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Wynn earnings call reveals new focus on gamblers.

Discussion in 'Vegas News' started by Funkhouser, Aug 8, 2019.

  1. Funkhouser

    Funkhouser Regional Gambling Specialist
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    Based on feedback during the Wynn Q2 earnings call, it looks like they are turning back to casino revenue growth. Matt Maddox called out casino promotion in Vegas increasing the drop. Having Marilyn Spiegel (former Caesars exec) back obviously is playing into casino marketing focus.

    On the call they discussed the increase in marketing for Vegas, improved casino revenue, and they chart the course for building customer base in Boston and when they will begin marketing.

    You can read / listen to the entire call here or read some the highlights I grabbed.

    https://seekingalpha.com/article/42...-2019-results-earnings-call-transcript?page=6

    Call highlights on Vegas and Boston gaming.

    Matt Maddox
    Moving to Wynn Las Vegas. I have to congratulate Maryland and the team in the Wynn Las Vegas for an extraordinary quarter and executing our strategy. It was the first time in over five years where our RevPAR increased by more than 9.5%. But what I found much more interesting was our focus on the casino, which for the last five to six years, had largely been ignored.

    As an example, our domestic table games business was up 12% this quarter when the overall Las Vegas strip was down 6%. Our slot revenues were up 12% this quarter when the overall Las Vegas strip was only up 7%. Our Baccarat revenues increased 5 times faster than the market. Clearly, we had some high hope. But even on a drop basis, our Baccarat drop was up 16% this quarter, while the market was only up 11%. So it's quite an extraordinary result, which was a strategic change in focusing on the casino and driving additional visits and more play.

    Harry Curtis

    I had -- I apologize I've been bouncing between calls. I hope this wasn't asked. But in Boston, can you talk about your strategy in building your slot business? And in your experience, how long does that typically take to get to a satisfactory level?

    Matt Maddox

    Sure. I'll start and then I'll turn it over to Bob DeSavio. So we've targeted a 12 month ramp up, Harry. And what we're doing is we're making sure that we're not going to get into promotional war with our competitors who are quite nervous about Encore Boston Harbor.So we're reacting to what our slot customers are telling us. We're looking at understanding what promotions work, how coins translate comp dollars and what prizes what gifts are working. And we are really focused on. Its guerrilla marketing out there and we're really focused on that. And we have the right team to do it. So Bob, do you want to jump in on that?


    Bob DeSalvio

    Sure. One of the things we're primarily focused on is database building. So right now, of course, we're trying to sign up as many new customers as possible. We're doing quick evaluations in turns and making sure that we communicate with them. Overall, when they see the property, great response, very positive. But as you know, this does take time to get through the ramp process, but we are all over and working on it.


    Stephen Grambling

    Just one follow up on Boston. What would you need to see to start thinking about becoming more aggressive at targeting VIP players at the property? I think you had said that you were going to wait a little bit before you really start turning them?

    Matt Maddox

    That's right. What we've determined is we want to make sure that our service levels are at the Wynn standard, and that's not easy. The team is doing an amazing job, getting there and really a very, very quick way. But we'd always said let's give at least 90 days before we start hitting our full database at Wynn Las Vegas to offering people offers there, and directly marketing to our higher end customers. So the idea of that would be sometime in the fall.
     
    DRPinVa and Chuck like this.
  2. Royal Flusher

    Royal Flusher Platinum
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    That's great news for somebody to finally realize the obvious after all these years in Vegas.

    And nobody said they were going to "speak to" something.

    Is it that hard to say speak about? I know, I know.... you can't speak to that. Argh. Corporate dumbspeak.
     
    Funkhouser likes this.
  3. Pleasemum

    Pleasemum Platinum
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    My husband is seeing marketing offers regularly - he rarely received these.
     
    Funkhouser likes this.
  4. Funkhouser

    Funkhouser Regional Gambling Specialist
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    What I found interesting was they were going to target the Vegas customer marketing database this fall. So it makes me think
    that they will hit regional players in their Vegas database with offers first as well as VIP. I'll be curious to see if any board members
    with decent tracked Wynn play get generous teaser offers to visit Boston.

    Obviously they are not going to do any big public promotion / marketing since they don't want to get into a marketing war with other east coast casinos.
    Looks like they are going to farm the Boston area and their desirable Vegas players.

    One other note, I think the old Wynn executive team guided by The Steve, did not want to promote gambling as a primary driver. We heard the tag line, we are a resort with a casino. The Steve was always about the Casino was just there to pay for the other cool stuff, not a mover in the US for revenue growth. With Wynn needing to squeeze more earnings and a seasoned casino marketing executive in place, things look to be loosing up over there. I may focus some short heavy play to get back on the offer radar.
     
    #4 Funkhouser, Aug 8, 2019
    Last edited: Aug 8, 2019
  5. Royal Flusher

    Royal Flusher Platinum
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    Good analysis - I think Stiffy Steve wanted to be more than 'just a casino operator'. Just as he wanted to be more than a bingo hall operator. Probably never rested on his laurels but lost sight of what I think the core business model should be. GAMBLING. :)
     
  6. dvandentop

    dvandentop Chairman
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    Hopefully i can get out of their.sunday to thursday free rooms into anytime this next round of offers
     
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