永利渡假村 (WYNN) 2007 Q3 法說會逐字稿

Good afternoon.

And welcome to the Wynn Resorts Limited third Quarter Conference Call.

Joining the call on behalf of the Company today are Steve Wynn, Ron Kramer, Marc Schorr, John Strzemp, Andrew Pascal -- President of Wynn Las Vegas -- and on the phone, Ian Coughlan -- President of Wynn Macau, David Sisk -- CFO of Wynn Las Vegas, and Scott Peterson -- CFO of Wynn Macau.

All lines have been placed on mute, to prevent any background noise.

After the speakers' remarks, there will be a question-and-answer session.

If you would like to ask a question during this time, simply press *, then the number 1, on your telephone keypad.

If you would like to withdraw your question, press the # key.

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

Kramer -- President of Wynn Resorts.

Please go ahead, sir.

Thank you, Melissa.

And good afternoon, everyone.

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 Securities Laws.

I would 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 measure is included in the press release.

We are broadcasting this conference call live on www.WynnResorts.com -- where you could also find the earnings release, which we circulated earlier today.

Let me start with a brief overview -- with the highlights of the third quarter.

And then we'll open it up for questions.

We are very proud of our achievements in the third quarter of 2007.

Once again, we generated over $1 million in EBITDA per day in each of our properties.

In Macau, we had EBITDA of 92.8 million -- a record for the property -- despite unfavorable seasonality and a significant increase in supply in August.

As we previously stated, we believe Macau is one of the most exciting gaming markets in the world.

When compared to the United States, Asian countries have 6-times the population, yet currently generate approximate one third as much gaming revenue -- which supports our conclusion.

The potential of this market is tremendous.

We have always believed that quality supply increases visitation and gaming revenues.

The Wynn brand in Macau is well-established, and our loyal customers enjoy the intimacy of our design, and appreciate the level of service we provide.

Wynn Macau has not suffered from the addition of new supply.

And the opening of Star World, [Grand Woods Boa], Crown and the Venetian have all helped grow the market, and benefited our property.

In Las Vegas, our EBITDA was 93.2 in the quarter -- a 21% increase versus the third quarter of 2006 -- with every segment, including gaming, hotel, food & beverage and retail outperforming last year's results.

We achieved year-over-year growth, despite lower traffic resulting from the closures of the Stardust and Frontier.

We look forward to the opening of Palazzo and Trump in 7 weeks -- which, in our experience, will drive additional walk-in traffic to Wynn, Las Vegas.

Lastly, we are very proud of the strength of our balance sheet.

Pro forma for our recent equity offering -- we now have cash in excess of 1.5 billion, and our total debt outstanding is approximately 2.4 billion -- providing us with excellent financial flexibility for future developments, and shareholder value-enhancing opportunities.

With that, we're going to open it up for your questions.

At this time, I would like to remind everyone -- if you would like to ask a question, please press *, then the number 1, on your telephone keypad.

We'll pause for just a moment to compile the q-and-a roster.

Our first question comes from Harry Curtis with JP Morgan.

Hi, guys.

Steve -- if you could give us your thoughts on this AMAX plan to roll up some of the junket operators.

What are the obstacles to their success, do you think?

Gee -- I don't know, Harry.

You know, the Chinese folks are superbly entrepreneurial, clever and resourceful, and we benefit from our association with many of them in that regard.

And now they're trying to figure out a way to take advantage of their energies in the most legitimate way of all -- by being public companies, and sharing the wealth with shareholders.

I'm not qualified to comment on how this is going to work.

But it seems to me to be a healthy move in terms of reflection of their attitudes.

Don't you think?

I think it's got a shot.

Now, according to them, they've approached both you and Sands.

And we've heard that you didn't feel that it was necessary to take your commissions up.

Oh, Harry -- is that what you meant?

I'm sorry.

Look -- one of the nice things about our brand -- we're the little company that has the niche.

We don't discuss price.

People come to us because it's better.

And that's a very wonderful and comfortable place.

We get the highest win per machine -- the highest win per table -- the highest average room rate.

I think we're the most profitable hotel in Las Vegas, regardless of size.

I'm not positive, but I think it's probably true.

I think we're well on our way to becoming the most profitable hotel in Macau, believe it or not.

So we have very healthy relationships with our junket operators.

And there's been no pressure exerted on us -- nor would it benefit to change our relationships with them.

We have not felt that.

Whoever told you that they came to us -- I don't know about the Sands, of course -- but that's not something that's been a problem for us.

My second question was related to Cotai.

Can you give us a sense of where you are in your design development plans there?

Finally?

Yes.

I'll tell you what we're going to do on Cotai.

We're going to build between 1,500 and 2,000 all-suite villa hotel.

I say this simply -- it is by its own nature hyperbolic.

But I don't mean it to be exaggerated.

We intend to build the most beautiful hotel on earth on our property in Cotai.

End of statement.

Any financial parameters that you want to throw out there?

It'll cost a lot.

Our stuff always does.

We'll provide details when we're finished with the budget.

It'll occupy the whole property.

And we're actively involved in the design.

All right.

I don't want to hog this -- but thanks.

Your next question comes from Celeste Brown with Morgan Stanley.

Hi, guys.

Good afternoon.

Two questions, Ron or Steve.

Could you talk a little bit about how you've seen the market evolve?

Or what you see as the opportunity in the market since the Venetian opened.

Or is it too early to make a judgment there?

And then secondarily, coming out of the Chinese delegation gathering, there's been some concern about foreign influence in Macau.

Do you see that impacting your ability to get things done at the speed you'd like?

The answer is to the 2nd question, "No, I don't." I think that the foreign investment in Macau has been beneficial to the city.

I think that everybody there is trying to be a good citizen, be a constructive neighbor, and make a positive contribution to the economy and to the citizens there by giving them job opportunities.

By paying -- of course -- a lot of taxes, and broadening the appeal of Macau.

A policy which -- although executed by several investors from abroad -- was designed and put forth by the government itself.

They're the author of this movement.

And they have their fingerprints on it.

I think that pretty much everything is going the way they want.

That's the feedback that I get.

Naturally, they're protective about the lower-income citizens.

And that's probably been reflected in that visa move that we discussed on our last conference call.

But as far as making a destination resort of Macau, the Chinese government -- the PRC -- was fully behind Chief Executive Ho's decision to do that -- with the special administrative region.

There's been not one shred of evidence to indicate there's been any change in that.

And we're there, of course -- I am -- every month, along with various people from China.

From Macau.

I know that Terry's going to go there this week.

None of us have ever heard anything different.

The first part of your question had to do with the Venetian, and what conclusions we draw from it.

I think it'll be fascinating to see what the inside of the Venetian's financial performance has been.

We naturally are hungry for any additional data to tell us about how things are going on Cotai, in actual fact.

I'm sure that this curiosity and this appetite that we have will continue, as the Venetian matures in that neighborhood.

Prior to the Venetian's arrival, Cotai -- with its 1 hotel -- the Grand Waldo, I think it's called -- has been sort of a non-event.

Now, of course, a 10-billion foot hotel has been opened since the last days of August.

And that's an altogether different story.

How it performs, and its effect on everybody is going to be fascinating.

But I think it's a little early.

Maybe we'll get some information when the Venetian folks tell us more.

But I don't have anything to say, right now.

It hasn't affected us.

We've doing better than we ever have.

So I'm happy to say that.

But it's early in the game in China.

And Ron, could you give us the impact of high hold-em, I guess mostly in Vegas -- but there's a touch in Macau.

Well, you know it's funny.

We always get into these conversations about normalized hold.

We put out a range, and you can do the work yourself in terms of -- we're totally transparent in terms of getting all the underlying data.

You can go and look at what normalized hold would be within the range.

This would be the third quarter where we've been above our theoretical range.

I think on a yearly basis, we're going to start taking a look at what our ranges should be -- and we'll do that when we report our --

And I think that -- this is Steve again -- I think what we're going to do -- I think we're going to stop talking about it.

We'll just show you the number.

You can draw your own conclusion.

We don't think we have anything really intelligent to add to whatever the Wynn percentage figure is.

If we do, we'll share it with you.

But we're going to stop trying to normalize anything.

The numbers speak for themselves.

That's fair.

Thank you.

Your next question comes from Joseph Greff, with Bear Sterns.

My questions have been asked and answered.

Thanks, guys.

Thanks, Joe.

Your next question comes from Bill Lerner with Deutsche Bank.

Thanks.

Hey, guys.

Hi, Bill.

What do you figure is going on in Vegas?

I mean if you take a look at year-to-date, the dynamic is interesting.

You've got visitation growth that's quite low, and you've got relatively moderate gaming revenue growth.

But you guys are expiring 13-14% gaming growth -- especially in particular this quarter.

Of course 8 or so plus percent non-gaming growth.

So what do you think's going on?

Certainly it's a function of who your customers are in general.

But there's got to be some mix dynamic going on.

It's interesting.

We're looking at the numbers.

We had one number that was down.

It was our low-end slot number.

The quarters.

The 25-cent machines.

That's because the Frontier and the Stardust are closed.

The high end's up.

We tend to be galaciously insulated from some of these macro-market trends.

Because we have a clientele that is financially in better shape than their average tourist.

So we're sort of in a privileged position, in that regard.

We don't run commodity rooms.

We've got the highest room rate in town.

And we had better occupancy than most of our friends -- with a higher room rate.

And so we don't -- and because we don't -- feel those macro trends the way, for example, a giant company like MGM or Harrah's would -- then we don't pay attention to them.

We're very busy concentrating on the quality of the experience of each of our guests, every minute they're in the building.

Because the only thing we care about is word-of-mouth.

That's all.

And I must tell you, we're very, very myopic about that.

So that we have our nose right down on the carpet here.

And so we tend to be a little bit slow on market trends.

You know -- if you don't feel them, who cares?

All right.

Thanks, guys.

Thanks, Steve.

Your next question comes from Steve Kent with Goldman Sachs.

Hi.

Steve -- maybe just following up on Celeste's question.

Maybe you could just talk a little bit more about what you're seeing since the Venetian opened on the mass floor.

Are promotional perspective or VIP players moving around now that there are more options in the market?

Maybe you could just give us a little bit more color as to what you're seeing since this all occurred.

I think the mass floor -- right when Venetian opened -- was down a few points.

Our VIP business jumped, and is jumping at the moment.

We are building more VIP rooms as fast as we can.

And we're looking forward to MGM's opening.

That'll be good for us.

And we don't think Venetian's our competition.

Because of location and because of the size of the place.

We think that our competition's probably more likely the MGM joint venture that they own half of with Pansy Ho.

Which is right outside our door.

I heard this morning on a conference call that the chief financial officer said that they've got more games than us.

They're bigger than we are.

Well, they're going to open up on December 20th.

Is that the date?

They haven't announced it, yet.

Well, something like that.

We go bigger between December 15th and January 15th.

I don't know that the MGM people knew that.

But we open up all that stuff that everybody said we postponed.

We open up all our new retail -- and our new casino -- which is stunning -- between December 15th -- between Christmas -- and January.

We thought January 15th.

It looks like we're going to be a little early.

And with it, more of what has become our type of thing.

There's Gucci and Ferrari and Prada and Van Cleef.

And Aramais.

More food.

More fancy food.

More VIP rooms.

A special feature that we're particularly proud of that I think is going to be one of the most exciting things in Southeast Asia for people to experience -- right in the building.

A whole bunch of things happen just in a few wks in our building.

That sizes us up -- especially in the mass market, as well as the VIP.

We'll be at 380 games.

And 1,200 slot machines.

Now it's interesting to note that we went from 300 or 400 slot machines to 700 or 800.

And our win per machine is bigger -- is larger -- than it was when we had fewer machines, I'm happy to say.

Very much like what Terry reported about their place in Detroit.

Seems like quality -- wherever it is -- is its own reward.

That is to say -- I think you've heard me say before, "Bigger ain't better.

Better is better."

That's what we're learning in China.

That's what we're learning in Macau.

Just like Las Vegas.

Just like Detroit.

Your next question comes from Lawrence Klatzkin with Jefferies.

Hi, Larry.

Sir, your line is open.

Yes.

I'm here.

Okay.

Sorry, guys.

Hey, Ron.

The timing for Diamond Suites.

What are we talking about that?

We'll have first half of '10.

The tower itself had a long lead time.

Because you know we're on a landfill there.

All of us in downturn.

And the foundation had to go down 180 feet into the landfill.

That involved a process that is slow, and took an extra 12 months.

So it's on-schedule, on-budget, it's going just fine -- but it's slow.

It's slow on the landfill to build a 40- or 45-story tower.

But the Diamond Suites.

The Diamond Suites in Macau are the thing we're most proud of.

And they represent -- when everybody gets to see them -- the new Wynn model.

They are the smallest room we're ever going to build again.

And I think they're unique.

And I think they're going to establish a new standard.

But our typical room is 1,000 feet.

Our suite is 1,000 square feet -- and up, from there.

We're very excited about the Diamond product, and looking forward to showing it to everybody as soon as we can.

Maybe we'll pick up some time on our schedule.

But right now, we're sloughing through the foundation -- which also has package downstairs.

Now, Steve -- do you see that possibility of win-per-table there?

Are you guys looking for something -- what -- in the 15,000-plus range?

Larry -- you know we never give guidance.

Sorry, Ron.

Always --

Larry -- in the Wynn Tower, besides villas and suites and all the rest -- there are also 2 gorgeous VIP casinos that are rather large, which will add additional capacity when that tower opens -- beyond the 380.

And we'll go over 400.

Substantially over 400, then, in the Peninsula product.

Just also want to point out as part of the Diamond Tower and the recirculation and enhancing the guest experience.

There's a 20-odd million dollar property charge that we took this quarter, as we've been repositioning how that expansion phase would look, and the addition of additional retail that would be going in there.

That's already part of the property budget.

But when you look at the quarter on an EPS basis, the biggest impact is taking that property charge.

Ron, was that put into the earnings of the Wynn Macau?

It's not at the EBITDA level, Larry.

It's a below-the-line property charge.

Okay.

And as far as Vegas sentiment goes, and we all saw August -- which was not a great number.

So September's better.

How is October?

How did October feel for you guys in the market?

Look -- we're still in October.

So we're not going to get into talking about numbers that are still in-process with books that aren't closed.

We've said consistently what our properties have been doing on our prior calls.

Million dollars.

Look.

The groove that Wynn Las Vegas is in -- it doesn't change, month-to-month, really.

All customers get lucky.

Customers get unlucky.

This happens or that happens.

They close the frontier.

They open Palazzo.

But pretty much, you can expect consistency out of this hotel.

That's one of the good things about this kind of a product.

It tends to be enduring.

We build houses of brick.

Remember that annual report we did at Bellagio a few years ago when we opened up?

We put the 3 Little Pigs on the cover and we said, "We build houses of brick?"

Whether you're talking about Bellagio or Wynn, that mentality is still very much in play.

And our properties tend to be consistent performers.

There's really nothing exciting-new about October -- up or down.

It's just cooking along.

We're building friends, improving our customer base constantly -- because of satisfactory experience, repeat visitation and word of mouth.

Tomorrow is always better for a company like this than yesterday.

And the day after tomorrow is always better than tomorrow.

We don't buy things.

We build them.

We grow organically.

We don't take shortcuts.

And as far as you use this whole piece -- 54 acres -- for one project.

Are you guys looking for another piece of land in Macau, then?

Not at the moment.

But I could bet I'd damned well not turn down any real estate in Macau.

We've got our hands full.

We're in construction.

Doubling the one we've got.

We're getting ready to build another one that's going to be a story for a long time, when people understand it.

The hotel that we're going to build on Cotai is not "another hotel." It's a piece of business.

It's going to be the thing that everybody wants to copy.

There are things about the hotel in Cotai that have never been seen before in any respect.

And I think there's going to be a lot of fun about that product.

It's not just another structure.

It's something that represents 40-odd years of maturity in this business.

And we're going to bring to bear every week to every year, month, day of experience that we've had -- and all that we've learned.

To give people a richer, deeper experience, when they come to that hotel in Cotai.

All right.

Well, thank you very much, Steve.

Again -- to ask a question, press *1 on your telephone keypad.

Your next question comes from Robin Farley with UBS.

Thanks.

Yes.

On the AMAX deal -- aside from whether you wanted to change your relationship with them.

If they do go to a competitor and concentrate their business there at higher commission levels, how would you expect that to impact the rest of the market?

Well, Robin -- we've been clear that premium property is not something that we feel we have to worry about getting into increased commissions to be able to relate to our customers.

So our customers choose us because of the quality of the experience.

And we don't see any pressure in terms of what AMAX or anyone else is doing in terms of increasing commission.

We don't care, Robin.

I'm sorry?

We don't care.

Okay.

And then the other question is -- Can you talk about there are others with land in Macau.

Land but no gaming concession -- who may be looking to partner.

Can you talk about what your interest level in that may or may not be?

And as a for-example, it sounds as if Dubai World was there with land.

Never say never.

But our first concern would be to protect the integrity of our brand.

Not to confuse the public.

We have more than enough opportunity, with land that we own and concessions and properties that we own in Nevada and Las Vegas, to be in construction for the next 10 years.

I know that it's a lot of fun to talk about doing 18 joint ventures, and leveraging our concession agreement.

But the fact of the matter is, we probably won't.

There are less-experienced companies than ourselves that think they can bite off almost anything, and do an unlimited number of hotels.

I want to make it clear that we don't think that we can do an unlimited number of hotels.

We have our hands full doing the ones we're doing.

When products are special, they don't just roll off a sheet of paper.

So I wouldn't -- just for the sake of money -- I wouldn't do a joint venture with somebody and let people know that we're running it with someone else's name on it, and have some kind of off-brand.

I wouldn't do that.

That's not the kind of company we are.

And if it means we won't be as big as the other guys, I don't care about that, either -- to tell you the truth.

That's just the way we are.

That's the good news and the bad news, I guess.

Thank you.

Your next question comes from Liz Benston with Las Vegas Sun.

Hi, guys.

Can you hear me?

Yes.

I wondered if you could elaborate on your discussion about the strip?

What's going on at Wynn on the gaming side seems so very different from what's going on at MGM, where the gaming numbers were down.

Whereas the numbers in Las Vegas have been impressive since Wynn Macau opened.

I'm wondering if you think Wynn Las Vegas has actually taken some market share from MGM -- and is that being driven by Macau?

Okay.

I know that Terry is looking forward.

We're very good friends with the MGM people, as you can imagine.

From Curt to Terry to Bobby to everybody.

Those are our friends for 34 years.

And former colleagues.

The notion is that having a hotel in Macau benefits you in Las Vegas.

There's no question that one of the greatest things that's happened to the State of Nevada in modern history has been that many of its major players are allowed to participate in the Chinese market.

That's a very good thing for this city.

It opened the door to a bunch of new business.

However -- I must hasten to add -- it is important, since we're talking to professionals on this phone call for the most part, as well as our competitors, undoubtedly -- that we have data here.

And unfortunately, the data speaks for itself.

Venetian had a hotel in Macau 2 years before we did.

And when Wynn opened, we had the best Baccarat game on the strip -- without having a hotel in Macau.

Now the reason I mention this is not because the Venetian folks are anything less than exciting people.

They're very exciting people.

What I want to point out is that the Chinese market is not clearly understood very often.

So I'm going to try to be helpful.

The people that go to Macau -- that go to places like Wynn -- are the most sophisticated folks that you can imagine.

Think, for example -- for those of you who are in New York -- of the women and the men walking up and down Madison Avenue between 63rd and 79th Street.

That's more like who these people are than somebody who's on Broadway.

This is a very sophisticated group of human beings.

Successful, entrepreneurial men and women who know everything about what's going on, everywhere.

So what they do in China, in Macau, is they go to the best hotel.

No matter who the hell owns it.

And incidentally, when they go to Las Vegas, they go to the best hotel -- no matter who owns it.

Now, if the best hotel in Macau is owned by a company that has an equally fetching property in Nevada, then there is dual visitation.

But if the hotel in Macau has a place in Las Vegas that's 2nd best, they will go to the first-best place in Las Vegas.

Now when Terry [Lanney] talks about his hotel in Macau and his Bellagio, I think he's quite right.

They will benefit from it.

Because Bellagio is up-to-snuff.

And I believe that the property that's being build next door to us in Macau is up-to-snuff.

But there is no automatic falloff.

The Chinese customers go to the best places.

And when they travel -- that's true of Las Vegas, Los Angeles or London -- they know about the Peninsula Hotel in Beverly Hills.

They know about Claridge's and the Dorchester or something in London.

They know about Wynn and Bellagio in Las Vegas.

And they pick and choose eclectically -- where they get what they want.

Best shopping, best service, best rooms.

Branded, classy places.

They're very brand-conscious.

So when you take a look at Las Vegas and you see what's going on -- if you're talking about the international component of the business -- that's pretty much the controlling, dominant factor on how those folks migrate.

Was that helpful?

I don't know if I'm speaking to the point.

Yes.

I think you're maybe being a gentleman by not criticizing the competition.

Not only am I --

But like you said -- the numbers kind of speak for themselves.

Maybe we got market share away from Bellagio.

I don't know.

What I'm trying to say is that to the extent that we benefited from China, it's because we had the best hotel in Las Vegas, in terms of what the Chinese customers thought.

Not because we were in Macau.

They were here before we were open in Macau.

We had the best Baccarat game when we opened up in '05 -- before Macau.

We had a better Baccarat game than the other hotels on the strip.

Chinese players.

And so, I think the point I'm trying to make is that quality is the controlling factor in Asian Baccarat and top-end gambling business.

Both for Asians and for Americans.

To the extent that a hotel has quality or loses quality, or is perceived to be losing quality, then of course the top-end customers migrate to the next-best place.

It's like fashion.

You know?

It puts a lot of pressure on us to maintain.

When we got the Mobile 5-Star, I made a big fuss about it.

People in the past in Las Vegas had said, "Ah, it's not worth the trouble to get a Mobile or a AAA 5-Diamond or 5-Star.

You're going to spend a lot of money with turn-down service, and a bunch of other fussy things.

The Mobile 5-Star and the AAA 5-Diamond are the two most respected third-party qualifications that the hospitality industry has.

And for us, from the day that I drew the first line on a piece of paper, I wanted to be a Mobile 5-Star hotel.

I wanted to be the first one in Las Vegas.

I thought that it was very important.

I think it is very important.

We were thrilled to get the 5-Diamond award again both in our food and our hotel this year -- for the second time in a row.

And I'm looking forward to getting the Mobile 5-Star in our restaurant and our hotel again.

And those announcements come out, soon.

I know that we're the headquarters for the 5-Star Convention for Mobile, this Spring in Las Vegas -- which gives me some sense of optimism.

But we are working on it every month.

Another thing.

Of all the pieces of information in marketing -- of all the talk from CEOs and owners and executives -- the one thing that stands out above all the rest in commercial speech that really clears the baloney from the truth -- is price.

You think of your own experience, all of you.

You'll discount all the fancy commercials, all the trendy marketing statements, all the other cutesy tootsy stuff that companies say about their products and their services.

But the one thing that none of us ever ignore is price.

We say, "If Mercedes charges more, it's because they must have a better car.

If Wynn can get a higher price, it must be because they're better." So the pricing of our products tell you more about what's really happening between us and the public than anything else.

It's the one thing that speaks for itself.

And that's the goal that we have, as we manage our business.

And we get the highest price.

Period.

Here and in China.

And our market share will continue.

And our profitability will continue to reflect that.

Thanks.

I appreciate it.

Your next question comes from Bill Lerner with Deutsche Bank.

Thanks.

I just wanted to come back for one more.

Steve, this is a question really on Encore.

Of course, you've got latent demand for your room supply at Wynn.

But how do you not cannibalize yourself at Wynn from Encore, going forward?

Maybe the question really has to do with what the experience at Encore will be like, relative to Wynn.

Encore's an upgrade -- in plain language, Bill.

It's an all-suite hotel.

It has more intimacy.

It has bigger rooms.

It has some new things, as far as gaming goes.

It has beautiful sky villas.

50 stories and private gaming associated with them.

There's a whole bunch of new wonderful things.

And finally, it has -- I think for the first time in our history -- things change in this town.

Since 2000, a new industry has grown up, here.

The nightclub industry.

It didn't exist before the millennium.

I remember before we sold the Company to Curt -- who cared about clubs?

Some guys were going to those topless joints, but we didn't pay much attention to them.

But now in the last 6 or 7 years, a new industry has popped up in Las Vegas.

It must be pushing 600 or 700 million in revenue.

It put pressure on the second shows in all the showrooms.

The nightclubs.

From all the ones that you hear of on the conference calls of Venetian or MGM to our own Trist, which is probably the single-most successful establishment of its kind in the world.

9,900 square feet [inaudible] $36 million or $37 million and make 70% profit margin.

Something ridiculous like that.

And we've got Blush here.

So learning from all of this with our friend, Victor [Drey] and our other guys -- and Scott and Sean -- learning from all of this, we approached the design of Encore with this new information in mind.

And we had all had experience in Europe.

And we knew about places in St.

Tropez like [Sanc-en-Sanc].

The Beach 55 with its restaurant.

Where the party starts in the afternoon and continues into the evening.

We toyed with this notion, with the European pool -- with the sunset pool at Wynn.

We have gaming and swimming and a discothque in the afternoon, for adults only at one end of our place.

And it is enormously profitable.

It hasn't escaped our competitors.

They've paid close attention to it -- as they should.

But in Encore, we have done some things that have not been seen on the strip, before.

Encore will not look like Las Vegas.

The casino is more like Macau.

It's chambered.

It has intimacy.

The casino won't -- in any way -- resemble the Wynn Las Vegas Casino.

But it is the same width as Wynn Las Vegas -- which is 250 feet.

So Bill -- you've been in our place.

If you know where the hallway to the LaRev Showroom is, and the ticket counter -- imagine going all the way down to Red 8, at the other side of the casino.

That entire side of the casino is glass onto the pool garden.

And there are two stories of cabanas and a nightclub and pools in the middle, and bars in the middle of pools.

And restaurants outside.

The entire place is built on a model.

If I say San Tropez or [Sanc-en-sanc], I'm going to confuse you a little.

But the notion that we're creating a party that starts in the daytime, and continues, is very much a part of the idea of this hotel.

And natural light floods the entire casino.

The other side of the casino -- opposing this 250 feet, which is the side parallel to the strip -- which is also a north-and-south side, equally -- equally 270 feet wide -- is entirely an atrium.

So here's a casino that's chambered with columns and tieback drapes and all kinds of things like that.

And there's natural light, everywhere.

It's a completely different place visually and physically.

It's going to be fascinating to see what our colleagues up and down the strip and the public make of it.

But I will tell you that Encore doesn't look like Las Vegas.

And I don't think that will surprise anybody.

We tend to try new things all the time.

And we've learned from our experience in Macau.

We've had a wonderful run, there.

We developed an idea in Macau, because we were confused about the small spaces of [Liz Boa].

Not sure whether we should have big spaces, like Las Vegas.

So we sort of hedged our bet.

Bill, you've been in Macau.

And you know how our casino's laid out with those chambers.

Sure.

Okay.

That doesn't exist in Las Vegas.

Right?

Not that I recall.

Well, it will in Encore.

Encore looks like Macau in the gambling part.

So the whole thing is about intimacy and suites.

So Encore offers our type of guest -- our caliber of visitor -- a whole new choice.

And the north entrance -- the main entrance of Encore -- is a straight shot to the Convention Center.

Wynn Boulevard goes right straight from our door to the Las Vegas Convention Bureau.

And the echelon and the plaza --

Are directly across from our door.

All the increasing product that's going to come in around them.

They're all connected to it.

So the whole high end of Las Vegas is going to be here in the north corner.

So we're going to be surrounded by thousands and thousands of brand new rooms.

All of them are going to be representing the new age of Las Vegas.

Nothing less than 500 or 600 square feet.

It's going to be the most wonderful concentration of top-end hotels in the world -- starting with Palazzo.

And Palazzo's only a few weeks away.

And then months later, as we start to have these 4-5-6,000 rooms at [Eschalot Kabab] from [inaudible] Cuba.

He's a high-class guy from the Palazzo Hotel.

His plans for the Frontier are full on.

It's a straight shot to the Las Vegas Convention Bureau.

3,000 feet right straight down our road, with free transportation.

And if you go out the south entrance, you're right straight across from the Las Vegas Sands.

And when you put it into perspective, five years ago, this property was too far north.

And when you look at it, what's going to be developed five years from now?

And how it's all going to connect up to the convention center -- it's the center of gravity.

And the town has clearly shifted.

That's good.

Thanks, guys.

Thank you all.

And we look forward to reporting to you again in the New Year.

This concludes the Wynn Resorts Limited third Quarter Conference Call.

Thank you for participating.

You may now disconnect.