Craig Billings: And it was a mixed bag of stuff, Shaun.
Shaun Kelley: Perfect, thank you so much.
Craig Billings: You got it.
Operator: Thank you. Our next caller is Dan Politzer with Wells Fargo. You may go ahead sir.
Dan Politzer: Hi, good afternoon, everyone. Thanks for taking my questions. First one, just wanted to touch on the promotional environment in Macau, some of your competitors have made comment that they are being more aggressive. So I just wanted to check, check with you there, and I know, you know, the contra-revenue has picked-up a little bit in the quarter. I think that’s mostly in Wynn Macau, but just anything to kind of call-out there in terms of the environment at your properties.
Craig Billings: No. A colleague of yours has had a similar question just a couple of minutes ago. Nothing to call-out on the reinvestment side, as I said. To him, you know, Our reinvestment can bounce around 50 basis points, 60 basis points, 70 basis points at any given point in time from time-to-time, but nothing that looks — we don’t see anything that looks irrational or of course concrete trend. In terms of the mix of what is contra-revenue versus running through OpEx, you may recall that we relaunched our loyalty program earlier this year. The structure of that program allows for a lot more flexibility for the customer in terms of what it is they are choosing to be rewarded with and that can cause shifts in movements of a $1 of reinvestment between contra revenue or between OpEx but it’s the same dollar. So it’s really not any indication of an increase in reinvestment per se. It’s really just geography, on the income statement.
Dan Politzer: Okay, so just some accounting nuance, okay. And then just moving to Las Vegas, you know, obviously, F1 is right around the corner. It seems like this is an event that skews more to the high-end. And that’s right in your wheelhouse. Is there any way to think about, you know, the EBITDA uplift given some of your competitors have thrown out this kind of mid-single-digit type EBITDA lift.
Craig Billings: Yes, we won’t. Well, I’ll tell you this. I’ve heard on a couple of our competitors calls commentary around expectations coming down within the market. I will tell you that our expectations for F1 haven’t changed one bit, because as you rightly pointed out, we knew that it was our customer-base that would be at that event from the beginning. We have more front money and credit lined-up for this event than any event in the history of Wynn Las Vegas. And we’ve had some doozy before. So this is shaping up to be a great event for us. We’re incredibly excited, we’re not talking about EBITDA uplift. But it’s going to be good. Brian, what would add?
Brian Gullbrants: Sure, I’d say F1 is really come in nicely right now for all areas of our business. We should exceed actually our all-time hotel revenue as well. Our hotel revenue record by about 50% for the three day period. And as Craig mentioned, the gaming revenue and credits, looking quite promising. Some of the best we’ve ever seen. So I think, we’re looking-forward to an exciting and exceptional race week here at Wynn.
Craig Billings: We barely even put any rooms on public sale. I mean, we had — we’ve had robust demand.
Dan Politzer: Understood. Thanks so much.
Craig Billings: Sure.
Operator: Thank you. And our next caller is Brandt Montour with Barclays. You may go ahead sir.
Brandt Montour: Good evening, everybody. Thanks for taking my question. So back to Macau, and we talked about this on prior calls, Craig, about the Peninsula. There was some disruption earlier in the year that I think tailed off into the early part of this quarter. But maybe you could just remind us the game plan of how you’re going to get more recovery at that property. Any update there would be helpful.
Craig Billings: Yes, sure, you’re right. Disruption did tail-off at the in the early portion of this quarter. There were some trailing works, including some work that was done in some of the high-end salon areas that took a little bit longer, but in the main, your statement is correct. And now, it’s really the hand-to-hand combat of gaining market-share. I mean, we’ve done this — we’ve done this before, you know, Wynn Palace opened, we were not nearly as experienced to some of our competitors in mass marketing. We got experienced very fast. And you can see obviously the results of that at Palace. And so it’s really kind of every lever that you have to pull. Right. It comes down to the hosting team, it comes down to food and beverage, it comes down to some entities that you’re offering. It’s everything. And so, I can’t tell you that there is one silver bullet. It really doing at 1 basis point at a time and that’s where we’re focused now.
Brandt Montour: That’s super helpful. And then another question. Macau, the OpEx consideration from the concession commitments, it’s probably too early to quantify what that is for next year. But maybe you could give us a little bit of flavor for, if it’s going to be how the mix will sort of skew between Peninsula and Cotai and sort of how it might and how it might the cadence might step-up throughout the year?
Julie Cameron-Doe: Sure maybe I’ll start with maybe Craig can add if I miss anything. I’ll just talk sort of more broadly for our whole Macau business. Sequentially, you’ll have seen that the OIBDA margin decreased around 90 basis points. About half of that was due to lower hold. But there was an additional $6 million of OpEx sequentially due to bad debt swing, because we could have a credit in Q2. You know, and then as I mentioned in my prepared remarks, I think I gave you a pretty detailed list of all the non-gaming programing that we’ve really accelerated and started doing in the last few months with the FIBA tournament, that Davinci exhibition, the Hypercar exhibition, some DJ events and concerts and culinary events. So when you adjust for that noise, the margin improvement thing is clearly operating leverage because we held share and we were prudent with OpEx. So you know, if we think about going-forward, we’re expecting margin at Palace to generally stay-in the current range, and margin at Wynn Macau to improve as business volumes come back.
