Q3 2022 Melco Resorts & Entertainment Ltd Earnings Call

November 2, 2022

The conference will begin shortly to raise your hand during Q&A you can dial star one one.

[music].

The conference will begin shortly to raise your hand during Q&A you can dial star one one.

[music].

Ladies and gentlemen, thank you for participating in the third quarter 2022 earnings conference call of Melco Resorts <unk> Entertainment limited.

At this time all participants are in a listen only mode. After the call we will conduct a question and answer session.

Today's conference is being recorded I.

I'll now turn the call over to those J D King Senior Vice President and group Treasurer of Melco Resorts <unk> Entertainment limited.

Thank you operator, and thank you everyone for joining us today for our third quarter 2022 earnings call on the call are Lawrence Ho Geoff Davis, Evan Winkler, and our property presidents in Macau and Manila in Cyprus before we get started please note that today's discussion may contain forward looking statements made.

Under the Safe Harbor provision of Federal Securities Law, our actual results could differ from our anticipated results.

In addition, we may discuss non-GAAP measure.

Furnishing and reconciliation of each of these measures to the most comparable GAAP financial measures are included in the earnings release.

Finally, please note that our supplementary earnings slides are posted on our Investor Relations website with that I'll now turn the call over to Mr. Lawrence Ho.

Thank you Jamie.

For the third quarter of 2022 continued to be impacted by the challenging operating environment, resulting from low levels of visitation due to COVID-19 related travel restrictions and the government mandated closure of all casinos in Macau in July.

We are however, encouraged by the recent reopening of Macau to international tourists and the increase in visitation over October Golden week.

E visas for individuals and tour groups are now being processed by the Chinese immigration authority and we are cautiously optimistic that this will lead to a gradual increase in visitation.

We submitted our proposal to the public tender for the award of New gaming concessions on September 14th and it has been a smooth and transparent process.

We are fully supportive of the Macau government initiatives to further develop Macau as Asia as premium destination for international tourism.

Our integrated resorts offer a wide range of unique non gaming amenities and we plan to leverage our experience to provide additional tours and attractions in Macau.

Our proposal reinforces our commitment to Macao and we look forward to playing a leadership role in partnering with the Macau government to execute on this vision.

In the Philippines gaming volumes continue to track towards pre pandemic levels, we expect to see further growth as travel restrictions around Asia continue to be lifted and travel returns to more normal levels.

Gaming volumes in Cyprus exceeded pre.

Pre pandemic levels with further easing of COVID-19 related restrictions in the third quarter.

In respect to our development projects the construction of studio city Phase two is progressing on schedule with construction completion expected within 2022.

We will monitor the market closely to determine the appropriate time to open and we're currently anticipating the opening to be in stages, beginning in second quarter of 2023.

Yes.

And Cypress, our current expectation is to complete construction of the city of dreams Mediterranean and open in the second quarter of 2023.

With that I'll turn the call over to Jeff to go through some of the numbers.

Thanks, Laura.

Our group wide property EBITDA for the third quarter of 2022 was approximately negative $35 million.

Luck adjusted group wide property EBITDA came in at negative $38 million, a favorable VIP win rate positively affected EBITDA at Cod Macau studio city in Cyprus by around $3 6 million.

While an unfavorable win rate negatively impacted CRD Manila by around 400000.

Furthermore, the quarter to quarter devaluation of the Philippine peso and the euro negatively impacted our reported property EBITDA by around $3 million for CRD Manila and about 400000 for Cypress.

Our opex in Macau for <unk> 2022 came in at approximately $1 6 million per day, a decline from $1 7 million per day in <unk> 2022.

Cost containment continues to be a priority while the quarter to quarter decline was partially due to the 12 day casino closures in Macau in July .

Turning to our cash and liquidity as of September 32022, we had approximately $1 6 billion of consolidated cash on hand.

Our available liquidity, including cash on hand, and Undrawn revolving credit facilities was $2 3 billion at the end of the third quarter.

To provide more clarity on our capital structure Melco, excluding its operations at studio city, the Philippines, and Cypress had cash on hand of around $700 million available liquidity of around one 4 billion and gross debt of $5 3 billion at the end of September 2010.

Two.

As we normally do we'll give you some guidance on non operating line items for the upcoming fourth quarter of 2022.

Total depreciation and amortization expense is expected to be approximately $125 million.

Corporate expense is expected to come in at approximately $16 million to $18 million and consolidated net interest expense is expected to be approximately $105 million to $110 million, which includes finance lease interest of $5 million to $10 million relating to city of dreams, Manila and around 15% to $20 million of <unk>.

Capitalized interest.

That concludes our prepared remarks, operator back to you for the Q&A.

Thank you we will now begin the question and answer session.

To answer a question. Please press star one one on your telephone.

Our first question comes from the line of George Choi from Citi. Please ask your question George.

Thanks for taking my questions.

Couple from me if that's okay first of all.

There are talks about out there, saying that the Macau government is asking all seven license bidders to after empty on non gaming investments for the next 10 years I believe all of you welcome to your opportunity to.

And best of what puzzles me.

Where do you get land to build on so Rob would you. Please remind us what your current land bank situation is and should we be surprised if we see any.

All of you.

Proposal two to invest in patient. So that's my first question and my second one is regarding the minimum Zhejiang targets announced by the Chief Executive in late August this year.

The chief Executive will raise the minimum TG our target over the next 10 gig point, where you could be asked to surrender some tables and slot machines. So that's all I have I'll jump back in the queue. Thank you.

Right.

Hey, George.

It's Lawrence I'll take that thanks for the question.

Unfortunately, he is a very short answer because at the end of the day, we are in the middle of a public tender and we can't comment and we've been told that we should not comment and so all I can say is that the Macau government has previously announced that there are no more land.

There is no more land back in Macau for for any casino development.

So thats, what they've said previously so in terms of our tender and both of your questions are.

Relate to the same issue, which is the tender. So we can't really comment all I can say is that as in the prepared remarks, it's been a very smooth and transparent process.

We are melco as a company we've always been the most supportive of the governments diversification and non gaming investments over the years.

We are very optimistic for the long term prospects and we will continue to execute the government's vision and so we welcome all of that but in terms of the detail of the tender George sorry.

Can you give any more detail.

Paul.

Understood. Thank you for your comments thank you.

Thank you for your question.

Our next question comes from the line of recovery, which in Chile from Deutsche Bank. Please ask your question Ricardo.

Hey, guys. Thanks for taking the question I was wondering if you could please provide us with an update on the budget for <unk>, how much is left to spend.

And what it will be.

<unk> kind of maintenance capex for that asset.

Okay.

Jeff do you want to take that one.

Sure for studio city.

Through the third quarter and beyond the third quarter the remaining spend is.

Is about $135 million U S.

And we would expect the maintenance capex in the early days.

To be quite minimal on a new project.

Okay.

Perfect.

May I ask another one can you. Please provide us an update on opex or your expectation of OPEC do you guys anticipate it to be around about one 7 million per day that you experienced in the second quarter or do you guys are seeing any cost increases that might drive that figure out.

A little bit higher.

Well I think as you've noted the one six for the third quarter benefited from the casino closures. So looking back to the second quarter makes sense.

Beyond that it really will depend on the pace of any recovery in the market primarily so.

It's a good starting point.

Of course, we will always endeavor to.

Keep costs as low as possible.

Perfect. Thank you so much for answering my questions.

Alright, thank you.

Our next question comes from the line of Joe Greff from Jpmorgan. Please ask your question Joe.

Everybody can you hear me.

Yes, we can hear you, yes, Joe we can great.

Hey, guys Hope I hope Youre well.

I know it's extremely early days here, but I was wondering if you've seen any increase in forward bookings our hotel bookings as a result of the EV.

Any uptake.

In anticipation.

Increased occupancies as a result of visitation tied to.

<unk> is now that the kiosks our lives.

Hey, Joe It's Lawrence So maybe I'll, let David give a little bit more of the details later on but generally the announcement at the end of September about the <unk> and the group tours. That's the best news we've heard in the past 253 years.

And it's potentially probably the biggest news.

For the next year, but at the same time, China is.

Huge country of $1 4 billion people when they decide things at the national level to have it trickled down to the provincial and the city levels take time, and so with the official announcement coming out on October 31st I think it's going to take a little bit of time and of course recently there have been some.

Covid outbreaks in various regions in China actually there is there is there are a few cases in Macau as well.

So it's very early days, but it's definitely very encouraging news for going forward, but so maybe I'll hand, it over to David sure. So I think one of the other things to kind of consider too as well as the cover the outbreaks of little bit. Joe is we're just getting ready to go underneath the Ta hear about 930, <unk>. So we've got a typhoon bearing down on us and the Macau Hong Kong area. So.

It also obviously has an impact on People's visitation and what they may want to do.

As Warren said, you know kind of looking towards the long term, we're incredibly optimistic it's actually really good news when.

When we talk to our customers our customers are very enthusiastic theyre anxious to to come back and spend time with us in Macau and to return as much as they can so we are as I said, we're just very optimistic our customers are telling us all the right things, we're anxious to get them back, but as Loren said, the machinery of China as it trickles on down through the through the visa.

Is it takes a little bit of time to get out to all the provinces and all the cities and kind of the second tier cities and just kind of moving its way through so it will come it's just it just takes time so.

It will happen, it's just a timing thing.

Great. Thank you.

Thank you for your question next.

Our next question comes from the line of Billy <unk> from Bank of America. Please ask your question Billy.

Hi, Good evening I just have one question.

Hi.

Certainly in my commentary deposit that one.

<unk>.

The bidding process.

The company, how we apply to.

Transfer the money to Macau.

I'm just wondering.

Is that like after the license.

Sure.

In general the operating risk, perhaps full control of <unk> 5 billion and saw a user use it for daily operations.

You have access and control of the 5 billion after the license.

Ross is complete.

Hey, Jeff you want to take that one for Billy.

Sure. Thanks, Laurence Bill that's correct that is that is our view as well is that once we get past the process then.

That money becomes available for our use.

Okay. Thank you I don't have any further questions.

Your next question comes from the line of Dennis Carlson from Barclays. Please ask your question Dennis Yeah. Thanks, guys.

Hope all is well my first question is on maybe from like a higher level how are you.

You guys have thought about the concession process and if there have been any differences versus your expectations maybe.

10 years ago.

Hi, it's Lawrence.

No.

As I mentioned earlier on it's been a very smooth and transparent process.

And.

Again, I cant go into the details of the discussions with the government.

But I guess.

I would have.

We expect that the same there was 10 years ago. So.

Overall, we're very pleased with it and we hope that to complete that process as soon as possible.

Okay. Thank you Laurence and maybe for my second question, just just a follow up on studio City. I know you guys have always thought of it as sort of a core asset.

Do you think that there is any likelihood for melco to acquire 100% of studio city at some point down the road.

We've actually.

Sure.

<unk> hasn't come up for a while.

Look we love studio city.

Think when the market reopens studio city.

Given its location, whereas located right next to the Heng Chen and Theres. The Macau government right now is building the the.

The light rail link to hedging right next to studio city. So.

The thesis has always been has always been there. It's the first stop to Macao in the future.

And also the way that we have repositioned studio city to be more mass focus.

I think also fits very well with the potential change in.

Demographics going forward. So we look at the right price, we would love to own all of that asset, but there must be a willing seller and a willing buyer for the right price but.

Honestly, given what has happened in the last three years.

Our priority.

In the near term continue to be on defense in terms of cost containment.

And really wait for the market to reopen before we do much.

But.

Going forward.

From a medium long term for sure absolutely.

Okay.

Okay. Thanks, guys.

Our next question comes from the line of Praveen Choudhary from Morgan Stanley . Please ask your question. Thanks can you hear me.

We can hear you yes.

Thanks Joseph.

Two questions from me. Please the first one is very simple.

Right.

Sure buyback I'll try.

$15 million from 200 at scale I'm, just asking if those shares have been canceled.

Not.

And I have one more follow up.

Yes, so significant majority of those shares have been canceled.

Great.

Second.

Sorry, and the second question I had was overdone.

Yes.

Before this license expiry.

I'll start with this.

15 years.

The casinos, we are making 40 50, 60% of Danone.

Mr Capital.

Towards that end of it.

As James project, our MGM project our Parisian.

<unk> started coming down.

My question is with the new license regime with different tax structure defender infrastructure.

Opex and Capex requirements, some of which we don't know.

For studio city phase two to be lower even lower or you think that we can go back to good old days of returns how should we think about it. Thank you.

Jeff do you want to take that.

Sure.

Praveen.

With all the information we have today.

We still believe that we can get a very good return for shareholders on phase III, obviously there'll be a level of ramp up for that to hit its run rate, but we're very confident that that brings very high quality product to the market and that we will be able to deliver good returns on that investment.

All right excellent. Thank you so much good luck.

Alright. Thank you all very much for your questions. We have reached the end of the question and answer session I would like to turn it back to Ms. Jenny <unk> for closing remarks.

Thank you operator, and thank you everybody for participating in the call today, we look forward to speaking with you again next quarter. Thank you.

Great. Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.

The conference will begin shortly to raise your hand during Q&A you can dial one one.

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Ladies and gentlemen, thank you for participating in the third quarter 2022.

Earnings Conference call of Melco Resorts <unk> Entertainment limited.

At this time all participants are in a listen only mode. After the call. We will conduct a question and answer session. Today's conference is being recorded I will now turn the call over to the JV King Senior Vice President and group Treasurer of Melco Resorts <unk> Entertainment limited.

Made under the Safe Harbor provision of federal Securities laws.

Our actual results could differ from our anticipated results.

In addition, we may discuss non-GAAP measures.

Definitions and reconciliation of each of these measures to the most comparable GAAP financial measures are included in the earnings release.

Finally, please note that our supplementary earnings slides are posted on our Investor Relations website with that I'll now turn the call over to Mr. Lawrence Ho.

Thank you Jamie.

Results for the third quarter of 2022 continued to be impacted by the challenging operating environment, resulting from low levels of visitation due to COVID-19 related travel restrictions and the government mandated closure of our casinos in Macau in July.

We are however, encouraged by the recent reopening of Macau to international tourists and the increase in visitation over October Golden week.

E visas for individuals and tour groups are now being processed by the Chinese immigration authority and we are cautiously optimistic that this will lead to a gradual increase in visitation.

We submitted our proposal to the public tender for the award of New gaming concessions on September 14th and it has been a smooth and transparent process. We are fully supportive of the Macau government initiatives to further develop Macau as Asia premium destination for international tourism.

Our integrated resorts offer a wide range of unique non gaming amenities and we plan to leverage our experience to provide additional tours and attractions in Macau.

Our proposal reinforces our commitment to Macao and we look forward to playing a leadership role in partnering with the Macau government to execute on this vision.

In the Philippines gaming volumes continue to track towards pre pandemic levels.

We expect to see further growth as travel restrictions around Asia continue to be lifted and travel returns to more normal levels.

Gaming volumes in Cyprus exceeded pre.

Pre pandemic levels with further easing of COVID-19 related restrictions in the third quarter.

In respect to our development projects the construction of studio city Phase two is progressing on schedule with construction completion expected within 2022.

We will monitor the market closely to determine the appropriate time to open and were currently anticipating the opening to be in stages, beginning in second quarter of 2023.

Yes.

And Cypress, our current expectation is to complete construction of the city of dreams Mediterranean and open in the second quarter of 2023.

Yes.

With that I'll turn the call over to Jeff to go through some of the numbers.

Thanks Laurence.

Our group wide property EBITDA for the third quarter of 2022 was approximately negative $35 million.

Luck adjusted group wide property EBITDA came in at negative $38 million, a favorable VIP win rate positively affected EBITDA at Cod Macau studio city in Cyprus by around $3 6 million.

While an unfavorable win rate negatively impacted <unk> Manila by around 400000.

Furthermore, the quarter to quarter devaluation of the Philippine peso and the euro negatively impacted our reported property EBITDA by around $3 million for CRD, vanilla and about 400000 for Cypress.

Our opex in Macau for <unk> 2022 came in at approximately $1 6 million per day, a decline from $1 7 million per day in <unk> 2022.

Cost containment continues to be a priority while the quarter to quarter decline was partially due to the 12 day casino closures in Macau in July .

Turning to our cash and liquidity as of September 32022, we had approximately $1 6 billion of consolidated cash on hand.

Our available liquidity, including cash on hand, and Undrawn revolving credit facilities was $2 3 billion at the end of the third quarter.

Two.

As we normally do we'll give you some guidance on non operating line items for the upcoming fourth quarter of 2022.

Total depreciation and amortization expense is expected to be approximately $125 million.

Corporate expense is expected to come in at approximately $16 million to $18 million.

And consolidated net interest expense is expected to be approximately $105 million to $110 million, which includes finance lease interest of $5 to $10 million relating to city of dreams, Manila and around 15% to $20 million of capitalized interest.

That concludes our prepared remarks, operator back to you for the Q&A.

Thank you we will now begin the question and answer session.

To answer a question. Please press star one one on your telephone.

Our first question comes from the line of George Choi from Citi. Please ask your question George.

Thanks for taking my questions.

A couple from me if that's okay first of all.

There are talks about.

Out there, saying that the Macau government is asking all seven licensed bidders to after empty on non gaming investments for the next 10 years I believe all of you would welcome the opportunity to.

To invest but what puzzles me is where do you get land to build on so Rob would you. Please remind us what the current land bank situation is and should we be surprised if we see any.

All of you.

Proposal two to invest in <unk>. So that's my first question and my second one.

Regarding the minimum John targets announced by the Chief Executive in August this year.

The chief Executive who raised the minimum CAGR target over the next 10 gig point, where you could be asked to surrender some tables and slot machines. So that's all I have I'll jump back in the queue. Thank you.

Right.

Hey, George.

It's Lawrence I'll take that thanks for the question.

Unfortunately, he is a very short answer because at the end of the day, we are in the middle of the <unk>.

Public tender and we can't comment and we've been told that we should not comment and so all I can say is that the Macau government has previously announced that there are no more land.

There is no more land back in Macau for for any casino development.

So thats, what they've said previously so in terms of our tender and both of your questions are.

Relate to the same issue, which is the tender so we can't really comment.

I can say is that as in the prepared remarks, it's been a very smooth and transparent process.

We are melco as a company we've always been the most supportive of the governments diversification and non gaming investments over the years.

And we are very optimistic for the long term prospects and we will continue to execute the government's vision and so we welcome all of that but in terms of the detail of the tender George.

Alright.

Ken.

Any more detail.

Paul.

Understood. Thank you for your comments thank you.

Thank you for your question.

Our next question comes from the line of recover Chin, Chile from Deutsche Bank. Please ask your question Ricardo.

Hey, guys. Thanks for taking the question I was wondering if you could please provide us with an update on the budget for <unk>, how much is left to spend and what.

What will be the new kind of maintenance capex for that asset.

Okay.

Jeff do you want to take that one.

Sure.

For studio city.

Through the third quarter and beyond the third quarter the remaining spend is.

It's about $135 million U S.

And we would expect the maintenance capex in the early days.

To be quite minimal on a new project.

Okay.

Perfect.

May I ask another one can you. Please provide us an update on opex or your expectation of OPEC do you guys anticipate it to be around one 7 million per day that you experienced in the second quarter or do you guys are seeing any cost increases that might drive that figure.

It would be higher.

Well I think as you've noted the one six for the third quarter benefited from the casino closures. So looking back to the second quarter makes sense.

Beyond that it really will depend on the pace of any recovery in the market primarily so.

It's a good starting point.

Of course, we will always endeavor to keep cost as low as possible.

Perfect. Thank you so much for answering my questions.

Alright, thank you.

Our next question comes from the line of Joe Greff from Jpmorgan. Please ask your question Joe.

Everybody can you hear me.

Yes, we can hear you yes.

Joe we can.

Right.

Hey, guys Hope I hope Youre well.

I know it's extremely early days here, but I was wondering if you'd seen any increase in forward bookings our hotel bookings as a result of the EV.

Any uptake any anticipation in.

Increased occupancies as a result of visitation tied to <unk> is now that the kiosks our lives.

Yes.

Hey, Joe It's Lawrence So maybe I'll, let David give a little bit more of the details later on but generally.

The announcement at the end of September about the <unk> and the group tours. That's the best news we've heard in the past 253 years.

And it's.

Potentially probably the biggest news.

For the next year, but at the same time, China is a huge country of $1 4 billion people when they decide things at the national level to have it trickled down to the provincial and the city levels take time, and so with the official announcement coming out on October 31st I think it's going to take a.

A little bit of time and of course recently there have been some.

Covid outbreaks in various regions in China actually there is there is there are a few cases in Macau as well.

It's very early days, but it's definitely very encouraging news for going forward, but so maybe I'll hand, it over to David sure. So I think one of the other things to kind of consider too as well as the cover the opex a little bit Joe is we're just we're getting ready to go underneath the Ta hear about 93%. So we've got a typhoon bearing down on us and the Macau Hong Kong area. So.

It also obviously has an impact on People's visitation and what they may want to do.

As Warren said kind of looking towards the long term, we're incredibly optimistic it's actually really good news.

When we talk to our customers our customers are very enthusiastic they're anxious to to come back and to spend time with us in Macau and to return as much as they can.

As I said, we're just very optimistic our customers are telling us all the right things.

Just to get him back, but as Loren said, the machinery of China as it trickles down through the through the visa process. It takes a little bit of time to get out to all the provinces and all the cities and kind of the second tier cities and just kind of moving its way through so it will come it just it just takes time so.

It will happen, it's just a timing thing.

Great. Thank you.

Thank you for your question.

Question comes from the line of Billy <unk> from Bank of America. Please ask your question Billy.

Hi, Good evening I just have one question.

Yes.

Lillian commentary deposit.

One.

Yeah.

The bidding process is complete the company that we acquired too.

Some of the mining to Macau.

Just wonder.

Is that like off could.

Could be licensed.

Issue.

In general the opportunity, perhaps full control of <unk> 5 billion. So you can use it for daily operations do.

Do you have accidents, having control of that 5 billion after the license.

Most of that's complete.

Hey, Jeff do you want to take that one for Billy.

Sure. Thanks, Laurence Bill Thats correct that is that is our view as well is that once we get past the process then.

That money becomes available for our use.

Thank you I don't have any further questions.

Yeah.

Your next question comes from the line of Dennis Carlson from Barclays. Please ask your question Dennis Yes, Thanks, guys.

I Hope all is well my first question is on maybe from like a higher level. How do you guys have thought about the concession process and if there have been any differences versus your expectations, maybe 10 years ago.

Hi, it's Lawrence.

No.

As I mentioned earlier on it's been a very smooth and transparent process.

And.

Again, I cant go into the details of the discussions of the government.

But I guess.

I would have.

I expect that the same there was 10 years ago. So.

Overall, we're very pleased with it and we hope that to complete that process as soon as possible.

Okay. Thank you Laurence and maybe for my second question, just just a follow up on studio City. I know you guys have always thought of it as sort of a core asset.

Do you think that there is any likelihood for melco to acquire 100% of studio city at some point down the road.

We've.

Sure.

<unk> hasn't come up for a while.

Look we love studio city.

When the market Reopens studio city.

Given its location, whereas located right next to the Heng Chen and Theres been Macau Golfman right now is building the.

The light rail link to hedging right next to studio city so that.

Thesis has always been has always been there it's the first stop to Macao in the future.

And also the way that we have repositioned studio city to be more mass focus.

I think also fits very well with the potential change in.

Demographics going forward. So we look at the right price, we would love to own all of that asset, but there must be a willing seller and a willing buyer for the right price, but honestly given what has happened in the last three years.

Our priority in the near term continue to be on defense in terms of cost containment.

And really wait for the market to reopen before we do much.

But.

Going forward.

From a medium long term for sure absolutely.

Alright.

Okay. Thanks, guys.

Our next question comes from the line of Praveen Choudhary from Morgan Stanley . Please ask your question. Thanks can you hear me.

We can hear you yes.

Oh, great. Thanks, gentlemen.

Two questions from me. Please the first one is very simple.

Ed.

Sure buyback.

I'll try another $50 million from 200, if I'm just asking if those shares have been canceled.

<unk>.

And I have one more follow up.

Yes, so significant majority of those shares have been canceled.

Great.

Second.

Sorry, the second question I had was overdone.

Yes.

Therefore, this license expiry.

As part of this.

15 years.

So all of the casinos, we are making 40 50, 60% or high return on invested capital.

To that end of it.

Hi.

James Project, our MGM project, our Parisian Dawn started coming down.

My question is with the new license regime.

Sent back structure different rent the structure different opex and capex requirements, some of which we don't know.

I expect any plan for studio city phase two to be lower even lower or you think that we can go back to good old days of returns how should we think about it. Thank you.

Jeff do you want to take that.

Sure.

<unk>.

And with all the information we have today.

We still believe that we can get a very good return for shareholders on phase II, obviously there'll be a level of ramp up for that to hit its run rate, but we're very confident that that brings very high quality product to the market and that we will be able to deliver good returns on that investment.

All right excellent. Thank you so much and good luck.

Yes.

Alright. Thank you all very much for your questions. We have reached the end of the question and answer session I would like to turn it back to Ms. Jenny <unk> for closing remarks.

Thank you operator, and thank you everybody for participating in the call today, we look forward to speaking with you again next quarter. Thank you.

Great. Thank you. This concludes today's conference call. Thank you for participating you may now disconnect.

Q3 2022 Melco Resorts & Entertainment Ltd Earnings Call

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