Q1 2020 Earnings Call
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Thursday Thursday, ladies and gentlemen. Thank you for standing by.
Thank you for participating in the first quarter 2020 earnings conference call of melkor resorts and entertainment Limited at this time. All participants are in a listen-only mode after the call. We will conduct a question-and-answer session. Today's conference is being recorded. I would now like to turn the call over to mister Rich director of investor relations of milk or Resorts and entertainment limited, please go ahead sir.
8 first of all, let me apologize for starting a little bit late. We're having a little bit of technical difficulty. But thank you very much for joining us today for first quarter 2020 earnings, on the call today or Lawrence. Hello, Jeff Davis. If a minkler and a property, press in Macau and Manila before we get started, please note that the day's discussion may contain forward-looking statements under the Safe Harbor provision of federal Securities Law actual results could differ from anticipated results are now turn the call over to Lawrence.
Thank you Richard. I hope all of you and your loved ones are safe and sound during these challenging times. I would also like to express my sincere gratitude to the PRC and the Macau a government for their proactive response to contain the spread of the virus. I would especially like to thank the chief executive of Macau for his decisive leadership, which is exactly what we need in this life on President and difficult times.
As you may recall in February, we were the first integrated Resort operator to call out the severity of the covid-19 outbreak in to encourage investors not to expect a v-shaped recovery in my account in recognizing this risk earlier than most we were able to take a number of corrective actions that better prepared the company for the challenging environment. We face today in February. We canceled the purchase of the second tranche of crown Resorts shares and in April, we sold our 9.99% stake in Crown which further strengthened odd balance sheet with the approximately $355 million of sales proceeds additionally immediately following the covid-19 outbreak. We undertook a detailed look up the cow call space and have meaningfully reduced our daily fix All Techs run-rate to complement our Cost Containment efforts. I'm personally for going wage.
Salary for the remainder of the Year. Furthermore Macao the Malco senior executive management team has volunteered for a pay equivalent to 33% of their birth. Salary and our board of directors have volunteered for a cash reduction of their fees.
To leave no stone unturned. We have taken the opportunity to closely review our management structure to drive further efficiencies.
a few of our management staff have unfortunately departed but this will allow malko to emerge as a leaner more efficient company when demand return
In these difficult times, I believe is important for us to offer reassurance and reiterate our long-term commitment to our colleagues to our shareholders into the communities. We serve first and foremost Malco success is dependent on our colleagues.
Well cost control is important. This will not come at the expense of the long-term development of our colleagues in whom we continue to invest in career and whole person development programs.
Second we remain committed to maximizing customer loyalty and experienced by leveraging our portfolio of the world's most star-studded integrated Resorts, which one a record-breaking total of 107 stars in the 2024 travel guide.
To enhance the guest experience we will continue to invest in our properties with the renovation of new in additional Villas at Morpheus.
And the first quarter our premium focused integrated Resorts took significant market share in the VIP and math gaming segment.
I'm a cow ebitda performance has also meaningfully out performed that of our peers despite the company conservatively increasing. It's that that provision in the first quarter.
We remain fully committed to supporting the communities we serve in China. We donated twenty million Hong Kong dollars to the Red Cross five million tacos to the Macau Federation of trade unions and three million macapa tacos to the women's General Association of Macau.
We Hard 100 local resident construction workers and donated 500,000 surgical masks in the Macau government and the local community.
Recently, we have mobilized thousands of our colleagues to support the local community through our simple acts of kindness program and volunteering events.
To support local smes through local production and Manufacturing opportunities. We are also launching a mass design competition in collaboration with the McAlpine a t and Technology Transfer Center to cultivate creativity and to create reusable and sustainable face masks.
In the Philippines, we donated over a hundred and fifty million pesos worth of food tax and service installations for the government's relief efforts which includes 420,000 bottles of water 625 kilograms of rice.
15095 face mask
In Cyprus, we donated a hundred thousand Euros to the Ministry of Health to further the Cypress government's efforts to curb the spread of covid-19 while supporting the Cypress Community during these challenging times for this crisis is reinforcing our desire to lead the way in sustainability and to change some of the fundamentals of our industry.
Milk will remain dedicated to being sustainable our focus and efforts around environmental sustainability have also been recognized by the global non-profit environmental organization as the 2019 best first time performer.
v l cool remains committed to its Global development program
Our next major project in the car will be Studio City face to upon completion the phase two expansion will increase Studio City hotel room inventory by approximately 60% off with two new hotel Towers offering a total of approximately 900 luxury hotel rooms and Suites in addition to an expansion of gaming space faith will also offer new non-gaming attractions that are highly complementary to those in Phase One including a senator likes one of the world's largest indoor outdoor water parks fine dining restaurants and state-of-the-art Myspace.
In Cyprus, we are developing the City of Dreams Mediterranean construction restarted on May 6th upon completion code. Mediterranean will be Europe's largest integrated Resort offering over a hundred gaming tables 1,000 slot machines and 500 hotel rooms.
We continue to work diligently in Japan after submitting our response to the Yokohama RFC in December of last year. We continue to actively engage with your, officials to discuss our plan of bringing to Yokohama. The best IR the world has ever seen
Finally, we remain fully committed to shareholder returns.
You today the company has repurchased approximately 3 million DS's worth approximately $45 million. However in an effort to preserve liquidity in the in light of covid-19 pandemic and to continue investing in our business, the board has decided to suspend the company's quarterly dividend program.
This is a prudent course of action given current market conditions.
Malco remains committed to returning Capital to shareholders with a regular quarterly dividend and we'll evaluate the resumption of its quarterly dividend as the operating environment involved. I want to reiterate that we remain bullish on now cause long-term growth prospects.
Nicole Remains the most attractive integrated Resort Market in the world benefiting from the expanding Chinese middle class and infrastructure development in the greater Bay Area.
We have one of the most exciting Global development pipelines to reap benefits from the favorable market dynamics.
We also have a strong balance sheet to finance those projects and to overcome the near-term challenges with that. I'll turn the call over to Jeff. Thank you Laurence off.
In the first quarter of 2020 declining by 82% from the first quarter of 2019 while luck adjusted ebitda declined to twelve million.
A favorable VIP win rate positively affected ebitda, Macao Manila and Alterra by approximately 54 million, six million and three million respectively.
On a Consolidated basis overall results were positively impacted by approximately 63 million in addition to the VIP win rate fluctuation. Our performance was also affected by our bad debt provision during the first first quarter of 2020. We incurred a bad debt charge of approximately 54 million as compared to a bad debt charge of approximately 511 million in the first quarter of 2019 on a year-over-year basis the change in the bad debt provision negatively affected ebitda by approximately 43 million.
in the
Philippines Manila delivered luck adjusted ebitda of approximately 24 million representing a decline of 60% year-over-year and not a luck adjusted ebitda margin of 23%
On our fourth quarter call we discussed how we had reduced our daily fixed up X run rate in Macau from approximately three million a day prior to the emergence of covid-19 to approximately two and half million per day.
With the addition with additional cost reduction initiatives. We have further lowered our McHale fix topics run-rate to approximately 2.2 million per day in April to provide some color of how cold it nineteen is impacted operations. We generated group-wide property ebitda of 153 million in January, but negative property off of 54 million in February and 24 million in March.
Moving on to our balance sheet as of the end of March we have over one point two billion of cash on hand with a successful entry into a new senior facilities agreement in April. We have an undrawn revolver of approximately 1.6 billion of capacity. Our liquidity was further strengthened by the fact and 55 million of proceeds from the sale of our shares and Crown as previously mentioned by Lawrence.
To preserve Capital we have identified 230 million of capex that will be deferred Beyond 2020. This is an addition to the hundred million of capex eliminations wage mentioned on our fourth quarter 2019 call.
A strong balance sheet together with the adjusted capex program and temporarily suspended dividends should enable the company to overcome the challenging market conditions. We currently face across our portfolio.
To provide more clarity regarding our capital structure within our core group. We had cash of approximately 750 million in Gross debt of approximately 3.3 billion at the end of the first quarter of 2012 excluding Studio City in Cyprus.
As we normally do will give you some guidance on non-operating line items for the upcoming quarter total depreciation and amortization expense is expected to be approximately 150 to 155 million corporate expense is expected to come in at approximately 27 to $29 million and Consolidated net interest expense is expected to be approximately eighty to eighty-five million, which includes Finance least interests of ten million relating to City of Dreams Manila and two million of capitalized interest.
For those that follow City of Dreams more closely our building lease payment for the first quarter of 2020 was approximately ten million operator that concludes our prepared remarks, please commence wage section.
Thank you, sir. Ladies and gentlemen, we will now begin the question-and-answer session. If you'd like to ask a question, please press star one on your telephone keypad and wage needs to be announced.
Once again, that's star followed by the number one on your telephone keypad. Please note. There may be a short pause as questions are correlated. We thank you for your patience. We have the first question from line of from JP Morgan. Please ask your question.
Good afternoon. Good morning. Good evening. Everybody quick question for you given the reductions in your fixed in Macau off now with a 2.2 million dollar one, right you mentioned. Where do you see ebitda break-even level at what Revenue declines in Macau? Are you at a break-even level on this new phone operating cost structure? Yeah, Joe is Jeff Davis. So at at those levels in Macau for ebitda break-even point we would need to see a revenue recovery of about 35%
And then with respect to the the bad debt provisioning and and the one Q. Can you talk about what like what's left in the cab? So if I look at your accounts receivable on the balance sheet, that's for the Enterprise how much of that relates assuming that is correct in that how much of that relates to Palm City of Dreams Macau and and and how much data Studio City?
Drill, I don't have that in front of me. Why don't we come back to you on that question with the breakdown on the receivable?
Okay, right. That's that's
Orders start opening up for instance. I haven't been to McAllen three months. And if I have to go to my car for a meeting, I'd be quarantined in a hotel in my car for fourteen days. And then come back to a Hong Kong where I live would be another 14 days of quarantine. So I think in the world right now, you're seeing pretty extreme cases. Macau haven't had a single case wage locally transmitted or imported for 35 days over 35 days Hong Kong has had single-digit case for the last 30 days and yet the you know Hong Kong was taking a very conservative you compare that to the where they're talking about opening up Resorts. It's just you know night and day and so, you know, I wish the Border would start opening up soon. And I guess we're in the hands of of the government there, but I I think once it opens up things as as Jeff said
Mentioned earlier on it doesn't take a lot for our business to be Breakeven. The Saving Grace really I think for for Macau is the fact that ninety percent of the market wage is based on Gaming revenue. I know you know, there's a lot of talks of diversification over the years that people especially with in southern China will make a trip to Macau to gamble then that's the truth of it. I can't imagine what happens in Las Vegas where it's dependent on nightclubs and mice and and those aren't going to be available in open and its destination market. So I think all-in-all I am way more pessimistic and in all the years. I've been never been doing this. I've never had less visibility.
Then right now but hopefully, you know Hong Kong and Macau will start being considered part of China.
The icj has the the person who's going to take over and I look forward to but judging from his track record. He he is he's done a great job everywhere. He's in and he certainly knows a lot about the industry.
That's interesting and I appreciate it. Thanks very much.
We have the next question from the line of
Edward
Sorry, Ed. What eagle from the query please ask your question?
Hi, thank you for taking my question. Sorry to go back and you just said earlier. But I mean you think long gone we don't we look at both Macau and Hong Kong. Hope you have the same time or is Guangdong looking at two scrs individually, just given the different entry points.
Well, I think traditionally when you look at Hong Kong and Macau, they always do things very close together because given the proximity giving the geography and I think that's why we even recently we've been monitoring all of the news coming out of both Hong Kong and Macau the Hong Kong chief executive talked about potentially opening long them together with Macau. So I think inevitably For Better or Worse, even though Michael haven't had a case as I mentioned earlier on for over 35 days off. It's waiting for it's probably waiting for Hong Kong and even more unfortunate is the fact that Hong Kong have started having a couple of local transmission cases in the last couple of days, so we really have to see
Okay. Thank you. That that's helpful and they can we please just get an updated timeline for Studio City to the new renovation and then Cypress, please.
great, I think why don't you know, hopefully why don't we hand it off to David Jeff and and and Evan you guys can hopefully put a more positive spin two things then then I have
So so Edwards, I think one of the great things that come out of it is if there's any good thing that's come out of this and want to mention is that we have that in our approvals a lot faster, and even the fact that obviously are volumes have been very low in in very challenged. We've been able to close new and we're going to actually be able to accelerate the the renovation for new. We hope to have new a back up and operating most likely by the end of September and time for the October golden week with maybe some of our bill is trailing. I'm as far as Studio City. I'll let Jeff speak to Studio City.
Well, we've taken advantage of this time to get some projects done. We got all new car. All the ceilings painted done a lot of work in the casino when people do come back here and come back to a brand new casino, which we're really excited about, you know, the place is polished up and ready to go and we also got a great approval for our our water park which will start and then the phase two project is longer way. We're doing a lot of time and a lot of activity going on the construction site. So we're really excited about how phase two is coming along and it's going to be a great addition to Studio City.
Sure, and this is Evan lastly on Cypress. Obviously, we had a period where we had to shut down Works given the pandemic in Cyprus. We've been reopened know about a week and half we've got testing done on site. We've got about three hundred ish people back. We had two hundred of them tested no cases so far we have protocols in place. Everything is moving forward smoothly. We obviously lost a few months here just in terms of people being on off site and having to go back to their host country and we are still working on actually getting off labor throughout Europe back on site just giving some of the travel difficulties and restrictions. So I would tell you we we know we're we're a few months behind. We're hoping to keep it only took months behind but there has been some significant disruption just in terms of worker migration and then a little bit in terms of some of the supply chain throughout Europe.
I would tell you the government.
It's aware has been working with us very closely has been very supportive of getting the project back up and running and while we're there's nothing Formal Wear in discussion. I think they like all the governments around the world are very understanding that there have been a number of things outside of everyone's control and that they are understanding that that is caused some some delays even as we try and mitigate those delays in terms of final completion.
I'm great. Thank you very much.
We have the next question from the line of Praveen Jordan from Morgan Stanley. Please ask your question.
Thank you and good evening, everyone and congratulations for getting the market share. I have three questions. If I met one is on Japan. We were pulling out one and understand what are they seeing differently from you in terms of returns or or requirements that Japan is trying to put on you the exact same question. I had was numerically we want to understand the topics number that you mentioned has gone down 22.2. What would that number be? If let's assume by fourth-quarter. You have GG Faith your Revenue back to 2019 levels. So normalized level the topics remain at that level or will it be slightly higher and the third and final question for me is how long do you think in case of social distancing the supply will become constraint meaning in a particular table. You will not be allowed to have more than three people to sit and so even though demand in the
Pent-up demand comes back. We may never be able to go back to full capacity utilization. Just wanted to hear your thoughts on that. Thank you so much.
For free and let me take the first question. I think Jeff will answer a second one and I think on the third question, why don't we let David answer that so on Japan we've been working on Japan for a very long time fifteen years and we continue to think that outside of Macau Yokohama Remains the most attractive by our destination and even with covet we have one in our local teams have have continued to engage with the Yokohama officials and Authority ever since you'll, the clearance Candice's candidacy. We have said that we are yo, first and will continue to do that. I can't speculate why obvious is is not pursuing the opportunity and also the, you know, the the name of the game was established long time ago. Nothing has been changed in the last year or two. So I I can't speak to that. So I think maybe on the second question refer to Jeff. Thanks Lawrence dead.
so on the second question
With the reduction from approximately 3 to approximately 2.2 in Macau about 75% of that is volume related with the remainder being more management initiatives. So as we come back into a more normalized Revenue environment, we do anticipate some meaningful savings and meaningful positive impact on the margin.
Okay, and then we're a little different with our property cuz we really took the premium app. So ideally for us even though now that we've got basically three chairs and each of our tables we generally like to try to keep it to where we ask. Two players at the table is kind of kind of faith in a way there we find that's where you get our maximum efficiency with the players and get the best opportunity for women with our players. Additionally when you think about a thousand slots or so each of our properties, you never get the full utilization. So the fact that we're spread out more shouldn't really shouldn't really impact us that badly again. We excuse towards a higher-end players. So I think our players are going to be okay with the dead thing we've never had the properties that have the most people in them. We've always got properties that again because of the quality of play that we have in the players that we have and the service of the things that we provide we get the best possible actions birth.
Thanks, David. Thanks Jeff and thanks Lawrence that answers my question. Appreciate that and please keep safe everyone.
We have the next question from the line of George Troy from Citibank. Please ask you a question. Hi guys. Thank you very much for asking my questions just a come back from me first. Also on Japan Lawrence. How do you feed the amount needed to be invested in Japan now given this less competition amount of the casino operators. Is there anything in the temple and figure that everyone is talking about or is a proposal with a sub ten billion capex commitment still going to be seen as not competitive and my second question is free for for Jeff someone confirm. What are the $179 million dollars of expense item that's related to the crowd shares that you used to know. And and do you expect more lost to be both in the second quarter for the crochet disposal.
So George on on Japan, I think ultimately for a tier one location like Yokohama ten billion around is still dead because at the end of the day given the site and the size of the site and just to build up the GFA will cost that much and also given, is going to be so close to Tokyo. I I do think that even though there's less competition right now. The national government is going to be expecting a you know, really a a best possible bit. So I think in any case whether there's more competition or less competition is still around the same price tag off.
Yeah, yeah the 179. Yes. It is related to to the crown shares. Most of that is a change in the the fair value. So took a fair value loss with the share price at the end of the quarter at Ozzy 7.6 and that was partially offset by a $13 in dividend income with the package with the sale. That was at 8:15. So no, we don't anticipate an additional loss there.
Okay. Thank you very much guys.
We have the next question from the line of Robin from UVS. Please ask your question great. Thanks. I wanted to just touch on the top of the license in Japan as well. I guess I just wondered if you had any thoughts about a very compelling lasting ten years to get a return on on that size investment and off and I have a question about how as well.
Sure. Why don't I take that Lawrence look and and I think there's been speculation around this point given obviously the announcement that this coming out from Sand. This is something that's been out there for a while. I think if you took the perspective that at the end of your 10 your Resort would go away it would obviously change your investment Dynamic we've operated in faith in markets and we're operating in one now where there is technically a finite life to a license and what we've obviously found is if you're a good partner to the government and do a good job in terms of resorts GSR and other things that we do very well your expectation is that licensed would perpetuate and so you have a longer Horizon than the end of the license when you look at the investment and I think that's consistent with how we beat Japan which is it's a market that we want to be in for the long term.
Okay. No, that's that's very helpful perspective. Thank you my other question on Macau and I apologize if this if you said this and and your introductory remarks, but I had some technical problems on this end up commenting on whether you expect mass or VIP to recover at similar rates or one recover more quickly than the other. Thank you.
David you wanted to take that one. Sure. No problem work. I think from a standpoint of our wealthier players are bigger players are going to come back first. So we expect to see our VIP coming back early strong. We also expect to see our premium Mass come back strong as well. And then slowly we'll see kind of what we call it at that that mid Mass area for US starts to come back. We have a pretty good feeling because when we opened up on February 20th, we got there at break-even Point within about a week after we opened up and again, it was driven by primarily Again by those two segments in terms of our premium package now and with our premium Direct in our junk inflator we had coming in but again with mostly driven by high-end players, so we felt pretty confident that that's what's going to come back for a strong.
okay, and and I
With with maybe limits on capacity initially that that you'll kind of limit maybe the mass business that would come back or do you think that's more is just that it will take mass and longer to come back. Are you going to take a little bit for a car that map at maps maps maps and take them a bit longer cuz even I don't think will be capacity, Like I said a little bit earlier, I think our players that we have is City of Dreams in Studio City and Alterra our premium MassBay excuse to a little higher level. So that that player I think like suck play with some distance the other one with some distance between each other and with our betting on it. So we kind of encouraged that cuz again we want to try to keep it the two players or the table where possible to try to get that again that optimal level of play from the liners.
Okay, great. Thank you.
We have the next question from the line of Simon Chang from Goldman Sachs. Please ask your question. Hi, good evening. Everyone. Just thought about three quick questions again as a follow up on the question about the pent-up demand. I remember last time Lawrence. You said that you don't expect, you know, any recovery, perhaps even in the food court even put the fourth quarter. I wanted to get the sense that based on what you have observed in earlier. You mentioned that you definitely see some kind of demand comes to what is a expectation. Maybe perhaps the timeline for you to see the overall Gaming revenue perhaps to go back to the normal eyes level with that takes, you know, one year two years. That's the first question and then the second question. Would you also mentioned you wanted to pay dividend as soon as possible? What are some of the criteria or Milestone that you're looking for when you considering resuming a living wage?
And then the last questions related to Tag Tax and Jeff. You mentioned that you have another two hundred thirty million capacity into later year. Can I get a numbers game as to how much compacts that you have purchased in for this year and how much you have spent in in the first quarter. Thank you.
All right. So I think on the first question, maybe David can help supplement. But again, I think everything depends on the border and when that gets opened up.
I at Malco. We you know, we're we've done quite well, even with this pandemic and I think we were probably the most aggressive in terms of Costco payment and some of the moves that we made and so I think naturally I view is that the recovery is going to be slow. But again, once the bank opens up, it doesn't take us, you know, it's not that difficult for us to get to Breakeven. But again, that's all subject to the Border. I think maybe David has more views in terms of when when do we get back to normal? My personal view is again, we mentioned Q4 in our earlier call. It's still around there, but
it's
Slipping by the day in my opinion, but maybe David has different views.
Sure, so I'm probably I'm probably a tiny bit more optimistic than Lawrence not usually more optimistic as we said in our fourth quarter call. We thought that this probably the mark-up returning to some level of normalcy right around that October. We were kind of circle in the October Global Link where we thought things would start to get better. We saw some of that in China during when the Mets Golden Leaf a lot of the hotels went back to 90%, so we know there's a pent-up demand out there. I think we'll see it kind of jump up again in October where one side agreed pretty primarily on this is that I think I'm not sure how sustainable is during the whole fourth quarter. I think that'll be somewhat lopsided and go up and down for a while. My guess is personally by the first quarter of 2021, I think we'll start seeing some cars that were back to more of a normal normal view of the world here. Hopefully that assumes also that there's no re-emergence of the virus. And anyway that there's not a huge reinfection raise. We had a dog
winter months
that's probably leads in on the on the dividend question again Macau, which is always a hard Market to predict future performance given volatility. If anything given the virus off, I mean there is right now in our view pretty dramatic volatility in terms of house in the Border opens. What's it going to look like? Once that opens? Will you have a double dip package? You know, when are you going to get back to a point where we feel like we have a very good handle on what the next several quarters look like in a sort of new normal basis. And so I think before we really think about putting the dividend back in place, we need that kind of stability for us to be looking at from a financial perspective to make sure that we feel comfortable. We're obviously Baptist on delivering Capital back to shareholders as soon as we can but we want to be fairly prudent given what's going on. So we're going to want to have a a pretty good view on where we think wage.
World is going before we start doing it again.
When is it?
This is Jeff. I'll take the last one is a housekeeping item that suspension of the dividend concerns about eighty million of capital quarter, but on capex, I had a hundred million of capex in the first quarter of 2020 and we'll have a total of about $600 for the year. So $500 for the remainder of this year off and to give you a little additional color of the a total 604-2020 about 240 of that is development capex between City of Dreams Mediterranean in Studio City phase two and that's about equally split.
Great great. Well, thanks a lot.
We have the next question from the from the line of Jerod Shelton from Wolfie research. Please ask your question.
Hi, good evening to everyone. Thanks for taking my question. So I want to ask you about the the concession renewal process and whether you think the current crisis has caused the government to put the concession conversation on hold and maybe potentially when we get to 2022 that time line is temporarily extended. Can you just talk about what you're hearing and thinking on that front page?
Yeah, so the the couch chief executive gave his his the effect of State of the Union Address in I think around late wage. I think during that address he specifically said that the government would not be delaying the rebidding the rebuilding process. And and so I think from Malcolm's perspective we have been ready. I think he mentioned some of the key points in terms of the CSR that the companies doing a community whether they you know, the the the the operator has helped the city diversify and and then making use of the mid-term review that the the previous administration had done in around 2015-2016 taking stock of what each operator has invested in how much they've given back to the community and how much non-gaming attractions wage.
If if people remember correctly out of that mid-term review Malco came out on top in terms of every single category So based on the fact the current chief executive and what are you saying about the rebuilding process just going along the original timeline and for the licenses to expire in June 2022 Chevy Malibu is ready and happy to participate in that process, you know sooner any time.
Okay, thank you. And then just on the on manila and I apologize if I missed this but have you given a burn rate number in in Manila and and maybe how you're thinking about that reopening timeline? Thank you. This is Jeff. I'll give you the the object. So it's not really a burn rate, but I'll give you the fax number and in Manila we see that coming down to about three hundred thousand a day and that is down from closer to around 400,000 a pre pre covid-19. So we sat some, you know, very meaningful reduction in those rates and I would say just to follow on to that roughly 90% of that as volume related.
Nothing, maybe.
Kevin can get the the color on Manila.
Yeah. Yeah. Thanks Lawrence in Manila. I think most people know we're still under enhanced Community quarantine and we've been that way since mid-march moving into the next week. The Metro Manila is going under a modified enhanced Community quarantine and they're starting to allow businesses opening that being said the government and Pad course still have a provided a opening date for the casinos the but we're hopeful in the near future. We'll be able to open up at least a portion of our property that that being said our our main focus right now continues to be on our faith in the community health and safety and just supporting them and being ready to open up a safe clean property.
Okay. Thank you very much.
And operator if there are no additional questions. I just want to Circle back to I think Joe's question from from earlier in the call. So the net receivable balance of about $275 million is off. The City of Dreams Macau 35 is related to Studio City 65 to Alterra and the last twenty to Manila. Thank you.
Thank you, sir.
As there are no further questions. I would like to hand the call back to Mister Richard for any person who knocks. All right. Thank you for dialing in for a conference call today. We look forward to speaking with you again next quarter.
gentleman
Maybe some gentlemen that does conclude our conference today. Thank you for participating disconnect.
Dead dead dead.