Wynn Resorts, Limited

Welcome to the Wind Resort's first quarter 2023 earnings call. All participants are in a listen-only mode until the question and answer session of today's conference. To ask a question, press star 1 on your touchtone phone. Record your name and I will introduce you. Please limit yourself to one question and one follow-up question. This call is being recorded. If you have any objections, you may disconnect at this time. I will now turn the line over to Cameron I'm sorry, to Julie Cameron Doe, Chief Financial Officer. Please go ahead.

Thank you, Operator, and good afternoon, everyone. On the call with me today are Craig Billings and Brian Gilbrance in Las Vegas. Also on the line are Linda Chen, Frederick Lubisuto, and Jenny Holliday. 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 come true. I will now turn the call over to Craig Billings.

Thanks, Julie. Afternoon, everyone, and thanks for joining us today. Before we get into the specifics of the quarter, I'm pleased to say that after three years of suspension, today we announced that we are resuming payment of quarterly dividends, initially 25 cents per share. We have a number of growth projects in flight that require capital and will ultimately add meaningful EBITDA to our business. But with Macau returning to profitability and North America continuing to perform well above historical levels, we have sufficient financial flexibility to also return capital to shareholders. I also want to express appreciation to our 27,000-plus team who were once again recently recognized by Forbes Travel Guide with 24 five-star awards, the most of any independent hotel company in the world. Thank you for all that you do. Turning to Las Vegas, I have to tell you, it's a fascinating time in our business. Despite the confluence of high inflation, high interest rates, bank failures, and increasingly difficult year-over-year comps, Wynn Las Vegas delivered an all-time record in Q1 with $232 million of adjusted property EBITDA, supported by a consumer that continues to feel flush. We also subsequently delivered the best April in the history of the property. We continue to invest heavily in people, programming, and the building to further distance ourselves as the clear leader in luxury in Vegas. Looking ahead, we currently have a strong pipeline of forward group demand, continued rooms pricing power, healthy drop and handle, and a robust programming calendar, particularly in the back half of the year. Yet I continue to watch the macro factors that I mentioned earlier. And I will note that with Q2 23, we will begin comping against some very strong prior year quarters. Lastly, just as I have the past several quarters, I will continue to tell you exactly what we're seeing, and right now, things feel good around here. Turning to Boston, like Vegas, Encore had a strong quarter, generating $63 million of EBITDA. We saw strength across the casino in terms of table drop, slot handle, and overall GGR. On the non-gaming side, we delivered strong hotel revenue driven by both ADR and occupancy. The strength has continued into Q2 with EBITDA per day in April, largely consistent with trends we have experienced over the past few quarters. We also launched retail sports betting at Encore Boston Harbor in Q1, which helped drive a 20% increase in sign-ups to our Win Rewards loyalty program year-to-date. I expect the book will continue to be a significant driver for new customer acquisition over time. On the development front in Boston, we finalized the interiors and begun to buy out structural materials for our upcoming project across the street from the property that will add incremental parking, food and beverage, and entertainment amenities. Turning to Macau. We generated 156 million of EBITDA in the quarter, with lower than normal VIP hold negatively impacting EBITDA by about 10 million. In the casino, mass table drop reached 82% of Q1 2019 levels, and our VIP hold normalized market share was over 14% during the quarter, despite unusually low hold in our mass business at Winn-McCowell. and the fact that significant portions of Wynn-McCow's East Casino were closed for renovation during the quarter. Encouragingly, that market share was consistent with full year 2019 levels. On the non-gaming side, our retail business was incredibly strong, with tenant retail sales increasing 60% compared to the first quarter of 2019, once again highlighting the strength of our premium consumer. Looking forward, As you have seen, market-wide GGR momentum in Macau has been very impressive, building through the first quarter and accelerating into April. Who would have thought, even six months ago, that the market would be run rating north of $22 billion of annual GGR? In April, our mass drop per day increased versus Q1, our direct VIP turnover per day increased meaningfully versus Q1, and occupancy and retail sales were very healthy. More recently, the May Golden Week holiday period was particularly strong, outperforming Golden Week 2019 in several key areas. In the casino, our overall mass table drop during the holiday period was nearly 10% above 2019 Golden Week levels, and our direct VIP turnover was more than double 2019 levels. Outside of gaming, our tenant retail sales increased 36% compared to Golden Week 2019, and our hotel occupancy was 95%. Performance during and after the quarter was skewed towards Wind Palace, driven both by the mix of customers that have returned to Macau in the initial reopening wave and the renovation-related closures at Wind Macau that I mentioned earlier. We are making a number of changes and improvements to Wind Macau that I expect will drive longer-term market share gain. In the meantime, I expect that Wind Palace will continue to pace ahead of Wind Macau in the recovery. On the development front in Macau, We are deep into design and planning for our concession-related CapEx commitments, which we believe will help support Macau's long-term diversification goals and be additive to our business over the coming years. We look forward to telling you more in due course. Lastly, I hope that you were all able to review the information we provided a couple of weeks ago on Wynn-Almarjan Island, our planned integrated resort in the UAE. If you haven't listened to the presentation or read through the slide deck, you can find both on our IR website. I'm incredibly proud of the program and design elements we have put together thus far, and as we noted in the presentation, we think the resort will generate between $450 and $600 million of steady state EBITDA. The combination of our 40% equity ownership in the project, along with our management and license fees, will drive a very healthy ROI for Wynn Resort shareholders. With that, I'll now turn it back to Julie to run through some additional details on the quarter.