Q3 2020 Las Vegas Sands Corp Earnings Call
[music].
Good afternoon. My name is all right I'll be your conference operator today I'd like to welcome everyone to Las Vegas Sands third quarter 2020 earnings conference call. All lines have been placed on mute to prevent any background noise.
I will now turn the call over 10 31 weeks.
Let me go ahead and Uh huh.
[laughter]. Thank you operator, joining me on the call today are Shelly.
Sheldon Adelson, our chairman and Chief Executive Officer, Rob Goldstein, our President and Chief operating Officer, and Bakken Dumont, Our executive Vice President and Chief Financial Officer also joining us on the call are Dr. Wilfred Wong gradually entertains, China Inc. branch, Chief operating officer of Sands, China.
Before I turn the call over to Mr. Adelson. Please let me remind you that today's conference call will contain forward looking statements that we're making under the safe Harbor provision at the Securities law.
Actual results could differ materially from the anticipated results in these forward looking statements.
In addition, we may discuss non-GAAP measures a definition of litigation to be could be measures. The most comparable GAAP financial measures is included in the press release. Please note that we have posted supplementary earnings slides on our Investor Relations website, we may refer to those slides during Q and a portion of the call finally for those who would like to participate in the queue NHS should we ask that you. Please read.
Correct, our request to limit yourself to one question and one follow up question. So we might allow everyone with interest to the opportunity to participate. Please note that this presentation is being recorded with that let me. Please turn the call over to Mr. Adelson.
Good afternoon, everyone and thank you for joining us today.
I hope that all of you and your family, that's staying safe and healthy.
Well the business loans continue to be impacted by the pandemic.
We were pleased to see improving operating results, particularly in Asia.
In Singapore Marina Bay Sands had a profitable quarter has that places too aggressive we resumed.
Close to Israel during the summer.
[noise] in Macau operating losses, you do see gradually over the second quarter and third quarter results. However, I Love Love Love. It is a book of business trajectory.
Has there been a visa insurance.
So provinces in China, only commence towards the end of September.
The initial stages of recovery since then.
They are very encouraging.
Because we have to Golden week.
She really show meaningful.
Coverage across the different segments of collaborations.
Importantly business volumes in the premium mass segment and.
I enjoyed the most significant researchers [noise].
The title segment is central to our ongoing news programming would go and there's really no new generation at this stage of the recovery.
Okay, but the base mass market to recover as visitation because in my getting patients.
Consistent with the recovery in premium mass and overall domestic China conceptually trends.
Consumption rejoin drugs.
We also experienced strong recovery and the retail malls with the luxury retail said was enjoying the strongest performance.
We can continue to make excellent progress in a 2.2 billion euros, though.
Capital investments in the London, then we'll go and she just budgets.
The green shoots influenced seasons, the logistics to influence even some fill in the world.
No complete.
License and those didn't customers in a de minimis, but.
[noise]. These go just to switch has been receiving great customer feedback.
Since the Golden week.
[noise] [noise], who will be introducing a variety of additional world class integrated resort collaborative amenities as we complete the London in Macau and other capital projects.
The London. It will include two new all suite hotels more than a dozen new list tenants.
Additional retail and new must have entertainment facilities.
Oh annoying <unk> commitment to a significant ongoing investments in Macau enables us to play a part two.
To radian supporting local employment and the local economy.
Hit also on filling the Macau will be even better position to recapture and overtime increase.
Considerably who isn't as tourism from China, and the rest of it is.
I remain steadfast in my belief that Macau has the potential to become one of the greatest business and leisure tourism destinations in the world.
And the most capital.
As I've said on many occasions.
We would welcome the opportunity to invest billions of additional investment dollars.
And extend the kinda do resistant macaos diversification and then.
And evolution is doing is leading media business tourism destination.
Now turning to Marina Bay Sands in Singapore.
We encourage that MBS was profitable in the third quarter.
Despite the absence of overseas tours.
We hope to see the initiation of a simple go travel arrangements in the coming months as health concerns boomlet.
Okay.
Yeah.
We remain committed to pursuing long term investment.
In Singapore, and I will explain to the Marina Bay Sands.
No that would be likely delays in the timing of the expansion given.
Given the challenges created by the pandemic.
In addition to the extension we will continue to reinvest the Marina Bay Sands two and.
To enhance the customer experience and the two is on T. wasn't Missoula.
And let me say this we're pleased to report that the recovery is well underway.
Weekend occupancy has been assigned somebody puts it did.
Together with a state and local government leadership.
And the entire Las Vegas community.
Team members are working diligently to the businesses safely whos conventional gu meeting customers from throughout the world throughout the country and around the world.
What is important to once again welcome and these customers back to Las Vegas, which will only use the most important convention and group meeting my good in the United States.
[noise] as we've said in the past increase in Washington, the resumption of the convention the Goo Muni business both.
Both critical components to achieving a full recovery in Las Vegas.
Now moving to our balance sheet.
Maintaining a strong balance sheet makes good business sense, well, we weathered the storm caused by been seen them occur.
Our balance sheet strength enables us to continue to execute our capital investment programs.
Let go and Singapore.
Which we believe will position the company to deliver industry leading growth.
After the ability in the years ahead.
We were as confident as ever in a sense, because our business model and the eventual recovery and travel and tourism spending in our markets.
So thanks again for joining us on the call today now we'll take questions.
Ladies and gentlemen to ask a question we don't make the press star one on your telephone and cover glass 10 fast accounting. Your first question comes from the line of Joe Graf with JP Morgan Your line is open.
Good morning, everybody.
Sheldon your comments about recent trends in Macau on premium mass and the luxury retail side certainly encouraging.
Was hoping maybe you could give us a little bit more detail on what you feel the Golden week and you know would you say at this point, you're if you're run rating at these levels. In these levels continue that you would be at EBITDA break even levels in Macau.
That's that's what we're shooting for.
I used but not currently there as of yet.
Uh huh.
The trajectory is heading in the right direction.
But.
So let me just comment Joe it's Rob how are you doing it at a much lower.
Laurie, let's begin with our country. That's your question.
Oh.
Yes. It was good to begin with the obvious or comp in Macau B or B will agree with you any market. It was principal source of customers come from China.
No. We're dropping charted a growing economy perspective, it's bigger position be coded remedied shortly getting many years quickly.
Constrained consumers not traveling to foreign countries. They do that Naco respect very stable.
It sounds you know the cows or 40 or 50 million, though really market.
For the past number of years here in New York the forms the Cobas up schools are real and we believe does it go for less than a week, we'll go back to more teachers. Our go forward billion dollars annually, our new foresee we will now open its for the product, but rather we complete.
Your expected by December so we've never been stronger from an asset perspective, but there's no question well demand for Macau is there is there.
Confidence I believe in itself its use has proven to be challenging and it limits. The axis. We are hoping the government will lead to a searching and access to capital continued to improve.
The truth is the way to Macao were you trying to kill the virus is very very capable matter and the job will be the beneficiary reduced travel in the markets.
We soon there's nothing about China. So the domestic travel bubble will be included in shortly.
Greetings to kind of talk about I ask Rick It wouldn't go look it won't be covered through the grounds is it linear many many months and we didnt get you know gradually begin by talking about your question about two about profitability trend would show so we will.
We will await their group.
No.
Well the way again, thank you Rob yes, good good morning, good afternoon, everyone.
Yes, I mean October was the first time since January we've seen significant real business volumes and patronage.
And as I mentioned in his opening remarks, a premium mass has been the strongest segment by far.
And that that is really across the all of the different years of premium mass.
Patrons returning first in Macau.
High quality high frequency customers.
I think that reflects the pent up demand that these guests have and these are the ones who are used to staying overnight in Macau.
They all used to having multiple night stays in Macao enjoying the destination.
And these are the first customers to come back and that's natural.
In terms of the question about where we are on the volumes.
On the volumes and profitability.
Chris pretty based on the premium mass recovery.
October months today, our non rolling drop today, it's just over 20 million.
That's about 30% of last year's level.
And at this level of non rolling drop we are able to achieve and we are achieving a slight positive EBITDA amongst today.
Based on current cost structure in the business mix.
I think what's particularly encouraging.
Joes question about what's happening off the Golden week.
We had the expected LOE in the second week of October, but then we saw a very notable rebound in the third week in fact.
In fact in the third week, we are.
Actually still averaging around or just under 20 million.
Drop per day as well so we are as mistakes. So we are well on to that trajectory.
And we hope we can maintain that.
I think in tandem with the premium mass recovery.
We've seen a resurgence in the retail more sales and that's especially true in the four seasons.
In the luxury retail segment.
The retail recovery actually began in September and has continued.
Into October in fact, some of our I got a number of our top first line brands within the four seasons mall is actually up year on year in terms of the retail tenant sales in the first two weeks of October.
And obviously in conjunction with that at the four seasons, we've just opened.
The Grand suites for four seasons and the suites have received.
[laughter].
I think this is this is exactly the right product for for this premium mass segment.
Structurally but also at this point in time I think you know these Chinese consumers are looking for higher quality are looking for the premium experiences.
And also obviously in this time and it creates some our personal space. So we were very happy of how that product has has come through and in fact is is really one of our best performing hotels, if not the best performing hotels in October.
The question on the other segments I think they smash certainly.
Certainly.
A's is relatively low in terms of traffic right now.
As you know the overall visitation in Macau remains relatively low.
And as Rob referenced.
They're obviously impediments some real some saved some more to do with awareness.
Some of the policies, but.
Obviously the off so.
Just the coach out just relating to two that testing the covert testing as well as the visa application.
But as far as the awareness builds as the word of mouth spreads.
As some of these visa application process to sell shortened.
Become more abbreviated.
Some of these logistical challenges will be overcome or mitigated and we're confident that the base mass will follow as visitations recovers.
As for the VIP segment, obviously thats.
Obviously, thats being slower in terms of the recovery.
Thats expected a lot of those issues are well documented.
But we are also seeing.
Reasonable amount of of play coming through in that segment.
Total.
So I hope that gives you some.
Some color on the October.
Thats, great Grand I hope you're on the next bunch of earning conference call just a.
[laughter].
A quick follow up how much of your volumes you think are coming from outside Guangdong since since Golden week or is it primarily.
This month, all Baldwin down.
Actually the vast majority EPS as volumes and the room bookings are from non Guangdong, but that ratio is actually consistent with what we saw in the past. So this is not out of the ordinary of majority of the volume comes from outside of Guangdong and.
And that was the case in October already but your question is still well made and in a sense that in the in the first week of October me a lot of these customers from outside of Guangdong either didn't have time to get the visa.
Or they didn't want to leave that planning to to such a last minute timeframe. So they already made alternative plans. So the the nationwide visa resumption only occurred all started and Tony sort of September so that really was not sufficient time window for.
For for lot of the customers to feel that they could confidently I get the visa before Golden week before the offices shut down again for the holidays. So it.
That sense.
We should hopefully be seeing.
The non Guangdong visitation.
Proof.
As as the awareness and the logistics.
Doug.
Challenges on that and some of these people have time to get the visa to come to Macau.
Okay. Thank you very much for everybody.
Thanks Bill.
Your next question comes from Felicia Hendrix with Barclays. Your line is open.
Hi, Thanks, so much and ink and that if we could keep you on the on the hot seat here.
Gross new.
New and.
Just getting back to some of the items that you just mentioned.
PC side are you seeing any changes per se in the Raiders beat application approval or even the methodology and it has had the tee up and coming back or is that stone in person.
More manual process and testing is there anything it will be extended to 14 days I know that there's been some talk about that.
Sure.
I think when the long term thesis resumed I think most of the offices were operating on the physical.
Application process.
And not using the kiosks.
As as the rest of the country has reopened for these applications, we see a variety it's not uniform because it's different provinces have different procedures and they always have had so there are some significant provinces and cities, where you can get a same day.
Application.
But most of the others I would say ranged from you know the manual process takes anywhere between three three working days to seven working days, but there are a number of them that have have a shorter short application.
Short application period.
And then I think for going forward.
Hopefully obviously, there's this gets smoothed out.
And I think this is just part of the initial initial I think quite rightly.
You know the the authorities are cautious.
And I think Thats the right thing to do in the face of the pandemic that we don't necessary won a huge surge of people into Macau in a short space of time at that.
At the beginning.
In understanding it's not affecting you.
Ill answer for teenagers and young.
Okay.
That's being discussed.
In in Macau.
And we are waiting for further development on that front.
And then just Alex and entity for anybody.
Hi, I'm just wondering what you guys are seeing in terms of the junket liquidity I know, it's not a big part of your business, but junket liquidity is important at the market as a whole so.
I just want to know what your thoughts are there.
Exactly.
Sure sure.
I think I think some of the challenges in that segment are well documented.
The segment has been slower to recover in this initial stage of the recovery.
But at the same time.
As you quite rightly referenced it's.
It's not a significant part of our business only 4% of contribution in 2019.
And in the meantime.
We have obviously very strong performance in the in the premium end of of premium mass.
Both across gaming and retail.
Yeah.
Yeah.
Oh I'm sorry.
I was just wondering if you thought that maybe some of your premium mass might be benefiting.
Moving on.
Otherwise before Colgate that maybe in a more accelerated now.
I think it's too short a time period two to ascertain that.
Okay.
Hi, Rob.
When they report I would say, we're going to be lately. It may not be important to our overall business. Both in terms of the same period. It is important to liquidity in the marketplace and it was nice to see is reversing out about 200 has been pretty massive speculation that maybe they'll be buying a liquidity issue what we see.
Right I think we mentioned the strength of the refi or premium is a result into our reporting. This morning, it's hard to imagine that in this environment on top six luxury retailers will mean to me.
During the time when you bring on up year on year in total sales, which is kind of sounded it shows the strength and liquidity the premium segment, which reflects movie in the refi rapidly.
Very exciting realizes that segment back in that speaks to oppose the London, but also.
When it comes with a new lessons to actually make it more accessible based Nancy.
The two most important segments delivering good results.
Considering the current situation be messy, perhaps the businesses, we're not too far down the road.
Great. Thank you so much.
Good.
Your next question comes from the line of Stephen Grambling of Goldman Sachs. Your line is open.
Good afternoon. Thanks for taking the question seems like there's been just more news and perhaps noise around overseas gambling legislation.
China in some restrictions potentially there what does your interpretation of some of these.
Laws or legislation and the impact implications for both Macau and Marina Bay Sands, and how that might change, how you position or market of the EPS properties.
Oh. This is the first point, where the business goes onto long to speak to that.
The concerns or don't concern ourselves with the Singapore, we do our job as best we can.
Carefully monitored this weekend.
All the others.
Restrictions and all the issue more units or two on the affordability, we take that responsibility very seriously for people who are still working days you know obviously.
Obviously, the outside like all the you were negatively impacted by the ability of the Chinese customers to get to Singapore. However, we do see opening.
The issues that you're most People's government open Hong Kong broken that will be.
A catalyst for other jurisdictions or countries or airlines to do some work travel into Singapore.
Dr logistic issues across quarters as you know from your perspective as loose nickel.
Sure.
We understand the National People's Congress still.
You know debating the final form of that legislation.
We must remember that.
The target the main target, it's really gambling in foreign countries, including particularly internet and telephone betting.
However, Mcconnell has never been considered forward in China.
And or other Concessionaires in Macau respect the lawyer in China, and we never promote gaming in China.
Our hospitality and.
Mice facilities and services. So we believe that Macau is has a unique place under the one country two systems in China and that.
We will we will continue to upgrade and become part of the legislation.
That's helpful I'll jump back in queue. Thanks, so much.
Yeah. Thanks.
Your next question comes from the line of Carlo Santarelli of the Keybanc. Your line is open.
Hey, guys. Thank you.
Just one follow up on I believe it was felicia's question.
And talk a little bit about the IP side, when you guys, probably best position to answer this but when you think about kind of the.
The issues on the VIP side, and I, just mentioned well advertised how much of it do you think it is a supply issue in terms of liquidity supply of capital versus a demand issue and I guess part of that gets to some of the demand actually just showing up in your premium mass, which you kind of already addressed so I think.
Just on the supply and demand dynamics within the VIP segment.
Robby.
Our launch I want to finish a comment here for use in order to initiate the show.
Sure.
Yes, I don't I don't particularly see is a demand issue.
I think there are some issues related specifically relating to that segment.
And but I think one one contextual point is you have to remember that the.
The system is a consist of of the working capital cycle in that segment and what we had.
Twentytwenty is a seven eight months complete disruption of that business and.
And that ecosystem with with all the working capital issues associated with that so we've never had.
That that level of assess essentially that the business stopped.
Everywhere, but obviously for that segment given the particular dynamics.
It's particularly damaging so I think you're seeing some of the.
After effect of of that disruption, but obviously as as gaming activity resumes and demand resumes.
You hope that some of these issues will evolve in a positive way.
And then.
Yes, I've got to say this is.
Really obvious business anyway in customers. These are industry, hi assistance in the world.
For decades, it will be a way that that could become housing demand.
The appetite of the consumer is diminished whatsoever.
The capacity capital cycle, the ERP right now based on the example that we.
We think that this issue in the past years and.
Back in 14, we know too.
The intent demand remains is that the message that and some point capital who become available in that I wouldn't jump to you now.
Very good spot right now, but again demand will be there eventually we'll figure out the supply business, we do on our account business.
Great. Thank you guys, both and if I could just ask one quick follow up as it pertains to what you're kind of see obviously in a reduced demand environment across the board to an extent, but obviously healthy per in the premium mass segment.
I see anything either from competitors in the market just in terms of the way, they're going about their business and trying to drive demand.
Their assets or is it pretty much business as usual across the board.
Brent.
Yes, I'm, sorry, yes, yes.
Yes, it actually is a bit.
This is usually we don't see anything out of the ordinary.
Yes. This is not this is not really a business where people are going to go out and to do silly things I think is fair pretty rational right now.
I was wondering you know I think we all agree that this market is not being irrational passport has proven to be very very successful two great product and I do think our Newport news product or a lender chronicle could be very very advantageous in the UK and we will back to your question is 4 billion annual.
EBITDA those products are going to take front and center and that's what drives this premium mass customer. So in terms of the import marketing great product wins the day over there we feel highly confident it will produce that product will be very appealing with us.
Thank you both very much.
Thank you.
Your next question comes from the line of Steve within ski of Stifel. Your line is open.
Hey, good afternoon, guys, So Rob drive clearly a Vegas question.
Can you can you maybe help us think about forward bookings for group and convention traffic in Vegas next year and maybe how those bookings at this point are shaking out by quarter.
Sure sure.
We still see bright spots the biggest market the dimension because it is a marine new solution.
Yes, they are in the market because some of the larger steward common Q1 year over a couple of medium.
Mhm correct. The one is the government is younger people.
Good decisions and insight restrictions.
Very difficult to become the world, we will revisit those decisions and enable the market to talk to some of these large shows the second.
Sure of course airlift.
This does not repeat over the levels.
The levels at which you know where these two positive side, we're getting goals and like they were getting inquiries of people the more women.
Yes is it more DC, we want to come back we will use this month on month nascars throughout the year I think it depends on I guess, the three three things in order to reduce restrictions and that's true.
Selling mostly people acquire airless, it's not it's not driving businesses I think that will come back when the market demand is there and the third thing I think is really fully pump with the merger with good demand again.
In a catalyst that you know the consumer use would be replaced with 30 40 50000 people. It's obvious in Vegas is a weekend leisure market is the surgeon and we could probably get to 95% right now we live happily we simply can't now is either in the 65 70 range that you feel the same.
So with the modestly.
Leisure demand for Las Vegas.
Very strong not as most new recruits blue line upon work boots.
Also again as you know is come back to currently owns 75 is pretty good. So this is great spots, but to your point.
Absolutely the rule.
The blue belt to really be in Las Vegas as the the way we've got to see what's in there and there is just too early spices immune to see growing we work on every day.
And before they seem to come back in India. So I think those very large diminishing as will smoke detectors, which appears to be across the board the need in the early to mid 21, it's been resources in April May June we don't need to be.
Okay, great. Thanks, Thanks, Robyn second question I'm, not really sure how to ask this question.
It's going to be a political question, so excuse me, but.
Yes, I know if you take your per.
Personal view that equation for a second is how should we think about.
The election coming up and maybe how each scenario might play out in terms of your.
Your China relationships moving forward and I hope that makes sense.
I'm really not going into a question. It will be spent this is Bruce why don't we answered it.
We always like the returns perspective.
Im going to pass the respectfully I will show more to weigh in but I think that's the question opus.
Okay. Thanks, guys.
And with that.
That's helpful.
Yes.
Yes, we don't answer political questions.
The.
Your next question comes from the line of Robin Farley with FBR. Your line is open.
Great. Thanks.
A question for for grants from kind of circling back to.
Some of the discussion earlier and grant.
Just your take on.
Weather.
Its ability to operate in mainland China and their interactions with customers with that.
Impacted potentially by that blacklist regulation in your view not the players will come to Macau, but the ability for junkets too maybe.
Providing capital for.
Players from the mainland.
Okay looking at your economics football how long you think capital controls in mainland China may maybe.
Maybe.
Thanks.
Yes.
Rob should I take that.
Yes. Please.
Yes, Hi, Robin yes.
I think we should clarify that there's always been a preservation.
On.
On gambling on mainland, China, and solicitation of gambling in mainland China.
And I think those rules and regulations are well well understood.
By market participants.
And I think thats the way it should remain.
I think the the currency issues.
These these are big big issues with we're not in a position to opine on that.
But obviously.
The the market has been operating without any issues.
For for so many years and and we don't see any particular issues.
In that regard as the market starts to come back, but obviously like everyone else will watch.
With great interest the net.
Evolution of of the system.
Okay.
Thank you maybe just as a follow up and I don't know Rob Mississippi for you is it sort of broader.
I think in prior calls this year, you talked about potential M&A activity or that that would be a little bit of a departure from.
Having expressed interest in that can you sort of update us on your thoughts on that at this point.
If you recall.
Yeah, you want me to take that one is that okay.
Sure.
Hey, its Patrick I think what we said before in prior calls is consistent.
We view capital the point to point, it pretty consistently and so that we have a very high return threshold when that original commentary was made by the chairman. It was really regarding certain conditions that existed really before all the stimulus went into the market.
And I think where we are today is we're very focused on maintaining our investments in our existing markets. We've deployed a lot of capital in the last 12 months into these markets as grant and Rob mentioned, you're starting to see the benefits and the return of premium mass and Macau today. These very high value investments and we're also looking to meet.
And liquidity to ensure that we have the ability to take advantage of opportunities in the future. So I think we're we're looking around I think we're we're optimistic about the future of our key markets. If an M&A opportunity comes up we'll look at it but again our return thresholds are very high and as of right. Now. There is nothing is really compelling. So we'll continue to put capital in our markets and hopefully get our continued high returns that we can.
Seen previously.
These markets I know M&A is right now.
Thank you.
Thanks, Rob.
Your next question comes from farmers Allen of Morgan Stanley. Your line is open.
Thank you just first following up on that last question, we've been getting a lot of questions about when you may resume your dividend.
Would you go back to the CAD 79, okay at the beginning.
At the beginning of the year can you just update us on your.
Thank you.
Good.
Hey, Hey, it's Patrick.
I think I think return of capital has been a cornerstone for our our shareholder value creation program and I think we're very focused on getting back to being a dividend player you've heard our chairman say yay dividends. Many times that you feel still feels that way I think the company is very motivated to grow its cash flow beyond where it was in 2000.
19, and ultimately return to being a dividend payer, but I think the key thing right. Now is that we're in the early stages recovery of coated and we're going to see how that trajectory goes before we make a determination about return of capital. We're very focused on growing the business back and exceeding the prior levels and we'll evaluate where things are at that time, as we progress and make an assessment about sort of dividend payouts at that time.
Our color, thank you Patrick and that.
And then just as my follow up question. Appreciate all the color you gave on Macau around Golden week, how are things progressing there.
Can you give any more color around Vegas, Singapore.
Obviously sequentially third quarter was better than the second quarter, but was it more in terms of a month by month progression and have continued to Rick can.
Prove in October and would you expect that to continue to approve or that seasonal factors, we should be thinking about thank you.
We want to Singapore, and Australia, So in Las Vegas, I think too.
I'm not a disease, where she will be in place right now.
Some of those who saw it is pretty much stay stable.
Curious to see what happens in the winter is believed this is so good so but I think it will stay with us until there's some things are the catalyst is the leader.
Since the leisure travel I'd be strongly region.
So maybe I still think the airlift three is very very difficult to overcome we still operating a regional market.
We'll see how the group business are you really increasing the moon, but how do you when can we get it would be governmental restrictions. So I don't see on change in Las Vegas for us.
So the change structurally in the governor's position the airline position in the world with again consumers I think people coming your weekend contributed one the movie come with the 30000, new conventional becoming launch over 20000, CE Mark I don't know.
I don't know I do think about those numbers you have these very vigorously was that I think is going to be demand, but we've got to change anything structurally to get people in the buildings.
So that's very good we're very encouraged what's happening in the us.
He made some on this quarters you see I think they'll continue to grow the growth in the EPS to be in business on the variables for years.
For example, this is our building roads in 15 or its current assumptions in 2000.
The first two years the win for you there is extraordinary so.
And that's driven mostly not like people to use with the locals market not really as the locals market for residents consumable revenue is very different than what we need to say that it is farmers who achieved.
Now this is a permit resin that's probably the big driver door very food CPG will not have a strong the table side, where the market is not as favorable local residents need some of it was there.
Really early thing happening in Singapore as you know is the recent development would be.
Hong Kong.
These new governments, we're very fortunate we don't see it was so proactive we recognize the need to rejuvenate our industry in its economy that view.
We'll see.
Cafe and ER in scenarios, where they really bodes well for other jurisdictions.
We need to be careful to Subaru ground leases foreign travel organization.
Since the minor list and that's lacking in Malaysia.
Asia, Japan et cetera, Vietnam.
Mark is open up the ability we will play.
Slide 25, 35 million amongst the maybe 50 or 75 million a month is going really depends on the need for these patients we are comfortable making money. So it's growing October golden.
It's pretty will feel better that the stronger but the change only happen there is.
Step change way would you have asked us by air travel obviously, we were.
And we're hopeful that in this quarter, we'll see some more developments or even further.
Again, unlike view as the global situation given pretty stable, we must continuously make this vocal more people into the boos around your struggles and that will join us in the door.
Remember we're comfortable.
And if I could just as Patrick if I just add one comment.
I think it's an important thing to note that in Singapore things really were opening a phased way after the circuit breaker and so we really didnt have our full hotel towers until August one.
And I think the other thing Thats important note is that the ramp across the quarter, Singapore is slowly resuming operations in a more normal way and we're starting to see the benefits of that as we resumed the profitability and so it was a ramp across the quarter, Singapore and the trajectory is positive.
Very helpful color. Thank you.
Your next question comes from the line of charter to giant Yes, Watsi, Sir your line is open.
Hi, good afternoon, everyone. Thanks for taking my question.
On Marina Bay Sands can you tell us what percentage of your business historically has come from mainland China, and then I guess on the cross border issues. I mean is it possible that for Macau. Some of the cross border issues, just the sentiment of that could be a headwind in the near term, but potentially positive over the longer term if more demanded that shifting to.
In Macau.
Well, there's always saw it.
Not going to break out.
Percentages races profitability coming out of China into Singapore, but will place a very important market for us all.
Argue that it's it's fundamental to our growth and success as the most confusing.
Retreated visitation. So we'll give you a very macro level as far as a double edged sword as a reference because I think it's very very hopeful now that the Chinese consumer.
<unk> retail business on the high end booming recording work our people on the ground is that the case, why the friendster U.S. or wherever they travel to and by their loans.
Buying it at home and you see the surging retail numbers and the growth economy coming out.
China, China is back to previously goes as they do.
Back in Germany is strong in China.
Very well, Brazil will reduce the overall strategy. So that goes very very well once we lose on the level of the trying to double the containment as their business will be just fine in daily quickly is not too far from the calendar for receivable because there may be a base yields in the country as the air travel that aspect.
But we don't hear any coming attorney radio stores opening up the balance is not sustainable, but Asia, Japan, Taiwan et cetera. So it will be helpful. Because American both BT retail do you travel will probably be very strong in Macau as those.
Ideas in Cobiz.
Barriers come down.
He will come down because of the health situation in those accounts in maybe the trend is very positive so.
Very helpful. My real question and probably not.
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Okay. Thanks, Robyn and I'm curious to get your perspective on US I think I know the answer to this but curious to hear your response, there given that Vegas is recovering.
We're a little bit closer to the vaccine today hopefully.
In Macao has been I think a lot slower to recover than people expected is it still your expectation that Macau could and should get back to prior peak revenue before Vegas.
I believe so I think the canal.
Countries is very Chinese market, the Macau, China is a very very good position. The rest is really the protocol renminbi.
Finally, the safety record with even a great job and sustainable recovery over there in the field.
We transferred in Macau, the near future I, just want to win so I feel very good about process in the future.
Future hopefully your future, but we don't know against not within our control by the government took is slower than the other guarantees we don't lose in China in Macau, we have been very it's been frustrating, but they take it slow and easy open gradually which either greenfield.
Yes, the basement portfolio in probably jump in after that so Macau I think we're going to split that having said that I for the first time is doing relative to some bright spots that we feel some so there is definitely a major cause for the weekend. This past year on the weekends much more had been previously was not so favorable maybe but again.
As a group.
As a student and we'll see loop holes in the RTT any response people want to come back Las Vegas. It just I think takes longer and you referenced I crave is actually borders we do see that the tipping point.
You're going to still have what 70000 people infected when they receive still staggering.
The level, what's happened so until people go see lots coming Vegas put when they do they're going to come back and really comp is divided into five and make a bet identical much quicker recovery than then.
No. It doesn't challenges limits now this does have value to them and many people coming.
That's old news.
All right. Thank you very much.
Thank you.
Your next question comes from the line of David Katz Jefferies. Your line is open.
Hi, good afternoon, Thanks for taking my question.
Good to hear all of your horses, and hope you're well I just wanted to follow up on.
Yes.
Circumstances.
What what we've seen here is a negligible number of cases.
On both in Macau.
You know the relevant areas of China.
What might can you shed on on what.
You know the Chinese government, and then kind of government might be looking for.
For change to occur or is it just a function of taking the time it administrative way too.
To to convert back to the kiosks that we've known about in the past.
This is Charlie still awake.
Yes.
Well I think the way you have to look at it and never refers back to what.
What Rob said, how what a great job.
I think the governance and China in a local government cow I've done in terms of controlling the pandemic.
But one result of that is I think each set of relaxation.
Is it handled very cautiously so I think it's more the case that we need we need the passage of time, where we can see that everything is working in order.
And there are no issues arising from people movements of launch of large numbers.
And I think your point about do they move from manual it's a kiosk we already do.
Hi feedback from.
From from customers and consumers step in different parts of China, you do have a much more abbreviated application process. So I think this will work its way out.
Assuming that everything remains.
In order as it relates to the.
Control at the pandemic.
Rob This is rofin can I can jump in.
Good.
No I think the the current situation is.
The the.
Government no what needs to be done.
Cleaning persuading the choice.
Persuading the Chinese government to two.
Work on the kiosk rather than manual processes.
Standing up 14 days.
Of the validity of the test set to vacate but we.
But we must remember one thing.
What do you want to avoid is a shutdown again.
So that's why for that.
Central government Macau government been working very carefully because they don't want.
Surgeons or an outbreak of co bit in Macau, which as how it's fought for so long.
That's why they're moving slowly.
Surely, but what we're seeing is the.
Both the central government and the Macau government knows exactly what needs to be done and they're moving in the right direction.
Thank you for that and we were like a fair plan sorry go ahead. Please.
Could it be more as we were lucky that the long term, it's frustrating for all those who would happen yesterday. He wanted so badly we see more to open back up we will get back on track. It is it is.
Yeah first reimburses become as the.
In Macau.
They'll go through long sustainable growth in back to better Brian We just.
It's hard for us a year or two.
Accepted without getting antsy ability when there is restrictions are lifted or reduced activity.
Great goals.
I appreciate that and if I can ask one detail follow up within the context of the recovery in Macau and I appreciate the color around.
Tobar starting to.
Approach or get to breakeven.
How should we how would you have us think about the londoner.
Its ramp within the context of all that presumably it's on a different track at a different trajectory given the capital.
Sure.
Rob.
Now onto Fig, now and am I going to do that.
Sorry, you want to go first so no.
No go ahead, you this year.
Yes, hi.
I think the first point is what Rob said earlier that.
This is a product driven market.
And it's I don't know, it's hard for us to convey to you over the phone just how excited we are about the products that were about to bring on and of course, we have brought some of that already through through the four seasons.
The new hotel at the four seasons.
Obviously, the bigger piece will be.
The the comprehensive product that we're going to put out that through the London in Macau.
And I think when you think about the construction progress we've made obviously weve taken full advantage of of the.
Of of the pandemic so.
Cessation of some of this.
Business in the FCC side.
And with accelerate as much of our programming as a result of that.
And I think when we see the segments that are recovering chiefly through premium mass, we really feel very good about the natural rollout.
Uh-huh progressively of of a number of these new products and.
And that will stop.
Potentially towards the end of this year and will.
And we'll move on to <unk>.
To the rest of the resort.
During the course of 2021, but.
But the way very very excited about what would that to bring on onto the market.
Yes, I do have one comment we had the FCC for years is not a great product has been delivered we do we've done this product with 6000 rooms and suites.
This year when you see the images of spectacular Regan retail environment, where the epicenter of because its nice to the cross from.
Ill health, which is nearly twice the peak now.
I don't think we couldn't be more excited to get fully open and operational deals that will cut the key and show me over there hopefully the new this within I think it's going to be extraordinary product and rethink of how our clients with one in Macau is opening a very underwhelming growth too.
Who probably two two or the mediation and we just we just can't wait to get back in the county is that the same with the policy is now open this is quite low.
Our feature size is not the oval externally.
Giveaway promotions, but truly requirement.
To conclude we can't come soon so we couldn't be more.
This very sort of the prospects of our business.
Look forward to seeing it. Thank you for taking my question.
We do.
Your last question comes from the line of Shaun Kelley with Bank of America. Your line is open.
Hi, good afternoon, and thanks for squeezing me in.
Really just wanted to kind of do two quick follow ups on topics.
Although that is stronger.
He got disconnected.
We will go back to enter.
But is there also.
Well, we'll be able to Sean you got dropped off the gildan directly.
But.
Thanks for joining us is John.
Well great. Thanks for joining the call. We appreciate it great color.
Thank you. Thank you.
Hey, guys.
[laughter], ladies and gentlemen. This concludes today's conference call. Thank you for participating you may now disconnect.
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Hi.
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