Q1 2021 Las Vegas Sands Corp Earnings Call
Okay.
[music].
Yes.
Yes.
Good afternoon, My name is Katrina and I will be your conference operator today.
At this time I would like to welcome everyone to the Las Vegas Sands first quarter 2021 earnings Conference call.
All lines have been placed on mute to prevent any background noise.
I will now turn the call over to Mr. Daniel Briggs.
Thank you Katrina joining me on the call today are Rob Goldstein, Chairman, and Chief Executive Officer, and back and be more our president and Chief operating officer.
Also joining us on the call a doctor Wilfred Wong President Central China, and brand Cheung Chief operating officer since China before I turn the call over to Rob. Please let me remind you that today's conference call will contain forward looking statements and you're making under the safe Harbor provision of federal Securities laws and the company's actual results could differ.
And materially from the anticipated results and those forward looking statements. And addition, we may discuss non-GAAP measures a definition and a reconciliation of each of these measures to the most comparable GAAP financial measures is included in the press release.
Please note that we have posted supplementary earnings slides and our Investor Relations website, we will refer to those slides during the Q&A portion of the call finally for those who would like to participate and Q&A session. We ask that you. Please respect our request to limit yourself to one question and one follow up question. So we might allow everyone with interest the opportunity to participate.
Please note that this presentation is being reported with that let me. Please turn the call over to Rob Thanks, Dan and good afternoon, and a very early good morning to our colleagues and leisure suit.
These comments that we work and Q&A our results reflect the pandemic impact we would generate $244 million of EBITDA for the quarter and we continue to have a strong belief and the retail recovery because the March numbers were very different from those in January and February and the recent visitation numbers and other numbers for April reflects continued acceleration.
Obviously, we cannot define the timing of the full recovery, but its underway and we will continue in 2021 and at this time and Singapore is and the $5 million to $600 million range annually and EBITDA.
There is no visibility as to when air travel and returned to Singapore and.
Unlike retail it's more difficult to project additional or incremental EBITDA from MBS and sold resumption of wood.
Material air travel and our investments in Macao compute takes shape as the market recovers four senior lender and we will present, the large growth opportunities for us and we continue.
Because we have the largest footprint and this incredible market of Macau and China continue to demonstrate economic resilience the spending and the sales very strong and the premium mass levels and both the gaming and a retail perspective, and representing 29 30 index from a retail perspective with some pleasant surprises there, but again, we have no reservations.
And our ability to perform to pre pandemic levels once visitation and turns our company today is sort of a variety of different areas, the Asia portfolio and the challenge, Singapore, and while I believe Macao and accelerated this year and lead to recovery, Singapore, followed fund resumption of air travel and participate and recovery as well.
Anticipate a return to a $5 billion, plus EBITDA and leisure and the future.
Our sales of Las Vegas assets enable us huge optionality to explore large scale land based destination resorts and both United States and Asia and finally, we have four.
And to have a material digital presence and future we are exploring multiple opportunities at the proven time and this is obviously a departure from our historical approach and we will update you at the appropriate time, so let's go to Q&A and first of all please.
At this time and you would like.
To ask a question. Please press star and then the number one on your Touchtone phone and your.
Question has been answered or you wish to remove yourself from the queue. Please press the pound key question, just a moment to compile the Q&A roster.
First question, we have Robin Farley.
Sorry.
Carlo Santarelli from Deutsche Bank. Your line is open.
Hey, guys. Thanks for taking my question.
Rob appreciate it and there's probably some sensitivity around it but in your prepared remarks, obviously, you talked about some of the Asia opportunities and clearly upon the completion of the Las Vegas sale, which obviously came out of a very nice multiple for you guys and I'm sure you'll have and very nice proceeds coming out of it how do you think about the use of <unk>.
Those proceeds and in light of some of the opportunities, you're obviously kind of high and Asia.
Relative to obviously the return of a dividend.
Potential for buybacks longer term potentially owning more so and that's China all looking at Bob How do you kind of prioritize debt pecking order and acknowledging that you could do several of those things kind of what the balance sheet because actually medicine.
Sure.
And it obviously agree its opportunity for return and I think we continue to believe there'll be something happening in Macao at some point and feature which enable us to reinvest in Macao on the non gaming basis.
That will happen sooner than later.
And Singapore Phase two project is we're still continue to work through those issues. There. We continue to look at other Asian opportunities still the Asian opportunities and then of course, we think and the U S and maybe some opportunities for US here and lastly, digital I think we look at everything.
Individually and look at the returns and but our priorities remain getting back on their feet and Asia getting back to a five plus billion dollars EBITDA and maintained.
The backbone of our company and that's what we'll start first.
If something opportunistic and opens up and the U S. With the debt. There is somebody opens up digitally with deeper into a digital deep dive and figure out how to deploy capital intelligently to get a return and I think there'll be some.
Nice opportunities in the future there as far as a dividend and Patrick to address that issue and return of the dividend Patrick.
Sure. Thanks, Rob So I think as Rob mentioned, we look very cautiously at the way, we deploy capital and we're very patient and we look for a way to maximize our returns for shareholders and so when we look at the dividend. It really was and hopefully we will be in the future really the cornerstone and you've heard me say that before of a return of capital program and I think where we are today.
But we're gonna look four operations to return to a baseline level and get a sense of where those operations are trending and then make an assessment with the board and with management looking at our long term potential towards the dividend should be given our ability to reinvest and allocate capital to other projects that are higher growth and so I think it's pretty consistent what you've heard us say before on calls and nothing's changed from that perspective.
Great guys. Thank you. Thank you Patrick for that and then if I could.
Whoever and whoever wants to take this it's more of an opinion question than anything else, but obviously there is some consternation and the investment community around the status of VIP in Macau and the direction of the IP going forward in Macao, and whether or not there's a perception that that will have a positive or negative impact on the premium mass segment.
And one could obviously make the case that VIP customers, who are having a harder time accessing capital.
Do like to get more clotting simple.
Second our premium mass segment, which now wouldn't be the worst thing to happen or the fact that maybe some of that spillover play from VIP VIP and software doesn't show up and ask Rob maybe whats kind of your view from you folks and Macao on how that how they would expect that to play out.
Haven't really strong year, but since I woke up rent and.
430, and good morning, and grid because the coal granted.
Yes, Thanks, Ralph Yes, we're here.
Sure.
On the question of VIP and premium mass I think you've clearly seen the segments have diverged in terms of the recovery.
Clearly premium mass.
Has made a very.
Significant recovery and <unk>.
Already approaching 50% of pre pandemic levels, our VIP on the other hand is.
It's still struggling at around 20% or sub 20% so.
The segments I'll actually falling very different trajectories, and we would expect that to continue.
And for the time being and of course your question about whether this spillover whether this migration.
And I don't think those dynamics have really changed.
And since a few years ago.
And that there is a structural.
The change over time, where more of the customers and most of new customers dealing directly with the casino operators program.
And of course, the great assets buildup.
Attracted.
More and more of these consumers.
And the premium mass program and.
And we expect that to continue over time as these non gaming lifestyle.
And people.
Play.
Great. Thanks, everybody and I appreciate it sure.
Thank you.
Next please go ahead.
Joe.
From JP Morgan Your line is open.
Hey, everybody.
Joseph.
You look at your.
Advanced bookings for the Golden week holiday in Macao.
Do these bookings suggest or imply a further acceleration and visitation or mixed quality might be tough on sort of standard GTR level relative to April and March and and anything underlying that suggest that maybe people are anticipating.
Any.
Macao patrons are anticipating and.
He further.
Incremental easing of travel restrictions.
And I don't want to share with you our bookings for gold rate, obviously, we looked at the best reflects the market rate.
And April I think across the board, both Moody's and based on revenues growing and.
We remain convinced and Mcdonald's and recovery mode already I think the terms and in March.
Very encouraging I think is foolish for us to try and Colby.
Colby global safety and might be.
And then as defined it but instead, it's a slow process of gradual growth and I think the margin will be disappointed the way either.
And the inflection point, where just like Golden week pumps and numbers to a materially different level, and we're seeing and the gradual growth.
And restricts was obviously the government decisions people are gaining there as evidenced by the numbers coming out of April and the revenues and the big we believe that this will just continue to accelerate with the only caveat being.
And so you won't see returned and and.
Casey with wireless will force grants and your thoughts on that.
Yes, I think four bound and visitations versus January and February.
And as you've seen from the figures released by MTO debt.
And has continued on a similar momentum in April.
With visitations, reaching a post pandemic highs and a mid of April.
So the acceleration is seen across.
Very encouragingly across all the different segments, whether you're talking about premium mass mass.
But the encouraging thing is that since March we've really seen and <unk>.
Acceleration and the base mass as well as the leisure guests.
Guests at the hotel.
Retail, especially at the high and consumption and if things and.
And we've even had initial.
Resumption of demand.
Nice segue.
Segment activity.
And Mark.
For Q2 look encouraging for the <unk> as well.
As a surprise, but I think what you can see.
Broad based.
And the recovery.
In the different segments since early March.
Pretty emotional.
No.
And they May go away.
Covid very steady.
Couple here in Las Vegas looks like when we can pre pandemic levels.
Okay.
It's amazing and busy year and demand is back and Lima.
And follow suit.
Of course Vegas, and ability to return the group business and Thats inevitable waste and Asia, but I think China and Macau.
Continuing to move forward accelerating and I think well.
We'll see a slow gradual return and the second half year.
Could you break out with everybody over there.
Great and then my follow up question maybe.
For all day.
And those and the ground early in the morning in Macao.
And I just want to ask a question about tap.
Topic, you guys love to answer and sort of your thoughts on.
And the timing or processed four the concession renewal and.
I think I'm going to ask in a way that's answerable.
And if.
And if the government was knocking on that and even if that was an extension for relatively short period would they have discussions for that.
Maybe I'll let.
I'll, let you.
Yes, Joe and I don't.
Okay, and you want to speculate because we don't know we measure it and government, we don't what they're thinking but.
As we said.
And.
And I don't nausea, and in the past, we remain strong believers and our position there.
The story of Lvs, and what we've done in Cotai and.
$15 billion of investment and the non gaming assets, we built.
Oh and got concerned about when the government sales as they tell us, but we don't have any insight and more really idea women, who do that but we do renewals will happen and we feel rate.
And then I don't have any other insight and Ms. Wilford and maybe you want to add to that the rest of day.
Yes.
And then.
All of the fixed concession is.
As we draw closer to the.
Yes.
Duration of the concession.
But as <unk>.
We stand ready to cooperate with the government.
Once they announced the.
And what they intend to do over the next 12 18.
18 months.
Thank you guys.
Thank you Joe.
Next question can cause and.
And Stephen Grambling from Goldman Sachs. Your line is open.
Hey, good afternoon, and thanks for taking the question.
Thanks Steven.
As a follow up I think to Carla's question on the proceeds from Las Vegas, I guess, where would raising your ownership of sands, China factor into that list and can you just remind us what the processor and limitations might be if you did want to go down that path.
Sure Bachelor and graduate.
Yes sure.
So I think for me about the long term future and success with Macao as a world, leading leisure and tourism destination and as Rob has said before and as you've heard on these calls we're very interested and investing more and it's definitely something that we think about and considerable.
Over time, I think where we are now is we don't have the proceeds yet we're looking at all the options and we're going to consider everything and I think we're going to be very focused on returns and.
And develop more and the markets that we're in and I think that'll be something that we think about and I think really for US there is a lot of opportunity in front of the company.
And we're being patient and we're looking at at all and we're going to look through and through the lens of maximizing return and so it's not something that I missed.
Let's say, we're going to do now, but it's something that is and the isn't other things that we consider as we look across the way we might allocate capital.
And so just to clarify is there a maximum ownership percentage that you can go up to 4% China.
So I think technically they want to have 25%.
The float outstanding for the exchange, but there are exceptions.
Got it great I want to make sure that that makes sense, great I, just want to ask branch and I want to make sure I did.
And that's kind of thing there but.
Right.
That's helpful. And then and then as we think about the model going forward I realize that you broke out the Las Vegas assets within the EBITDA count, but is there any and think about our corporate expenses going forward is that basically what you reported this quarter kind of the rate run rate to think about or is there other things that might be and there.
No I think I think what you should see over time is that corporate expenses should adjust.
Post sale.
But I think and the long run we will continue to have a corporate office.
And it manages the activities of the enterprise as a whole.
So theres nothing theres nothing in there that's noise right now, but you should expect to see some changes going forward. After the completion of the sale.
Makes sense. Thanks, so much I'll jump back in the queue.
Thanks, David and thanks to appreciate it.
Next question, we have Thomas Allen from Morgan Stanley. Your line is open.
Okay.
Just on Marina Bay Sands.
And the performance of the property and improved quarter over quarter, obviously, theyre not getting any more Chinese visitors. There. So can you just talk about some of the drivers of that.
Yes, surprisingly small business the exception biggest drivers respond performance has been outsized.
I mean us here.
And against the pre pandemic levels and slot floor every day.
And the comfort level and with the team a little bit.
$1 billion with livestock.
Capacity without having a uncomfortable is more difficult and the cable side and do that there is more space and on the cable side, which makes it difficult, but as you referenced not having debt.
And in this space and very hopeful because is there and the visit tours and approve them.
And with a slot with strong slot market before you got there.
And embedded over the years that we are.
Ability to provide.
Good quality product, but that's the driver and Luke Larson.
No doubt that foreign visitation, it's hard to grow the premium mass and the high and cable business. So we can really struggle and I think this day in this range and.
Philippines improve and I really unlike macao and working with us in our move.
Summer and fall.
And we believe that happens and Singapore, the neighboring countries are still struggling with the vaccination and Malaysia.
Indonesia, Japan, and Theres no real evidence that this didn't change and the short term, but its a slot business over there and thats been really exceptionally strong.
The other the other thing to note and this is Patrick.
And just keep in mind that while the pandemic.
And related restrictions have eased the actual activity levels of the people in Singapore.
Over time across the quarter.
Right. So as people who are vaccinated as public health initiatives bear fruit people, who are in Singapore or more out and about and.
And so we benefited some of that as well so.
And if there is a change to Rob's point before it sounds as if theres, a change and visitation, but there has been a change in activity and Singapore as things return more to normal there.
Makes total sense and then just as my follow up it seems like.
Curious about your digital.
And our strategy can you just elaborate a little bit more of that.
We're not very good at Thomas we have.
We renew guys. Good luck and I think the game is just beginning and we look for.
And many many others.
Aspects, we've spent a lot of man hours and a lot of people looking at the opportunities.
As you know that market is still developing day.
And we're looking not just sports or the gaming all aspects of.
Digital we find it fascinating and and.
Very very complementary to our land based business, but.
We're just not ready to disclose we'll review that we haven't started.
And much color there, but I think you'll be hearing from us this year and next year about the direction we're taking.
Perfect.
Thanks Thomas.
Next question.
Shaun Kelley of Bank of America. Your line is open.
Hi, good afternoon, everyone.
And I just wanted to go back to the kind of question around some of the possible and reinvestment back into Asia as you got so much cash.
Or liquidity available on the balance sheet and obviously.
Heading into the concession process.
My specific question was that there was some press recently about possible investment and the broader greater Bay area being a potential criteria or potential result of the congestion and.
Just kind of piqued my thinking around would that be something that lvs and would consider potentially investing and non gaming, let's call it and the broader region, but outside of Macao directly is that something how would you react to that.
And ultimately.
And we are again.
And we're staunch believers and the rebound in Macao and it's coming back in and other people were somehow don't believe it.
And have to wait and see but it is going to come back strongly and we will be the leading player in that space Londoner and four seasons of vessels are going to be very well received.
And the region and it makes it we'll do it.
We have capital is appetite and.
And remain committed to Macao and a big way, we believe it is going to drill and grow for us and and.
And despite all the distraction and all dependent and what we issued Macao still remains low land basis.
The most opportunistic and advantageous market and the world.
And we plan to be there for long time, and thus more capital and again, the government's directions will be paramount to our thinking.
Great and just maybe as a quick follow up.
Potential reopening of Hong Kong, just kind of curious on the latest there I think the case counts.
And then I.
I think very low and there is some positive news there, but I think the vaccination rate is also very low so just curious on.
Color from that part of the market and that is a possible avenue for reopening some of the travel and the region.
Sure Walgreens and grab that since you guys have renewal.
Renewal rate.
Yeah I think.
And it's gratifying to note that the cases every day.
Rob to single digit and.
And I think yesterday, there was no home case in Hong Kong the both governments.
Hong Kong Macao have announced that if there is a continuing period of 14 days of zero cases.
And they would open I'll consider opening the border between Hong Kong Macao and.
And I think the Hong Kong government is working very hard to.
To achieve that and hopefully.
And if that happens that's going to help our business a lot.
Thank you very much.
Thanks, Sean.
Next question, we have Chad Beynon from Macquarie. Your line is open.
Hi, good afternoon, and thanks for taking my question.
And I know it's early on.
The londoner opening of phase one here, but just wanted to ask.
<unk>.
Ask about the makeup of the customer or how you guys are running that rate now.
Between Londoner and Venetian and.
Is there is there a major difference in terms of the customers that are visiting one versus the other from a base of premium standpoint, and are you deciding to comp certain players into one versus the other just trying to get some additional color in terms of how that's running since since it just reopened thanks.
Mr Cheung.
Yes.
And the subject of London, well I think if you take a step back we we opened our first new product in the four seasons at Grand suites.
Last year and.
<unk> has progressed exceptionally well and tons of customer.
Our feedback and.
And so clearly that is more targeted at the premium mass and the long stay leisure family I guess.
And then when we got to early part of 2021 as you referenced we we opened the first phase of London.
That's really the main London hotel and the north side of the building with the Crystal Palace atrium.
And some of the signature food and beverage outlets and such.
Other traction step that we've opened up so far.
And I think it's important to remember that a large part of the building.
Namely on the south side of the Sheraton side is still under.
Heavy construction actually both on the interior as well as the exterior facade, because we have been bringing forward the construction works.
And on that side of the building to take advantage of the low levels of traffic.
So in terms of your question about segmentation it.
Really follows.
And the trajectory of the initial recovery that we see in Macao right now.
Four.
Not very much in terms of base mass traffic and.
And that's both because of.
And the demand side, but also the fact that the south side of the building.
And is on the go and large large scale construction.
And it's really focused more on the premium mass segment.
And as well as the <unk> I guess we've enjoyed.
And the resumption of the <unk>.
Our segments in the various hotels that we have and the London in Macao.
But clearly there's a lot more to come.
And the remainder of the year into early part of next year in terms of the products that are coming online.
We've got a second and we'll see hotel rooms, and accrual opening up later on the year.
The showers and side, we're going to have the second and Wow space HCM shakes this whole coming online imminently and our second quarter, obviously, we still have to London and arena.
And another call it 678.
Food and beverage outlets.
And with the with the themed attractions and the property as well as the receiving of the retail shops.
Hopefully that gives you a sense of where we are today.
Okay, Yes, that's great and then separately just regarding your retail mall business and Asia, which is on slide 29, you've outlined that rental concessions have.
And have come down sequentially, which should be a positive just in terms of the health of your tenants is there anything thats going to change dramatically going forward just in terms of turnover versus base.
Component of the makeup of this business when visitation and kind of gets back to more normalized levels do you still expect four the profits of the retail mall portfolio.
Kind of mirror, what you saw pre pandemic. Thank you.
Absolutely expect it to be very much linked to pre pandemic levels are and what you're seeing now is similar to the U S outside spending by affluent people driving me crazy good numbers out of the luxury and four seasons and other but I think we expect total recovery, we have no concerns of trepidation debt.
Visitation to Macao returns and the Singapore, and a malls and the phone back to pre pandemic levels and perhaps even beyond that so.
And you have any concerns that you have seen the correction on the rent concessions and you see really rate direction, but we're very pleased with the caveat that we want to see and returned to mass traffic as well as Oh.
So we are driving.
But yes, we expect it to look a lot like prepaying debt levels hopefully.
And Dennis.
And in Macao and Singapore.
And because again and so the resumption of air traffic and foreign travel and Singapore, and the lag lagged other pre pandemic levels and again, we feel much more aggressive and return Macao and we do and Singapore at this time, because we don't see the vaccination is kicking us largely in the region.
Traffic and either.
<unk> ability and do with the rhythms and air traffic. So it's already see Singapore and getting back to pre pandemic levels.
Thanks, Rob.
Sure.
Next question, we have Robin Farley from UBS. Your line is open.
Hi, Thanks, a lot of my questions have been asked already but I'm curious on the online strategy.
It sounds like it's going to be a little while from from your comment earlier before there would be some announcement about lvs involvement.
Is it fair to say given that.
And so much activity around getting market share when your markets open that if you kind of.
Maybe coming to the online market, a little bit later than others that debt.
Maybe your strategy with the kind of M&A focused rather than.
And a building.
Building from scratch your presence in those markets.
And who can go either direction will be eliminated and we can build organically, but at this point again.
I think the.
The challenging businesses, despite the evaluations and still challenging businesses and it's early inning, maybe effects nationally and consignment and some of these businesses and the online U S and still a very nice online gaming, which is and the profit would most positive story and a few states and I think the sports betting remains a familiar.
And to some extent as to whats really happening there so and there's also a lot of moving outside the U S.
North America, and there's all kinds of opportunities. So I don't think EBITDA will come back to you, but we're trying to again assess.
That would be smarten targeted.
Obviously with the kind of balance sheet, we have the <unk>.
Optionality is endless and we will be careful and do it the right way and really.
The science and base business.
When we get that back and healthy but.
And we will conduct the rate time, and the rate strategy rate as well for us and I wouldn't want to obligate ourselves there's going to Q4.
And of course, M&A, but we'll get there I promise you that we have.
A pretty durations appetite to be and that rule and maybe different and the biggest can be but we'll let you already talked about it.
Okay, Alright, great. Thank you.
Sure.
Next question, we have Steve Wisinski from Stifel. Your line is open.
Hey, good afternoon guys.
So.
Good afternoon, so the guys on the ground earlier and the call touched on the favorable talked about the favorable case count they are seeing and in Hong Kong, but I guess the question is can you.
Could you guys provide any color around the actual vaccination process progress in your key feeder markets like Macao, Hong Kong, Guangdong and obviously, it's it's very tough for us over here to get a good understanding where they are today versus maybe somebody like the U S is right now so any color there would be pretty helpful.
Broker grants and you'll be on that one.
Yes, I think the.
The situation on the ground and and China.
They have started the vaccination program.
But theres no really know how rate for people to debt because we'll get the vaccination.
<unk>.
China has been very safe.
For the last.
Months.
And and for Hong Kong, and Macao Macao has no.
<unk> four over 380 days, so they're feeling of comfort.
On this.
Costing a lot of people to adopt a wait and see attitude, but.
It's getting the people are slowly taking up the vaccination save.
Same with Hong Kong, I think Hong Kong is unfortunate.
And unfortunately, a few cases.
Our people.
And are suffering after the.
And the vaccination. So again there are people adopting a wait and see attitude, but slowly slowly people are beginning to realize the importance, especially if they're thinking of travelling overseas that the the.
And the travel bubble may require explanation certification, so I think people.
Turning to pick up explanation.
Got you thanks for that.
And Rob.
And theres been some talk or some rumors out there about macao potentially moving to a digital currency down the road at some point.
And then try to combat money laundering, do you have any high level thoughts around something like that being implemented and then.
If something like that would get implemented and maybe the impact you potentially could see across some certain business segments.
I think a couple of calls and I wanted to.
Some people are concerned we're not moving into.
Additional forms of liquidity and the market to premiums other currencies other laser.
Having funds and handle but also I think some other problem we have and.
And our industry, we think that everything is done and Beijing actually thinking about casinos in Macau Im not sure of the cases.
Total cost has been and sometimes.
Very limited and I'm thinking I don't think Macao.
And with target or noise, you mentioned anti myeloma.
The digital currency strategy by Beijing, and I don't think reserve Macao whatsoever. He has added additional liquidity and grant two and a way on this at all.
No I think you said it well I think it is a big and complex topic.
It's really more about the digital currency strategy of China more broadly.
And also how Macao, Ken Ken can play into that so.
And so probably most helpful is to refer to the comments by the Chief executive.
Recently and.
A question answer session and the legislature.
Basically this decision for currency.
China has been looking at since 2014, and so Macao will also adjust and adapt and order to accommodate.
This broader strategy on digital currency.
Prerequisite of that is also getting prepared in terms of amending the existing relevant legislation. So this is still still and early stage process from the perspective of Macao.
The assumptions and buy a lot of people this and negative thing.
Positive.
Again, we would love them more cross currency and more.
First quarter currency, so to me the loans and good to us and Hong Kong downward and B.
And B is another form of currency and.
So those are concerned and web business is not built on money laundering, moving on and necessary junket profile were looking to focus and the mass customer premium assets.
Good and those who we are we want to go and the future and we believe and build a business that keeps growing and the back of that more visitation and more penetration in China, moving and getting people Gamble and digital channel.
One is that this is another value add to my other pago annuity and common wisdom is always going to be turbulence.
Some people think that weighted.
So it's not an immediate concern.
Long term concern immediately positive things the Macao market as it becomes more traditional and more integrated into China, and more consumer friendly and be really.
A positive force.
Okay, Great that's great color. Thanks, Rob appreciate it.
Yes.
Our last question is from David Katz from Jefferies. Your line is open.
Hi, I appreciate you taking my question.
You know Rob I, just you used the term voracious appetite for digital before and I and I wondered I appreciate it and wondered.
And what intelligence you have or what.
Our survey work.
And that gives you a sense that your people your customers here and the U S or you have and audience in the U S, particularly in the context of Las Vegas going.
Going away.
And that audience share for you.
Hello, everybody.
Mike.
And <unk>.
And the description of how we feel about that digital market and you look at it and you can't do and either cumulative power of all these different businesses and I think we have to.
And which one we want to and with few.
Enter and that debt.
And concerned about the impact.
That Sunday, which will lead to the party or we don't have a sports betting programs because I don't think it's all of that.
And with one and buy something could one builder and frankly could but I think we're looking at right now, it's a good bit and reflecting what's making money and what's going to grow and I don't think.
And so.
And for Us.
This simply and U S and maybe there may be outside and Europe would not be and Asia, because we would not do some deals and have set the governance and do business with and Asia, but it could be and Europe. It could be and South America, North America markets and I'll go beyond the us and it could be and U S and it could be due to due to the BDC and you think the market.
Spending a lot of time, moving learning and with our arm.
And the balance sheet with the sale of Las Vegas again, we have outsized cash flow. So these days when we built organically, we buy something remains to be determined and we won't do something and distribute something we'll do something and intelligent Weill Cornell and profitable and.
And I think we all see interest.
Yes.
You can see the opportunity there for digital market with those 2030 40 years with numbers the numbers keep growing and People's minds and I think there is.
And believe the digital market will become probably the.
And for people like us and so we plan and part of it but again, it's early innings for us with this and learning the business and I don't think other questions selling Las Vegas takes off the table and back.
I think the sale and Las Vegas.
And further.
Because it provides the capital and the incentives to grow.
At the same time and people who were constant will be or land based activity digital you have to be weighted.
And the land based player per user coming from $5 1 billion in Asia and in the near future we'll be moving.
And your plan and will still go through and some.
Thanks, Luis and will lead the U S market, which is absolutely true. We just don't there's other places to earn more returns on capital and in Las Vegas, and we think.
And we can be and multiple businesses, new digital and based Asia and U S.
The opportunity relative to will grow and we're not tied to any one strategy.
Yes.
Understood I appreciate it thank you very much.
Sure. Thanks, David.
Thank you.
Everyone. That's all the time that we have for today. Thank you all for participating you may now disconnect.
Good day.
Okay.
Yes.
And then.
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