the margin will go down because we have tremendous operating leverage that comes with each 10 basis points of share at that property. Call.

Speaker 6

Got it. Thanks. That's helpful.

Operator

Thank you. Our next caller is Chad Beynon with Macquarie. You may go ahead, sir.

Speaker 11

Call. Afternoon. Thanks for taking my question. I wanted to ask about the Interactive cash burn. You mentioned that that's come down again call.

Speaker 11

Year over year and sequentially, are you still on track for this to turn profitable in the Q4 and any other call. Kind of insights in terms of where this is going and how the flow through should look if revenues rise from here during peak season? Thanks.

Speaker 2

Call. Sure. I don't think we ever said it would be breakeven in the Q4, but what we are focused on is making sure that it goes down every quarter.

Speaker 1

Call. Yes, sports betting is a tough business. It's about a game of commodity. They're difficult businesses, but we're very focused on business. We've got a very long term shareholder friendly view on it.

Speaker 1

So that's our focus.

Speaker 11

Thank you. And then another one on Macau. You just mentioned that the $27,000,000,000 GGR number, we did see some sequential growth In the last recent month. But I'm just wondering, as some of the farther out visitors come back to the market, call. I guess we'd kind of have to look through the database figuring out where all the premium players are in all of China.

Speaker 11

But does this matter as much for you guys? Or call. Are there enough people in kind of Hong Kong and Guangdong for you to continue to put up numbers? Or do you really need some of those further out markets to open up from a Visa and just a visitation standpoint? And are they driving higher spend per trip than what you're seeing in the property right now?

Speaker 2

Every customer matters, Tim. It's of course, we want to see the outerlying regions start to tribute to Macau. Are we dependent on it? No. But certainly, that's going to add incremental heft to the recovery and that's going to add incremental health to the total market, which again pushes us further back Towards breakeven sorry, breakeven with 2019 or equal to 2019.

Speaker 11

Makes sense. Appreciate it. Thank you very much.

Speaker 9

Sure.

Operator

Call. And our next caller is John DeCree with CBRE. You may go ahead, sir.

Speaker 12

Thanks for taking my questions. Maybe just a 2 part question on Las Vegas. Craig, to the extent you can provide maybe a little bit more color around the visibility you have for the big events Like F1 or Super Bowl. And then maybe the second part of that question is when you look at your forward demand indicators for bookings call is how much of that kind of year on year growth is tethered to those events and excluding those events, are you still seeing good booking indicators for those maybe less peak periods or less kind of event driven periods?

Speaker 2

Sure. I'll start and then I'll ask Brian to comment. So Brian's prior comment on booking pace was independent of those events to answer your last question. Yes, F1, Super Bowl, I mean these are events that are made for us, right, because we end up picking up the top end of the patrons and customers that come to town for those events. And so we're really excited about it, about where we are and where we sit.

Speaker 2

Brian, do you Sure.

Speaker 10

Yes, I think both of these events, specifically F1 and then Super Bowl, call. Definitely play to the strengths of our brand. It's a perfect match. We are getting significant premiums for those two events themselves, call. And I think we're pacing quite nicely.

Speaker 10

I know some of our competitors have given more specific data, but I can tell you we're going to do just fine here.

Speaker 12

Very good. Thanks for the color guys. I appreciate it.

Speaker 1

Thanks, Jordan. Operator, the next question will be our last. Session.

Operator

Thank you. And our final question comes from Robin Farley with UBS. You may go ahead.

Speaker 13

Great. Thank you for letting me sneak in here, Dan. Can you clarify just to sort of make it comparable to previous periods what the VIP hold added to make the EBITDA in Macau? Call.

Speaker 2

Julien? Holding back to VIP.

Speaker 1

Holding back to VIP. I mean, as we said on the call, we held A little bit high on VIP, but that was more than offset by lower mass hold. So we're not actually getting into breaking it

Speaker 3

out. Call.

Speaker 13

Okay. All right. And then

Speaker 2

It was about $20,000,000 So we have about $20,000,000 of high hold on VIP. And this is what I was alluding to earlier. We need to we're going to start normalizing for mass hold because so much of our business now is mass. But it was about $20,000,000 in Macao and low mass hold more than offset that as Julie said.

Speaker 13

Call. Okay, great. And I appreciate you picking that out just to make it kind of comparable to previous quarters. So thank you. Call.

Speaker 13

And then I'm sorry if I missed your comment on this, but have you talked about how much of the margin you think you can hold on to conference call in Vegas? Thanks.

Speaker 2

Well, in the In the midst of the dark days of COVID, we put out a permanent cost savings figure and we've held to that. We certainly, again, learned to run our business call. And what I would say is that our business volumes over the course of the past 1.5 years have been absolutely off the charts, and we've held the line and still held true to the brand. The business kind of is the business now. To the extent that there is a macro any macro driven change to our business volumes or to our ADRs, etcetera, we have a playbook for that because we just lived it As we went through COVID and we'll be ready.

Speaker 2

Again, we're not seeing that, but we're certainly ready for every scenario.

Speaker 4

Call. Okay.

Speaker 13

All right. Great. Thank you very much.

Speaker 1

Well, thank you, operator. With that, that concludes the Q2 earnings call. Thanks everybody for your attention. We look forward to talking to you again soon.

Operator

Call. Thank you for participating on today's conference call. You may now

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Earnings Conference Call
Wynn Resorts Q2 2023
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