Wynn Resorts Q3 2021 Earnings Call Transcript

Quartr
Provided by Quartr
November 8, 2021

There are 11 speakers on the call.

Operator

Welcome to the Wynn Resorts Third Quarter 2021 Earnings Call. This call is being recorded. If you have any objections,

Speaker 1

Thank you, operator, and good afternoon, everyone. On the call with me today are Matt Maddox and Brian Goldbrands in Las Vegas. Also on the line call are Ian Collins, Linda Chen, Kieran Carruthers, Frederick Louvessuto and Jenny Holliday. I want to remind you that we may make forward looking statements under Safe Harbor federal securities laws call and those statements may or may not come true. I'll now turn the call over to Matt Maddox.

Speaker 2

Thanks, Craig, call. And thank you all for joining us today. So, first I'd like to address my decision to leave the company. I've been at Wynn for 20 years and been the CEO for the last 4. And I made a commitment end 2018 to this company and to the Board of Directors and what was likely one of the messiest transitions company on firm footing and to ensure that we would emerge better than we were before.

Speaker 2

Now along that journey as we were making lots of progress and getting We bumped into a pandemic. And that was the time really when Wynn was able to shine. We became the beacon in hospitality. People looked at us on what to do. We paid all of our staff during the shutdown.

Speaker 2

We invested in our culture. Call. We knew that by doing those things and continuing to be exactly who we are that it would pay off over the long term, not just call. I'd like to thank the unwavering commitment and support of the Board of Directors quarter. During these 4 years, after we made this decision, they did ask me if I would remain on the Wynn Macau Board quarter to ensure stability and to assist with the concession renewal process there, which I agreed to do through 2022 and also the Wynn Interactive Board to make sure that we create lots of value for the Wynn Resort shareholders, which I also agreed to.

Speaker 2

I'm very happy to say that The Board was is 100% behind and has picked the exact right person to replace me as I transition out in Craig Billings. Craig has been my right hand man for 5 years now. He's been through the good, the bad, all of it. Call and he knows what to do. He understands culture.

Speaker 2

He's not a guy that's going to build a big corporate infrastructure. He makes decisions fast and he feels the brand and the company really couldn't be in a better position going forward. And in fact, if you look at that, I think the proof is in this quarter. If we just jump to the results and get the business here in Las Vegas, We made $183,000,000 of EBITDA. And that's not a whole bunch of cost savings that are going to go away over time and can you quarter.

Speaker 2

Only $15,000,000 to $18,000,000 of that $183,000,000 came from cost savings. The rest of it, we're taking market share. Over the last 4 years, we've opened a 400,000 square foot convention facility. We built a new golf course. We have changed out 40 of our 60 retail stores quarter to become the shopping destination.

Speaker 2

We restructured our club so that margins went from 7% to almost 30%. We've raised our prices in our hotels seeing straight flow through. Every area we're taking share, casino included. We are not only outpacing all of our results, but we're taking share I knew coming in that we needed to cater to a demographic that was in more than 30 to 50s on top of our current demographic I've never seen anything like it. And while that's one restaurant, it's an example of all the changes that we've made They have really set the foundation for Wynn Las Vegas to take off like a rocket ship.

Speaker 2

And I think one of the most important aspects of a successful business is culture. People talk about that, but we all know in our business, Only people make people happy. And if your employees believe that their future will be better because of the place they work And that their employer is going to take care of them. When times get tough, you've harnessed the power of the universe. And that's what we have going on right now.

Speaker 2

Look, I'll give you an example. Hospitality is experiencing extreme labor shortages right now throughout North America. It's a fact. People are talking about it, but not at Wynn. We had 4 open servers in our restaurants positions, open positions.

Speaker 2

Last month, we had 1066 people apply. Sure, big tip job, you might expect that. We had 22 open positions for casino cleaners last month. They cleaned the bathrooms, the casino, the restaurants, they make the place sparkle. We had 2015 people apply for those 22 spots.

Speaker 2

Quarter. That is the sign of a good business. That's when you know you're going to win over the long term culture, its employees, the product and its future. Looking at Encore Boston Harbor, same thing, Record results, dollars 64,000,000 of EBITDA and we did very similar that we did in Las Vegas during the shutdown was we looked at things that weren't working. We had a buffet that was losing $12,000,000 a year.

Speaker 2

So we ripped it out while we were shut down and we built probably the world's best sports bar that once Massachusetts legalizes sports betting, it'll be the best sports book on the East Coast hands down. We put in new food and beverage offerings. We reconfigured the entire casino. We changed out our casino loyalty program and our database has been growing exponentially. We have over 418,000 people in the database and it's a trajectory that it's growing now that's probably going to double over the next 2 years.

Speaker 2

So Encore Boston Harbor again is only at the beginning of its growth and the North American assets really couldn't be in a better position. There was a little bit of concern that maybe the stimulus money or pent up demand, etcetera, was causing some of this. And that may be true for the Q3 and quarter, what we experienced in the summer, but it's certainly continuing. In October, Wynn Las Vegas had its best month on record, highest EBITDA, highest margin. And we held below our normal range.

Speaker 2

Same at Encore Boston Harbor. The group business is coming back. We've seen groups taking up over 30% of our room nights in August September. And the quarter. The way that we're running these facilities now and the way that we're yielding and being unrelenting on price because people like the quality, the flow through is happening.

Speaker 2

Just last weekend, our average rate was $7.80 in Las Vegas and we're at 99% occupancy. And that is continuing into the future Because we're taking market share and Las Vegas itself is growing. Turning to Macau. We've had, as everyone in the market has had, fits and starts there as to the business. But what has been very encouraging over the last month has been the consultation process with the government.

Speaker 2

It's been open. It's been transparent, it's been productive and we feel very good about the future of Macau and our position Looking at Wynn Interactive, we launched Lots of new product this quarter that we're very proud of. We made great progress in Arizona with first time depositors and we're seeing good customer feedback and our retention is quite strong. However, the market is really not sustainable right now. Competitors are spending too much call to get customers.

Speaker 2

And the economics are just not something that we're going to participate in, in the short term. So while we built the brand, we launched the product in the Q3, we're going to be focused on building a long term business that's sustainable that is not losing lots and lots of money. So we are shifting our strategy to think about the future, think about the long term, Think about cash preservation and we remain very confident that we'll create significant value for the Wynn Resort shareholders with our digital strategy. With that, I'm going to go ahead and turn it over to Craig. Congratulations, Craig.

Speaker 2

Thank you, Matt. And let him go through some more details.

Speaker 1

Thank you. Like everyone in the company, I've admired your leadership over the course of the past

Speaker 3

4 years.

Speaker 1

More than anyone, you know the dedication and talent of the 1,000 call. And I'm honored to have been asked to lead that team. Turning to the quarter. At Wynn Las Vegas, we generated quarter. We did $183,400,000 of adjusted property EBITDA on $476,000,000 of operating revenue.

Speaker 1

Quarter. Overall, our hotel occupancy reached 83% in the quarter with 93% occupancy on weekends. Importantly, we stayed quarter is expected to be a listen only mode until the quarter is expected to be a result of the increase in the year. We are also optimistic about Q3 2019 levels. Our other non gaming business saw broad based strength across F and B and retail, which was also well above pre pandemic levels.

Speaker 1

In the casino, our Q3 2021 slot handle was 31% above Q3 2019 and table drop was quarter, 18% above Q3 2019 despite still suppressed international play due to COVID related travel challenges. The team in Las Vegas has done a great job of controlling costs without negatively impacting the guest experience, delivering a record adjusted property EBITDA margin of 38 quarter. OpEx per day was $3,000,000 in Q3 2021, approximately $250,000 quarter end of Q3 2019 levels despite the 19% increase in revenue. As new high margin business like groups and convention quarter. We expect OpEx to increase modestly, but we remain committed to maintaining the cost structure call that appropriately balances margins and are exacting service standards.

Speaker 1

In Boston, we generated another record quarter with adjusted property EBITDA of quarter, $64,600,000 in Q3 on a record EBITDA margin of $33,600,000 We remain very disciplined on the cost side there too quarter with OpEx per day excluding a $3,000,000 benefit from a few one time items of 950,000 Q3 2021, a decrease of over 25% compared to $1,300,000 per day in Q4 2019 and a modest increase relative Q2 2021. Our Macau operations delivered $10,200,000 of EBITDA in the quarter on $312,000,000 of operating revenue. While business in the quarter was challenging due to the evolving COVID situation, we remain disciplined on costs. Our OpEx excluding gaming tax and the reversal of certain performance based incentive accruals in the Q3 was approximately $2,100,000 per day. We continue to be well positioned to drive strong operating leverage as the business recovers.

Speaker 1

Turning to Wynn Interactive. Q3, the business generated approximately $645,000,000 in total turnover, disproportionately weighted to September. Q1. When interactive is now run rating over $170,000,000 of gross revenue. During the quarter and since, we have achieved several other key milestones for the business, Q1, including launching day 1 in Arizona, where we drove over 26,000 first time depositors through September 30, quarter, securing a number of additional market access agreements, obtaining a license to operate in the state of New York and becoming an official sports betting partner of the NFL.

Speaker 1

While sports betting remains an exciting high growth market and will potentially be a $30,000,000,000 to $40,000,000,000 TAM over time, The marketplace is proving to be very competitive with multiple operators deploying meaningful marketing dollars, driving high cost per acquisition taking a more measured and long term focus to grow healthy and sustainable business, as Matt mentioned. Thus, we expect our Q3 and Q4 EBITDA burn driven heavily by our branding campaign and preopening user acquisition in Arizona will decline materially beginning in Q1 2022 as we focus on cost per acquisition that is commensurate with customer lifetime values. Call. We continue to believe in our team, our product and the longer term opportunity. And there are certainly paths to grow our business in ways that create value for Wynn Resort shareholders.

Speaker 1

Call, but the current combination of large scale brand spend, performance marketing spend and customer bonuses that we see in the marketplace does not drive unit economics that meet our return requirements. Turning to the balance sheet. Our liquidity position remains very strong with global cash and revolver availability quarter of over $3,700,000,000 as of September 30. In Macau, we had approximately $1,800,000,000 of available liquidity as of September 30. Quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter end of the quarter.

Speaker 1

The arrangement includes broad participation by our group of supportive existing lenders, including local and international banks. Quarter. Finally, our CapEx in the quarter was $103,000,000 and we remain prudent with respect to CapEx while we gain further confidence in the recovery. As a reminder, we are limited in what we can say about Wynn Interactive due to the live S-four that we have on file. With that, we'll now open up the call to Q and A.

Operator

Our first question is from Carlo Santarelli with Deutsche Bank. You may go ahead.

Speaker 3

Hey, everyone. Thank you. And Matt, congratulations. Greg, congratulations as well. Guys, obviously, you spent some time talking about Win Interactive and fully appreciating that you can't say much Where given where you are in the process.

Speaker 3

The decision to pivot, is that Something where as you think about the way the market is shaping up and the what I would assume you deem as unprofitable cohorts call comes from the line of David. Okay. Thank you. Thank you. Thank you.

Speaker 3

Thank you. Thank you. Thank you.

Speaker 1

Yes, it's a great question, Carlo. As we've talked about before, we're really focused on lifetime value versus cost per acquisition. And when that ratio is favorable, quarter. In the current environment, there are certainly opportunities for us to do ROI positive acquisition. They absolutely exist.

Speaker 1

It's really a question of scale. So if you're not trying to be aggressive and drive headline market share with large scale brand spend, performance spend, hyper aggressive customer promos. There are absolutely opportunities to grow the business over the course of the longer term.

Speaker 3

That's helpful. Thank you, Craig. And then, Matt, maybe this one's for you as you kind of talked about the consultation and some of the encouraging things that were coming out of those meetings. Do you have any sense coming out of there to the extent that you could share, when you're starting quarter. To think about the next steps in the process and potentially some more visibility into that not only the timeline of the process, but maybe Some of the things that we should expect coming out of it.

Speaker 2

What I can tell you is when the government announced It was very structured at a beginning timeline and when the meetings are going to be scheduled and everything quarter happened exactly as they had laid out. And so we've just been very happy with how open it's been call is on the long term health and stability, which they have continued to say of the industry and of the region. So I can't give any specific dates or timelines, but what I can tell you is we're very confident in the process.

Speaker 3

That's great. Thank you both.

Speaker 4

Thanks, Carlo.

Operator

Thank you. The next question is from Joe Greff with JPMorgan. You may go ahead.

Speaker 5

Hello, everyone. Matt, congratulations. Best of luck. It's been a long time. And Craig, very happy for you.

Speaker 5

Congratulations on your promotion.

Speaker 1

Thanks, Joe.

Speaker 5

Matt, do you want to give Any more description to the reason why you're stepping away now? I'm not sure the statement, the press release really kind of delved into that in great detail and maybe there are reasons for that. And then my second question, Craig, I know you have opinions on casino real estate monetization. Given just the valuations we've seen in Las Vegas and elsewhere in regional casino markets, I was hoping you can give us your updated thoughts, particularly maybe with particular attention to EBH. Thank you.

Speaker 2

Yes, sure, It's actually there's nothing more to it than what I laid out at the beginning of this call. I've been here for 20 years. I was Steve Winn's right hand guy for a long time. And when that transition happened, I made the commitment that I was going to make sure this company didn't lose what it was built on, which was excellent service driven and just being the best. And That's what I wanted to do.

Speaker 2

That's what I wanted to achieve and we've done that. Now the pandemic frankly elongated my program a little bit Because when that hit, I realized I needed to lead through that and make sure that we come out better than ever. So it's really one of those, It's been 20 years. Exactly what I wanted to achieve, we've done. And I feel like the management team that's in place, the people that are in place quarter.

Speaker 2

There's really nothing more to it. I committed to 4 years and that's my 4 year anniversary.

Speaker 1

And on the real estate side, Joe, you know our position. Our position is if any over any reasonable period of time, our valuation appropriately reflects The value of our real estate, then we're always more content to control that real estate and be able to invest in that real estate. And really that hasn't changed. To the extent that it does change, then obviously we'll have to consider what's in the best interest of shareholders.

Speaker 6

Great. Thank you.

Operator

Thank you. The next question is from Thomas Allen with Morgan Stanley, you may go ahead.

Speaker 4

Thank you. And just want to reiterate the congratulations to you both on, Matt, what's So The U. S. Results are really stellar. Back in mid-twenty 19, you guys had set targets of $515,000,000 for Vegas quarter and $275,000,000 for Boston.

Speaker 4

Any updated thoughts around the kind of longer term outlook for those properties?

Speaker 2

Well, yes, sure. I'll jump in. And I think that given what we're seeing now, Those estimates feel quite conservative. And I think it's pretty clear. What we achieved in Las Vegas was it's market share taking and it's a restructure of the business.

Speaker 2

It's not I think that we all sit around and think quarter. Our normalized margins are between 3540 in this market. And so we didn't go out and cut a whole bunch of cost and slowly bring people back, Trying to squeeze every last dollar. No, we went out and got more customers. And I think that's going to continue and the same at Encore Boston Harbor.

Speaker 1

There isn't one piece of the business, Thomas, that we haven't touched and addressed and changed and adapted. So really these two assets are firing on all cylinders.

Speaker 4

Perfect. Thanks. And then just following up on the transition, any Thoughts on the new CFO? And then Craig, are you going to still run Win Interactive? How are you thinking about that?

Speaker 4

Thanks.

Speaker 1

Sure. We're fortunate at the company that we have a reasonably deep bench at the corporate level and we've done We've hired some real talent on the Win Interactive side. So we'll be coming back to you soon, with the management structure with a revised management structure

Operator

call. Thank you. The next question is from Shaun Kelley with Bank of America. You may go ahead.

Speaker 6

Great. Good afternoon, everyone. And yes, Matt, Craig for my congratulations as well. Matt, it's been a long number of years. So, look forward to hearing what's next.

Speaker 6

Craig, I'd love to hit on a couple of the comments and I know there's only so much you can probably cover right now on Interactive. Call. The comments specifically on CPAs, I mean, I know you know this formula better than probably anyone else on this call. Can Can you talk about the prevailing like just level of what you're seeing out there? Because one challenge we I think I'll run into as analysts is the quarter.

Speaker 6

The formula kind of spits out whatever in a way a little bit of whatever you want. So the more you spend on marketing, you can justify it if call. Your LTV is higher, and it's hard for us to kind of independently validate. So just a little bit of thought around like what is that prevailing level of spend out there quarter. And sort of what do you maybe want it to be to make the model or math work to what you think is going to be a profitable long term?

Speaker 1

Call. Sure, Sean. Yes, we don't quote specific CPAs or specific LTVs. LTVs, of course, are a quarter. Pretty lengthy forward looking estimate.

Speaker 1

What I would say is that you really have kind of 3 elements that impact this, right? You have brand spend, You have performance spend where you're actually buying digital ads to bring customers directly to the product and then you have the underlying promotion that you're providing the customer. And some participants in the market, have structural advantages in those areas, some participants don't. And so when you're pulling all three of those levers into a very, very aggressive market where there's a ton of competition and a of folks doing the same thing, it can become particularly difficult, particularly in states where you're entering the market late. So in Arizona as an example where we did 26,000 plus FTDs over the course of September, that's a great outcome.

Speaker 1

Other states That where maybe you're entering or scaling a little bit later, it becomes much more offer driven and you can pretty again, pretty quickly get upside down. So I think what we're focused on is leveraging the advantages that we have, right? We have a database. We have a brand. And to the extent that quarter.

Speaker 1

We're not aggressively chasing every single lever. We can build a business over the longer term that's a great business into what will eventually be A really, really strong TAM.

Speaker 6

Thanks for that. And then maybe a pivot for my follow-up, but just that's never been fully able to be utilized. Can you talk a little bit about how you expect that to ramp in 2022? And when we might be at a level that you might consider run rate or really showing the potential of all the levers that you have there?

Speaker 2

Sure. Hey, Brian, why don't you take that? Sure. The group rooms that we have right now are pacing ahead for 2022 and even for 2023, all at call at ADRs. The sales team is doing an amazing job.

Speaker 2

And I think that we continue to see the interest quarter level just spiking for some reason. It's fantastic. We even have short term interest. So, very solid on the group side and foresee this continuing.

Speaker 6

Thank you very much.

Speaker 1

Thanks, Sean.

Operator

Thank you. The next question is from Stephen Grambling with Goldman Sachs. Call. You may go

Speaker 7

ahead. Thanks. I'll offer my congrats and best wishes as well. Two follow ups to earlier questions. First, On Macau, while the timing of recovery is uncertain, given your confidence in the concession renewal, what are some of the things that you're doing now or plan on doing to change the positioning of the assets

Speaker 2

Yes, sure. Ian, why don't you jump in and take that?

Speaker 8

So over the last 3 years, we've been pivoting luxury assets that were formally taken up by quarter. So the pivot is very, very straightforward for us.

Speaker 7

Great. And then maybe as an unrelated follow-up on Real estate value, Craig, I appreciate the response on valuation. So if we were to look at Vegas and Boston assets separately, are the 2 markets Seeing different kind of potential differences in capital intensity and valuation from where you sit today? Thanks.

Speaker 1

Well, on the capital intensity side, naturally Boston is going to be less capital intensive. It's just the nature of the business there and the nature of the asset quarter relative to Vegas, right? Vegas is a market of pretty consistent reinvention. And as Matt mentioned, we've done an incredible job at that. On the valuation side, again, I think you have to look over any reasonable period of time and look at the value of the real estate within the broader business.

Speaker 1

So we watch that very closely. We watch it all the time. And we're very conscientious of the underlying real estate value. But that has quarter.

Speaker 7

Do you think that the competitors' response to competitors actually

Speaker 1

Have they changed the competitive environment? I guess it's just a form of financing, right? It's no different than a piece of debt. It just happens to be over time a more quarter end of the day, each operator is going to make their own decision and form their own strategy. Being an OpCo has its advantages and has its disadvantages depending upon what's happening in the broader business.

Speaker 1

So I don't think it's an operational question other than the willingness to continue to reinvest in your business And how you do that, but I don't think it's a day to day operational question per se.

Speaker 2

Fair enough. Thanks.

Operator

Thank you. The next question is from David Katz with Jefferies. You may go ahead.

Speaker 9

Hi, this is Cassandra asking on behalf of David. First, congratulations to both Matt and Craig on behalf of David And thanks for taking the questions. So I would like to ask about New York. You got the license yesterday, Just given the high tax rate at 51% and your comment around pivoting in your approach to scalability. So how are you thinking about Q and

Speaker 1

A Thank you. Yes, we were really pleased to be awarded that license yesterday. And New York clearly has the potential to be one of the largest addressable markets in the U. S. Given the tax rate as you point out, it's a prime example of a market quarter where you need to be incredibly prudent with respect to marketing and bonus expense, which obviously as you also pointed out a theme that I discussed pretty heavily in prepared remarks.

Speaker 1

We have a great database in New York, particularly in the more affluent areas of the state. And certainly to the extent that you're prudent with marketing spend quarter end. And bonusing, there's the opportunity to build a business there over time. But no doubt, the tax rate is a headwind that we all have to acknowledge.

Speaker 9

Got it. And if I may follow-up, I think there is a request for information I mean New York for downstate license. Any thoughts around potentially pursuing that or pursuing other organic or greenfield opportunities for Wynn.

Speaker 2

Yes, this is Matt. And Craig and I have for the last 5 plus years, we work on these things together and that is what wind does. So I think We will be participating in the New York process up until it seems either like a good deal or uneconomic and it's hard to know. Call. But that's one that we're going to keep a close eye on.

Speaker 2

And there are other potential new jurisdictions that could be really exciting quarter actually. And what's so great about this company is our design team and architecture team over 100 people that are responsible for Mirage and Treasure Island and Bellagio and Wynn, basically the modern day integrated resort are all intact and excited. And you can't build something new if you haven't built these things in the past. And our team is really good at that and understands how to make these things work both financially, but more importantly for the customer. So If a new opportunity comes up that makes sense for Wynn and the Wynn brand, I think that we will the team will continue to look at it.

Speaker 9

Got it. Thank you very much for taking my questions.

Speaker 1

Thank you. Operator, we have time for one last question.

Operator

Thank you. Our last question is from Robin Farley with UBS. You may go ahead.

Speaker 10

Great. Thanks for taking the question. And Craig, let me add my congratulations on top of everyone else's on the new role. Thank you. I had a question about the potential gaming law changes in Macau.

Speaker 10

I'm just Q3. Wondering what your view is on, if government approval is required for dividends, would that be a concern in terms of ability to get shareholders' quarter return on the investment there or would you be comfortable that that's that would not be a factor that would come into play?

Speaker 2

Robin, it's Matt. I think everyone is focused on That issue and the industry is fairly united. And like I said, I think the government has been very open and quarter balance the employment market and stability of Macau with returns for shareholders, which I think is perfectly logical It makes a lot of sense. Ian, Linda, you're attending these meetings in person. What are your thoughts?

Speaker 8

This is Ian. We've been very impressed with the partnership orientation of government with their pragmatism And also the progress that's being made. It's been very transparent. They've allowed us to engage directly in person and also in writing. We've shared our concerns.

Speaker 8

We don't have clarity on a number of the issues at this point, but we will get clarity further along the way. All of the concessions have similar concerns, and we believe that the fact that we've heard them and shared them, that they will be given very serious consideration by government. Ultimately, we're in partnership with government. They're also very aware of the Growing regional competition, particularly with Japan now kicking up. So there's a desire for stability going forward.

Speaker 8

Quarter. And they understand that we're businesses that need to reinvest and continue to develop. So we feel a lot of support from government. It's a process. We'll get more information further down the line, but we're very confident that they have our best interest at heart.

Speaker 10

That's great. That's very helpful color. Thank you. Can I follow-up on a quick one related to the online gaming strategy, if I could? I'm just curious with the approach of so many online betting operators is that quarter.

Speaker 10

Revenue matters early and at not I would say not at any cost, but that and the market quarter seems very willing to value on multiples of revenue. And I mean, I'm old school and think as you do that, that profitability matters more than that. But What how do you I guess, what are your thoughts about if you don't focus on that in the early stages? Quarter. You mentioned that entering late is more offer driven maybe than getting in on day 1.

Speaker 10

And so quarter. It seems like that suggests that you do see a trade off of that there will be expense later if you don't sort of capture the top line market share upfront. So wonder if you could just put some context around that. Thank you.

Speaker 1

Sure. Sure, Robin. First, 1st, let me say that we fully intend to be day 1 in every market that we address. And so we'll be there. We'll be there day 1.

Speaker 1

Call. The important thing to keep in mind is, it's not so much income statement profitability, it's profitability of cost per acquisition versus Lifetime value. It's making sure that every first depositor that you drive or every cohort of first depositors that you drive are ultimately profitable on a lifetime value basis. So that's where we're focused. It's much more about the return on the spend, the return on the ad spend.

Speaker 1

And certainly, we believe that we have the ability to do that over time. It doesn't mean that we're going to intentionally enter markets late.

Speaker 10

And wasn't suggesting that you would, but just that maybe that holding back on the spend would mean that the revenue market share wouldn't be as high the profitability market share, but that's helpful context. Thanks very much.

Speaker 1

Sure. No problem. All right, everybody. Thank you for joining today. We'll talk to you next quarter.

Speaker 1

Thanks.

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Wynn Resorts Q3 2021
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