Wynn Resorts Q2 2022 Earnings Call Transcript

Quartr
Provided by Quartr
August 9, 2022

There are 14 speakers on the call.

Operator

Welcome to the Wynn Resorts Second Quarter 2022 Earnings Call. All participants are in a listen only mode until the question and answer session of today's conference. This call is being recorded. If you have any objections, you may disconnect at this time. I would now like to turn the line over to Julie Cameron Do, Chief Financial Officer.

Operator

Please go ahead.

Speaker 1

Only mode. Thank you, operator, and good afternoon, everyone. On the call with me today are Craig Billings and Brian Gulbrandz in Las Vegas. Also on the line are Ian Cullen, Linda Chen, Frederick Luisoto and Jenny Holliday. I want to remind you that we may make and answer session.

Speaker 1

I will now turn the call over to Craig Billings.

Speaker 2

Thanks, Julie. Afternoon, everyone. Thanks for joining us today. Before getting into the quarter, I'd really like to thank our 27,000 team members globally. 2022 so far has been very different in Macau than it has been in North America.

Speaker 2

Our folks in Macau have endured what I know is a difficult period of and volatility, while our teams in Las Vegas and Boston have responded admirably to meaningfully elevated business volumes. To those operating in both circumstances, thank you. I appreciate you. Starting in Las Vegas. The team at Wynn Las Vegas turned in another all time record quarter with $227,000,000 of EBITDA and broad based strength across casino, hotel, food and beverage and retail, all well above 2Q twenty nineteen levels.

Speaker 2

In fact, our EBITDA this quarter was over 40% above the pre and open Las Vegas Strip EBITDA record also delivered by Wynn Las Vegas in 2014. A few other all time quarterly records to call out record EBITDA margin, record slot handling win, record non baccarat table win, record hotel revenue and record revenue from and answers. Meanwhile, our customer satisfaction scores in the first half of twenty twenty two were up 3% over the first half of 2019. Our performance in Las Vegas speaks for itself. Looking ahead, while we are keenly aware of the macro environment and the uncertainty facing the economy, We've been encouraged that the strength we have experienced over the past several quarters has continued into Q3.

Speaker 2

In fact, our forward bookings continue to pace at pre COVID levels on substantially higher ADRs. July was very strong for us with occupancy of 91%. We expect the usual seasonal slowdown in August with occupancy declining into mid to high 80s before accelerating back to the low 90s in September as groups return in large numbers. While we haven't seen any noticeable signs of weakness in our current operations or in our outlook, we are watching this closely. Our experience during the pandemic has made us nimbler than ever, and we are confident that we can adapt quickly to changes in the economic landscape should they arise.

Speaker 2

Turning to Boston. Encore also had a great quarter generating $64,000,000 of EBITDA, a second quarter record for the We saw strength across the casino with record gross gaming revenue. And on the non gaming side, we generated record hotel revenue with particular strength in cash ADR and occupancy. The positive momentum has continued into Q3 and again similar to Las Vegas, we have yet to see signs of a slowdown. We were happy to see the Massachusetts legislature pass a sports betting bill and having already constructed a sports book at Encore Boston Harbor in 2021, we expect that retail sports betting will soon be a significant opportunity for property wide customer acquisition in Boston.

Speaker 2

We also continue to finalize our plans for our upcoming development project across the straight from the property that will add incremental parking, food and beverage and entertainment amenities. Design and planning for that project is on schedule and we are excited for our next phase at 20 2 percent of July 2019 levels. Our results have reflected that in roll, drop, and listen only by around $8,000,000 from low VIP holds. So on a normalized basis, our EBITDA loss was 900,000

Speaker 3

and listen to the

Speaker 2

Q2 and despite the nearly 2 week market wide casino closure in July, our EBITDA loss has been comparable at approximately $1,000,000 per day quarter to date in Q3. Our team has done a fantastic job controlling costs in a very challenging operating environment through a combination and listen to the

Speaker 3

Q1 of fiscal 2020.

Speaker 2

Several weeks ago, we announced some important leadership changes in Macau with Linda Chen and moving into the role of President early next year Frederick Luvisuto moving into the role of COO for the entire Macau business and Craig Fulilov assuming the role of CFO and welcome to the business. I know many of you know and as I do respect Ian immensely. So I'm pleased that he will remain at the company in an advisory role through 2023. I have immense confidence in Linda, Frederick and Craig and know that they are the right team for the future. The authorities in Macau continue to advance the concession process according to the pre established timeline.

Speaker 2

We're currently working through our response to the concession tender RFP. Longer term, we remain excited about the prospects for Macau with so much pent up demand for travel and Tourism in Asia. Our market leading assets and strong liquidity position us well to thrive as visitation returns to the market over time. At Wynn Interactive, the strategy we implemented late last year to manage the business with a long term shareholder friendly view is working with our overall EBITDA burn rate and are in a listen and are in a listen and are in a listen and are in a listen and are

Speaker 4

in a listen and are in a listen and are in a listen and are in a listen and are in a listen and are in a listen and are in a listen and are in a listen

Speaker 3

and are in a listen and are in a listen and are in a listen and are in a listen and are in a listen and are in a listen and are in a listen and are in a listen and are in a listen and

Speaker 2

are in a listen and are in a listen and are in a listen and are due to the seasonally weak Q2 sports calendar. We are looking forward to the potential for a significant catalyst for WinBet in in Massachusetts, both in digital and retail sports betting. Lastly, the design and programming for our project in the UAE are really coming along, and I grow more excited about the opportunity every day. The project parking along a beautiful white sand beach will contain a 200,000 square foot and extensive food and beverage portfolio and numerous forms of entertainment and spectacle. The more time I spend on this and listen.

Speaker 2

Julie?

Speaker 1

Thank you, Craig. At Wynn Las Vegas, we generated an all time quarterly record 226.7 $1,000,000 of adjusted property EBITDA on $561,100,000 of operating revenue during the quarter. Higher than normal hold positively impacted EBITDA by around $6,000,000 in Q2. Our hotel was 90.5 percent in the quarter, up 40 basis points versus Q2 2019. Importantly, we stayed true to our luxury and continue to compete on quality of product and service experience with our overall ADR reaching $4.60 during Q2 twenty twenty to 38% above Q2 2019 levels.

Speaker 1

Our other non gaming businesses saw broad based 20 22 slot handle was 63% above Q2 twenty nineteen levels and our table drop was 28% above Q2 twenty nineteen levels, despite still suppressed international plays during the quarter due to COVID related travel challenges. The team in Vegas has and done a great job of controlling costs without negatively impacting the guest experience, delivering adjusted property EBITDA margin of 40.4% in the quarter. On a hold normalized basis, our EBITDA margin was up over 1200 basis points compared to Q2 2019. OpEx excluding gaming tax per day was $3,500,000 in Q2 2022, in line with Q2 2019 levels, despite a 21% increase in revenue due to lower headcount and broad based cost efficiencies in areas that do not affect this experience. Only.

Speaker 1

In Boston, we generated adjusted property EBITDA of $63,700,000 for Q2 2022, with EBITDA market at 13.3%. We saw broad based strength across casino and non gaming. In the casino, We generated $181,000,000 of GTR, a property record with strength across both tables and slots. Our non gaming revenue grew 78% year over year with particular strength in the hotel, driven by 94.1 percent occupancy and a $391 ABR. As Craig noted earlier, Q2 strength continued into Q3 as consumer spending plus unique experiences and remain strong.

Speaker 1

We've stayed very disciplined on the cost side with OpEx excluding gaming tax per day of approximately $1,100,000 in Q2 2022. This was a decrease of approximately 13% compared to $1,300,000 per day in Q4 2019 and up modestly relative to in Q1 2022 on higher revenue and higher payroll. As we've previously foreshadowed, contractual labor agreement added around $45,000 per day to our OpEx base beginning late in the quarter. We're well positioned to drive strong operating leverage as we continue to grow the top line over time. Our Macao operations delivered an EBITDA loss of 90 point of $3,000,000 in the quarter on $117,200,000 of operating revenue as the COVID situation in the region has and continue to express their presentation.

Speaker 1

As Craig noted, lower than normal BIC holds negatively impacted our EBITDA by around $8,000,000,000 during the quarter. Business has remained challenging into Q3 as local COVID outbreaks in Macau drove a shutdown of integrated resorts for nearly 2 weeks during July. Despite the closure, our quarter to date EBITDA burn was approximately $1,000,000 per day in line with Q2. Our OpEx excluding gaming tax The team has done a great job remaining disciplined on cost in a difficult operating environment. Longer term, we're well positioned to drive strong operating leverage as the Business recovers over time.

Speaker 1

Turning to Win Interactive. In Q2, the business generated approximately $704,000,000 in total turnover, expense and other OpEx drove an improvement in our EBITDA burn rate to $21,000,000 in Q2 2022 from $31,500,000 in Q1 2020. Moving on to the balance sheet. Our liquidity position remains very strong with global cash and revolver availability of approximately $3,100,000,000 as of June 30. Only.

Speaker 1

This is comprised of $1,300,000,000 of total cash and available liquidity in Macau and $1,700,000,000 in the U. S. Only. These numbers exclude the $500,000,000 intercompany revolving credit facility Wynn Resort entered into with Wynn Macau, which further bolsters our already strong liquidity position in Macau and highlights the continued confidence we have in the long term prospects for that business. Our previously announced sale leaseback transaction for the real estate of Encore Boston Harbor remains on track for a Q4 close.

Speaker 1

Pro form a for the transaction, we have approximately $4,700,000,000 of consolidated global cash and liquidity. Importantly, The combination of very strong performance in Las Vegas and Boston with the properties generating trailing 12 month EBITDA of just over $1,000,000,000 together with our robust liquidity creates a very healthy pro form a domestic leverage profile. Finally, our CapEx in the quarter was $90,000,000 primarily related to the Wynn Las Vegas room remodel and the center renovations. With that, we'll now open up the call for Q and A.

Operator

Prompt and I will introduce you for your question. Please limit yourself to one question and one follow-up question. Our first question comes from Carlo Santarelli with Deutsche Bank. You may go ahead, sir.

Speaker 5

Hi, everyone. Thank you. Guys, obviously, the booking pace on group remains pretty solid in Las Vegas and clearly there's a lot of pent up demand for that. With the experience of now taking on bookings and hosting groups in the new facility, as you guys look out to 2023, what do you believe to be kind of the tailwind from an occupied room night perspective or an occupancy perspective, as well as perhaps what impact that might have on kind of the margin profile of the property with the presumably added occupancy?

Speaker 2

Thanks, Carlo. Yes, it's definitely true that group continues to be strong. And I'll ask Brian to talk about pacing in just a second. As we've talked about on prior calls, we did have some legacy group rooms as I think everyone at the market would from contracts booked in prior years that were at lower ADRs. We've been, obviously signing new contracts at higher today, so I don't think it would change overall occupancy, but obviously it does mix.

Speaker 2

Brian, do you want to talk about pacing a little bit?

Speaker 6

Sure. Our sales team here at Wynn Las Vegas continues to just do an outstanding job, building a really strong base of business for our future. The second half of twenty twenty two that we're into now is ahead of pace and 2023 we see quite strong. Just to give you a bit A sense of how we're doing. The cumulative group bookings in the first half of twenty twenty two were 40% above the first half of twenty nineteen.

Speaker 6

So the team just continues to build that solid base from which I think we can effectively yield manage our rooms better next year and as we move into the future.

Speaker 5

Great. Thank you. And then just as you think about that group room night as it pertains to 2023 and acknowledging other than the Q1, which was a little lighter from an occupancy perspective, but 90% in this quarter. Who does that customer, supplant next year? Is that are you still getting a healthy or at least a tangible amount of rooms through OTAs and 3rd party channels right now or who is kind of being replaced?

Speaker 5

I assume it's likely not the casino customer.

Speaker 2

Well, we've it's a great question, Carlo. We've already scaled back our allocation to some of the lower profitability channels. That's obviously the first thing you do anytime you're yield managing. And it's a little bit of a rich man's problem now as we think forward because we have a very healthy casino business as you saw on the numbers and we have a very healthy group business. So we're attuned to how we optimize that mix and we'll be doing that over the course of the next couple of quarters.

Speaker 2

So stay tuned on 2023, but we recognize I'd love to call it an issue. It's actually an opportunity. We recognize the opportunity and we will take advantage of it.

Speaker 7

Great. Thanks everybody. Only.

Operator

Thank you. Our next caller is Joe Greff with JPMorgan.

Speaker 8

Hey, everybody. I have two questions. One is another similar question on group in Las Vegas. When you look at next year, Craig, what are you targeting in terms of percentage of room nights related to the group segment? And then how How much of that is on the books now and how much of the strategy is in the period for the period going forward on group given the seemingly upward movement and AD AllRock Group.

Speaker 2

Brian, you want to take that?

Speaker 6

Sure. I think as we look at it right now, we're pacing to a normal percentage of around roughly 30%. We continue to excel as far as where we are for next and listen. We're slightly ahead of where we should where we normally are. So we're very confident that we'll hit the number we need to and it continues to contribute to our bottom line and base.

Speaker 2

And those new bookings, particularly for new customers in the out years are at a substantially higher than they are.

Speaker 8

Great. One thing that maybe surprised us Looking at your earnings release tonight, Greg, was the buyback activity. Can you talk about that and how much of

Speaker 3

your capital allocation going forward is

Speaker 8

going to Going forward is going to be buyback activity assuming share price levels at or around these levels.

Speaker 2

Only. Rajo, you know us. You've been following us for years, and you know that we're not programmatic about buybacks. We repurchased stock when we think it's ridiculously Even during Q2, that was certainly the case, particularly from mid May through the end of the quarter. So we're always balancing liquidity needs, capital deployment Thank you for growth and returning capital to shareholders.

Speaker 2

The wildcard, let's be honest, the wildcard is Macao. So as we get particular form of capital deployment and know that we can do them concurrently.

Speaker 8

Thank you.

Operator

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

Speaker 9

Thank you very much. I just wanted to Sort of ask about the trends in Las Vegas a little bit more. The color on just the trajectory of what you're seeing on the casino floor Juste:] Well, to the hotel, could you just maybe help us think about as we get into some of the tougher, I think, comps on the growth that we've seen in casino, What are some of your expectations around trends or what may be driving that growth? I know market share gains maybe on the slot side has been a theme, but maybe pros, cons Casino growth and then, like I said, we've already talked about hotels, so just more on the GDR line.

Speaker 2

Sure. I'll start and then Brian will jump in. So but this started really back in 2019. So you've heard us talk about before Our reconstitution of our database strategy, we made a bunch of changes in hosting. We launched Win Rewards.

Speaker 2

So really going into the reemergence from COVID, we had reoriented our casino strategy and I think it shows. At the same time, we've been very relentless reinvesting in the property in Las Vegas, despite COVID, in the rooms, in the food and beverage, in amenities, And it shows and customers notice it. And so yes, we are taking share and I'm incredibly proud of the team for doing that. Brian, do you want to give a little bit of No color qualitatively on July.

Speaker 6

Yes. When you look at what we've done in July, well, actually what the host team and the marketing team and casino segments have focused on really expanding into markets that we haven't been in before, reaching in further into domestic segments that we are seeing great returns on. And year over year, both drop and handle are significantly up. I couldn't be happier with the team right now and they continue to just continue to push with special events and driving weekends. It's just a great balance right now.

Speaker 6

We're going to continue to do more of it.

Speaker 2

And Sean, we acknowledge trees don't grow to the sky, right? I mean, you're seeing this in all your Las Vegas names. But as I said in my prepared remarks, we watch and as I mentioned in my prepared remarks, we don't see slowdown. So that's where we are.

Speaker 9

Really encouraging. And then my follow-up would be not so much about slowdown, but just about maybe traditional seasonality a little bit here, right? Historically, I think the properties tend to do a little bit better in the first half than second, especially in the Q3. Can you help us just think about How those patterns may shape up for the balance of the year, because we are hearing a little bit more from the broader lodging industry about A return to more normal seasonal behavior. Just any comments we could think about just to make sure we're in the right place for seasonal purposes?

Speaker 2

Sure. You're right. August is usually pretty weak in Las Vegas. I think that's probably true, or I shouldn't say pretty weak, relatively weak, particularly given the quarter that we've just experienced. So August is usually a pretty slow month.

Speaker 2

Groups come back in September and you start and see an increase in occupancy. I talked about the occupancy shifts that we would expect over the course of Q3 in my prepared remarks and We stand by that. So business is good. In fact, it's really good, but you always see seasonality in the quarter. You can go back and look at historical Q2 to Q3 movement from an EBITDA perspective in percentage terms, and I think you'll see that seasonality.

Speaker 9

Open. Very helpful. Thank you.

Operator

Thank you. Our next caller is David Katz with Jefferies. You may go ahead.

Speaker 10

Hi, afternoon. Thanks for taking my questions. I was hoping for some insight around Interactive. Given that Massachusetts is moving forward, We do observe that there was a little bit of movement in the loss in the quarter. What are your updated thoughts there?

Speaker 10

Would the burn go up a bit given that Massachusetts becomes an opportunity on home turf? And we'll take it all. Thanks.

Speaker 2

Sure. No problem. So beginning, I think, with our Q3 call We talked a little bit about what we were seeing in the market and some of the irrationality that we were seeing in the market. I can say that, that has markedly declined, and that's encouraging. So, to see other players in the market behaving reasonably well is great.

Speaker 2

For us, Massachusetts, I've said this before, Massachusetts was always an important bootstrapping event for WinBet and for Win Interactive as is any movement in iGaming, which we obviously don't see at the moment, but I'm certain we will over the longer open. So our goal is really to make sure that we are consistently running the business as best we can from a lifetime value to cost per acquisition perspective. So increased retention, decreased CPA, increased handle per customer. That's the way we run the business. That has resulted in a declining burn over time, which you've seen as each quarter has sequentially gone by as we told you it would.

Speaker 2

That burn could go up modestly with the launch of Massachusetts, because we will do some user acquisition. I don't think we'll ever be back in the position that we were in at the launch of last It's NFL season. We've learned a lot in terms of which marketing channels work and which don't. But the business is they're really executing in that portion of our business and we're watching the market very, very closely. We'll be in Massachusetts day 1.

Speaker 10

Understood. And if I can just follow-up, does the promotional landscape that you noted Enable you to consider going back to other states where you don't have a land based presence or regrowing the business Or should we really just be thinking about Massachusetts for the moment?

Speaker 2

Well, we are continuing to launch in additional states. And we're continuing to set the foundation in place to grow that business over time as the TAM grows and as our business But Massachusetts, obviously, for obvious reasons, we have the land based presence there. You've seen market share from Fellow market participants in places where they have a brick and mortar presence and it obviously warrants prioritizing Massachusetts.

Speaker 3

Open. Got

Speaker 10

it. Thank you very much. Thank

Operator

you. Our next caller is Dan Politzer with Wells Fargo. You may go ahead,

Speaker 11

order. Hey, good afternoon, everyone, and thanks for taking my questions. I just wanted to follow-up on Las Vegas. Obviously, margins were really strong in the quarter. I think your gaming mix at this point is back to 2019 level.

Speaker 11

So now that mix is basically normalized, is there any reason to think that you wouldn't be able to sustain In that high 30 range going forward?

Speaker 2

Well, look, we've generated operating leverage all over the building over the course of really the past 3 or so quarters. And I'm incredibly proud of the team for doing that. If you look at our rates, if you look at what we've done in food and beverage, really every nook and cranny we've driven operating leverage. So what you're seeing is really the culmination not of aggressively reducing FTEs or negatively impacting the customer experience, but rather pricing. And so we go as with that in mind, we go as pricing goes, right?

Speaker 2

And so I'm loathe to pin a margin and forecast whether we can maintain a 40% margin, an incredibly healthy margin because what we won't do is gut staffing and degrade the customer experience even if there is a modest recession. We just don't do that. We're thinking about our brand over a 20 year term, not over a quarter. So I'm loathe to pin a particular margin, but what I can tell you is that the team here is very appropriately managing staffing. We're probably down about 10% from pre COVID levels, yet our customer satisfaction scores are up And we are pricing our products appropriately based on the quality of that product.

Speaker 11

Got it. And then Just pivoting to Interactive, obviously, you guys have become a lot more rational. The market's become more rational in terms of Pricing and Promotion and Marketing. As we think about where we go from here as we go into football season in the back end of the year, How should we think about your burn rate relative to that 2Q number?

Speaker 2

Well, what we have consistently said is that we'll be driving down the burn each quarter. Massachusetts, as I mentioned earlier, I think to David's question, Massachusetts could change that, but I don't imagine it materially shifting. So it's really Kind of immaterial in the grand scheme of things. And so I wouldn't spend a bunch of time and brain damage trying to forecast it. The trend should be down with the exception of a few quarters that we might do some user acquisition in Massachusetts as the market opens.

Speaker 11

Got it. Thanks for all the detail.

Speaker 2

You got it.

Operator

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

Speaker 12

Open. Hey, good afternoon, everyone. Thanks for taking my question. So in Las Vegas, I was hoping you could just talk about international inbound visitation and maybe walk us around the globe where you think you have the most sort of mixed during normal times. We obviously have our assumptions, but if you could just walk us around the globe and talk about where you think you're going to see upside near term, medium term, long term and how much of upside we could sort of see here.

Speaker 2

I'll start and then I'll pass it to Brian. Keep in mind, there There are a lot of potential international visitors that have been unable to visit. So We've been able we've been quite successful on the international front despite that, but that is a tailwind that we have. Ryan, do you want to talk about

Speaker 6

Sure. We've definitely seen a pickup in the international clientele, both on the gaming and non gaming side of our business. Obviously, Canada and Mexico are the first ones that have popped up. We're seeing great traction in the U. K.

Speaker 6

Now. In fact, just came out of a meeting with the LVCVA and the lift out of London is actually at 106 Now of what it was in 2019 pre COVID level. So it means U. K. Is back.

Speaker 6

The biggest opportunity for us moving forward is obviously China. We're not seeing it's anemic at this point and that's all based on what you all know down out there. So Right now, our biggest upside is China. We are seeing other Asian business come back, but not to the extent we'd like. So, I'm optimistic about what's in the future and we got a lot of upside I think at some point.

Speaker 12

Okay, great. Thanks for that. And just if I could follow-up on Macau. Maybe you could just give us an update on your thoughts around the tendering process, any sort of Surprises or anything that you'd want to let us know about in an update?

Speaker 2

I'll start and then I'll ask Scott Ian to provide his thoughts as well. Not really. I mean we understand and appreciate what Macau is trying to achieve, diversifying the market both in terms of geographic origin of visitors and their motivations to visit is not a process that happens overnight. In Vegas, it took many years and it was a concerted effort by both government and business. We were instrumental in leading that change here in Vegas and we will of course continue to play our part in Macau's journey and answer session.

Speaker 2

Ian, anything you would add in particular on the tender requirements?

Speaker 7

I think the rules that were issued and the timeline were very clear. We have sought some minor clarifications and we're in a 6 week process of crystallizing our responses, Which will get submitted by all six operators on September 14. And then we go into a period of negotiation. And I think the government's intent is clearly before the end of the year to announce the successful operator.

Speaker 12

Okay. Thanks so much.

Speaker 4

You got it.

Speaker 1

Okay. Operator, we'll take one last question. Thanks.

Operator

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

Speaker 13

Great, thanks. Two things just to clarify that you've talked about a little bit already. One was just for group for 2023, What's your booked position or kind of room nights booked compared to 2019 at the moment for 2023? It sounds like there was a lot of acceleration in the first half and just wondering where that kind of leaves you booked for 2023?

Speaker 6

Frank? Sure. We are ahead of both 2019 and obviously 2021 and we continue to pick up. We're not going to need to pick up much for the year, as we are focused moving forward with actually a higher number. So we'll have, we're hoping, the highest number of group rooms we've ever had because of the expansion of the convention center we did a couple of years ago.

Speaker 6

So really starting to grow into that space and take advantage of it. It also allows us with a slightly larger base to yield a little bit better our rates as we move forward into the year. So all encouraging, but certainly better than 2019 2020 only.

Speaker 13

Okay, great. Thanks. And then, the other question is just on the Vegas margins, and I know you talked about Maintaining the guest experience and all of that. How much of the margin increase do you think is sustainable? I guess you said in the past on previous calls that you don't have as many open positions maybe as some other Vegas properties.

Speaker 13

But Is there anything about the margin that you think is not sustainable? Or how would you sort of guide us to expect that? Thanks.

Speaker 10

Open. Sure.

Speaker 2

We learned to run the business differently in COVID. We've talked about this before, and we completely reevaluated And so we are running, I mentioned earlier, on about 10% less FTEs and pre COVID, and we're doing it in an absolute rager of a market. And our customer satisfaction scores are going So that's a real testament to the team. So I would consider that at this point permanent. The operating leverage that we We're able to obtain out of the business units.

Speaker 2

Look, room as you well know, room prices fluctuate with supply and demand. So you can have positive operating leverage in rooms in a week's notice. On the food and beverage side, I suspect some of it's sticky. I mean inflation is what it is, and we've been able to drive a decent amount of operating leverage out of the food and beverage portion of the business. So it's a little bit of a mixed bag, but Robin, I guess what I would say is the FTE count is what it is.

Speaker 13

Okay. Great. Thanks very much.

Speaker 1

Okay. And with that, we'll now close the call. Thank you, everyone, and we look forward to talking to you again next only mode.

Speaker 2

Thanks everybody.

Operator

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

Remove Ads
Powered by Quartr
Earnings Conference Call
Wynn Resorts Q2 2022
00:00 / 00:00
Remove Ads