永利渡假村 (WYNN) 2006 Q1 法說會逐字稿

Good afternoon.

Welcome to the Wynn Resorts, Limited First-Quarter Conference Call.

Joining the call on behalf of the Company today are Steve Wynn, Chairman and CEO of Wynn Resorts;

Ron Kramer, President of Wynn Resorts;

Mark Schorr, COO of Wynn Resorts;

John Strzemp, CFO and Treasurer of Wynn Resorts, Andrew Pascal, President and COO of Wynn Las Vegas;

David Sisk, CFO of Wynn Las Vegas;

Kim Sinatra, Senior Vice President and General Counsel;

Matt Maddox, Senior Vice President of Business Development and Samantha Stewart, Vice President of Investor Relations.

After the speakers’ remarks there will be a question and answer period.

[Operator Instructions]

Now I would like to turn the call over to Mr. Kramer.

Please go ahead sir.

Thank you and good afternoon to all of our investors and all of our competitors listening in today.

We’re broadcasting this conference call live on wynnresorts.com where you can also find the earnings release, which we circulated earlier today.

Before we begin I need to remind you that today’s conference call contains forward-looking statements that we are making under the Safe Harbor Provision of Federal Security Laws.

I’d also like to caution you that the Company’s actual results could differ materially from the anticipated results in these forward-looking statements.

Please see today’s press release under the caption Forward-Looking Statements for the discussion of risks that may affect our results.

In addition, we will discuss adjusted property EBITDA, which is a non-GAAP measure.

A reconciliation of those measures for the most comparable GAAP period is included in the press release.

With that I’m going to turn it over to Steve Wynn who’s going to spend a few minutes giving you an update on both Wynn Las Vegas and Wynn Macau and then we’ll open it up for questions.

Steve.

Hello and my job today I think is one, more than anything else, of putting things in perspective.

We’re a new company.

We’ve just finished 12 months; and it’s very interesting to be at this particular juncture and I’ve been in this spot before; and so I thought it might be helpful if we talked.

Very often we get down and very close to the deck with details; but every once in a while it’s good to elevate your perspective and take a look, especially with a young company like Wynn Resorts, at trend and perspective.

So having just finished 12 months of a new hotel I thought I might be able to shed some light on it because -- and the best thing to use is a comparison -- the other company with which I’m familiar, Mirage Resorts and we just finished having a wonderful quarter.

And I think it’s probably helpful to -- putting our performance in perspective to compare to, for example, Bellagio when it opened in 1998.

We’ve divided our history for just a moment into three segments to sort of take a look at how we’re moving along here.

The first segment would be from the opening on April 28th of 2005 until the last day of the year December 30th of 2005.

Then I picked a second segment -- would be the first quarter of this year.

And then because we opened last April I’m going to use April again, even though it’s not part of this quarter.

I am going to, this one time, break a tradition and discuss a current number, at least from a limited point of view.

When we opened the big things I look at every day are the daily averages of our slot machines, our table games, and our various non-casino aspects of our business.

And I look at net revenue after we’ve deducted the discounts, and the comps, and all the rest of the stuff.

And I look at our average daily rate that we’re getting and our occupancy; and then finally -- oh, and I adjust the casino depending on what’s going on with the whole percentage to make sure that I compare apples-to-apples.

And we normally, all of us in the industry, refer to anything between 19 and 22 as a normal whole percentage.

But when numbers get as big as they are in a top-end casino, like Wynn or Bellagio, one or two points is a significant number in many cases.

So I need to look at a whole percentage so that I can understand if there is any impact.

And so as I look back over last year and I break it up into last year, the first quarter, and April when we first started this place the daily average in slot win was $496,000 a day.

As we moved through the first quarter that number climbed to almost $507,000 a day; and in April $527,000, almost $528,000 a day.

So even though we’re not brand new anymore and we don’t have the so-called novelty crowds our yield per machine, our win per machine, has climbed.

Our table games have stayed remarkably steady at around $1.1 or so -- between a $1.5 million and $1.1 million ever since we opened in spite of the fact that we’re not a novelty anymore.

In terms of -- and our whole percentages we consider around here 21.5 about right for us and we have stayed around 21 percent.

In April it was 22.

In the first quarter it was 19.8; and last year it was 21.5.

We’ve stayed in that range so we don’t have any really special information about whole percentage that would be significant so I don’t need to talk about that.

So when we talk about our casino we pretty much see that we’ve been holding casino revenues at the $1.4 -- well I’ll skip that part of the net revenues for a minute.

The second thing I look at is the hotel occupancy.

When we opened the hotel we started off I think okay at 92 percent.

All of us out here in Nevada, as you know, think very highly of occupancy because we have so many other cash registers in the building that we really focus on filling all the rooms.

We opened in the summertime in the second and third quarter and we averaged 92.1 with an average daily rate of $274 for our first 248 days, which took us through New Year’s; 92 percent at $274.

In the first quarter we went to 95.5 at $293.

And in April we continued our climb to 95.6 and $308 as an average rate.

I’m pretty sure that’s substantially higher than any other hotel in the State of Nevada; and I’m happy to say that at 95.6 we’re getting pretty close to that full occupancy kind of number where the only thing that really is empty are some of the suites, remembering that we have 2,700 rooms and not 3,000.

Our non-casino revenue -- our total non-casino revenue $1,485,000 a day last year, pretty healthy number; we climbed in the first quarter to $1,674,500 almost $675,000 a day.

And then this month we climbed additionally to $1,902,000 average non-casino revenue a day, which gave us a total net revenue progression of -- let me get my right piece of paper here -- $2,911,000 a day during our first 248 days and then that climbed to $3,080,000 a day in the first quarter and then to $3,290,000 a day in our most recent period.

So I’m happy with that progression as well.

And then finally, these numbers produced an EBITDA per day -- it started off at $854,800 for the first year that we were -- the first 248 days.

And then in the first quarter the $854,800 became $901,367 a day; and these profit margins incidentally were 29.4, around 29.4 both periods.

We held at 29 percent; and then in April we broke the $1 million mark and we went to $1,001,000, $1,002,000 a day or a 30.4 percent margin in our most recent period and over $1 million a day in profit.

Interestingly enough I went back and looked at some of my records about our company and about my last one, the last hotel I opened, which was Bellagio.

We in our first 365 days made almost $318 or 19 million and I’m not counting the last weekend of April.

I’m just talking through the 27th.

We didn’t get over $300 million until quite a while after we had opened the Bellagio.

We projected $260, we made $267; the second year I think it was $299 and in the third year so they went over $300 million and that’s in EBITDA and that’s with 3,000 rooms.

Our 2,700 rooms went right close to $320 and we’re tracking at a higher level than that now of course and our margin around 29 or 30 percent I think is pretty much what happened.

What’s interesting, I think, and this is the end of the trend analysis -- and again to put my former hotel and this one in perspective.

Bellagio didn’t get to net revenues in excess of 1 billion until it opened the 4,000 rooms; and we passed through the $1 billion mark of net revenues in the first 365 days with this 2,700 rooms.

With regard to the expenses; we’re running at $225 a day or something like that and we believe there’s quite a bit of room in that number.

But we are not Bellagio or the more mature hotels like Venetian.

We are attempting to solidify our position as the premier hotel in Las Vegas.

I think that is a goal within reach for us and I think it’s being -- I think it’s demonstrated by the kinds of numbers that I just mentioned to you.

But this is a process that takes more than 367 days.

It’s a process that’s very delicate and we handle the management of our payroll, especially our staff, very gingerly.

When you’re building a franchise like this if you can do it well enough it lasts forever.

And so we don’t have quite the freedom, in our own view, to pursue the final endgame of productivity and expense control when we’re still trying to make sure we understand the relationships of some of the things that we’re offering and the promises we’re making to our guests.

In time we will sort out the ones that are more extraneous.

We will increase productivity as we are on a regular basis; and I believe that we will lower our expenses in this hotel more than inflation will raise them; and therefore, our profitability will increase.

As a matter of fact, I’m certain of it.

But that’s sort of my view about these first 12 months of the Wynn Las Vegas Hotel.

And again, I might add also that as we make these decisions to manage this destination property we take into account the fact that in a matter of months, 30 or so, we will go to 4,800 rooms and Encore has even larger rooms than Wynn.

In order to maintain our position of perceived excellence among our guests we’re increasing the size of our room by quite a bit so that we’ll be what our neighbors, the Venetian, call an all-suite hotel.

Now it’s probably worth noticing that this use of the word suite has become a little bit looser in Las Vegas than has traditionally been the case in the hospitality industry.

A suite has always been two separate rooms with a door.

It’s two separate chambers, a living room, a sitting room, and then a bedroom.

The Venetian did a very cleaver job and built a very large deluxe king size room with a seating area at the end and a step in the slab and they called it an all suite hotel.

Well, to the extent that you can sit in a complete sitting area and enjoy it even though you’re not in a separate chamber fair enough.

The public accepts that and so do we, and the rooms are lovely, and the Venetian’s lovely.

And we have done the same thing by expanding and extending our room to the 700 odd foot level, which is pretty much the same size of the rooms at the hotel at Mandalay Bay.

Like the Venetian, however, Encore will be one large chamber as opposed to two small ones.

So when we manage this opening season or two of Wynn Las Vegas we do so being mindful of the fact that we’re getting ready to run almost 5,000 rooms at this level with this -- with a very superior average room rate, not just 2,700.

And now I’ll get out of the way and let everybody ask their questions but that was my comments on perspective of the first year.

Any questions?

[Operator Instructions] We’ll pause for just a moment to compile the Q&A roster.

Your first question comes from Lawrence Klatzkin with Jefferies.

Hey guys.

A couple of housekeeping questions, one the option was at $3 million for the first quarter, is that going to continue that level going forward?

Yeah, that’s a good number going forward.

All right, all right and the same with depreciation and corporate?

You know, you could look at the depreciation number as having some accelerated depreciation from the termination of the Avenue Q.

Of $2.5 million?

About $2.5 million, correct.

As far as -- it looks like Macau has been moved back a little.

I mean the second phase of Macau has moved back a little bit.

Ron, am I missing that?

It’s the fourth quarter of ‘07 and I was looking for July ‘07 before?

We’ve said that the staging of the mix of the gaming space that’s going into the expansion would start to open starting in the third quarter and be fully opened by the end of the fourth quarter.

So it’s going to phase in.

As far as slots and tables for Phase One and for Phase Two how should we put that in?

Well, we’ll continue to look at the mix that’s going to go into the Phase Two part of the expansion; and that’s, you know, something that’s going to move around.

What we said previously is that the space accommodates up to 500 tables.

May I?

Sure.

Phase Two is what’s been referred to as really 2 A and B. We’ve divided our expansion into an extension of the ground floor, the main floor of the casino and hotel; and we could expand that out to 350 games.

And that includes restaurant, theater, and more shops and that takes us to 350 games.

The ambiguity that you’re sensing has to do with the last 150 games, which are on the second level connected by a very fancy atrium and two-story space, and escalators.

We have wanted to make the final call on the configuration of those games once we have two months under our belt with the first couple hundred.

So I’ve tried to stunt a little bit and I asked Ron to put in our disclosure that we could take an extra couple months.

That space is being built but I want to leave myself an option to learn something.

I mean we are so new in Macau.

I mean everybody in the gaming industry knows that experience is absolutely the most powerful factor in our success and we have none there.

I want to feel my customers.

I want to feel my building.

I want to see the response to table games and table limits remembering that we are not the low-end bottom feeders.

We don’t care about -- listen we don’t have as many tables as everybody else.

We just win more money than everybody else in Las Vegas usually.

Our yield per table is much greater than our neighbors, our yield per machine are much greater than our neighbors.

But we aspire to that in Macau.

I’m not trying to compete with the low-end Baccarat rooms of Macau.

I’m trying to open the market for a better class of customer and in order to do that there’s some questions that I really sorely need to answer and I’m going to be there in September and October personally feeling that and getting myself programmed a little bit so I can catch up with my competitors who have other experience that I don’t have yet.

Okay, that’s fair.

The last question would be you’re spending $1.74 billion for the Encore.

Could you just kind of give us some feel for our modeling purposes what kind of timing we should use for that spending?

How much in ‘06, how much ‘07, how much’08 at least?

Oh, the rollout of the construction expenditure?

Yeah.

Gee, I’m sorry Larry I don’t have that.

Of course we do have that.

John, do you have that?

We don’t have it handy.

We don’t have it handy, I’m sorry.

We’ll do that on the next call.

We’ll have that; but have you looked at the percentages of payment from groundbreaking to opening that you’ve seen at past jobs?

Yep.

I don’t think it’s going to change.

Most of it comes at the end.

Okay.

Thanks a lot Steve.

Sure.

Your nest question comes from Celeste Brown with Morgan Stanley.

Good afternoon.

Hi Celeste.

Hi.

Just first on the hold.

I think Steve you said that you expect normal hold at 21.5 percent despite the range of 19 to 22 that’s normal for the industry?

No, it’s not normal for the industry.

It’s normal for a high-end casino that has a large Baccarat component.

For example, I don’t think that any hotel casino in Nevada has ever broken the $600 million mark.

We were the first hotel to every do $400 million in casino revenue and we did it at Mirage in ‘90.

We were the first hotel to break the 0.5 billion mark in my first year at Bellagio; and I think that we’re the first hotel -- I called Bill McBeth, my friend and former colleague at Bellagio, trying to remember if we’d ever beaten the $600 million casino win mark.

We just did it here in the first 12 months with Wynn Las Vegas regardless of size.

We had $200 million in Baccarat, $200 million in slots, $200 million in other games, you know, in the casino; and we got to $600 million.

I don’t think anybody’s ever done that in the history of Nevada, regardless of size.

So when I talk about a whole percentage for us I’m talking about a place that has a Baccarat game and other things that are perhaps not comparable to casinos of different configuration.

So the 21.5, it will be normal for you similar to, I think your neighbor said it should be higher as well given their Baccarat exposure.

Well, I hope it’s true.

I hope that we have a much higher whole percentage; but I just got this -- you know, this is a very imperfect science.

You know, you tend to feel it.

You know, if you look at the Nevada abstract, the gaming abstract that shows what all the reporting casinos hold in black jack, and craps, and the rest of the games.

You’ll see a much lower whole percentage than you would see at Bellagio, or Venetian, or Wynn where you have this big-- you know, one of the things that really determines a whole percentage is credit play.

The more credit play a hotel has then the more it tends to be a hotel with longer average length of play per customer.

The credit indicates a clientele with a high preference for gaming, longer sessions.

So a lot of things go into whole percentage and if I tell you what I think is normal around here it’s just based upon what I’ve seen for the past year, nothing more scientific than that.

Okay, just wanted to check on that.

And then I know you guys are working really hard to get your first casino in Macau opened but are you willing to give anymore details on your other-- your further efforts there and specifically on Cotai at this point?

Next quarter we will definitely do that.

We’re going to be very fast out of the blocks here in our next place.

Okay great.

Thank you.

You next question is from Harry Curtis with J.P. Morgan.

Hi guys.

Steve Wynn and Ron Kramer: Hi Harry.

A quick question, Avenue Q back in March, based on what we were observing, was seeming to be doing better and so I’m curious given the ending of that and the preparation for Spamalot, what you see in Spamalot that should be more successful in driving your entertainment revenues?

Well, I think I’ve admitted that I thought at the last time we talked, or at least I did personally with you Harry, that I always thought Avenue Q was a very edgy niche kind of product.

It was inexpensive to operate.

It was virtually an off-Broadway production; but I thought that it would give my guests a very unusual choice and a wonderful choice for the city with its wide ranging entertainment menu.

I don’t think that Avenue Q met my expectations exactly.

We made money with the show but it didn’t use the 1,200 seats that I built for it.

And I’m naturally, as a typical casino guy, looking for the show that will produce the most amount of bodies because we have all this other revenue that we gather and EBITDA that we get on everybody that buys a ticket.

So the amount of people that go to see the show is very important to me, not just the simple issue of the P&L of the showroom itself.

And as I mentioned the last time, we were going to build a separate theater for Spamalot; and by shortening the run of Avenue Q I was able to save the $50 million or so I was going to spend for the Spamalot theater and more importantly I was able to save the real estate; and I was able to build more meeting and convention space that was immediately adjacent to my other meeting and convention space; thus joining Encore and Wynn’s convention footage.

That became very important to my convention department.

The new Spamalot Theater was going to go in the middle and break them and separate them in two separate areas.

Now it’s all one.

So those were the reasons why we foreshortened the run of Q and decided to put Spamalot where Q was and increase the size of the theater to 1,500 seats.

Now the thinking behind that is that you have an entirely different animal with Monty Python in terms of theatrical magnetism and theatrical potential than the kind of puppet show that was very clever and witty, and charming, and wonderful that Avenue Q is.

Instead we’ve got a great bit rock ‘em, sock ‘em musical that has a big history in movies.

The Monty Python tradition is a very powerful one and I can’t help but think, and again remember, I’m just another guesser here, that that makes Monty Python and Spamalot potentially a more powerful attraction in terms of bodies than Avenue Q. It’s also more expensive and it’s now playing on the road and it’s as big a hit in Chicago and Boston.

It blasted away big theaters, full occupancy, as it does New York.

And what’s the timing of when that should open, if you could just remind me?

The 15th or 18th in there.

I am sorry.

Say that again.

Middle of February.

The modification of the Avenue Q Theater to be bigger, to add the extra seats to go to 1,499 seats from 1,200 will be complete in time for Mike Nichols and his friends, and Eric Idle, and Bill Haber the producer, to move their people in and get the show installed in December and start rehearsals on January -- the end of December and the beginning of January; and then we would have preview performances, in today’s schedule, around the 15th of February.

That’s great.

Thank you.

Your next question is from David Anders with Merrill Lynch.

Great, two questions.

First, Steve maybe you could tell us and just remind us, about the seasonality patterns when Bellagio opened because, if I recall, the first quarter is a good one.

It sounds like you’re kind of bucking that trend with April because normally I’d expect the second quarter to be a little lower than the first.

Could you talk about that and then maybe Ron if you could bring us up to speed on the property charges?

What was in that line item?

I’m assuming it is kind of clearing the ground for Encore but I just want to be sure.

Well, let’s deal with the first one.

I think the first quarter is the strongest quarter.

It always has been historically in Nevada.

There’s exceptions of course, depending on whole percentage and how does Chinese New Year go.

They had a big Chinese New Year hit on the plus side at Mirage and we didn’t at Wynn.

So our whole percentage was less than 20.

Now if you put that back at 21, where it’s been, we probably would have had an EBITDA of another $7 million or something.

5 to 7.

Five to seven or something, and so the first quarter would have been substantially better than the fourth quarter.

As far as this quarter is concerned April was delightful.

Everything is normal.

All of our metrics are proceeding en masse.

It’s not a whole percentage thing.

It’s everything and I’m looking at -- and we are very heavily booked for May as well.

So this is the first time out for us.

We’re learning a lot about our hotel.

That’s one of the reasons why I said what I did when we started the call.

So I’m not really ready in terms of -- Wynn Las Vegas is not like the other hotels.

As you will see as time goes by we will be a little bit of an anomaly in terms of pricing and our performance.

And so I’m a little hesitant to draw conclusions on so little evidence.

I’ll be glad to share what we know with you but I don’t know that I’m ready to say therefore yet.

All right.

And on the property charge, the majority of it is the remodeling of our fairway villas on the south side and then there’s a continued program of going ahead on the north side.

So that range of about $5 million is, you know, what we had set previously and that’s good going forward.

When do we finish that?

The north side remodel is almost done isn’t it?

It’s now finished.

It’s [up and] running.

Okay, so the north side’s done too.

Yeah, we took all of our golf course villas with the swimming pools and upgraded them to the level of our villas above the Baccarat pit so that we had another dozen; and they’re really being well received too.

We still have 24 of them on the golf course that are basically at our suite level but they have big terraces overlooking the golf course.

But the bottom 12 that had the swimming pools now are full on over the top Las Vegas-type fantasy rooms.

David Anders.

Okay, great.

Hey Ron one last quick question on the sub concession and the proceeds.

Can you walk us through the accounting for that?

When does that come in and where does it stand a bank in Macau to build out the next phase?

Well, as you know, the transaction is pending and government approval will determine when the money changes hands; but we’re confident that that’s moving along.

In terms of the modeling we have the ability to bring capital back into the Wynn Resort parent company level.

As you know, that our investment at the Macau level is structured with us having equity and a debt so we’re able to leave the money in the facility in Macau in order to reinvest into new property to be able to take on Cotai and beyond.

Money is staying in China.

Got it.

Your next question is from Robin Farley with UBS.

Thanks; just to clarify two or three things.

One is the $900 million.

I don’t know if you clarified.

Is that going to be taxable in any way?

A very dangerous question.

We are studying that.

We have lots of expenses and costs associated with China and we are explaining that to ourselves, and our accountants, and our attorneys at the present time.

And we’ll report that to the investment community when the matter -- when all those calculations, and all those expenses, and all those costs finally are summarized.

Would the proceeds above -- or whatever amount those costs end up being -- will the remaining part of the $900 million be taxed at regular U.S. federal--?

If there’s any money left.

I don’t know that there will be considering the commitments we’ve got in China.

Okay.

And then secondly, to clarify earlier.

You were talking about the delay in the Phase II Macau opening.

I just want to clarify; that’s from July into Q4 not beyond Q4.

Is that right?

Right, right.

And also the Encore budget at this point.

Is that a final number, that $1.74?

No but it’s real close.

We’ve got a high degree of comfort at this point with the Encore budget but when [Ron Tudor] gives us a final version of the GMP we’ll share it with you.

And is there -- would you venture to put sort of plus or minus x percent on--?

No.

No, no.

I mean I’d like to wait until what I just said --

Yeah, the budget that we put out is what we’re working on.

We believe the number we put out sincerely.

There’s no point in giving anybody false expectation.

That’s counter productive.

So we put out a number that we really believed was a comfortable number.

And remember this is a project we’ve been working on for --

Two years.

Over 16 months by the time we announced it so this is a tight number.

But we’ll finally confirm that when we give Ron Tudor a few more pieces of information our builder didn’t have and he confirms the GMP; and we’ll share that with you right away.

Okay.

Great, thank you.

Your next question is from Bill Lerner with Prudential Equity Group.

Thanks, hi.

Just one for Steve; you know, the language surrounding subsidies in Macau isn’t particularly precise as it relates to doing a few multiple deals.

What’s kind of the current thinking on that?

I’m not sure what you want to say there.

And then also, you know, just your thoughts would be helpful on other types of possible transactions, joint ventures, and so forth.

They would all also need the government approval I know but just would like to get some color.

If I understand correctly you want to know, what besides the one transaction that we’ve announced, what we might do in the future?

Well, I’m sure without tipping your hand, right.

We are very aggressive as are other American and international firms about being a Chinese company and I guess that we will be more of a Chinese company than any other kind of company before very long; and we intend, as I use the phrase, come out of the blocks pretty quick here on Cotai.

And the size of our real estate allows us to do a comprehensive development and others on the property.

And one of the things that we’re talking about, you know that we have a Ferrari dealership here, which is now the most successful Ferrari dealership.

I think we sold more cars than anybody in the world last year.

It surprised me.

What Mark?

New and used.

New and used, we broke -- we sold the most Ferraris in the world and we thought it was a great idea but we didn’t know it would be that good.

I’m talking to Luca di Montezemolo, the Chairman of Ferrari, and we’re talking about maybe even doing the hotel, one of our hotels as a Ferrari Hotel, which seems like a wonderfully fun idea.

Think of all the potential delicious graphics of having the Ferrari Hotel in China.

And so we believe that there’s more than one product offering that we should make in the Macau market for the different types of visitors that we’re going to cater to, including an aggressive convention program, a very aggressive convention program.

We share some of the other companies’ views that Macau has a bright convention future and that we will be able to sustain large amounts of midweek occupancy with groups that will come to Macau for meetings and conventions so that’s going to be part of our land use.

So, as I say, without showing you the drawings, and there will be a time for that shortly, that’s where we’re going.

And is it possible that we might manage the casino and own part of it and let somebody else invest with us on one of the properties?

Possibly yes.

I don’t have anything to say about that today except that it certainly is a possibility.

But whatever we do we’ll be managing the properties ourselves.

Okay, a tough one.

Steve just one follow up.

Can you share with us anything that Linda’s been kind of experiencing over there that bodes well about a cross-market story and anything you have to say over there?

I think we’ve got a good model.

Let’s look at the Venetian.

They are on-line, you know.

They’re in real time.

I’ve heard Bill Weidner talk about this and the other fellows that they are experiencing cross marketing benefits.

I know in the last quarter that they reported they had a high whole percentage due to Baccarat win, really higher than normal.

They played lucky with the Asian business and they’ve been in business now almost two years in Macau and they would really be able to answer that question better than I can because I’ve yet to do it.

I’m just coming on here and we have a different kind of facility.

I mean it’s night and day between the existing Sands and the Wynn Macau.

Venetian isn’t open yet over there.

But the Wynn Macau property isn’t comparable to the Sands.

You know, we’re a complete destination place.

So that’s a new level for the city that we’re about to experience in 120 or 130 days there.

So I don’t know the answer to that question.

I know that we’re prepared to cross-market.

I know a lot of our customers want to go to Macau.

I’m happy to hear that and they’re waiting until we’re open to go because they feel that for the first time they’ll have the kind of a facility that’s up to their standards.

So what’s surprised me is the fact that people from America or customers of Wynn Las Vegas want to go to China.

I’m certainly going to be glad to take them if they want to go, anything to make our customers happy.

Great, thanks.

Ladies and gentlemen we have reached the 45-minute allotment for questions and answers.

Our final question is from Jake Cogan with Banc of America Securities.

No, I’m actually all set if you want to take one more.

Thank you.

Okay Jake.

Okay, thanks everyone.

Look forward to speaking to you again next quarter.

Thank you ladies and gentlemen.

This concludes today’s conference call.

You may now disconnect.