[ad_1]
Wynn Resorts Ltd. (NASDAQ: WYNN) Call for Financial Results for the Third Quarter of 2018, November 7, 2018 at 4:30 pm ET
managerial staff
Craig S. Billings – Wynn Resorts Ltd.
Matthew O. Maddox – Wynn Resorts Ltd.
Ian Michael Coughlan – Wynn Macau Ltd.
Analysts
Joseph R. Greff – JPMorgan Securities LLC
Carlo Santarelli – Deutsche Bank Securities, Inc.
Felicia Hendrix – Barclays Capital, Inc.
Shaun C. Kelley – Merrill Lynch of Bank of America
Harry C. Curtis – Instinet LLC
Stephen Grambling – Goldman Sachs & Co. LLC
Cameron McKnight – Credit Suisse Securities (LLC)
Operator
Welcome to Wynn Resorts' third quarter 2018 financial results call. All participants are listening alone until the Q & A session of the conference today. This call is being recorded. If you have any objections, you can disconnect for the moment.
I will now go to Craig Billings, chief financial officer. Sir, you can start.
Craig S. Billings – Wynn Resorts Ltd.
Thank you, operator, and good afternoon to all. Matt Maddox is present in Las Vegas. and Maurice Wooden. Ian Coughlan, Ciaran Carruthers, Frederic Luvisutto and Bob DeSalvio are also in the lineup. I would like to remind you that we may make forward-looking statements under federal Safe Harbor securities laws and that these statements may not be realized.
I will now go to Matt Maddox.
Matthew O. Maddox – Wynn Resorts Ltd.
Thank you Craig and welcome everyone. Before I start talking about the quarter, I would like to take a few minutes and explain why we are very excited about the future of Wynn Resorts over the next two to three years.
First, I would like to start in Boston. We were there recently. I was there recently. We currently employ 200 people and are about to hire another 4,000 and to open a $ 2.6 billion integrated resort in the heart of the Boston Metro in less than eight months. As a management team, we are facing some major issues: How are we going to control the crowd and how are we going to control the traffic to ensure the five-star experience that people expect from Encore Boston Harbor? will be delivered. This is a property that is about to open. It will provide a gradual growth in EBITDA. We are very excited about this and hope you can all join us in eight months to open this property.
As far as Macau is concerned, I would like to congratulate the Macao government for managing the typhoon this summer. Not only were they very well prepared, but after and after cleaning everything was perfect. As a company, our 13,000 employees and the entire community greatly appreciate it. And when we look in the background what Macao wanted to accomplish, since 2002, the year of the arrival of the new operators, Wynn was chosen as an innovator, as a progressive company. This is not going to compete with replitecture (02:41) or copying other people, but it's going to be new and interesting, and that's what we've provided.
$ 7 billion investment there since we started. We choreographed dancing fountains in front of our two hotels. We have a tree of prosperity that has been a tourist attraction and a chandelier that falls from the ceiling and that everyone in Macau and tourists will constantly see. And it's one of the most photographed opportunities in Macau. And these innovations are part of the DNA of this company. That's why we were chosen and that's what we will continue to do.
As we discussed this year, we are working on how we will develop in Macau and continue to innovate as we believe it is the best place on the planet to invest in the integrated resort area. We have a seven-acre parcel next to Wynn Palace. We are very close to the new Lisboa project and we are working hard on what could be soon. We have so far a 1.5 million square foot facility which, in our opinion, will be a must in Macau.
The level of the podium we call the Crystal Pavilion is a large glass structure that will house many non-gaming features. In fact, some of the public entertainment attractions will be all around the Crystal Pavilion. We have a 60-foot gong fire hanging in the center of it with acrobats on cables that go up and down slightly playing the gongs. While crossing the pavilion, you will meet a theater. And this theater will be really the first of its kind. We had the idea when we were in the Vatican. The Vatican has launched a Michelangelo program with a theater. It took an old 1,500-foot theater and created an immersive experience with screens on the walls and ceiling.
The audience has had a 270-degree experience, including stage performances. This has been quite successful. So we thought that if we took this idea and the custom of building it in this area with a big 600-foot theater and making it totally immersive, that experience would not be like any other on the planet. We are currently working on three programs. These shows will not last an hour and a half. They will look more like 45-minute vignettes throughout the day. We think everyone will want to come live the immersive theater experience.
Now connected to the crystal pavilion, we know something for sure. Wynn Palace needs more hotel rooms. In order for the Wynn Palace to return to its current state and reach a billion dollars of EBITDA, we need 3,000 hotel rooms. So, on the seven-acre site where we have currently considered and designed a 671-room hotel fully connected to the Crystal Pavilion with a bridge leading to the Lisboa Palace.
In addition, on the north four-acre parcel, we are working on a 700-room, all-suite hotel that we will connect north of the Wynn Palace, from 1,700 rooms to more than 3,000. really where we need it to be. We are very excited about the future of Macau. We have a lot of good things. We plan to introduce this concept over the next two months, until 2019, to obtain permits, finalize the design, implement all of this, and begin work. of construction in 2020.
By moving to Las Vegas, Las Vegas, we have a major asset on the Strip. We decided that we really needed to take what we have here and add new things, refresh them. So over the next three days we will open Wynn Plaza. Cipriani will open, a first in Las Vegas. Urth Caffé will open, a first in Las Vegas. SoulCycle will open this weekend's premiere in Las Vegas, alongside many other retailers. It's a retail and lifestyle complex that, in our opinion, will be unique.
We have also worked on two new restaurant concepts that we will implement in 2019. These concepts will generate more energy than we currently have. It's really for the customer. If they want to go to dinner, but do not really want to go to the nightclub after, or in bed, they want to continue hanging out. We are currently working on some excellent concepts for Las Vegas in 2019.
We will have five new restaurants, more than 50,000 square feet of additional stores that we will open. And then end of 2019, beginning of January – in January 2020, we will open here a 400,000 square feet congress center. That's 200,000 square feet of net rental space coming in essentially 12 months. We believe that this convention center will add 4 to 6 occupancy points to this hotel, which will allow us to really increase the rate during peak periods, because we will be in the low in the mid-90s in all time. days.
So we have a lot to do in Las Vegas, with new restaurants, new retail outlets and more – an upcoming convention center, all in the next 12 to 18 months.
But as for the rest of the development, here in Las Vegas, in early 2016, we organized an analyst day and announced a project called Paradise Park. This project cost more than $ 3 billion, given the current construction costs, and included the convention center we are currently building.
From April 2016 to today, we have always struggled with Phase 2 of Paradise Park. How are we going to do a room tour in a city with a lot of rooms, a pencil (09:10), as well as a lagoon, because we were not really interested in building the halls? a large public pool for the Las Vegas Strip.
So we decided to move to phase 1. We know that the convention center will work. That's what Wynn Las Vegas needs. And continue to focus on Phase 2, the rest of the development of this golf course.
Well, earlier this year, our option in Las Vegas changed when we bought 38 acres of land on the Strip, a site far superior to the location of the golf course located off the strip.
So we reinstated Tom Fazio, the original designer of our golf course, to have a look at the few holes disturbed by this 400,000 square foot convention center. And see if we can design a new 18-hole golf course connected to Wynn and Encore. And let it be operational again before the opening of our convention center.
The design of this is complete. The work has begun. And the golf course will be restored and will return to action next year.
This is an excellent equipment for the resort. In fact, not only did we notice that we had lost 16,000 rounds of golf, 70 per cent in cash, but we probably lost between $ 10 million and $ 15 million worth of national casinos. People who come for golf trips who decided to go elsewhere.
So, now that we have 38 acres of land on the Strip to develop the next asset of Las Vegas, we can build our golf course as an asset to the 10 million square feet and the 4,700 rooms we have here.
For the 38 acres of land, we are just beginning the design and development of that. It takes at least two years to properly understand this new integrated complex on the Las Vegas Strip that will be innovative and progressive and that will attract new customers to this site, which I know we can do. But it will take two years of design and development for this project. And we'll start that in 2019, the design and development program.
So, our future is really bright over the next three years, from the opening of Boston in June of next year to all current activities at Wynn Las Vegas. that we will capitalize on the marquee asset that exists today. The future opportunity in Macau we are working on and hope to be on the ground in 2020. And the 38 acres of land here in Las Vegas.
Our management team in Macau, Boston and Las Vegas is therefore very excited about everything we need to do over the next three to five years.
In terms of the quarter, Macao's results were solid. We were pleased with a $ 409 million EBITDA. However, we had about $ 20 million high during that period. But even with 390 million dollars, it was a good quarter. And in the third quarter, $ 390 million, we were satisfied. But what we have seen recently has been more murky. So, as everyone has pointed out, the October Golden Week is pretty strong. We are really happy. We doubled the average EBITDA we would have during this week.
But since Golden Week, we noticed that mid-week, the situation was rather hectic and sporadic weekends. We can have a great weekend, maybe one or two days are great as opposed to all three. And so what we saw after the Golden Week was a slowdown. We have seen this particularly in the premiums, mass, premium slots and VIP sectors, and that's where most of our EBITDA comes from. So we have always focused on the premium and we will always do it, because in Macau, this will be the first time we will withdraw, but also the first to grow as a result of these slowdowns.
So, what we're experiencing right now, I think the fourth quarter will be around $ 3.3 million a day at about $ 3.7 million a day, really looking at day-to-day and looking into the next 90 days. to the liquidity, the customers, who comes and what we see. We do not expect to lose shares in our segments, but we think the premium segment of the market is feeling less well and this is what we expect for the fourth quarter.
By moving to Las Vegas, a $ 95 million EBITDA, which is unacceptable, we had $ 10 million on hold, so even with a $ 105 million EBITDA, it's the normalized EBITDA we would have got our results. And really, the story in Las Vegas was all about baccarat. All our segments at the hotel corresponded to our expectations, with the exception of the casino. We had about 11,000 nights compared to last year, of which 8,500 arrived at the casino. And the casino block generated revenue of about $ 6 million, which represents almost all the losses from the previous year. So we know that some of the players who rebounded in the city ended up facing one of our competitors. And were beaten pretty fast and I think if you look at the band and look at an outlier, you can probably see who it was.
It's temporary. It's just the nature of the baccarat business. I do not foresee that we lose a share. In fact, we will continue to gain share. However, as we have seen in the past, whether in 2003 with SARS and what happened in the VIP market and the recession of 2008 and 2009, in 2014 we saw the slowing down of the premium market in the VIP world, this has always had an impact on Las Vegas. So, until we have clarified what is happening in Asia in the area of premium products, we will remain cautious in the future on the baccarat market for Las Vegas.
That being said, I will let Craig Billings give more color to the quarter.
Craig S. Billings – Wynn Resorts Ltd.
Thanks Matt. As reported in our publication, our operations in Macao generated adjusted EBITDA of $ 409.1 million on operating revenues of $ 1.3 billion, driven by growth in the VIP segment and influx into mass with a mass table increasing by 36% over 12 months. In fact, more than 70% of our departmental EBITDA during the quarter was generated in mass, slot machines and games. We continue to diversify our activities in Macao. While Macao's operations for the quarter were affected by the typhoon-related closure in September, the estimated impact of EBITDA on the closure was offset by an EBITDA of around 11 million USD for the quarter from the receipt of the product of the insurance against operating losses related to Typhoon Hato 2017.
Keeping VIPs also had a positive impact on our results in Macau. Matt mentioned primarily at Wynn Palace to increase EBITDA of our Macau business by approximately $ 20 million from a normalized level. Bad debts in Macao amounted to $ 2.8 million for the quarter, compared to $ 600,000 last year.
Our Las Vegas operations generated adjusted real estate EBITDA of $ 95.3 million during the quarter, generating net proceeds of $ 398.9 million. Las Vegas remained at a low level during the quarter, which had a negative impact on EBITDA of nearly $ 10 million. During the quarter, the building was increasingly affected by declines in table revenues across the market, which also had a negative impact on ADR, RevPAR and hotel products, with loss of ADR casino nights higher in the number of rooms, as mentioned Matt.
In addition, weather conditions also negatively impacted our nightclubs, resulting in an annual decline in revenue from food and beverages. In Boston, we incurred a total project cost of $ 193.3 million during the quarter, bringing total expenditures to $ 1.83 billion. The property really looks great and we are on track to open in June 2019.
We ended the quarter with total debt of $ 8.9 billion and $ 1.9 billion of cash and investments, including $ 1.4 billion at Wynn Macau. After the end of the quarter, Wynn Resorts Limited incurred $ 500 million of term debt, the net proceeds of which will be used for general corporate purposes, capital expenditures and potential share repurchases. In line with our announcement at the beginning of the year, our quarterly dividend is $ 0.75 per share, generating more than $ 81.5 million for shareholders this quarter. In light of the revised CapEx planning discussed by Matt, we expect to generate significant cash flow following the opening of Encore Boston Harbor. We look forward to continuing to prudently reinvest in our business while returning surplus capital to shareholders.
With that, we will now move to Q & A.
Question and answer session
Operator
Thank you. We will now begin the Q & A session. Our first question is from Joe Greff with JPMorgan. Your line is open.
Joseph R. Greff – JPMorgan Securities LLC
Good afternoon everyone. Matt, just in regards to your comments on what you see in Macau since Golden Week, I think we could probably deduce some. But what do you hear from some of your Junket players and operators as drivers? And it may be a quantum question, but are some of the reasons for this embarrassment or agitation temporary? Or do you think that they are somewhat permanent?
Matthew O. Maddox – Wynn Resorts Ltd.
Of course, Joe. So, I will start by saying that it does not look like 2014. There is no big credit bubble looming. For example, we generate an annual business turnover of about $ 120 billion between our two properties, the same result we generated in 2013 with just one property.
But the progress we are making with our Junket operators is less than half today. So, speaking with Junket operators, I was there recently, and none of them feel that it is the 2014 credit bubble that is going burst. We really feel more macro.
So, what I would say is that the demand for our product and for Macau in China is insatiable. We are very long-term believers in Macao. And if there is a withdrawal for three months, six months, nine months, I do not really know what it is, we have experienced that. But we note that the underlying demand for this activity is very strong.
Once again, I think the setback is definitely temporary. Macao's growth is up and right. And we are well positioned to take advantage of it over the next five years.
Joseph R. Greff – JPMorgan Securities LLC
D & # 39; agreement! Great. And then just to perhaps understand in this environment the structure of operating expenses. Obviously, when we look at your historical results, we can see what are the variable expenses, between the game, the taxes and the market commission. With this other type of third component of OpEx, the non-gambling tax, the non-gambling fee, how much flexibility is there if the income is stable or the trend is down?
Matthew O. Maddox – Wynn Resorts Ltd.
Joe, I do not assume that many operators could follow a spending regime, given the current structure of the workforce, which will increase continuously, as well as commissions and taxes.
Joseph R. Greff – JPMorgan Securities LLC
Great, it's useful. Thank you.
Operator
Our next question is from Carlo Santarelli from Deutsche Bank. Your line is open.
Carlo Santarelli – Deutsche Bank Securities, Inc.
Hi guys. Good afternoon. Matt, when you think about the fourth quarter, and of course the results you got in the third quarter and some of the comments you made after the Golden Week. Gold Week usually tends to be a period when the wings, the short – the period before and after can be a little sweeter. When you talk about $ 3.3 million to $ 3.7 million worth of properties, and I guess it was EBITDAR at the property level per day, the range is good for the fourth quarter.
Is this simply a way of extrapolating what you see at the beginning of the month with the end of the post-Golden Week year until the end of the year? Or is there anything else that influences the way you're doing?
Matthew O. Maddox – Wynn Resorts Ltd.
Yes, of course, Carlo. So let's be clear: the $ 3.3 to $ 3.7 million is for the full fourth quarter, including Golden Week. And as we said, as I said earlier, Golden Week was pretty strong.
But what we experience in the middle of the week and on weekends has been mild and sporadic weekends. So I do not want to get into a forecast of what 2019 will look like. I think it's a market call. We are very comfortable with our position. But that's what we are planning for the fourth quarter.
Carlo Santarelli – Deutsche Bank Securities, Inc.
D & # 39; agreement. And, I suppose, to follow up, is the sporadic nature you mentioned of this type in all areas? Do you see this from VIP to the lowest mass levels? Or is it just more a VIP and perhaps bleeding in the premium mass?
Matthew O. Maddox – Wynn Resorts Ltd.
It's a VIP and premium affair. The milling sector continues to grow. So we see that our main business is doing well. And the premium business will grow. And that's where you always want to invest in this industry. But we are currently seeing a slight contraction.
Carlo Santarelli – Deutsche Bank Securities, Inc.
Including. And then just if I could, follow up. As you mentioned two towers on the wings of the Wynn Palace. Could you give us a rough idea of your capEx design for all of what you will do over the next few years, knowing that it will be a multi-year process?
Matthew O. Maddox – Wynn Resorts Ltd.
It's really too early. We will provide more detailed CapEx estimates in 2019. But the certainty is that Wynn Palace needs more hotel rooms. On weekends, we can not accommodate all the clients we need and we have to find a way to access 3000 hotel rooms and create what will be Macau's tourist destination with our Pavilion of Crystal.
Carlo Santarelli – Deutsche Bank Securities, Inc.
Including. Thanks Matt.
Operator
Our next question comes from Felicia Hendrix with Barclays. Your line is open.
Felicia Hendrix – Barclays Capital, Inc.
Hi, thanks a lot. Matt and Ian too, I know – in this kind of environment, I know you're not going to be promoting to stimulate the demand, because you've never worked that way, but do you fear that the market struggles when everyone starts to fight or compete for lower volumes of demand?
Matthew O. Maddox – Wynn Resorts Ltd.
Ian, I'll let you take that one.
Ian Michael Coughlan – Wynn Macau Ltd.
Sure. In general, competitors were highly measured during periods of economic downturn, whether dictated by liquidity or politics. So we do not have the instinctive reaction that we used to see six or seven years ago. Certainly, there has been a lot of stimulation in the small business market. You've opened seven new meeting rooms and more on the horizon over the next 12 months, especially at Cotai, which tends to generate more of the benefits for junkets. This makes it hypercompetitive. This is not a game we play. We are interested in the long term, but nothing on the mass side at this time and apart from some of the new open trading rooms that have increased their commissions, we have not seen anything disturbing.
Felicia Hendrix – Barclays Capital, Inc.
And Ian, while you're trying to spread a bit less between the two properties, can you tell us what this strategy might look like in a slower time?
Ian Michael Coughlan – Wynn Macau Ltd.
We will simply continue to operate as we have always done. We will try quality and take advantage of the best products and services on the market. We have been in the rodeo for 12 years. We are going through these periods of sporadic volatility. And then, we are witnessing extreme growth spurts. So that's been Macau for 12 years. We will not go too much in one direction or the other.
It's hard to look comprehensively until in 2019. I think we forget that a good Golden Week marked the two weeks that followed the Typhoon Mangkhut, when business dropped dramatically . And that was an indicator for the fourth quarter in my opinion. So we see a lot of difficulties during the week and reasonable weekends, we now have four weeks after Golden Week to look at the market and it's sweet.
Felicia Hendrix – Barclays Capital, Inc.
D & # 39; agreement. Thank you. And by the way, thank you all for all this transparency, I think this is very useful. Craig, you recently signed a new $ 500 million term loan. The wording of this 8-K document indicates that the repurchase of common shares is one of the uses of the net proceeds of the capital increase.
Craig S. Billings – Wynn Resorts Ltd.
That's done.
Felicia Hendrix – Barclays Capital, Inc.
Yeah. So, in your previous call, you said that dividends would be the preferred way to return money, but you also said that in the event that the title would be extremely cheap, you would increase it. . So, given everything that's going on, given what has happened to your stock since the last quarter and probably what's going to happen now, I'm wondering if you're pulling the vacuum.
Craig S. Billings – Wynn Resorts Ltd.
Sure. Yes. We said that. We have been quite explicit about our return on capital policies. We have a declared preference for the dividend and I said that if the stock became extremely cheap, we would buy it. When extravagant market narrations or extreme market dislocation make the stock really where we do not believe it, then we support it with our own purchases.
Felicia Hendrix – Barclays Capital, Inc.
D & # 39; agreement. And just to make sure I'm right, you still have $ 1 billion on your authorization?
Craig S. Billings – Wynn Resorts Ltd.
We have a $ 1 billion authorization, okay.
Felicia Hendrix – Barclays Capital, Inc.
D & # 39; agreement. D & # 39; agreement! Great. Thanks, thank you.
Operator
And then we go to Shaun Kelley from Bank of America.
Shaun C. Kelley – Merrill Lynch of Bank of America
Hello everyone. Matt, you've already alluded to this in some of your prepared remarks and also in the answer to Joe's question, but could you describe the behavior of clients in terms of breakdown spending per visit and number of visits? Il semble que ce soit en grande partie une sorte de contraction de la confiance du consommateur, mais pourriez-vous simplement nous aider à réfléchir sur le comportement du consommateur un peu plus depuis que vous avez vu ce soft patch?
Craig S. Billings – Wynn Resorts Ltd.
Yeah. Je pense que vous l'avez cloué. La contraction de la confiance est la meilleure façon de voir les choses. Lorsque nous regardons notre visite quotidienne au Wynn Palace, par exemple, il s’agit d’environ 20 000 personnes par jour, ce qui correspond au passé. Nous ne voyons donc pas une chute importante des visites ou l’endroit semble vraiment occupé. C'est vraiment dans le segment des primes que la confiance s'est légèrement contractée. Et comme le savent tous ceux qui suivent cet espace depuis plus de 10 ans, c'est temporaire, mais il faut un peu de temps pour retrouver cette confiance.
Shaun C. Kelley – Merrill Lynch de la Bank of America
Et puis je pense que vous en avez aussi parlé, mais pour clarifier, je pense que vous avez dit, vous vous attendez à ce que votre part de marché reste cohérente. Est-ce que c'était bien la bonne interprétation, alors il s'agit en réalité d'une préoccupation plus globale que celle que vous voyez ou celle du marché en général que tout ce qui concerne vos clients?
Craig S. Billings – Wynn Resorts Ltd.
Yes. Je veux dire, nous avons été assez constants entre 15% et 17% des parts de marché. Comme vous l'avez constaté au deuxième trimestre, nous étions un peu plus bas car l'un de nos concurrents du centre-ville a ouvert une nouvelle salle de réunion et l'a inondée de liquidités. Nous avons perdu des clients, ce qui était très temporaire.
Cela pourrait arriver dans un trimestre en 2019, lorsque certains de nos concurrents ouvriront de nouvelles salles de réunion. Mais sur une période de 12 mois, nous ne prévoyons pas de perte de part de marché.
Shaun C. Kelley – Merrill Lynch de la Bank of America
Génial. Merci beaucoup.
Opérateur
Notre prochaine question vient de Harry Curtis avec Instinet Nomura. Votre ligne est ouverte.
Harry C. Curtis – Instinet LLC
Bonjour à tous. Matt, vous avez fait quelques commentaires sur l'atterrissage sur le Strip et sur le fait qu'il s'agissait d'un lieu privilégié à développer. Pouvez-vous nous donner une idée de la date à laquelle vous comptez y arriver?
Matthew O. Maddox – Wynn Resorts Ltd.
Non, je pense avoir dit dans ma déclaration liminaire que nous commençons tout juste à développer la conception de cela, Harry. Et il faut deux ans pour bien réfléchir à ce qui sera la prochaine grande chose à faire pour Las Vegas.
Nous ne faisons que lancer ce processus. Et nous le ferons jusqu'en 2019 et 2020 pour vraiment déterminer quelle sera la prochaine bonne chose pour ce marché.
Harry C. Curtis – Instinet LLC
La raison pour laquelle je vous pose cette question est parce que vous dites également que vous êtes sur le point, une fois que vous ouvrez Boston, de générer un flux de trésorerie disponible important. Et il me semble, et je ne sais pas où le stock va être dans six mois ou 12 mois ou 18 mois. Mais quel type de rendement du capital investi aurez-vous besoin d'investir dans le Strip par rapport à votre stock?
Matthew O. Maddox – Wynn Resorts Ltd.
Sûr. Harry, je comprends la question. Encore une fois, nous investissons à Wynn Las Vegas en ce moment. Nous ouvrons de nouveaux restaurants, un nouveau centre de congrès, le parcours de golf va rouvrir.
Et vous avez raison sur le point de flux de trésorerie disponible. Une fois que Boston ouvrira ses portes dans huit mois, le déploiement de capitaux à grande échelle n'aura lieu que quelques années plus tard, uniquement en raison du cycle de construction. Nous sommes donc en mode de conception et de développement complets pour ce que nous voulons construire à Macao. Et nous sommes au début de ce processus ici à Las Vegas.
Harry C. Curtis – Instinet LLC
Thank you. Et puis passage à Macao. Il me semblait que vous avez gagné en part de volume au troisième trimestre côté VIP. Mais vous l'avez perdu en masse, ce qui était le – je veux dire que c'était l'inverse de ce à quoi je m'attendais. Pouvez-vous nous dire pourquoi c'est arrivé? Et cela continue-t-il alors que nous examinons le quatrième trimestre?
Matthew O. Maddox – Wynn Resorts Ltd.
Harry, notre part de marché globale, machines à sous comprises, dépassait 17%. 17,4%. Donc, en regardant les différents segments, nous ne perdions pas de part.
Harry C. Curtis – Instinet LLC
Bien, OK. La raison pour laquelle c’est important pour moi, c’est parce que si vous – au moins au troisième trimestre, vous gagnez des parts de VIP avec une marge inférieure, mais vous perdez des parts de masse, cela pourrait avoir un impact sur nos marges de BAIIA à venir ?
Craig S. Billings – Wynn Resorts Ltd.
Non, Harry Comme nous l'avons dit dans les remarques préparées, nos affaires de masse se portent plutôt bien. Matt a fait référence à l'état du consommateur premium, après la Golden Week, non seulement dans ses remarques préparées, mais dans tous les Q & R.
We anticipate holding margin in the near term as really the increase in the proportion of mass offsets any operating deleverage that may come from lower volumes on the premium side.
Harry C. Curtis – Instinet LLC
All right. Well, let me follow-up in a little while with you guys. Thank you.
Operator
And next, we'll go to Stephen Grambling with Goldman Sachs. Your line is open.
Stephen Grambling – Goldman Sachs & Co. LLC
Hey, merci. I guess first off on Las Vegas. I guess what's the customer overlap in your Las Vegas Baccarat business with Macau? Is there any change in behavior from those that do overlap?
Matthew O. Maddox – Wynn Resorts Ltd.
As I mentioned in my opening statement, that what we've seen in the past is when there's a slowdown in the premium market globally, or in Asia in particular, Macau and you're seeing it somewhat in Singapore, that the Baccarat market in Las Vegas also experiences somewhat of a slowdown.
Stephen Grambling – Goldman Sachs & Co. LLC
And then I guess as you look out for Vegas into 2019, I mean any initial reads on how you're thinking about how the year is shaping up based on what you're seeing? Thank you.
Craig S. Billings – Wynn Resorts Ltd.
Sure. No problem. So on the group side, we're fine when we look out to 2019. Matt alluded to the softness in Q3 on the Baccarat side. And we're watching that day-by-day. As he just said, it's a global question. And so could that impact Q4 and then into 2019? Certainly, it could. So a little too early to talk about anything beyond that.
Matthew O. Maddox – Wynn Resorts Ltd.
Yeah. Our group business is at 80% booked right now, revenue is at about 85% booked for next year. So group feels fine.
Stephen Grambling – Goldman Sachs & Co. LLC
Great. Thank you. I'll jump back in the queue.
Operator
Our last question comes from Cameron McKnight with Credit Suisse. Your line is open.
Cameron McKnight – Credit Suisse Securities (USA) LLC
Good afternoon. Thanks very much.
Matthew O. Maddox – Wynn Resorts Ltd.
Hi, Cameron.
Cameron McKnight – Credit Suisse Securities (USA) LLC
So, Matt, in terms of the development of the 38 acres on the Strip, I mean given the difficulty that the Strip saw in the third quarter, do you think that the Strip can absorb additional hard supply here?
Matthew O. Maddox – Wynn Resorts Ltd.
So, Cameron we don't plan our business which grows in five-year increments with these properties based on one quarter. So what we're doing is we're starting the design development of the 38 acres which will take 24 months to get through what it is that we think is going to grow this market.
So we're going to be staring at 2021 in terms of here's a new project that we're really excited about and should we move forward. The best days for Las Vegas are ahead of it. We have the Raiders coming here.
We have a massive expansion of our convention facility. There's no other place on the planet where you can have 150,000 hotel rooms within three miles to host what will be the biggest events on the planet.
So we are long-term believers in Las Vegas, and we're going to work over the next two years to determine what it's going to take to move the needle.
Cameron McKnight – Credit Suisse Securities (USA) LLC
Perfect. Thank you. And then a follow-up if I could. In terms of the $3.3 million to $3.7 million of EBITDA per day in the fourth quarter, could you give us a sense of, is that roughly the level that business is tracked at post-Golden Week?
And can you give us a sense of the drop off that you're seeing from Golden Week to post-Golden Week?
Craig S. Billings – Wynn Resorts Ltd.
Hey, Cameron, it's Craig. As Matt mentioned earlier that's inclusive of Golden Week, and as we indicated we had a pretty strong Golden Week. So Golden Week does increase that number. We're not going to provide anything beyond the $3.3 million to $3.7 million.
Cameron McKnight – Credit Suisse Securities (USA) LLC
D & # 39; agreement. Understood. Thanks very much.
Craig S. Billings – Wynn Resorts Ltd.
Thank you.
Operator
Thank you. And I'll turn it back over to our hosts for final remarks.
Matthew O. Maddox – Wynn Resorts Ltd.
Thank you for joining us today. And have a great day.
Craig S. Billings – Wynn Resorts Ltd.
Thank you. Bye.
Operator
Thank you. That concludes today's conference. Thank you for participating. You may now disconnect.
[ad_2]
Source link
