Wynn Resorts Ltd (WYNN) — Q3 2025 Earnings Call Transcript

Thank you, operator, and good afternoon, everyone. On the call with me today are Craig Billings and Brian Gullbrants in Las Vegas. Also on the line are Jenny Holaday, Linda Chen, and Frederic Luvisutto. Please note that we've published a presentation to provide more color on the company and recent performance ahead of this call. You can find the presentation on our Investor Relations website. I want to remind you that we may make forward-looking statements under safe harbor federal securities laws, and those statements may or may not come true. I will now turn the call over to Craig Billings.

Thanks, Julie. Good afternoon, and thank you for joining us. I'll begin with an overview of the quarter, starting in Las Vegas. Wynn Las Vegas experienced significant gains in gaming market share, thanks to our outstanding team and top-tier product and service, resulting in a hold-adjusted EBITDA growth of 3%, totaling $211 million despite tough comparisons. Casino demand remained strong throughout the quarter with substantial increases in both drop and handle, leading to a 10% increase in casino revenues. Hotel revenue was flat at $187 million, reflecting our strategy to accept slightly lower occupancy to maintain ADR and maximize EBITDA, which proved beneficial. In fact, August saw the property record an all-time high for monthly EBITDA. We are also looking forward to finishing the renovation of the c3 by the end of this quarter and to the opening of Zero Bond. Business momentum has continued into the fourth quarter with increases in drop and handle compared to last year. We have also witnessed strong growth in RevPAR and retail sales. With a solid start to the fourth quarter, we are now focused on F1. Our published room rates for the event indicate we are pricing at a significant premium to the market once again. Looking ahead, our group and convention business appears robust as we approach 2026, with expectations of growth in both room nights and rates compared to 2025. However, I want to note that as we commence the Encore Tower remodel in the spring, we anticipate losing about 80,000 room nights in 2026. We will try to make up for some of that in rates, but the remodel will present a slight challenge that year. Importantly, we are committed to investing in our leading assets in Las Vegas. While macroeconomic and geopolitical uncertainties remain, we maintain an optimistic outlook for our business in the region. Shifting to Boston, we achieved $58 million in EBITDAR. The fundamentals at Encore Boston Harbor are strong, with slot revenues rising over 5% year-on-year and operating expenses well-managed. Recently, demand in Boston has remained strong in October, with drop and handle exceeding last year's figures. Macau also performed exceptionally well this quarter, benefiting from a higher-than-normal VIP hold. The business generated $308 million in EBITDAR, including a $23 million advantage from VIP hold. Mass volumes grew impressively, up 15% year-on-year despite weather disruptions towards the quarter's end. Notably, the volume distribution during Golden Week was atypical, with spikes in activity towards the holiday's conclusion. Overall, metrics have been strong beyond Golden Week, with turnover and mass drop surpassing last year. With ongoing double-digit growth in market-wide GGR, we are optimistic about Macau's future. The premium segment continues to dominate the market, and last quarter, we mentioned two new projects—expanding the Chairman's Club gaming area at Wynn Palace and refreshing our Wynn Tower rooms at Wynn Macau—to capitalize on this demand. Both projects are progressing quickly, with the Chairman's Club expansion expected to be completed before Chinese New Year, and we are currently renovating the initial floors of the Wynn Tower rooms. Although we anticipate minor disruptions from these projects leading into year-end, their completion will enhance our offerings at both properties. Wynn Al Marjan Island is also advancing rapidly, and we can't wait to welcome many of you to the site in under a month. We are currently pouring the last two floors and are on schedule to top out the tower before our analyst event in December. Additionally, we are excited to announce our first development on the Marjan land bank, the Janu Al Marjan Island by Aman Group. The Aman team is world-class, and we are thrilled to have them as a neighbor. Structurally, our joint venture, which owns Wynn Al Marjan, will also own this property, while the Aman team will manage it. Given the recent success of condo sales in the UAE and especially in Ras Al Khaimah, we expect our share of the equity investment will be quite modest, ranging from $25 million to $50 million. Besides the transaction's individual merits, we anticipate that Janu's high-quality clientele will enhance business for Wynn Al Marjan Island. With the Marjan land bank, we have substantial long-term development opportunities in the UAE. More details about this initial development can be found in our quarterly earnings presentation. We are on track to meet our targeted opening date for Wynn Al Marjan Island and look forward to showcasing what we believe is the most compelling development opportunity in the sector. With no competing operations announced thus far, Wynn Al Marjan Island is set to be the only integrated resort in a market projected to exceed $5 billion in GGR. Our future looks promising. The opening of Wynn Al Marjan Island and its anticipated cash flow inflection instills confidence that our best days are ahead. I will now pass it over to Julie for additional details on the quarter.

Thank you, Craig. At Wynn Las Vegas, we generated $203.4 million in adjusted property EBITDAR on $621 million of operating revenue during the quarter, delivering an EBITDAR margin of 32.8%. Unfavorable hold negatively impacted EBITDA in the quarter by just under $8 million. OpEx, excluding gaming tax per day, was $4.3 million in the quarter, up 3.1% compared to the prior year due to a bad debt swing and onetime expenses in repairs and maintenance. Otherwise, there were normal course ebbs and flows in OpEx. Turning to Boston. We generated adjusted property EBITDAR of $58.4 million on revenue of $211.8 million, with an EBITDAR margin of 27.6%. Slot revenues were very strong, up 5% and set a new record for Boston. We maintained our discipline on the cost side with OpEx per day of $1.16 million up 1.9% compared to Q3 2024 despite continued labor cost pressures in that market. The Boston team has continued to do a great job of mitigating union-related payroll increases with cost efficiencies in areas of the business that do not impact the guest experience. Our Macau operations delivered adjusted property EBITDAR of $308.3 million in the quarter on $1 billion of operating revenue, resulting in an EBITDAR margin of 30.8%. Higher-than-normal VIP hold impacted EBITDA by a little under $23 million in the quarter. OpEx, excluding gaming tax, was approximately $2.75 million per day in Q3, up 7.6% year-on-year, with the increase driven primarily by the Gourmet Pavilion and normal cost of living expenses as we called out last quarter. This quarter, we also saw the variable impact of higher business volumes and about $2.5 million of typhoon-related OpEx. In terms of CapEx in Macau, last quarter, we initiated two projects, as Craig mentioned, an expansion of the Chairman's Club gaming area at Wynn Palace and a refresh of our Wynn Tower rooms at Wynn Macau. And together with other ongoing CapEx projects, we continue to expect to spend $200 million to $250 million in total for 2025. Moving on to the balance sheet. Our liquidity position remains very strong with global cash and revolver availability of $4.6 billion as of September 30. This was comprised of $2.8 billion of total cash and available liquidity in Macau and $1.7 billion in the U.S. The combination of strong performance in each of our markets globally with our properties generating just under $2.3 billion of LTM adjusted property EBITDAR, together with our robust cash position creates a very healthy consolidated net leverage ratio of just over 4.3x. Our strong free cash flow and liquidity profile also allow us to continue returning capital to shareholders in both Macau and the U.S. To that end, Wynn Macau paid out approximately $125 million in dividends in Q3 after paying a similar amount in Q2. In addition, the Wynn Resorts Board has approved a quarterly cash dividend of $0.25 per share payable on November 26, 2025, to stockholders of record as of November 17. Our recurring dividend highlights our focus on and continued commitment to prudently returning capital to shareholders. In terms of CapEx, we spent approximately $164 million in the quarter, primarily related to the Fairway Villa renovations and food and beverage enhancements in Las Vegas, concession-related CapEx in Macau, and normal course maintenance across the business. In addition to that figure, we contributed $93.9 million of equity to the Wynn Al Marjan Island project during the quarter, bringing our total equity contribution to date to $835 million. We also continued to draw on the Marjan construction loan with a drawn amount to date of $583.7 million. We estimate our remaining share of the required equity, including the new Janu project, is approximately $525 million to $625 million. With that, we will now open up the call to Q&A.

First, in Las Vegas, another strong quarter. Can you discuss what you're observing there compared to a few months ago? It seems like you have been gaining market share. The fourth quarter appears to be trending positively. Do you believe the environment has improved as we moved past summer and you organize the group calendar? Furthermore, as you look ahead to 2026, what are your growth expectations, especially with group bookings on the rise?

Sure. I'll start, and then I'll ask Brian to comment as well. I think the summer activity or the summer business environment has been well publicized, maybe to the extreme here in Las Vegas. And we saw our business as we were going into the summer. We saw components of the business that we felt like we needed to react to. We reacted to that, and we talked a little bit about this on the last call. We reacted to that by really focusing on rate and not on occupancy. And then, of course, we can kind of staff the building accordingly and really make sure that we're driving EBITDA, and we did that. On the last call, I believe we mentioned that we were seeing things start to improve more broadly in Vegas. And certainly, that was the case. And we also knew that by the time we got to October, we'd be in pretty good shape for the reasons that you just described with respect to group. So I don't think there's anything new there. I think it's kind of as we talked about and as is reflected in the results, inclusive of my commentary about how things look in October. 2026, the primary indicator is group, and Brian will talk a little bit about that. Brian, what did I miss?

I think it comes down to three groups that are really focused right now and really focused on Q3 and they're focusing forward: our revenue team, our sales team, and our casino marketing team. In Q3, we were squarely focused on casino marketing as well as yielding ADR, as Craig mentioned, over peaks and on weekends to really take advantage of the compression. The team did an amazing job resulting in a record August, delivering really nice great results for the quarter. I think Q3 was a lot better quarter than we initially saw at the beginning of the year. And with respect to group, as stated, we're pacing ahead in '26 in both rate and room nights. The team is now focused on really plugging the last available holes over the summer, which is typical in part for the course. So really proud of what the team has done with their efforts. And as we move forward, we continue to focus on peak periods and weekends where we can take rate where we can.

Got it. And then just turning to the UAE. You guys laid out a little bit over a year ago, a base case, a low case, base case, and a high case scenario for EBITDAR there. And I think the high case was $460 million. So I guess, look, the property certainly still is away from opening, but can you lay out or remind us what are kind of the puts and takes between the base case and the low case and the high-end scenario? And obviously, given that it doesn't seem like there's competitors there, where does that maybe put you right now?

Yes. Look, there are a lot of puts and takes from the base case to the upside case really across those cases. But the number one by an order of magnitude is. And so really, it comes down to how large the market will be and ultimately, what our share of the market will be. As you rightly pointed out, our share of the market early on should be 100%. So we're not yet ready to revisit the numbers that we put out in our Investor Day. But you've seen sell-side estimates for the market as high as $8 billion. And so even if the market is a fraction of that size, the absence of near-term competition probably introduces some conservatism into our base case, but it's a greenfield market. And so what we really are focused on right now is getting open with the absolute best product that we can.

Craig, maybe to stick with Las Vegas a little bit. You talked about some of the stuff that happened over the summer, but one of those things that came up was the social media backlash on pricing. And you obviously cater to the highest end of the market. But curious your views on that impact in terms of visitation to Las Vegas as a whole. And specifically, although you're kind of luxury end of the market, have you seen any pushback on pricing? You obviously had a great quarter in holding rate, but curious if you've seen any change.

I'll address the second question first. We have not noticed any significant pushback on pricing. Regarding the first question, I receive this inquiry frequently. Wynn Las Vegas is not designed for budget-conscious visitors. Our typical customer does not focus solely on cost; instead, they expect exceptional value for their money. For instance, a patron emailed me recently about the inconvenience of peeling the complimentary oranges in our spa, which we appreciate. We welcome feedback, no matter how minor. Although we charge premium prices, we ensure that guests aren’t surprised by hidden fees. Our minibar prices are significantly lower compared to many competitors. We only started charging for parking when we were at risk of becoming a neighborhood parking lot, and hotel guests still park for free. While our customers pay higher room rates, we strive to avoid making them feel like they are being nickeled and dimed, as that counteracts our goal of providing high perceived value. Therefore, we haven’t experienced the pushback on pricing that some others in the market have faced, especially as observed on social media. While there is a current narrative about rising costs in Las Vegas, the city actually offers many low-cost options and great values. Historically, Las Vegas has been a place for people to escape their everyday worries, enjoying world-class service and beautiful surroundings, contributing to high perceived value. Any decline in that perceived value would likely result in complaints about the cost of the overall experience. However, if you look deeper, you will see that this sentiment is more about value for money rather than the expenses themselves. So, we have not seen any significant backlash on pricing. If room rates were to drop by 50% in Las Vegas tomorrow, we might feel some impact, but we will consistently maintain a pricing premium because we provide substantial value.

That's helpful, Craig. I appreciate those comments. And I too struggled with those oranges. So I'm glad you guys are going to think about that.

Well, they're easier to peel.

Good. Good. They're already pre-peeled, I'm sure. We look forward to that. If I could ask a question on kind of the inverse of that, we expect visitation to pick back up in Las Vegas more broadly, especially with the convention calendar picking up. And so your business is a bit uncorrelated, but should you also expect to see a little bit of uplift as visitation to the city comes back as a whole? Or would you say you're kind of just marching to the beat of your own drum right now in terms of where you're positioned in the market? I guess is there more upside as visitation recovers for you in Las Vegas?

Certainly. Let's discuss three segments: high-end gaming, mass gaming, and ADR. Mass gaming and ADR are influenced by visitation since they are driven by demand and correlate with the number of visitors we have each day. High-end gaming is quite different; it relates to the equity markets and focuses on customer relationships and personalized selling. This involves the specific services provided and the activities of individual customers. There are definitely parts of our business that will benefit from increased visitation in Las Vegas, particularly in terms of hotel room rates and gaming activity outside of the high-limit areas.

I don't know if you specifically quantified this, but would love to hear any additional color you could give on how to think about the disruption impact in Las Vegas and also how to think about perhaps the return on some of these projects as we look beyond 2026. Are some of these generally maintenance? Or do you think that there will be incremental EBITDA from a lot of these?

Sure. Thanks. We have not quantified the impact with respect to the Encore Tower remodel, primarily because what we will attempt to do is pick it up in rate. As we start to commence that renovation, we'll talk to you more about what we think the actual impact is. Some of the CapEx that we talk about is normal course maintenance. So the Encore rooms haven't been redone in a number of years, and we need to do that to continue to drive rate and continue to be competitive and continue to deliver on our brand promise. The other changes, particularly in food and beverage that we're making are absolutely ROI-driven projects. Even when we redo a room like we just redid or we just did with PISCES and not too long ago, we did with Mizumi, the incremental check average that we drive, the incremental covers that we drive are absolutely EBITDA accretive. So it really is a bit of a mixed bag. But if you look at our ADRs in terms of maintenance versus growth, but if you look at the ADRs that we've been delivering, I think you can see why it's important that we invest in the hotel.

100%. Maybe turning to Macau very quickly. What are you seeing in terms of the competitive dynamics, particularly as the quarter progressed, given there's some chatter from some of your peers that there might be a little more promotions going on? And how do you generally think about margins going forward as you think about either maintaining price integrity or having to competitively respond?

Sure. We think about it on a daily basis. As I've mentioned in previous calls, the competition in Macau is intense. That’s simply the reality of the market. We haven’t observed a significant increase in promotional activity. However, we have a precise understanding of the incremental market share we need to justify and accommodate any additional percentage of reinvestment. We are closely monitoring this in real time. Regarding the potential impact on margins, as we have stated previously, we see margins as a result of effectively increasing revenues, profitably reinvesting in customers, and carefully managing costs. Therefore, we don’t target a specific margin. Instead, we continually assess our reinvestment levels in relation to revenue, not market share, revenue.

Going back to the UAE for a moment. Maybe I'm going to try and ask the question in a different way. I don't know if I'll get any more of an answer. But what were you factoring into your base case when you originally laid it out? I think you mentioned the potential for two other competitors to be in the market by 2029. How should we think about what you were kind of factoring in for that competition in terms of impact?

Sure, Robin. You're correct. We were considering two additional competitors and a market that I believe was estimated to be between $3 billion and $5 billion in gross gaming revenue. We typically operate with a fair share premium, so we factored in a share of that. In fact, you can look at the gross gaming revenue we presented and calculate our fair share assumptions based on a market size of $3 billion to $5 billion. As I mentioned earlier, since there has been no announced competition that we are aware of in the market so far, there may be some caution built into those estimates.

And is the market size, some of your assumptions had assumed that some of the market would be driven by having those two other competitors? Or do you think the market size would still be the same?

We did not make any assumptions regarding the presence of new competitors. Instead, we focus on a significant amount of airlift, a strong local market, and a very high GDP per capita when evaluating market size. The geographical area is quite small and closely linked, with only about a 50-minute travel time from Dubai to the property, aided by excellent road infrastructure. These factors are critical for our market size assessment.

If I could do one quick follow-up on Vegas. Just for group for 2026, I wonder if you could give us a sense of group pace after Q1, just to get a sense of sort of underlying demand after the benefit, obviously, CON/AGG rotating in, just how that looks past Q1?

We don't break down our group forecast on public calls by quarter, but it's safe to say that we feel good about it.

So in Las Vegas, curious that RevPAR or that RevPAR growth that you guys saw so far in the fourth quarter. Is that all from mix and rate compression from group? Or are you actually seeing some recovery in leisure occupancy?

Sure. I'll start, and then I'll pass it to Brian. You mentioned the rate compression from group. And obviously, that helps in terms of pricing. Group rooms obviously are contracted multiple years out and thus tend to carry a lower ADR than the prevailing ADR. So it's really a function of health across the board, but absolutely group compression does help. Brian, what would you add?

I'd say the same. We've really seen a great start in October. The team has done a great job yielding rates over peak demands. We have a little softness before and after F1, which is typical, and the teams were already reacted and put plans in place to prop that up. So pacing quite nicely in 4, and we feel good about where we're headed.

Great. I have a quick question regarding the UAE, and I understand you may not want to reveal too much about your strategy there. For a property like this, when do you start building excitement and engaging with some of the larger global players in your current database or the one you aim to establish? Is this something expected to happen later next year? Additionally, can you share any insights you've gained from the acquisition in London related to this?

Sure. Your questions are excellent. The whole senior management team is already positioned in the UAE, including key marketing leaders. You can assume that personalized marketing and player engagement have been underway for quite some time, which is typical when opening a property in a new region. Large-scale marketing and communication will happen much closer to the actual opening because raising awareness at this stage doesn’t contribute much to consideration and conversion. Therefore, we are currently engaging potential guests individually, and you can anticipate more mass marketing as 2026 unfolds. The Mayfair experience has provided valuable insights, as there’s a significant overlap between the Mayfair database and the expected database in that region. We have gained substantial knowledge about game preferences, reinvestment expectations, and the competitive landscape in other areas, which will greatly inform our plans for Marjan.

I wanted to discuss Macau; it appears that we're gaining some market share. The hold percentage was elevated, and we've observed October gross gaming revenue numbers reflecting mid-teens growth. I would appreciate your insights on the current state of the market, the factors driving that growth, and any influence from mainland dynamics. Anything you can share would be valuable.

Sure. Thank you, David. You're right, the market has been performing quite well, and it's encouraging to see. I appreciate your thoughtful and strategic question. However, I will respond in a way that might not completely satisfy you. There are numerous factors influencing China at the moment, and it’s difficult to attribute recent growth to just one, two, or three specific elements. It's crucial to recognize that many people haven't visited China since before COVID, and the China of today is not the same as it was in 2018. The country has a vast and complex economy and is a leader in various fields, including advanced manufacturing, electric vehicles, and robotics. It's similar to the U.S., where some consumer segments thrive while others lag behind. The consumer landscape is changing rapidly, evident in places like Macau, where there is a growing preference for high-quality experiences, though there can be challenges, such as gaming revenue per visitor during spikes in visitation. The tastes and preferences of Chinese consumers are evolving swiftly, which will lead to changes in gaming, food and beverage, and retail sectors. It's an exciting environment, and we remain optimistic for the long term. However, trying to link market fluctuations to a single factor, much like in Las Vegas, is simply not accurate. Overall, we're very pleased with the market's current state and maintain a positive long- and mid-term outlook for Macau.

Appreciate all that. Just one follow-up to that end. One of the observations we're seeing here in the United States is a bit of a bifurcation where the high end seems to be doing better than the low end. Is that unrelated, but is that a similar dynamic to what you're seeing out of China?

Sure. It's evident that the market is focused on premium offerings, and this is particularly true in a premium mass market. There are also changes in industrial policy in China that are impacting real estate and other industries, leading to new areas of wealth creation. It's a very dynamic environment. Overall, your observation holds true, which is beneficial for us as we concentrate on that segment of the market.

I wanted to go back to Vegas. So occupancy, as we can see in the release, was down a couple of hundred basis points, which was expected. But your slot drop up 7% and your table drop up 12%, clearly shows that either the customers that were staying in your property were spending more per trip than what we had seen in prior periods or maybe others are, I don't know, using other properties as dormitories and then coming over to your property. But can you add any additional color just in terms of the disconnect between the growth that you had in drop versus the number of people staying in your property for the quarter?

Sure, I'll begin and then I'll let Brian share his thoughts. We mentioned that attracting premium play involves a lot of factors. The growth you’re seeing is primarily from premium play, specifically from lodgers. A few years ago, we made a commitment to focus on our strengths, such as the service and amenities in our buildings, while also improving our casino marketing efforts. As a result, we have seen significant growth in our gaming market share, which I’m very proud of. The team has done a great job, and you can see the positive impact of this in Q3. It's quite simple: the growth is coming from hosted high-end customers, not from the mass floor. Brian, do you have anything to add?

Yes, it's a premium customer that's really looking for a premium experience. It's us continuing to invest in our facilities, in our offerings, in the experiences, investing in our people, leaning into who we are focused on our culture of service, cleanliness, and safety at a premium level. And people are willing to pay extra for that. And so we get more of our fair share for that and can steal share at that point; people want value.

So it relates back to the perceived value mentioned in response to John's question. We are utilizing technology in a much different way on the marketing front than we did previously. There isn't just one factor contributing to this; it's a combination of many things. The results you're observing are largely due to the people who are choosing to remain in the building.

Yes. I mean, if I can add on F1 right now as we come into the fourth quarter, and that's always been a popular topic. We're highly programmed for our premium crowd. We're seeing solid pickup right now. We've maintained our premium rates from last year, and we've maintained a three-night minimum for that F1 weekend that no one else in the market has done. So feeling really good about where we are. We've actually bought three additional tranches of tickets. So really seeing great increased demand. And we have an outstanding relationship with Formula One. We're bullish on the future of the race. And I think it continues to pay dividends for not just us, but for the market.

Great. And yes, F1 rates are impressively priced right now. And then just in terms of buybacks and how we should think about capital allocation. I know that was something that was becoming a little bit more recurring in the quarterly result. Julie, can you just give us an update in terms of how you're thinking about that from these levels?

Yes, thanks for the question. We are always careful in assessing how to allocate our capital, and we operate off the grid. As you may have noticed, we did not make any purchases in the quarter. However, when we identify value, we will re-enter the market, and we prefer not to adhere to a rigid approach. We appreciate having the flexibility.

Yes. We've tried to be super explicit that we're not programmatic buyers of the stock. Sometimes if you buy for several quarters in a row, people seem to forget that. But we like to buy when people are unusually bearish and it's excessively cheap. And when we do buy, as Julie mentioned, we use a price-based grid. We had a grid in place in the third quarter. But with the movement in the stock, the grid wasn't in play. We have a significant free cash flow inflection point coming in 2027, driven in large part by Wynn Al Marjan Island. And we think there's continued room for the stock to run. And if it retraces, we will be back at.

So, Craig, I want to start with Macau and go back to Golden Week, which you described as unusual. We understand there were some weather challenges early in the week, but I'm curious about what you think drove that unusual pattern. It seems that higher-end customers stayed away at first but returned in full force later in the month. Should we expect this kind of behavior to repeat itself during this holiday in the future? I know that's somewhat philosophical.

Yes, no problem. I mean we're asking ourselves the same question. So don't know yet. I mean, I think to the causation, I think we all view it as kind of all of the above, all the things that you said. And we were pleased to see the tail end and volumes after the holiday. And it remains to be seen. We will certainly think about our hosting strategy and our room booking strategy a little bit more flexibly as we move into Chinese New Year and May Golden Week, but we'll see. I mean one event is not yet a trend.

Yes, it makes sense. And then second, can I ask a question on Boston because you never had a question on Boston.

Yes. Bring it on.

Okay. The property is certainly stable. I'm curious about the decline in the margins. Do you think that was mainly due to increased promotions? I'm trying to understand if you had to promote more to maintain volume stability, which could have contributed to the margin decline, or if I'm off track with that.

It is definitely not a promotion-driven issue. Boston is generally very stable, and this quarter was stable as well. In response to your specific point, there are two macro trends happening there. One is the constant effort to grow the database and expand services to add incremental customers. The other is the impact of labor costs, which can counteract each other. Therefore, you're always balancing these two factors to achieve the best results. The margin may fluctuate based on hold and volumes during the period, but our team, particularly Jenny, is very skilled at managing the complexities of that business.

Operator, the next question will be our last.

Starting off with a little bit of a longer-term question. You mentioned the free cash flow inflection as the CapEx cycle tapers off and UAE comes online. Can you talk about how we should think about the possible uses of the free cash flow in 2027?

Yes, we always consider the best use of cash, regardless of whether there is a free cash flow inflection. Over the past couple of years, we have returned capital through regular dividends and buybacks, making capital returns a key part of our strategy. Additionally, we have an incremental land bank in the UAE. Before investing significant capital there, we want to assess the market thoroughly to ensure it meets our expectations and possibly even exceeds them. Therefore, the decision on how much additional capital expenditure to deploy and what to return to shareholders will depend on our evaluations. I apologize for the straightforward response, but that is our approach. We have a promising opportunity in the UAE, and we value the return on capital. We'll see how these factors develop, and based on past experiences, I believe it will likely involve a mixture of all options.

Okay. Great. And then real quick, it was reported that the UAE would potentially offer one online gaming license for Emirates. Can you talk about if you would be potentially interested in one of the licenses?

Not really. We don't usually comment on press speculation, and it's really up to the Emirates and the GCGRA, the regulator there, how and when they implement additional forms of gaming.

Okay. Well, with that, we'll bring the call to a close. Thank you for your continued interest in Wynn Resorts, and we look forward to updating you again early next year.

Thanks, everybody.