Q3 2021 Las Vegas Sands Corp Earnings Call
So one question one follow up so we might allow everyone with interest the opportunity to participate. Please note that this presentation is being recorded with that let me. Please turn the call over to Rob.
Thanks, Dan and good afternoon, and good morning to our colleagues in Asia.
Thank you for joining our call today I'll provide some brief comments then we'll go to the Q&A.
Our results continue to reflect the pandemic impact heightened restrictions directly impacted our results in both Macao and Singapore. This quarter, we did generate positive EBITDA for the quarter in both markets and we remain confident in the eventual recovery in both Macao and Singapore.
Silver gaming operations are closed for a portion of the quarter Enhancers.
Addictions were in place throughout the remainder of the quarter.
The good news in Singapore, the travel corridors are being established with a number of source markets, which hopefully will contribute to the strong recovery of the time, our considerable investments in account continue to take shape as the market recovers. We believe the four seasons in London will present.
Hampshire, some growth opportunities in the future the spending Macao has proven both resilient premium mass levels from both a gaming and a retail perspective, you can see on page 29, 30 year debt.
We have great optimism about our ability to perform to our pre pandemic level ones.
Nation does return.
Our company is the button in three areas.
Importantly, the Asia portfolio in Macao, and Singapore, We remained constant we returned to a strong positive cash flow in both Macao and Singapore in the future as restrictions are eased and travelling tourism recover.
The sale of our Las Vegas assets create liquidity and Optionality as we pursue large.
As most of the land based destination resorts in both U S and Asia, we will continue to build out our digital presence and we are exploring multiple opportunities we'll update you as appropriate on future. So thanks for your time again, saying, let's go to the questions Dan.
Operator, we're ready to go.
Thank you, ladies and gentlemen, as a reminder, if.
If you would like to ask a question you May Press Star then the number one on your telephone keypad.
Dan You May press Star one to ask a question. Your first question is coming from the line of Carlo Santarelli from Deutsche Bank. Your line is open.
Hey, everybody I hope everyone's well.
Rob I'm, obviously not going to spend.
Scale of time discussing the results as we all know that numerous impacting results right now, but what menu. When you think about kind of the progress as it pertains to Macao and what you're kind of hearing.
Around potential easing of visa staff, whether it's on a.
Province by Province basis.
And whatever.
Whatever the latest is that you could kind of share would be appreciated.
Sure, but we woke up to guys mill, a nice let them speak towards the grant to Wilfred you want to take that since you are on the ground and living and breathing. These issues every day.
Yep.
The trade.
Yes.
Okay.
Thanks, Rob.
Yes on the visas.
I think the the main point is the visa channels for the individual business game remains open.
I think if you look at the quarter.
In the third quarter, what really is.
Got it.
Results during the quarter month by month is really the.
Conditions on the ground in terms of domestic.
Covid cases.
So you would say that in July we had.
At one point for about three weeks in July we had.
Impact significant.
Coverage in the visitation.
And also a room occupancy.
And we were starting to get a good <unk>.
Tim for the summer.
After the issues, we had in the Guangdong outbreak in June.
And then as we moved.
A pretty hot into late July and early August.
We had more local cases.
Starting with the Nanjing Airport outbreak.
And eventually in early August we did have.
Local case.
So that obviously curtailed.
<unk> traffic immediately.
And then as we moved into September again, we were recovering well.
Especially.
In the second and third week of September.
And we were building up.
Ready for the October Golden week again.
The 10 Unfortunately.
We did have some local cases.
Towards the last week of September which again.
<unk>.
Reduce the traffic immediately as it led to.
Additional restrictions around the border.
So that really explains how the.
Flow.
Evolved during the quarter.
Great. Thank you that's helpful. And then just just as a quick follow up Rob you guys.
Did disclose and I think this is different from how you've you've disclosed historically around capital expenditures in the period.
One line and there was 24 million.
Traffic.
Corporate and other.
Does that what exactly does that pertain to and does that have anything to do with the comments that you made on kind of the digital piece of the business.
Sure Gotcha, why don't you take that.
Sure I think there is a bunch of stuff in there some of the top relate to digital and some of it.
As it relates to capex associated with moving.
Got it and could you kind of just updating your latest thoughts on on the learnings over the last couple of months quarter pertains to kind of the digital initiatives and integrate Patrick.
Yeah sure happy to do it I think for us we.
So long term approach we mentioned it last quarter I think this is something that is kind of industrial for quarters and years.
We're really investing for the future I think for US we're looking to be.
Sort of mindful the way, we deploy capital we've always had a history of investing in things that we think provide a very high level of returns in the future.
If I think about it today, we think there's a great opportunity in digital and a variety of different areas. You can see some of the valuations that the market is giving a certain area. Today, we think its very compelling, especially for the long term. So right now we're just sort of moving along slowly and when we have more things to report, we well as Rob said in his opening remarks, but we're very confident we have capital to deploy against it we're excited.
That's always the future and when we have more things to talk about we certainly will but right now its very early stages.
Understood. Thank you guys.
Alright, Thanks Carla.
Thank you. Your next question is from the line of Stephen Grambling from Goldman Sachs. Your line is open.
Hey, Thank you.
Changing gears to look at.
Is it about where it looks like.
That market was also obviously impacted in the quarter VIP, particularly soft if we look out further once restrictions ease I guess, how do you think about the potential EBITDA potential of that asset if VIP in Macau remains pressured in other words what.
What kind of overlap do you typically see in <unk>.
Singapore poor from the Chinese traveler and could that be impacted if VIP is kind of permanently restricted.
Yes first of all I think the <unk>.
Lastly in part to me is we operate in three markets currently in Las Vegas as a blueprint for recovery, we said about a year ago. When it was coming to work and someone told me.
The second thing is we wouldn't see normal returns years old revenues till 'twenty four 'twenty five.
<unk> in the fall of 'twenty, one and the market is wide open and what's the path the path as pent up demand in vaccinations and doors that are open.
Las Vegas will be the blueprint that's appear so vaccinations in Asia.
Even though you can look at what's happening in Singapore, and Malaysia, Japan, China Korea saw above percentage wise the south in the us. So first we have extremely strong.
Vaccination rates in Asia, surpassing the U S number two I think <unk> got obviously the government wants to open the doors in Singapore as evidenced.
It is by their actions. They wanted just that I think you'll see a big churn in 'twenty two recovery will begin in 2002, when do we get back to one seven and maybe beyond that with EBITDA I don't know the exact date I can't tell you I can tell you. This is going to be a lot better in 'twenty. Two the government continue their path, which has shown a lot of leadership of thoughtfulness.
Asia, the acceleration vaccination rates anywhere else, you're approaching 80 plus percent the market over there.
It's really come back in 'twenty two.
Government opens is traveling and we look at again the demand issues here in Las Vegas, I have been I think very.
The structure of its great to walk through where you see the numbers.
As.
The city why wouldn't that happened.
Singapore is a hugely important market to us.
Your point about Macao versus the Chinese market, obviously part of our business is dependent upon access the Chinese market, but it's not dependent we probably can still make a lot of money maybe as much as a.
Kicking us dollars without a lot of Chinese inputs. So if Korea opens up in Singapore opens up Malaysia opens up in Korea and Japan.
Those markets are very very excited and happy for us and I believe we'll see them sort of opening up throughout 'twenty two that's what that is.
Vaccination, just sorry, it's open travel.
1 billion earnings it's opening the doors up and watching what's happened in Vegas happened in Singapore, and I feel I don't want identify one month of a quarter, but I think you'll see a nice turn in 'twenty two and then the same lap in Macao when the government decides to open those doors up so I know there's people.
People say, it's 25 to Macao opened.
Travel and southern the but the truth is I guess it took about 30 minutes once they think doors up.
Just recover and as a gaming base recovery not a convention banquet base recovery, that's yet to come so I think the future I guess remains as we've always said right and Theres No reason why it can't be emulated in both Singapore.
And Macao as vaccination rates take off and others get more confidence in travel lanes reopened. So we're highly confident it's going to happen in Singapore in 'twenty two to what degree I don't I wont predict but it's just a question of time for MBS goes right back to where it was pre COVID-19.
It's just inevitable.
Important very confident.
That's helpful and perhaps as a follow up going back to Macao, what would love to just if you could provide any additional color on the consultation process and what are the kind of the key points of clarification that that you are watching for.
You think about how to strategically position the business. Thanks.
So.
I've been involved in one of my colleagues in Macao for over two decades.
Everything in Macao, and we've been through everything and started 20 years ago. When people say Oh, you can't do business in Macao and Cotai.
<unk> I wouldn't be successful no.
Incredibly quickly in crisis and eight nine.
We had smoking issues. It always worked out and we're very proud of what we've done in Macao over the years I think our activities our investments speak for themselves I have faith in the process, we've always treat us fairly and we've responded with the largest investment any gaming market in the world. So we believe we remain believers we waived the government's.
<unk> direction, we've submitted our responses.
Looking at our history, our success I believe we will be instructive for the future of our business in Macao and so no more comment beyond that.
It's fair to say that we have a lot of lead in this market.
Fair enough. Thanks, so much.
Thank you.
Your next question is from the line of Joe Greff from JP Morgan Your line is open.
Hello, everybody.
Rob.
On the cows recovery and the potential for.
More meaningful increased travel and mobility.
Theyre being mainland China in Macao.
Do you get the impression whether it's from conversations with the government or otherwise.
This is more likely after the Olympics in Beijing in February.
I will defer to Mike it's always in the ground, but I don't think we heard views these points of Golden week and.
City Beach, what's going to happen when the Olympics are over I don't think we know and I think it'd be silly for us to predict so I don't think we can really give you a confidence that we have great insights when the doors will be open but we just know they will at some point I think it's 22 will be a turn a year, but I don't want to get into the game of things, perhaps a mistake I.
I think we said in previous.
And we don't know when we just know when it does happen to be very powerful and it's going to mimic Las Vegas, I mean anybody doesn't see that hasnt spend time on the couch and it would be quite a stir.
Our store of activity over there, but I don't want to.
Olympics or golden week, or because we.
Obviously, we've been wrong those are predictable.
Calls upon the source, there's no reason to grant Wilfred you have a different approach this sneak up.
Yes, we agree.
Great.
Sorry go ahead I'm sorry go ahead.
I was just going to say I mean.
We see we see.
Underlying demand continues.
Fallen very strong.
When the opportunity arises now the opportunity has maybe has been relative.
Relatively brief.
One months here, a few weeks that but we can definitely see the the underlying demand actually across all the different segments.
Just to be a strong.
And I think Rob referenced a pent up demand that we've seen in Las Vegas coming through an end and I think it's not going to be dissimilar in Macao, but agree with Rob that you know.
What would kind of be really drawn into predicting timing.
But we definitely see the evidence on the on the pent up demand for sure.
Very great and then.
I think.
And I think that.
China will open up to the world.
When they feel confident that they can control.
Any community outbreak situations and.
Your patents are not.
<unk> vaccination rate, which at this stage.
So at about 80%.
And the availability of Covid, They say no cure, they're now testing with all kinds of a.
Methods, including Chinese herbal methods.
And that's a market research.
To it so we're quite hopeful.
You know very soon with.
<unk> at about 131 4 million people a day so if they if they continue like this and another 200 days it will be another 10% of the popular.
So I think as as China's fractionation rate goes up.
Governments confidence increases.
And and.
Hopeful that Macao as part of China.
Dockings similar policies will benefit from the opening up.
Great. Thank you.
Patrick on the investments on the digital side.
Can you talk about how you envision maybe the size of those investments over the next couple of years are we talking about relatively small more modest investments or could we see investments in <unk>.
There are millions or $4 billion range, depending on whats.
And what you like.
So it's something we talked about a lot internally I think some of it is going to be related to the value of the opportunity that we see I think sort of our thoughts right. Now is that we're really thinking earlier stage or mid stage, but again, they would fit into our larger strategy and thats kind of how we'll think about being a factor for the long term.
And how we think will create long term value.
I don't know if it will necessarily look at something that's transformational right away.
That's something that we may consider in the future, depending on where things go and what market opportunity, we see but I think the good news is we've got plenty of firepower.
We've got a strong management team and expertise in the industry and we think we can be really helpful too.
Growing technology, so from our standby.
Available, we're going to be opportunistic and we'll see how it goes but at the beginning we're going to start small and sort of build from there.
Great. Thank you.
Yeah.
Your next question is from the line of Robin Farley from UBS. Your line is open.
Hey, thanks.
You ask about you know one of the proposals.
Standpoint any legislation.
Is that it would require government approval for dividends.
If that were enacted I realize it's just in the discussion stages now, but it is that were enacted into law would you think twice about investing if you.
And then there would be a chance that you wouldn't be approved.
And then you get a return on that investment in other words how.
How much of a concern would that be for you.
Yes.
So I figure I'll take that.
Okay.
I'm sorry.
Grant Yeah, I think that I think from our standpoint I think we're we're.
Very much focused on.
Building on our past and as Rob mentioned I think we have a great track record of investing in Macao and scale in non gaming amenities and I think from our standpoint, we have confidence that we will ultimately will result from this process will be a good path forward and so we're very confident.
Obviously, where we're eagerly waiting instructions on how to proceed but in our minds.
How is the best market in the World, we continue to invest.
We're excited about the long term in Macao and wait and see how things go but from our standpoint, we're very confident about the future.
Well the one thing I think we tried to references after two decades of being there we are.
Never found the government.
Not thoughtful they're really thoughtful and they're going to take these issues and make it reasonable, but we're not that concerned I mean I saw initially to responsibly.
The concern we don't have those concerns and yes, we're eager to reinvest in Macao, we're assuming that the process will be fair and equal and we're also.
Hum.
Yes.
They want us to invest as well as the government there once the growth in Macao. So we're not that concerned about that issue at all.
Okay. No. That's helpful. Thank you maybe just a quick follow up is just in terms of <unk>.
Timing or potential extension.
Of your <unk>.
Also some concession.
Is there a point at which.
You know you feel like the indication is that it's going to be extended for at least another 12 months I mean, just given the timing.
Timing already seems would be.
It seems very challenging to do anything before June of 'twenty two.
Assisting them given the inability to travel into the country is that.
Is that.
Safe to assume that at this point, it's not something you would expect.
To come up for bid before Jan Thanks.
No I don't think we're going to we're not going to voice their opinion, because we just again, we remain confident that.
I suppose to work out again, we have two decades of history with this government and it's been a very good two decades. This company built a great business based in that we've had like every business you have stops and starts good days and bad days in the.
In the two decades since we started the business in Macao.
We've always done the government very reasonable.
The property is thoughtful and very fair and we're not concerned when they make that decision next month to month after when they get in June I don't know when they're going to make a decision I'll, let them make that decision tell us will respond accordingly, but we have no trepidation fear that could be an issue.
We knew this was coming.
It is a leasehold.
Good as they were coming and we're prepared for it and we're all scared to wait until the government tells us how they want to proceed and we're respectful of that process.
Okay, great. Thank you very much.
Thank you.
Your next question is from the line of Shaun Kelley from Bank of America. Your line is open.
Yeah.
Hi, good morning, good afternoon, everyone.
Just maybe one follow up on that.
On this the whole licensing process.
I think one thing we've all thought about is the requirement or the idea that there are probably incremental capital that would need to be invested either in macao.
Theoretically in non gaming amenities, but you know well.
Or in.
Somewhere in sort of greater mainland, China, and just kind of wanted to ask about that that last point any thoughts on you know.
Your desire or your ability to invest directly in and mainland China is that something you would be prepared to do and sort of how would you kind of underwrite returns or thinking about underwriting notice given.
Our focus is.
If that was the ask.
The further Patrick but I'm going to preempt that by saying, we again, we have the ability to invest.
Clear based on the balance sheet, we have the appetite to invest we have a track record.
Obviously, we've invested 15 billion we invested.
Are your returns.
For the pandemic. It was people go Oh Gee you wanted cloud even license we did it so we remain willing and eager to invest in Macao and perhaps other pumps Macao and just ways that data happen Patrick Ewing jump in.
Sure. Thanks, Rob.
We're very happy.
A few route of Sheldon long term vision for Macao and for our company's investments, we're very proud of what Sheldon and the company and the team has accomplished over many years there.
Not a investment the high quality of tourism assets that we've created.
Person drivers the non gaming diversification and really to be fair a lot of the tourism innovation that we brought.
Very proud of all the things that are complementary and followed through with the original goal of the first concession and so we're very proud about that and we're very confident about the future and our ability to invest in our support these long term goals of the government and sort of a company and so I think as we look to potential things that we may have to do in terms of future investment. We welcome the opportunity we would love to invest more.
In Macao, we're very we're very eager to deploy capital into these markets, we think theyre very high quality and we really believe in the future. So there's just been a lot of commentary around things that may happen to occur or may have to occur I don't think anyone really knows.
I think the only thing that we're very confident about is our ability to invest to innovate from the tourism side.
And to drive.
Really the support of the initiatives that have been asked of us so from that standpoint, we're ready to do it but until we get clear direction, there's not really much more we can say.
Great and maybe just as a follow up sticking with the investment theme probably for you Patrick but just thinking about.
Like the same question for Singapore.
Obviously, there you have a little bit more of a developed path on dollars that have been allocated and when you want to get going but can you just give us the latest on when do you think you'd actually be moving on.
Some of the investment.
You guys are committed to make there and building out the additional hotel tower and expansion.
You know as we've said before I think we're very excited to do it it represents a.
A tremendous opportunity to support Singapore schools too.
A significant amount of capital in the most privilege market in the world, which is really one of the one of the great cities in the world.
Singapore is growing it was growing tremendously before the pandemic and they've really.
Charters and Theyre public health initiatives to support their population during the pandemic. So we're very proud to be there I think we would love to get start as soon as possible.
But right now they are dealing with a lot of things that have a higher priority. So we're waiting patiently.
We have a long term partnership with the government and we're looking forward to working through the open remaining items. So that we can begin but our plan is to begin and were.
Got it.
The question is when and I think that's gonna be dictated by necessary public health responses around timing and opening.
Thank you very much.
Yeah Sure next question. Your next question is from Ben Jenkins from Credit Suisse. Your line is open.
Hey.
Very exciting.
Theres been lots of there's been lots of conversation understandably about investing in digital and future investments that may be required in Singapore.
In Macao, but at the same time, you spoke about pent up demand in Macao and Singapore.
Which seems to make a share buyback at these.
Potentially a more compelling RLI I guess, how do you balance the optionality of those is different.
Yeah.
Options I guess yeah.
So we.
We think about this a lot.
And a lot of time on it as a management team we've run a lot of sensitivities and <unk>.
Dario is around potential returns and.
It's interesting we have a lot of opportunity as a company, we're really excited about it.
And I think our highest and best use of capital and to create the best shareholder returns really is to develop new projects from the ground up that's how we built the company. That's what we've always created the return profile that has made our equity very compelling.
Level from our standpoint, that's our focus.
Rob and the rest of the team spent a lot of time looking at new development opportunities in many different jurisdictions and so we're focused on deploying capital into those jurisdictions to grow the business at the same time, we recognize there is opportunity in the equity and in the past, we've always returned excess capital.
Through share repurchases.
And so that's something that we'll look to do in the future, but at this point I think we're evaluating a lot of opportunities for real growth and so from that standpoint, we're very excited but we will always look at the return potential of buying equity do we believe the equity that a compelling level absolutely but at the same time. We also would like to believe that we have some real significant selling opportunities in the future that would create very significant returns.
As well so to your point it is a balanced but we look at it and we're trying to allocate capital in the best way that we can.
Thanks.
Thank you. Your next question is from the line of Dan Palazzo from Wells Fargo. Your line is open.
Hey, everyone. Good afternoon, thanks for taking my questions.
So on Singapore, how do you think about margins for this property over the next couple of years I think there is a higher tax rate that goes into effect.
And potentially impact from construction disruption.
And possibly some of the costs, we were able to optimize over the past 18 months. So going forward over the next couple of years, how do you think about that given the expectation.
<unk> for pent up demand to come back in 2022.
Well first of all I look at what's happened again, it's instructive to look at Las Vegas.
The so called four year recovery took again.
Less than a year I think Singapore is a rival Las Vegas, the pre COVID-19 recovery being stronger which means stronger more.
Margins for us.
Bigger growth I think.
This market in Singapore is proving very resilient in the past, especially when the government is comfortable traveling has opened the doors.
I think margins will be just fine by the way, we didn't furlough people or lay off lots of people didn't squeeze.
People have to do it.
Our employees and I think we didn't necessarily maximizing could've, we decided not to do that.
Yes to a credit but on the other hand, I think our more of our business. There. We're currently reoccur back to pre COVID-19 levels and probably beyond pre COVID-19.
Again this is instructive in I believe it is the demand is the extraordinary in Asia.
We locked down here in Las Vegas was much shorter than Lockdown Asia, yet the gaming proclivity for lot of Asian countries is stronger than Las Vegas. So anybody that thinks the same board if I can come back with a vengeance I think is mistaken the same macao and of course, those revenues will drive our margins. So I have.
No.
When I returned to pre Covid margins increase over revenues exceed both.
Perfect.
Really bullish on Singapore, It will be the first and the best place opened next year for the game or for the tourists.
Leisure travel is going to be exceptional plans to revisit you'll see what the government is going.
Indicated anxious.
Or they would open their vaccination rates are soaring with traveling to reestablish the neighbors getting better in Malaysia Korea, Japan.
These are still lagging but coming on so I think this is question time 22, the turn here so we see.
Our margins and revenues and EBITDA as a much more.
Anxious to be normal.
They've been the last 24 months.
Got it thanks, and then just one more in Macao.
I mean, when when Macao does eventually recover how do you think about your share of Matthew Splotchy, Dr. Evolving given the opening of the London area, which we didn't have back in 2019 and also I know you target different customer.
How do you anticipate any impact from Lisboa palace on your properties and if so if there is an impact which ones.
Yeah, Mr. Charlie you're still awake.
Yeah, Rob.
I think history of Macao shows every time, we have large scale high quality product coming in.
But on Cotai. It helps it helps the market and I think when the demand comes back it's going to be to the market's benefit and to the whole industry benefit.
That we've got.
<unk> new product are that customers can patronize and that applies to.
So the style of palace that pause too.
What some other competitors will be will have opened by then and obviously, we think first and foremost is going to apply to what we've completed it.
And Grand suites at four seasons and also the Londoner Macao. So so we're we're very excited.
And I'm confident that in a way.
When the demand returns.
All of these new projects, but.
I would say, especially our projects.
Going to be a growth driver for the industry.
And by implication.
Hope that we will we.
It's a good good market share.
But I think it's much more about as the history in two decades of shut growing the overall pie.
And I think in terms of segments again.
I wouldn't hesitate to say that it's going to be positive.
Across a very broad base of segmentation.
The mass premium mass and so forth.
Got it thanks, so much guys.
Thank you.
Your next question is from the line of David Katz from Jefferies. Your line is open.
Hi, David.
David here David.
And we lost Mr Katz.
I can go to the next question from there.
The line of Steve <unk> from Stifel. Your line is open.
Hi, guys. Good afternoon, just one question here for me good afternoon, Rob.
Just one question for me and Rob I know Youre, probably tired of answering a bunch of peers take questions about the renewal process and this one is.
Probably going to be a bit more direct but I guess the simple question is do you guys see a scenario out there where you are not operating.
Any casino assets in Macao at some point in the near future.
I'm sorry to be so blunt, but it's a question I think a lot of investors are pondering right now given that.
The bigness that has come out of the Chinese government about what Theyre actually looking for.
I do not I see no chance of that whatsoever.
Alright.
<unk> burden.
Apologize if I.
So like a broken record.
But the truth is we're doing this for a couple of decades.
Unparallel track record.
The whole Cotai development would be one guy did that Sheldon.
One guy for $15 billion around the non gaming.
Our working assets one company made almost $4 billion EBITDA and I think we have been.
So with our employees. So I remain beyond confident that we'll be operating in Macao I don't think any chance whatsoever that we wouldn't be.
I might say that rhetorically.
I mean that sincerely.
Our other.
We've got the opposite so we again.
We are proud of our track record throughout probable development incredible investment, but I think the government has recognized <unk> been awfully good.
Licensing partner and friend, China in Macao, and we agreed that there so no I don't.
So that's a.
Possibility.
Okay, great. Thanks, Mike.
Sure.
Your final question is from the line of David Katz from Jefferies. Your line is open.
Hi, all.
It is.
Yeah.
I believe all sequenced because youre in Macao.
Yes, there is.
So we think at Jefferies.
Gotcha.
What I was really helpful to have the team's perspective on Israeli VIP gaming, because we do spend a fair amount of time talking with investors with.
People on the guide.
We go into around.
Whats the VIP, what the future of the VIP business really looks like there've been some public pressures on it.
Talk about currency changes and things like that that.
Presumably would have some impact what is the.
Salaries, because its core look.
Second VIP.
Yes, I just want I'm going to grant to take that question as he lives and breathes, you're talking Macao I assume in the whole giant et cetera.
So let's begin with a little bit of historical perspective again for the 20 plus years, we've been doing business in Macao, we've heard this.
This isn't going to work that's not going to work.
So it will never go anywhere.
The offline segments are going to ballpark. The latest thing is to say the vips.
The junket side I just remain a huge believer in that market have all segments. Obviously, we've made our strength in the mass premium mass that's been our bread and butter and will continue to be but I don't think she's ever discount.
Revenues, who have discount this segment has done it at their own peril I think that.
It could move to a different channel the different way of being available, but gateways, we're going to keep happening in all segments in Macao.
As a precursor to the grants comments I think you have to realize how powerful this market.
The growth has been unbelievable those of US who started back in 2002 or three or never dreamed way every segment just the bell.
The 2010 11 12 Euro it was the junk as we drove the accounts. It says then morphed into a premium mass market premium mass mass market and again our.
The company has been more focused on the base mass and premium mass segments, but the VIP and serve that market very well so I think.
Merged to form with different channels of distribution.
And Thats might say grant you're much closer to this so please speak up.
I almost said it very well I think it's important to remember again the.
The proportion of profit coming from that segment.
Especially I think you are more referencing the junket segment versus our own VIP business is very very small.
It's really low single digit.
Pre COVID-19.
No.
I know people, who spend a lot of time talking about it but.
Our business is really good to that large scale destination resort.
With premium mass mass to leisure.
And the future is going to be that structural.
In those segments as well as the non gaming the retail the mice and so that's that's where really all our reinvestments in our asset base have really focused on.
I think the driver did grant the driver that Marc is always going be where we're focused.
Gross lifestyle.
Extraordinary entertainment restaurants retail rooms, that's where our investors will see the London, that's where the focus was the four seasons more towards the very high end premium mass, but no matter what form it takes the gamblers and just keep growing over there and the desire of the government grow so whether it be the new assets.
So we built another company it just enhances the market.
Don't think we'll ever be a lack of customers lack visitors to macao the bumps.
And the market comes Roaring back in whatever it was 22, whatever I think the problem is when you lack of capacity, we lack of rooms that mark has already been burdened by it needs new capacity these new.
So switching because whether it be base mass premium mass is no longer a Hong Kong dependent.
Overnight markets stay overnight market leisure markets business market, it's a spectacular market and we're going to be there with everybody else trying to get our fair share and I think our new assets, if you ever get to see them loyalty through the next year are going to surprise you.
Log onto the Londoner and four seasons is the best thing we've ever done in my opinion.
We look forward to getting back to Macao and getting back to business.
Yeah.
Thanks, David. Thank you speakers there are no more questions and ladies and gentlemen. This concludes today's conference call. Thank.
Well, we for joining you may now disconnect.
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