Q3 2023 Las Vegas Sands Corp Earnings Call

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Speaker 4: Good day, ladies and gentlemen, and welcome to the SANS 3rd quarter 2023 earnings conference call. At this time, all participants have been placed on the Sononi mode. We will open the floor if your questions and comments following the presentation. It is now my pleasure to turn the floor over to Mr. Daniel Briggs, Senior Vice President of Investor Relations at SANS.

Good day, ladies and gentlemen, and welcome to the <unk>.

Third quarter 2023 earnings conference call at this time, all participants have been placed on listen only mode. We will open the floor for your questions and comments. Following the presentation. It is now my pleasure to turn the floor over to Mr. Daniel Briggs Senior Vice President of Investor Relations at <unk>.

Floor is yours.

Speaker 5: Thank you Paul. During the call today about Goldstein or Chairman CEO , Patrick Dumont, our president at COO, Dr. Wolfgang Wong, president of the Fence China and Grant Chum, EVP of the job arrangements to see COO for Fence China.

Thank you Paul during the call today are Rob Goldstein, our chairman and CEO , Patrick Dumont, our president and CEO , Dr. Wong President of France, China, and Grant challenge EVP of the operations.

John any.

The conference call will contain forward looking statements, we'll be making those statements under the safe Harbor provision of federal Securities laws. The company's actual results may differ materially from our results reflected in those forward looking statements. In addition, we will discuss non-GAAP measures.

Speaker 5: When we're making those statements under the state's cargo provision of federal security funds, the company's after-results make different material, they provide results to be blood-given those four of those statements. And additionally,

Speaker 5: Reconciliation to the most comparable gap that angel measure included.

Reconciliations to the most comparable GAAP financial measure are included in our press release, we have posted an earnings presentation on our website.

Speaker 5: posted an earnings presentation on our website. We may refer to that.

Turning to the presentation during the call finally for the Q&A session. We ask those of interest to please one question and one follow up so we might lose everyone with interest the opportunity to participate.

Speaker 5: call. Finally, for the Q&A session, we ask those with interest to please close one question and one follow-up. So we might allow everyone with interest the opportunity to participate.

Being recorded I'll now turn the call over to Ron.

Speaker 3: Thanks for joining us today. My calendar is $630 million of EBITDA for the quarter, and we are only eight months into our post-COVID reopen. These are early dates. We began in Q1 with $400 million EBITDA. Q2 we did $540 million EBITDA. Q2 is about $630 million.

Thanks for joining us today.

<unk> was $630 million of EBITDA for the quarter and we're only eight months into our post Covid post Covid reopen. These are early days. We began in Q1 was $4 million EBITDA Q2, we did $540 million EBITDA in Q3 is now $630 million.

Look forward to growth in both the gaming and non gaming revenue to lift the entire market.

Speaker 3: Before the growth about the gaming and non-gating revenue to lift the entire market.

Speaker 3: That's the largest share of non-growing pig women.

Yes.

Share of non rolling table win rolling table and slot Atg, we've always believed that completed London will meet perhaps exceed earning power of the nation.

Speaker 3: rolling table in and fought ETG with. The voice believed that completed London will meet perhaps exceeding very power of innovation. Our featured broke McAllister's Tethered these powerful assets, which have all the variables necessary to drive broke in years ahead.

Future growth in Macao is tethered powerful assets, which have all of the variables necessary to drive growth in years ahead.

Speaker 3: Whether it rooms, gaming capacity, retail, entertainment, food beverage, we have still less.

Whether its rooms gaming capacity retail entertainment food and beverage we have stellar assets. There is speculation about the future growth of Macau and relevant question is can the market grew to $30 billion $35 billion 40 billion of GTR and beyond we are firm believers that it will and may occur much much shorter.

Daniel Briggs: Please stay on the line and we'll be back in just a moment Good day ladies and gentlemen and welcome to the Sands third quarter 2023 earnings conference call. At this time all participants have been placed on the Sononi mode. We will open the floor if your questions and comments following the presentation.

Speaker 3: There is speculation about future growth of Macau. A relevant question is can the market growth at 30 billion, 35 billion, 40 billion of GGR and beyond? We are firm believers that it will and may occur in much shorter time table than anyone realises. This underscores our confidence in the returns will be generated by our capital investment programs in our portfolio. We are staunch believers in the growth of Macau market near and long term.

Table would realizes this underscores our confidence returns will be generated by our capital investment programs in our portfolio. We are staunch believers in the growth of Macau market near and long term.

Yes has invested $15 billion in Macau, which is the most important land based market in the world a few reference points to consider third quarter EBITDA represents strong growth compared to previous quarters as I mentioned, our retail business in Macao has far exceeded pre COVID-19 numbers I expect the gain portion of our business.

Speaker 3: The US has invested $15 billion in the Cal, which is the most important land-based market in the world. A few reference points to consider. Third quarter, even though represents strong growth in the bread that predisposed quarters of invention, our retail business in the Cal has far exceeded pre-COVID numbers. I expect the game portion of our business to follow the same trajectory as Singapore and accelerate 2024. Let's turn to the NDS and Singapore.

To follow the same trajectory as Singapore.

Daniel Briggs: It is now my pleasure to turn the floor over to Mr. Daniel Briggs, Senior Vice President of Investor Relations at Sands.

And accelerate 2024.

Yes in Singapore.

Speaker 3: Six quarters indoor reopening, MBS was the $490 million court. The power of this building is evident based on the results despite the disrupted impact of our ongoing $1.75 billion US dollar renovation program. Disruption now is standing, MBS is hitting on all cylinders, McGaming, lodging, and retail perspective.

Six quarters into a reopening MBS delivered a $490 million core the power of this building is evident based on the results. Despite the disruptive impact of our ongoing 175 billion U S. Dollar renovation program.

Robert Goldstein: Thank you, Paul. During the call today about Goldstein, our chairman, CEO, Patrick Dumont, our president, and CEO, Dr. Wolfer Gwong, president of the Sands China and Grant Chum, EVP of Asia Operations, and CEO of the Sands China.

Disruption notwithstanding MBS is hitting on all cylinders <unk> gaming margin retail perspective.

Patrick Dumont: Today's conference call will contain forward-looking statements, when we're making those statements under the state's cargo provision of federal security policy. The company's after-results may differ materially from unresults, we'd like to give those forward-looking statements. In addition, we will discuss non-GAP measures. Recommendations to the most comparable gap financial measure are included in our press release. We have posted an earnings presentation on our website. We may refer to that presentation during the call.

Slots in ETD MBS are approaching $1 billion annually non-ruling tables are exceeding $20 million drop per day. The ADR is escalating and our retail components tooling far beyond pre COVID-19 numbers.

Speaker 3: Slots and ATD, MBS are approaching $1 billion annually. Non-knowing tables are exceeding $20 million in drop per day. The ADRs are escorting our retail components to be far beyond pre-covid numbers. MBS is a testament that quality assets prevail. And nowadays, the thesis that reinvesting an hour assets will generate sustain, which is...

As a testament to quality assets prevail and validates the thesis that reinvesting in our assets will generate sustained returns Mds.

Unknown Executive: Finally, for the Q&A session, we ask those with interest to please pose one question and one follow-up, so we might allow everyone with interest the opportunity to participate. This presentation has been recorded on that turn of the call.

Speaker 3: MDS has it all. An iconic building with superb decor and service levels which attract the most desirable customers in every sector.

<unk> has it all and iconic building superb decor and service levels, which attract the most desirable customers in these segments at.

Speaker 3: At the completion of both phases of our refurbishment program, MBS will feature 770 suites. We used to have 200 suites before the refurbishment. There is no denying its future. How far can MBS go? Our expectation starts with $2 billion more in the future of annualized EBITDA.

At the completion of both phases of our refurbishment program MBS will feature 770 suites, we used to have 200 suites before the refurbishment there's no denying his future how far can MBS go our expectations towards $2 billion more in the future.

Patrick Dumont: Thanks for joining us today. My calendar is $630 million of EVP of the quarter, and we are going eight months into our post-coded reopen. These are early days. We began in Q1 with $400 million of EVP. Shoot to we did $540 million of EVP. We had about $630 million. Look forward to growth in both the gaming and non-GAP revenue to lift the entire market. As you all just share non-growing-take-win, rolling-take-win, and thought ETG would.

Annualized EBITDA.

Speaker 3: Finally, we're bidding for a license in the U.S. We're secure the Nassau-Kal-Sian and the process of gaining that is very important to move forward. We're also receiving strong local support from the local community. The resort will cost an excess of $5 billion but to enable us to develop a five-star resort with unlimited appeal. This is simply an extraordinary opportunity. We're very excited about the prospect. Our bid is compelling. So we reward the license who will be in the ground as quickly as possible.

Finally, we are bidding for in licensing.

Secure the Nassau Coliseum and the processes.

Great.

Let's move forward. We're also receiving strong local support from the local community. The resort will cost in excess of $5 billion puts enables us to develop a five star resort.

Patrick Dumont: We always believe that completed London will meet and perhaps succeed in earning power of innovation. Our future growth in the Cal is tethered with powerful assets, which have all the variables necessary to drive growth in years ahead. Whether it's rooms, gaming capacity, retail, entertainment, food and beverage, we have stellar assets. There is speculation about future growth of the Cal. A relevant question is can the market grow to $30,000,000, $35,000, $40,000 of GGR and beyond?

Appeal. This is symphony extraordinary opportunity, we're very excited about the prospect. Our bid is compelling that we were awarded the license will be in the ground as quickly as possible. Thanks for joining us again, and I will turn the call over to Patrick before I move on to some Q&A Patrick.

Speaker 6: Thanks for joining us again. I'm going to turn the call over to Patrick before we move on to some Q&A. Patrick? Thanks, Rob. I would like to cover two important topics before we get on to your questions. The first is the long-term margin structure.

I would like to cover two important topics before we go on to your questions.

The first is the long term margin structure, we expect that our Macau business.

Speaker 6: As the Macau market revenues continue to recover, our margins will naturally benefit from an

As the Macao market revenues continue to recover our margins will naturally benefit from an improved business mix.

Patrick Dumont: We are firm believers that it will and may occur in much shorter timetable than anyone realises. This underscores our confidence in the returns that will be generated by our capital investment programs in our portfolio. We are staunch believers in the growth of the Cal market near and long term. The US has invested $15,000,000 in the Cal, which is the most important land-based market in the world. A few reference points to consider.

Speaker 6: This quarter, our Macau EBITDA reached $631 million at a 35.3% margin, which is an increase of 210 basis points compared to the second quarter of 2020.

This quarter, our Macau EBITDA reached $631 million at a 35, 3% margin, which is an increase of 210 basis points compared to the second quarter of 'twenty three.

Speaker 6: As revenues continue to grow, we expect our margin to exceed the 36% of our cow business in 2019.

As revenues continue to grow we expect our margin to exceed the 36% on account business in 2019.

This quarter, the Venetian Macao grew EBITDA to $290 million with margins, reaching 41%. This.

Speaker 6: This quarter, the Venetian Macau group, you've got a two hundred and ninety million with margins reaching forty point one percent. This is an example of a property achieving strong revenue recovery with financial performance and margin that reflect the improved.

Patrick Dumont: Third quarter, EBITDA represents strong growth compared to previous quarters, as I mentioned. Our retail business in the Cal has far exceeded pre-COVID numbers. I expect the game portion of our business to follow the same trajectory as Singapore and accelerate 2024.

This is an example of a property achieving strong revenue recovery with financial performance and margin that reflecting improved business mix.

The Londoner Macao grew EBITDA due to a $167 million during the quarter with EBITDA margin, expanding 660 basis points sequentially to reach 32, 2%.

Speaker 6: The Londoner Macau grew EBITDA to $157 million.

Speaker 6: dot margin expanding 660 basis points sequentially to reach 32.2 percent.

Patrick Dumont: Let's turn to the MBS in Singapore. Six quarters into a reopening, MBS delivered a $490,000,000,000 cord. The power of this building is evident based on the results despite the disrupted impact of our ongoing $1.75 billion US dollar renovation program. Disruption now is standing, MBS is hitting on all cylinders, maintaining, lodging and retail perspective. Slot and ATD, MBS are approaching $1 billion annually. Non-knowing tables are exceeding $20 million in drop per day. The ADRs are escalating, and our retail component is to be far beyond pre-COVID numbers. MBS is a testament that quality assets prevail. And nowadays, the teachers that reinvesting in our assets will generate sustain.

The strong flow through of revenue to EBITDA reflects the operating leverage of our business once the fixed costs have been covered.

Speaker 6: strong flow through of revenue to e-bazaar reflects the operating leverage of our business once the fixed costs have been covered.

Speaker 6: The transformation to Lundner has created a world-class product that is a must-see for visitors to the capital. We will naturally have some construction disruption in 2024, but we expect future EBITDA growth and margin expansion over time.

The transformation to London has created a world class product, that's a must see for visitors to Macau.

We will naturally have some construction disruption in 2024, but we expect future EBITDA growth and margin expansion over time.

So thats Macau.

Speaker 6: So that's the cap. The second item I wanted to cover is an update on our plans for the return of capital to shareholders.

The second item I wanted to cover is an update on our plans for return of capital to shareholders.

Speaker 6: Our board of directors has authorized a 2 billion dollar share repurchase through 2025 and we're looking forward to restarting our share repurchase program.

Our board of directors has authorized a $2 billion share repurchase through 2025, and we're looking forward to restarting our share repurchase program.

Speaker 6: In the nine-year period from 2012 to 2020, we've returned over $22 billion of capital to Las Vegas-San Francisco in the form of dividends and repurchase.

And the nine year period from 2012 to 2020, we returned over $22 billion.

Of capital to Las Vegas Sands shareholders in the form of dividend.

Unknown Executive: Sands Corp. [inaudible] Sands Corp. Sands Corp. [inaudible] Sands Corp. Sands Corp.

Dividends and repurchases, which was split roughly 80% dividends at 20% to share repurchases.

Speaker 6: which was split roughly 80% dividends and 20% to share.

Speaker 6: As we consider our future capital return, we expect share repurchase will be more heavily weighted than dividends. We believe repurchases will be more creative than dividends over time as they reduce the denominator. We fundamentally believe in the compounding long term benefit of share.

As we consider our future capital return, we expect share repurchase will be more heavily weighted in dividends. We believe her purchases will be more accretive than dividends over time as they reduce the denominator we.

We fundamentally believe in the compounding long term benefit of share repurchases. So that's the capital return uptake.

Speaker 6: So that's the Capital Return Update. Thanks for joining us again today, and let's.

Again today, and let's move to Q&A.

Speaker 4: Thank you. Ladies and gentlemen, the floor is now open for questions. If you would like to enter the queue to ask a question, please press star 1 on your telephone keypad.

Thank you ladies and gentlemen, the floor is now open for questions. If you would like to enter the queue to ask a question. Please press star one on your telephone keypad now.

Speaker 4: If listening on speakerphone today, please pick up your handset to provide optimum sound quality. Also, we ask each participant to limit yourself to one question and one follow-up. Please hold a moment while we poll for questions.

If this thing on speakerphone today, please pickup your handset to provide optimum sound quality also we ask each participant to limit yourself to one question and one follow up please hold a moment, while we poll for questions.

And the first question today is coming from Carlo Santarelli from Deutsche Bank Carlo You're line is live.

Speaker 4: The first question today is coming from Carlo Santarelli from Deutsche Bank. Carlo, your line is open.

Speaker 7: Hey guys, Patrick, thank you for the additional color.

Hey, guys Patrick Thank you for the additional color.

Speaker 7: Rob or anyone over in Macau maybe this one's best for but as you guys think about the the base and the premium mass it looks like in the quarter you you guys kind of converted some premium mass tables to base mass tables and obviously with the increases in visitation that that makes sense is that something you expect to do going forward do you have what you need basically in terms of of the premium mass footprint in terms of table count at this point

Rob or anyone over in Macau, maybe this one's best for but as you guys think about the base and the premium mass it looks like in the quarter you guys kind of converted some premium mass tables to base mass tables, and obviously with the increases in visitation that makes sense.

Is that something you expect to do going forward do you have what you need basically in terms of the premium mass footprint in terms of table count at this point.

Speaker 3: Oh, you know, the beauty of our business model is we've got plenty of capacity to do what we want. We'll move to the market. As you saw in the quarter, we moved tables around to accommodate where we saw demand. But again, with our rooms and our table capacity, we can.

The beauty of our business model is we've got plenty of capacity to everyone will move to the market as you saw in the quarter, we move tables around to accommodate what we saw demand but again.

Rooms at our table capacity, we can grow into any market segment, which showed strength.

Speaker 3: grow into any market, any segment that shows strength, and that's what happened here. The truth is, I expect that we both move forward in the future and show growth both in base and premium. But our assets are built to be just this, which is versatile, able to accommodate the market. Grant may have some color, but that's true of any market. The only difference in this market for me is we just got such a huge amount of table supply, that we're very nimble.

What happened here the truth is I expect it to be but let's move forward in the future and show growth both the base and treatment, but our assets are built to be just miss which is versatile unable to accommodate the market.

Maybe add some color that's true anymore.

In this market for me is we've just such a huge amount of table supply that we're very nimble.

Great.

Speaker 8: Yeah, thank you Rob. Yeah, I think the repositioning this quarter for more source-based mass tables, that's just a natural part of our optimization between the segments.

Thank you Rob.

The <unk>.

Repositioning this quarter for more towards base mass tables, that's just the natural.

Part of our optimization between the segments.

Speaker 8: And of course, as you've rightly referenced, the summer saw a big increase in visitation and the base mass business. So that was just a natural repositioning to optimize the table count. As you can see, sequentially, a wind per unit increased substantially in premium mass.

And of course that you Brian you referenced some are so big.

The big increase in visitation in the base mass business.

That was just a natural repositioning of FERC to optimize their table count.

You can see sequentially.

A win per unit increased substantially and premium mass up 19%.

Speaker 8: And base mass, even though we reorientated the table count towards base mass, we also increased the wind per unit by 7% sequentially. So I think the...

Unknown Executive: [inaudible] Thank you, ladies and gentlemen.

And base mass even though.

And Kate at the table count towards base mass. We also increased the win per unit by 7% sequentially. So I think that you can see very clearly that.

Speaker 8: we actually did optimize pretty well for the quarter between the two segments.

We actually did optimize pretty well for the quarter between the two segments in terms of table capacity.

Unknown Executive: The floor is now open for questions. If you would like to enter the queue to ask a question, please press star one on your telephone keypad. Now.

Speaker 8: and these numbers will change again as the market evolves depending on which segment is growing fast.

And these numbers will change again.

Market vote, depending on which segment.

These growth prospects.

Unknown Executive: If you're listening on speakerphone today, please pick up your handset to provide optimum sound quality. Also, we ask each participant to limit yourself to one question and one follow up. Please hold a moment while we pull for questions.

Great and then thank you for that Patrick if I could just kind of follow up on the on the Venetian and acknowledging.

Speaker 7: Great. And then thank you for that. Patrick, if I could just kind of follow up on the on the Venetian and acknowledging that there was some high hold in the period on the VIP side, but it's a relatively small number in terms of revenue.

There was some high hold in the period on the VIP side, but.

It's a relatively small number in terms of revenue.

Speaker 7: As you think about kind of the margin profile, the 40.1% margins in the period at the property kind of rivaled 19 despite annualized third quarter net revenue being down, I think, close to 18% versus what you did in 2019 if we think about that gap that 600 odd million.

Carlo Santarelli: And the first question today is coming from Carlo Santarelli from Deutsche Bank. Carlo, your line is live. Hey guys, Patrick, thank you for the additional color. Rob or anyone over in Macau, maybe this is best for. But as you guys think about the base and the premium mass, it looks like in the quarter, you guys kind of converted some premium mass tables to base mass tables. And obviously with the increases in visitation, that that makes sense.

As you think about kind of the margin profile of the 41% margins in the period at the property kind of rival 19, despite annualized third quarter net revenue being down I think close to 18% versus what you did in 2019, if we think about that gap that 600 odd million.

Flow through getting back to kind of 19 revenue levels at that property or any other property.

Speaker 7: flow through, getting back to kind of 19 net revenue levels at that property or any other property. How would you think about kind of the incremental flow through on that incremental net revenue? And perhaps, you know, we could obviously take it from there to get a sense for where margins could kind of prove out over time.

How would you think about kind of the incremental flow through on that incremental net revenue.

Carlo Santarelli: Is that something you expect to do going forward, you have what you need basically in terms of the premium mass footprint in terms of table count at this point. Oh, you know, the beauty of our business model is we've got plenty of capacity to do every month. We'll move to the market. And you saw in the quarter, we moved tables around to comedy where we saw demand, but again, we're going to move our rooms and our table capacity.

Perhaps.

We could obviously take it from there to get a sense for where margins could kind of prove out over time.

So it's a great question I think for us the <unk>.

Speaker 6: So it's a great question. I think for us, the first thing is, this is what happens when you cover your fixed cost.

First thing is this is what happens when you cover your fixed cost base. So when we were 70% recovered we had to cover our fixed cost base in Macau.

Speaker 6: So when we were 70% recovered, we had to cover our fixed cost base in Macau. And as the market recovered and as tourism and visitation continued to grow.

Carlo Santarelli: We can grow into any market in most segments that shows strength and that's what happened here. The truth is I expected to move forward in the future and show growth both in base and premium, but our assets are built to be just this, which is versatile, able to accommodate the market. Grant made us from color. That's the only difference in this market for me is we're in such a huge amount of table supply.

As the market recovered as tourism visitation continues to grow.

Speaker 6: we will reach our run rate margin levels, which we always felt was in this context. So what you see the Venetian is the result of a great product that has, you know, it's really an example of a property reaching a more run rate level of operation post pandemic and the performance and margins that result. And we feel very strongly that the Venetian Macau is going to run as mass visitation continues to return to the market.

We'll reach our run rate margin levels, which we always felt within this context. So what do you see the Venetian as a result of a great product that has.

It's really an example of our property, reaching up more run rate level of operation post pandemic and the performance in margins that result, and we feel very strongly that it.

Venetian Macau is going to run as mass visitation continues to return to the market remember Macao visitation has totaled about 20% less than it was pre pandemic, we're down about 1 million visitors in the same period.

Speaker 6: Remember, Macau visitation is still about 20% less than it was pre-pandemic. We're down about a million visitors in the same period.

Carlo Santarelli: They were very nimble. Grant. Thank you Rob. Yeah, I think the repositioning this quarter for more towards base mass tables, that's just a natural part of our optimization between the segments. And of course, as you've rightly referenced, the summer saw a big increase in visitation and the base mass business. So that was just a natural repositioning for to optimize the table count. As you can see, sequentially, a win per unit increased substantially in premium mass up 19% and base mass, even though we reorientated the table count towards base mass.

Speaker 6: So, we feel very strongly about the margin potential. We're very proud about what's going on at the wonder. We think the market is starting to understand that product. How great it is. And we're starting to result productivity in terms of market. But again, and that product as well. We think there's more room to run. So, you know, I.

Carlo Santarelli: We also increased the win per unit by 7% sequentially. So I think that you can see very clearly that we actually did optimize pretty well for the quarter between the two segments in terms of table capacity. And these numbers will change again at the market, both depending on which segment is growing costs. Great. And then thank you for that Patrick. If I could just kind of follow up on the on the Venetian and acknowledging that there was some high hold in the period on the VIP side, but it's a relatively small number in terms of revenue.

So we feel very strongly about the margin potential we're very proud about what's going on at the lender. We think the market is starting to understand that product operate it is and we're starting to see the results from our productivity in terms of market going again and that product is while we think there's more room to run.

So I think it's a great Testament to the team there the work <unk> done to grow these businesses, but to be fair, we think theres strength in margins to continue as revenue continues to come into the market through visitation.

Speaker 6: It's a great testament to the team there, the work they've done to grow these businesses. But to be fair, we think there's strength in margins to continue as revenue continues to come into the market through visitation. Great.

Great. Thank you very much guys I appreciate it.

Thanks Carl.

Thank you. The next question is coming from Joe Greff from JP Morgan Joe Your line is live.

Speaker 4: Thank you. The next question is coming from Joe Greff from J.T. Morgan. Joe, your line is

Speaker 5: Um, good afternoon guys, um, before cobit, you guys used to, uh, disclose, uh, department margin ranges for base mass table games and premium mass table game ranges. I think base was 35 to 45% and premium math is 2540% are those margin ranges or the midpoint and higher still.

Good afternoon guys.

Before Covid you guys used to disclose.

Disclose.

<unk> margin ranges for these mass table games and premium mass table game ranges I think basically 35% to 45% in premium at the $25 40%.

Are those margin ranges or the mid point and higher still.

Speaker 5: viable or does the Londoner and that ramp and clearly is in ramp mode right now, does that cause those ranges to be more middle or the lower end of that range than the aggregate in the cow?

Liable or does the londoner.

And that ramp and clearly is in ramp mode right now does that cause.

Those ranges to be more middle or the lower end of that range in the aggregate in Macau.

Carlo Santarelli: As you think about kind of the margin profile, the 40.1% margins in the period at the property kind of rival 19 despite annualized third quarter net revenue being down, I think close to 18% versus what you did in 2019. If we think about that gap that 600 odd million, and Flow Through, getting back to kind of 19 revenue levels at that property or any other property, how would you think about kind of the incremental flow through on that incremental net revenue, and perhaps, you know, we could obviously take it from there to get a sense for where margins could kind of prove out over time.

So I think for us because of the mix of business and where we're investing we sort of run the business in aggregate. So what we're looking at is a 40% margin that the Venetian just put up in the quarter and the 660 basis point expansion in margin that the London saw them.

Speaker 6: So, you know, I think for us, because of the mix of business and where we're investing, we sort of run the business in aggregate.

Speaker 6: So what we're looking at is the 40% margin that the Venetian just put up in the quarter and the 660 basis point expansion of margin that's a lot that are sawed as the market discovered how great it was and we started getting more visitation and more growth. So I think for us that's really how we're looking.

Market discovered how great. It was and we started getting.

More visitation and more growth so I think for us that's really how we're looking at it.

Speaker 6: you know, departmentally, I think we manage the business overall. And as Rob said earlier, we're going to shift assets.

Departmental I think we manage the business overall and as Rob said earlier, we're going to shift assets to.

Speaker 6: to the segment that is most productive and provides the best return.

The segment that is most productive and provides the best returns. So I think for US we're not really looking at that as a guide we are really looking at overall productivity of our asset base in total.

Speaker 6: So I think for us we're not really looking at that as a guide. We're really looking at overall productivity of our asset base in total. You know, I think something that's interesting to consider is so in Macau, Room Occupancy was 96% versus 95% in the same period of 19.

I think one thing that's interesting to consider is so in Macau room occupancy was 96%.

Carlo Santarelli: So it's a great question. I think for us, the first thing is this is what happens if you cover your fixed cost base. So when we were 70% recovered, we had to cover our fixed cost base in Macap. And as the market recovered and as tourism and vegetation continues to grow, we will reach our run rate margin levels, which we always felt within this context. So what you see the Venetian is the result of a great product that has, you know, it's really an example of a property reaching a low run rate level of operation post pandemic and the performance and margins of results.

Versus 95% in the same period in 19.

Speaker 6: But the thing is interesting is we're actually thriving more daily casino nights at higher yields per room. And so in the premium mass segment, we're seeing that recovery, but our base mass segment is starting to recover strongly. And this is really what you see as the businesses that used to support Macau mass tourism continue to come back online after what was basically a three or I ate it.

But the thing that's interesting is we're actually driving more daily casino nights at higher yields.

Per room.

And so in the premium mass segment, we're seeing that recovery, but our base mass segment is starting to recover strongly and this is really what you see as the businesses that used to support Macao mass tourism continue to come back online. After what was basically a three year hiatus. So this increased visitation will drive base mass revenue growth and we'll start to see margin.

Carlo Santarelli: And we feel very strongly. The Venetian Macap is going to run as mass visitation continues to return to the market. Remember of a cow visitation is still about 20% less than it was pre pandemic. We're down about a million visitors in the same period. So we feel very strongly about the larger potential. We're very proud of what's going on at the London. We think the market is starting to understand that product and how great it is.

Speaker 6: So this increased visitation will drive basemast revenue growth and will start to see margin return to a more normal mix. So I wouldn't look at the departmental. I would look at the recovery and the aggregate margin of the operating asset. That's kind of how we're managing the business and we're trying to manage segments throughout.

Return to a more normal mix. So I wouldn't look at the departmental I would I would look at the recovery in the aggregate margin at the operating the operating asset that's kind of how we're managing the business and where we're trying to manage segment throughout.

Speaker 6: And then we look at EBITDA, which is the most important thing. Thank you, Rob.

EBITDA.

And then we look at EBITDA, which is the most important thing. Thank you Robert.

Carlo Santarelli: And we're starting to result in productivity in terms of market. But again, in that process, well, we think there's more in the run. So, you know, I think it's, it's, it's a great testament to the team there, the work they've done to grow these businesses. But to be fair, we think there's strength and margins to continue as revenue continues to come into the market through visitation. Great. Thank you very much guys. Appreciate it. Carl. Thank you.

Okay. Thanks.

Speaker 5: And then with respect to the by that that was great to see Patrick.

And then with respect to the buyback that was great to see Patrick do you look at that as more episodic or opportunistic or do you look at it.

Speaker 9: Do you look at that as more episodic or opportunistic or do you look at it as...

Speaker 9: there's a minimum consistent minimum level or a consistent level per quarter per year that that you that you would look at.

There is a minimum minimum level or a consistent level per quarter per year that you that you would look at.

Speaker 6: I think we're going to be measured across time. I think we want to return capital to share repurchases in a meaningful way. We think there is a real benefit to reducing the denominator. We think it's creative. We think there's a compounding effect in share repurchases. And so we're looking forward to doing it on a regular basis. You know, the amounts to be determined, but for us, you see this on the authorization. You see our balance sheet strength. You see the amount of cash flow we're generating out of the business.

I think I think we are going to be measured across time, I think we want to return capital through share repurchases in a meaningful way.

Joe Cress: The next question is coming from Joe Cress from JP Morgan. Joe, your line of life. Good afternoon, guys.

We think there is a real benefit.

To reducing the denominator, we think it's accretive.

Patrick Dumont: Before COVID, you guys used to disclose department margin ranges for base mass table games and premium mass table game ranges that it basically 35 to 45% and premium mass is 25 to 40%. Are those margin ranges or the midpoint and higher still viable or does the Londoner and that ramp and clearly isn't ramp mode right now, does that cause those ranges to be more middle or the lower end of that range is in the aggregate in the cap.

There's a compounding effect in share repurchases and so we're looking forward to do it on a regular basis.

The amounts to be determined but for US you see the size of the authorization you.

<unk> see our balance sheet strength, you've seen about a cash flow, we're generating out of the business and we're going to go out and be aggressive I think for us we fundamentally believe in the dividend, but if you look at that split that.

Speaker 6: And we're going to go out and be aggressive. I think for us, we fundamentally believe in the dividend, but if you look at that split that we had, let's call it a pretty pandemic of a return to capital storage, I think we're looking to be majority share repursists and get that benefit. And so if you look at how we return capital historically in a regular and repeated way, I think we're going to look to do that again.

We had let's call it pre pandemic our return of capital.

I think we're looking to be majority share repurchases and get that benefit.

So if you look at how we've returned capital historically in a regular repeat away I think we're going to look to do that again hey.

Patrick Dumont: So, you know, I think for us because of the mix of business and where we're investing, we sort of run the business in aggregate. So what we're looking at is the 40% margin that the Venetians just put up in the quarter. And the 660 basic point expansion of margin that the longer saw as the market discovered how great it was and we started getting, you know, more visitation and more growth. So I think for us, that's really how we're looking at it, you know, departmentally, I think we manage the business overall and as Rob said earlier, we're going to shift assets to the segment that is most productive and provides the best returns.

Speaker 3: And Joey can't help but be somewhat opportunistic as we look at the market. We are stock is trading roughly COVID levels. And we think our buildings are made by the millions and more $40, $50 billion in next decade. It's hard not to look at the stock and see that opportunistic.

Joe we can't help but be somewhat opportunistic as we look at the market.

<unk> is trading roughly COVID-19 levels, and we think our buildings five millions more $40 $50 billion of next decade, it's hard not to look in the stall speed us.

Optimistic the other hand, we also like the long term it would be.

Speaker 3: The other hand, we also have to be long term and be consistent. So it's kind of a mixture of votes. But it's one for the city of today and look at pricing as if we're closed in the power of half open to the gallon, Singapore. And I think there's opportunity for we also have a long term perspective.

So it's kind of a mixture of both but it's hard for us to sit here today and look at pricing as it were closed and the Counterpath opened in Macao and Singapore not think there is opportunity, but we also have a long term perspective.

Patrick Dumont: So I think for us, we're not really looking at that as a guide. We're really looking at overall productivity of our asset base in total. You know, I think something that's interesting to consider is so in Macau room occupancy was 96% versus 95% in the same period of 19. But the thing is interesting is we're actually thriving more daily casino nights at higher yields per room. And so in the premium mass segment, we're seeing that recovery, but our base mass segment is starting to recover strongly.

Great. Thanks, Rob Thanks, Patrick Thanks, Dan.

Speaker 4: Thank you. The next question is coming from Robin Farley from UBS. Robin, your line is left.

Thank you the.

Our next question is coming from Robin Farley from UBS Robin Your line is live.

Great. Thank you I Wonder if you could give us some thoughts on kind of what is holding back that lower spending customer. It sounds like transportation bottlenecks are no longer really the issue in Macau.

Speaker 10: Great, thank you. I wonder if you could give us some thoughts on kind of what is holding back that lower spending customer. You know, it sounds like transportation bottlenecks are no longer really the issue in the cow. You know, if it's the R&B depreciation, is that something we have to kind of wait for that to anniversary next year or, you know, I guess what do you think will change that, you know, the kind of visitor levels for that lower spending segment? Thanks.

Is it just the RMB depreciation is that something we have to kind of wait for that to anniversary next year or.

Patrick Dumont: And this is really what you see is the businesses that used to support Macau mass tourism continue to come back online after what was basically a three or eight. So this increased visitation will drive based mass revenue growth and will start to see margin return to a more normal mix. So I wouldn't look at the departmental. I would I would look at the recovery and the aggregate margin of the operating of the operating asset. That's kind of how we're managing the business and we're trying to manage segments throughout. And then we look at the job, which is the most important thing. Thank you Rob.

I guess, what do you think will change that.

Visitor levels for that lower spending thank you Matt.

Speaker 6: Yeah, I think I think, you know, it's interesting if you if you go to page 16 or deck, you know, and by the way, we debate this all the time. I think the team on the ground there is very focused on it. I think what you'll see is that, you know, visitation is from China, excluding Guangdong is 72%. You know, Guangdong's back to 92. but if you look at the airlift, Macau airport was only at 64% of 2019 capacity in the quarter and Hong Kong was only at 63%.

Yes, I think I think.

Interesting if you go to page 16 of our deck.

And by the way we debate. This all the time I think the team on the ground. There is very focused on it I think what youll see is that visitation is from China, excluding Guangdong is 72%.

Guangdong back to 92, but if you look at the Airlift, Joe Macao Airport was only 64% of 2019 capacity in the quarter and Hong Kong was only at 63%. So it's a pretty meaningful difference.

Patrick Dumont: And then with respect to the buyback that was great to see Patrick, do you look at that is more episodic or opportunistic or do you look at it as you know there's a minimum consistent minimum level or a consistent level per quarter per year that you that you would look at. I think I think we're going to be measured across time. I think we want to return capital to share repurchases and meaningful way.

Speaker 6: So, it's a pretty meaningful difference. And so, you know, frictional transportation difficulties are still real and they're getting better. Customers can get to Macau a little more easily in this border than they could before, but we're still not back to normal. And so, what we're starting to see as I mentioned earlier, some of the infrastructure for mass tour groups are returning, which is very positive. Starting to see some of the increased volumes due to their visitation. Some of the higher value customers, premium mass customers and VIP customers, airlift isn't great.

So frictional transportation difficulties are still real.

And they're getting better our customers can get to Macau to more easily in this quarter.

Before but we're still not back to normal.

We're starting to see as I mentioned earlier some of the infrastructure for Master groups are retarding, which is very positive starting to see some of the increased volumes due to their visitation.

Patrick Dumont: We think there is a real benefit to reducing the denominator. We think it's creative. We think there's a compounding effect and share repurchases. And so we're looking for to do it on a regular basis. You know, the amounts to be determined, but for us, you see the size of the authorization. You see our balance sheet strength. You see the amount of cash flow we're generating out of the business. And we're going to go out and be aggressive.

Some of the higher value customers premium mass customers and VIP customers airlift isn't great.

Speaker 6: You know, and some of this airlifts coming into the cab with domestic and some of this some of this international So I think I think for us as we see this airlift capacity recover We're gonna start to see more entertainment and of course Benefit not only us, but also the entire market is more people are able to get here more easily But I think the the recovery story is not fully there in terms of air air travel and in terms of accessibility I think it's on the way, but it's not it's not fully back

Some of this airlift coming into Macau with domestic and some of its some of its international So I think I think for us as we see this airlift capacity recover.

Patrick Dumont: I think for us, we fundamentally believe in the dividend. But if you look at that split that we had, you know, let's call it pre pandemic of a return capital story. I think we're looking to be majority share repurchases and get that benefit. And so, you know, if you look at how we return capital to store fleet and in a regular way, I think we're going to look to do that again.

We're going to start to see more data.

And of course.

Benefit not only us, but also the entire market as more people are able to get your more easily but I think the recovery story is not fully there in terms of air travel and in terms of accessibility I think it's on the way, but it's not it's not fully back.

Okay.

Speaker 10: I guess I'm thinking that the air travel wouldn't necessarily be

I guess I am thinking that the air travel wouldn't necessarily be.

Patrick Dumont: Hey, Joey, can't help but be somewhat opportunistic as we look at the market. We are stock is trading roughly COVID levels and we think our buildings are going to make five and billions and more $40, $50 billion in next decade. It's hard not to look at the stock and see that's opportunistic. The other hand, we also like to be long term and be consistent. So it's kind of a mixture of votes, but it's hard for us to sit here today and look at pricing as it would close to the cow or half open to the cow and sing up or not think there's opportunity. But we also have a long term perspective.

Speaker 10: were the lower funding customer becoming from the and high speed rail I think is back to to pre-COVID levels so I just if there is anything else that you think is impacting it that needs to change whether it's you know policy in mainland China or kind of anything else outside of that transportation issue. Thanks.

We're the lowest funding customer would be coming from.

Hi speed rally is back to pre COVID-19 levels.

Is there anything else that you think.

Is impacting it then needs to change whether it's.

Policy in mainland, China, or its kind of anything else outside of that transportation issue. Thanks.

Brands you might jump in here.

Speaker 8: So, yeah, I think Robin, the little Patrick reference 72% out of Nonguando, actually if you look at the regional differences between provinces, I mean that there are some of the highest-bending provinces are actually way above 2019 in terms of visiting.

Yes, great Robyn.

Well, Patrick referenced 72% out of non Guangdong actually if you look at the regional.

Unknown Executive: Great. Thanks Rob. Thanks, that's a thanks then. Thank you.

Robin Farley: The next question is coming from Robin Farley from UBS Robin your line of life. Great. Thank you.

Francis between provinces.

I mean that there are there are some of the highest spending provinces.

Patrick Dumont: I wonder if you could give us some thoughts on kind of what is holding back that lower spending customer. It sounds like transportation bottlenecks are no longer really the issue in the cow. You know, if it's if it's the RMB depreciation, is that something we have to kind of wait for that to anniversary next year or, you know, I just what do you think will will change that, you know, the kind of visitor levels for that lower spending segment.

Actually way above 2019 in terms of visitation.

Speaker 8: and some are lower than 2019. So I think there are just some regional differences depending on the whole host of factors, you know, ranging from the transportation to the availability of hotel rooms and so on and so forth, and their propensity to go cross border in their trip.

And some.

Lower than 2019 so.

I think there are just some regional differences depending on the whole host of factors.

Ranging from the transportation to the Amenability of hotel rooms.

And so on and so forth and their propensity to go cross border.

Patrick Dumont: Thanks. Yeah, I think, I think, you know, it's interesting if you if you go to page 16 or our deck, you know, and by the way, we debate this all the time. I think the team on the ground there is very focused on it. I think what you'll see is that, you know, visitation is from China, excluding Guangdong is 72%. Guangdong is back to 92, but if you look at the airlift, you know, Macau airport was only a 64% of 2019 capacity in the quarter.

Trips I mean this is the first set of summer holidays.

Speaker 8: first set of summer holidays since COVID. And I think what you see is actually a very strong acceleration in that non-guondal visitation this court.

Covid.

<unk>.

And I think what you see is actually a very strong.

Acceleration in that non Guangdong visitation.

This quarter so.

Speaker 8: So we're really up 22% of the occupations, but within that main and China's up a lot more sequentially. And that is also reflected in the property visitations that we saw this quarter.

We're really up.

Patrick Dumont: And Hong Kong was only a 63%. So it's a pretty meaningful difference. And so, you know, frictional transportation difficulties are still real. And they're getting better. Customers can get to Macau a little more easily in this border link with the word before, but we're still not back to normal. And so what we're starting to see is as I mentioned earlier, some of the infrastructure for mass tour groups overturning, which is very positive.

Eight 2% overall visitations within that mainland China was up a lot more sequentially.

That is also reflected in the property visitations that we saw this quarter the <unk>.

2% increase in the base mass revenue that we saw so it is picking up but it just accelerated.

Speaker 8: mass revenue that we saw. So it is picking up, but it just accelerated.

At a different pace from the premium mass, which as you know came back.

Speaker 8: from the premium mass, which, as you know, came right from the spot.

Right right from the start.

Speaker 8: stronger fashion than the basement. So I think as more hotel inventory is actually opening up.

In a stronger fashion.

Based on that so I think as as more hotel inventory is actually opening up.

Patrick Dumont: Starting to see some of the increased volumes due to their visitation. Some of the higher value customers, premium mass customers and the IP customers airlift isn't great. You know, and some of this airlifts coming into the cab with domestic and some of this some of this international so I think I think for us as we see this airlift capacity recover, we're going to start to see more data and of course benefit not only us but also the entire market is more people are able to get here more easily. But I think the recovery story is not fully there in terms of air travel and in terms of accessibility.

And the propensity.

Speaker 8: improve people know, you know, my kind of market is back and with all the non-gaming investments and events that are driving the interest in the defenase.

Groups pupil now.

Yes, my kind of market, it's back all the non gaming investments and events.

Driving the interest in the destination.

I think I think that base mass segment will naturally improve over time as the page already significantly this quarter.

Okay, great. Thank you all thanks.

Speaker 4: Thank you. The next question is coming from Stephen Grambling from Morgan Stanley . Stephen Earline is live.

Thank you. The next question is coming from Stephen Grambling from Morgan Stanley Steven Your line is live.

Grant Chum: I think it's on the way, but it's not it's not fully back I guess I'm thinking that the air travel wouldn't necessarily be where the lower spending customer becoming from the and high speed rail I think is back to to pre-COVID levels so I just is there anything else that you think is impacting it that needs to change whether it's you know policy and in mainland China or kind of anything else outside of that transportation issue. Thanks.

Alright, Thanks, just maybe a bit myopic, but would love to hear a little bit more color on.

Speaker 11: Hi, thanks. This may be a bit myopic, but we'd love to hear a little bit more color on how Golden Week may be trending and how the pace of recovery has continued across different customer categories more recently, especially around these these big events that seem to have driven kind of a step function move in the recovery historically.

How golden week, maybe trending and how the pace of recovery has continued across different customer categories. More recently, especially around these big events that seem to have given kind of a step function move into recovery historically.

Speaker 3: We can just don't talk about current quarter. We'll keep that intact here as well. I think you look at the numbers in the market. I think we should strengthen the gold week for the evidence the numbers are driven by the government and other sources, but we never comment. In fact, the quarter.

Steve We traditionally don't talk about current quarter, we'll keep that intact here as well I think you look at the numbers in the market.

Grant Chum: Brad, do I jump in here? Yeah, I think Robin, the little Patrick reference 72% out of non-guando actually if you look at the regional differences between provinces, I mean that there are some of the highest spending provinces are actually way above 2019 in terms of visitation. And some are lower than 2019 so I think there are just some regional differences depending on the whole host of factors. You know ranging from the transportation to the availability of hotel rooms and so on and so forth and their propensity to go cross border in their trips.

See the strength of Golden weeks for Devon.

The numbers driven by the government and other sources, but we never comment inside the quarter.

Fair enough and maybe changing to something more students.

Speaker 11: Oh Perfect. I'm turning off the midi changing to something more optimistic.

Okay.

Sure Okay.

Those even lumpier.

Speaker 11: You would love to hear one or two would be would love to just hear anything around potential near term this option. I think that that's going to be starting in November and then one that might be to be told most when we can anticipate the rerab.

Two would be would love to just hear anything around potential near term disruption I think that thats going be starting in November and then when that might be felt most of them. We can anticipate the re ramp.

Speaker 3: Yeah, I'll turn to grant there will be some disruption, but we still feel as though the, the initial results on there are obviously we're looking at as a, you know, future hope that one of these prospects, I grant take it through 24, both brew and casino. I'm seeing that better and how we see.

I'll turn to grant there will be some disruption, but we still feel as though the.

The initial results.

Obviously, we're looking at is a.

Future.

The prospects.

Prospects are granting us through 'twenty for both Peru, and casinos and that letter and how we see it.

Grant Chum: I mean this is the first set of summer holidays since COVID and I think what you see is actually a very strong acceleration in that non-guando visitation is quarter so we're really up 22% over occupations but within that mainland China is up a lot more sequentially. And that is also reflected in the property visitations that we we saw this quarter the 17% increase in the base mass revenue that we saw so it is picking up but it just accelerated at a different pace from the premium mass which as you know came back right from the start in a stronger fashion than the base mass.

Yeah sure Ralph I think clearly we would want to minimize the impact on the gas.

Speaker 8: Yeah, I'm sure of. I think clearly we will work to minimize the impact on the guest experience and the business operations, but this is something that we have managed many, many times over the years. And indeed, we did that during 2019 when we started to behold the in-conversion.

<unk> in that business operations. This is something that we have managed many many times over the years.

And indeed, we did that during 2019, when we started the holiday Inn conversion into.

Speaker 8: to the London hotel. I think you'll see...

The Londoner hotel.

I think youll see us.

Speaker 8: some disruption on the gaming side in the middle of next year. And I think we'll be managing the chariot and tower renovation.

Some disruption.

On the gaming side in the middle of next year.

And I think we will be managing the discharge and tower renovation.

I thought at Cree and judiciously.

Speaker 8: methodically and judiciously over the entire period, over the next 15-18 months.

Over the entire period over the next 15.

Grant Chum: So I think as as more I'll tell inventory is actually opening up and propensity improves people know you know the mechanical market is back with all the non gaming investments and events that are driving the interest in the definition. I think I think that base mass segment will naturally improve over time as it did already significantly this quarter. Okay great thank you all thanks.

Months.

So as to really.

Continuing to enhance yielding on the customer front.

Speaker 8: to enhance the yielding on the customer front, but at the same time try to get these works done as quickly as possible. I think the intent here is to move forward and complete the renovation and the repositioning of the entire south side of the resort, the Shererson's House, and Pacifica Gaming, as quickly as possible. The sooner we make the entire resort Londoner, the better it will be for everyone, and I guess I'll start off at this.

But at the same time.

Try to get these works done as quickly as possible.

The intent here is to move forward and complete the renovation and repositioning of the entire south side of the resort to Sharon's House Pacifica gaming as quickly as possible the sooner we make the entire resort.

The better it will be for everyone our gas.

Steven Grambling: Thank you the next question is coming from Steven Graham from Morgan Stanley Steven your line of life.

Business and brand positioning.

Speaker 8: and the brand positioning. So, the only other point I would make is we should take note that this part of the property portfolio is the lowest yielding part of the entire Cotai portfolio that we have, both on the hotel and the gaming side. So, we do hope to be able to successfully manage to minimize the disruption to the business. But when we get to completion on the other side,

No.

The only other point I would make is we should take note that this part of the property portfolio.

Steven Wieczynski: I think this may be a bit myopic but would love to hear a little bit more color on how golden week may be trending and how the pace of recovery is continued across different customer categories more recently especially around these big events that seem to have given kind of a step function move in the recovery historic. Lee, Steven Wieczynski, don't talk about current court or we'll keep that intact here as well.

Is the lowest yielding part of the entire <unk> portfolio that we have Albert on the hotel and the <unk>.

Gaming side, so we do hope to be able to successfully manage.

To minimize the disruption to the business, but when we get to completion on the other side.

Speaker 8: first half of 25, I think the earnings power through the holistic and expanded experience of the London and Macau will be significant.

In the first half of 'twenty five.

I think the earnings power through the holistic and expanded experience of the Londoner Macao.

Steven Wieczynski: I think you look at the numbers in the market, as you can see, the strength of Gold Wieczynski is pretty evident on the numbers driven by the government and other sources, but we never comment about the court.

We will be significantly enhanced that's the goal.

Hello, Ed.

Speaker 6: And just sort of one thing to think about. Yeah, one thing to think about. So we're very focused on return on investment capital and growth in the cap. And so our anticipation is that the returns on these investments will be commensurate with those that we had previously and will drive meaningful growth. And by the way, the initial market reaction to this product.

Just sort of one thing to think about yes, one thing to think about so we're very focused on return on invested capital and growth in Macao.

Unknown Executive: Fair enough, and maybe changing to something more suited in the ground. Go ahead. Sure.

So our anticipation is that the returns on these investments will be commensurate with those that we had previously and will drive meaningful growth.

Grant Chum: One of your two would love to just hear anything around potential near term disruption. I think that that's going to be starting in November and then when that might be told most when we can anticipate the reramp. Yeah, I'll turn the grant a little bit of disruption, but we still feel so the addition results on the obviously we're looking at as a future hope that one of these prospects. My grand take it through 24 of both room and can see on seeing that better and how we see it.

And by the way the initial market reaction to this product.

Speaker 6: really what's been brought online so far really helps us with his view. Given the customer response and the performance of the asset in the long run, we'll be believed that the completed lender, when it's done, will be on par with the Venetian. That's where our target.

Really to what's been brought online so far it really helps us with this view given the customer response and the performance of the asset in the long run we believe that the completed wonder what its done will be on par with the Venetian.

What are targeted.

Speaker 3: I don't have the grants comments, Steven, just again, the size of the scale.

I'd also add that grants comments, Stephen just again the size and scale.

Speaker 3: And our portfolio gives us flexibility. The $10,000,000 other rooms, money, and seems to be plus or two. So...

Our portfolio gives us flexibility to.

Other rooms money can seamlessly move customers too so.

Speaker 3: I think we minimize the disruption and maximize the opportunity to deploy the rest of our assets to keep our business strong. Despite that, and the Patrick's comment, one of those things can be a job or not. There'll be neck and neck maybe it seems those two assets are going to be hugely important in the future, but Gage is 24 while not easy. I think it's very manageable for team deployed in the office and the portfolio intelligently.

We minimize the disruption to maximize the opportunity to deploy the rest of our assets to keep our business strong despite the Patrick's comment.

Grant Chum: Yeah, sure. I think clearly we will work to minimize the impact on the guest experience and the business operations, but this is something that we have managed many, many times over the years. And indeed we did that during 2019 when we started to hold the in conversion into the London hotel. I think you'll see some disruption on the gaming side in the middle of next year. And I think we'll be managing the the chariot and tower renovation methodically and judiciously over the entire period over the next 15, 18 months.

Things can be a juggernaut there'll be neck and neck, maybe exceed those two assets are going to be hugely important future, but going through 'twenty four while not easy I think is very manageable with the team deployed assets in the portfolio intelligently.

Thanks, and I'll jump back in the queue.

Okay. Thank you.

Thank you. The next question is coming from Chad Beynon from Macquarie Chad Your line is live.

Speaker 2: Thank you. The next question is coming from Chad Bainon from Macquarie. Chad, your line is live.

Chad.

Grant Chum: So as to really continue to enhance the yielding on the customer front, but at the same time try to get these works done as quickly as possible. I think the intent here is to move forward and complete the renovation and the repositioning of the entire south side of the resort, the chariot and towers and Pacifica gaming as quickly as possible. The sooner we make the entire resort Londoner, the better it will be for for everyone, our guests, our staff, our business and the brand positioning.

Chad Please check your mute button your line of life, if you wish to ask a question.

Okay, we can come back to chat later.

The next question is coming from Shaun Kelley from Bank of America, John Your line is live.

Hi, good afternoon everybody.

On.

Speaker 12: I just wanted to go back to the margin of the Macau and maybe that flow through discussion a little bit more. If we look at it, it does look like flow through just coincidentally with a bit better in the third quarter here than in the second. I was wondering if we get a little color on maybe some of the mix and backs that drove that. Was that normalized staffing? Was it some of the non-gaming amenities which are now kind of fully back on, which flow through at really good rates like retail? And hotel was it sort of the base mass mix coming back? Just kind of how do you see it in terms of what maybe some of the factors were that drove that because it does look quite impressive.

I just wanted to go back to that.

The margins in Macau, and maybe that's one of the true discussion a little bit more.

If we look at it does look like flow through just sequentially it was a bit better.

Grant Chum: So the only other point I would make is we should take note that this part of the property portfolio is the lowest yielding part of the entire co-type portfolio that we have both on the hotel and the gaming side. So we do hope to be able to successfully manage to minimize the disruption to the business. But when we get to completion on the other side in the first half of 25, I think the earnings power through the holistic and expanded experience of the Londoner Macao will be significantly enhanced.

The third quarter here then in the second I was wondering if we can get a little color on sort of maybe some of the mix and match that drove that was that.

Normalized staffing was it some of the non gaming.

I think is what you are now kind of fully back on which flow through at really good rates like retail and hotel was it sort of the base mass mix coming back just kind of how do you see it in terms of what maybe some of the factors were that drove that because it does look quite impressive.

Thanks for that and I. Appreciate the question I will tell you that there's there's a little bit of magic to it it's called revenue increased 28, 9%.

Speaker 6: thanks for that and appreciate the question. I will tell you that there's there's a little bit of magic to it. It's called revenue increased 28.9%. So for us...

So for US it really is just more people showing up spending money at the product recognizing how great. It is an increased demand.

Robert Goldstein: Let's go. And just sort of one thing to think about. Yeah, one thing to think about. So we're very focused on return on investment capital and growth in Macao. And so our anticipation is that the returns on these investments will be commensurate with those that we had previously and will drive meaningful growth. And by the way, the initial market reaction to this product really to what's been brought online so far really helps us with this view.

Speaker 6: more people showing up, spending money at the product, recognizing how great it is, and increased demand. I mean, it's a phenomenal product. We were there last week. It really looks great. The team is

And all of our products over there last week.

It looks great. The team is really providing unbelievable customer service and it's a highlight for Macau.

Speaker 6: is really providing unbelievable customer service. And it's a highlight for Macau, it's a great asset and will continue to grow. And for us, it was just covering the fixed cost base. You know, we just had to get open and it was not a known product in the market. People are starting to figure it out and it's gonna keep growing. And so for us, this was really just growth and revenue across all segments. That was really the secret.

It's a great asset and we will continue to grow and for US. It was just covering the fixed cost base. We just had to get open it was not a known product in the market people are starting to figure it out and it's going to keep growing and so for US. This was really just growth in revenue across all segments that that was really the secret to it.

Robert Goldstein: Given the customer response and the performance of the asset in the long run will you believe that the completed Londoner when it's done will be on par with the Venetian. That's where our target. I also have the Grant's comments, Stephen, just again, the size, the scale, and what portfolio gives us flexibility, the $10,000,000,000 other rooms money is seen as the new customers too, so I think we minimize the disruption and maximize the opportunity to deploy the rest of our assets, to keep our business strong despite that, and the Patrick's comments, one of those things can be a juggling on, they'll be neck and neck, maybe it seems those two assets are going to be hugely important in the future, but can you do 24 while not easy? I think it's very manageable to keep the employees in their assets in the portfolio intelligently.

Okay.

Speaker 12: Thanks, Patrick. And then as my follow-up, I wanted to dig a little deeper into the buyback authorization, obviously a big kind of strategic change. Could you give us a couple parameters? I mean, pre-COVID, the company was actually pretty high on its sort of overall payout ratio. You obviously have a pretty ambitious capital program across potentially New York, certainly what you wanna do on the big project in Singapore, some renovation activity, and some of the CapEx in Macau. So should we think in parameters of a payout ratio and maybe how could we put some numbers around that if possible? And then also help us think about medium-term leverage, just given you're probably the most under-leveraged gaming company I've ever covered. So a big compliment to where you sit at the moment, but obviously presents a lot of potential firepower there.

As Patrick and then.

My follow up I, just wanted to dig a little deeper into the buyback authorization, obviously, a big kind of strategic change could you give us a couple of <unk>.

<unk> three.

The company was actually pretty high on its sort of overall payout ratio you, obviously have a pretty ambitious capital program across potentially New York certainly what you want to do on this on the Big project in Singapore, some renovation activity and some of the Capex in Macau So should.

Should we think and parameters of the payout ratio and maybe how can we.

Put some numbers around that if possible and then just help us think about medium term leverage just given.

Unknown Executive: Thanks, and I'll jump back in a few. Okay, thank you. Thank you.

Probably the most under Levered gaming company out of recovered so a big complement to where you sit at the moment, but obviously, but that's a lot of a lot of potential firepower there.

Chad Beynon: The next question is coming from Chad Beynon, from Macquarie. Chad, your line of life.

So really it really appreciate the commentary and the question I will tell you. So right now we're sitting on about $5 $6 billion worth of cash system wide.

Speaker 6: So really, really appreciate the commentary and the question. I will tell you so right now, we're sitting on about $5.6 billion for the cash system-wide.

Speaker 6: Macau is starting to become very cash generative, Singapore is very cash generative.

Unknown Executive: Chad, please check your mute button, your line of life if you wish to ask a question. Okay, we can come back to Chad later.

<unk> is starting to become very cash generative, Singapore is very cash generative. So the way we think about this is due to the timing of our development obligations and those cash flows we will be able to do.

Speaker 6: So, the way we think about this is due to the timing of our, our development obligations in those cash flows, we will be able to do all we'll be able to invest in our, in our core markets and grow through organic growth and through redevelopment of of key assets. We'll be able to do, we'll be able to do our, our concession commitments in Macau, and then we'll have excess capital and we'll pursue New York and we're going to do other growth opportunities in new jurisdiction.

We will be able to invest in our core markets and growth through organic growth and through redevelopment of key assets will be able to do IR will.

Sean Kelley: The next question is coming from Sean Kelly, from Bank of America, Sean, your line of life.

Patrick Dumont: Hi, good afternoon, everybody. I just want to go back to the margin and make out and maybe that flow through discussion a little bit more. If we look at it, it does look like flow through, just clench the lead with a bit better in the third quarter here than in the second. I was wondering if we get a little color on maybe some of the mix impacts that drove that. Was that normalized staffing?

We will be able to do our concession commitments in Macau and then we will have excess capital and we will pursue new York in order to pursue other growth opportunities in new jurisdictions, and we will be able to do at all because of the timing of the cash flow. The cash we have on hand, and the cash generative nature of our assets. So in terms of a payout ratio.

Speaker 6: And we'll be able to do it all because of the timing of the cash flow, the cash we have on hand, and the cash generated nature of our assets. So, in terms of a payout ratio.

Speaker 6: As we addressed earlier in the call, we're not going to be as heavily weighted towards dividends as we were before. So if you look on page 30, we sort of included a look on what our prior return of capital programs looking like for both sheriff versus some dividends. And on page 30, well, you'll see it historically, we're very dividend weighted. At your point about payout ratio, we don't typically guide to payout ratio, but the point is well taken.

As we addressed earlier in the call, we're not going to be as heavily weighted towards dividends as were before so if you look on page 30, we sort of included a look.

Patrick Dumont: Was it some of the non-gaming amenities which are now kind of fully back on, which flow through at really good rates like retail and hotel? Was it in terms of maybe some of the factors or the drove that because it does look quite impressive? Thanks for that and I appreciate the question. I will tell you that there's a little bit of magic to it. It's called revenue increase 28.9%. So for us, it really is just more people showing up, spending money at the product, recognizing how great it is, and increase demand.

Our prior return of capital programs looking like for both share repurchase and dividends and on page 30, what Youll see is historically were very dividend weighted at your point about payout ratio. We don't typically guide to payout ratio, but the point is well taken and we're looking really to flip it. So for US. The majority is actually going to end up being share repurchases.

Speaker 6: we're looking really to flip it. So, for us, the majority is actually going to end up being shareholder purchases because we're very focused on growth. So, if we can grow the company's EPS through share shrink, we're going to do it. If we can grow through capital allocations or high-growth projects, we're going to do it. It's really an ROIC, and we're going to pursue it aggressively. And the good thing is we've got cash on the balance sheet. We've got cash-generated assets. And we have a historical program to provide a good guide that we can launch off of and really hopefully drive real shareholder return in the future. So, that's kind of how we're thinking about it.

Is because we're very focused on growth. So we can grow the companies.

<unk> through share shrink, we're going to do it we can grow through capital allocation through high growth projects, we're going to do it it's really an ROIC and we're going to pursue it aggressively and the good thing is we've got cash on the balance sheet does that cash out of assets and we have a historical program to provide a good guide that we can launch off of and really hopefully drive real shareholder return in the future is that kind of how we're thinking of.

Patrick Dumont: I mean, it's a phenomenal product. There, last week, it really looks great. The team is really providing unbelievable customer service and it's a highlight from a cap. It's a great asset and we'll continue to grow. And for us, it was just covering the fixed cost base. We just had to get open and it was not a known product in the market. People are starting to figure it out and it's going to keep growing. And so for us, this was really just growth and revenue across all segments. That was really the secret to it. Thanks Patrick.

Got it.

Thank you very much.

Speaker 6: All right, one thing, thank you, Dan. You mentioned leverage, and this is a very important thing. So prior to the pandemic, we spent about five years transforming the company to be an investment grade name. We thought this was really important. It gives us access to the largest most liquid debt market in the world, because it's a very efficient cost of capital, which in the long run provides flexibility, but also drives returns on our new project.

Alright, one thing thank you Dan.

You mentioned leverage and this is a very important thing.

Prior to the pandemic, we spent about five years transforming the company to be an investment grade name. We thought this was really important it gives us access to the largest most liquid debt market in the world because it's a very efficient cost of capital, which in the long run provides flexibility, but it also drives returns on our new projects and so having this investment grade balance sheet also helps us in new.

Patrick Dumont: And then, as my follow-up, I want to dig a little deeper into the buy-back authorization. Obviously, a big strategic change. Could you give us a couple parameters? I mean, pre-COVID, the company was actually pretty high on its overall payout ratio. You obviously have a pretty ambitious capital program across potentially New York. Certainly, what you want to do on this on the big project in Singapore, some renovation activity, and some of the catbacks in the cow.

Speaker 6: And so having this investment grade balance sheet also helps us in new jurisdictions because we have the financial capability to execute on projects we propose. So for us, we like being leveraged two to three times on a growth basis. We've said it before, you've heard it from us on prior calls, nothing's changed. We still believe that. We think we'll deliver over time through EBITDA expansion, but more importantly, I think for us, that's the key metrics that we maintain our investment-grade rating for all the benefits we just described. So that's kind of how we're thinking about it.

<unk>, because we have the financial capability to execute on projects. We proposed so for US we like being leveraged two to three times on a gross basis, we've said it before.

You've heard it from us on prior calls Nothing's changed we still believe that we think will delever over time through EBITDA expansion, but more importantly, I think for us Thats a key metrics that we maintain our investment grade rating for all the benefits. We just described so that.

Patrick Dumont: So, should we think in parameters of a payout ratio and maybe how could we put some numbers around that if possible? And then, I'll just help us think about medium-term leverage, just given you're probably the most underlever gaming company I've ever covered. So, a big compliment to where you sit at the moment, but obviously, present a lot of a lot of potential firepower there. So I really, really appreciate the commentary and the question.

Kind of how we're thinking about it.

Thank you for that.

Thanks, John .

Thank you. The next question is coming from Brian <unk> from Barclays. Your.

Speaker 4: Thank you. The next question is coming from Brandt Montor from Berkeley's. Brandt, your line is live.

Your line is live.

Patrick Dumont: I will tell you so right now we're sitting on about $5.6 billion worth of cash system-wide. Macau has started to become very cash-generative, Singapore is very cash-generative. So the way we think about this is due to the timing of our development obligations in those cash flows, we will be able to invest in our core markets and growth, organic growth, and through redevelopment of key assets, we'll be able to do our concession commitments in Macau and then we'll have excess capital and we'll pursue New York and we're going to pursue other growth opportunities and new jurisdictions and we'll be able to do it all because of the timing of the cash flow, the cash we have on hand, and the cash-generative nature of our assets.

Speaker 13: Great. Good evening, everybody. Thanks. So, for Marina Bay Sands, first, in your slide, you show flight capacity hovering around 80% recovered. Based on the momentum that you guys have seen in that asset, do you still feel like you need that last 20% of China inbound to fully recover to hit that $2 billion run rate target? And can that, can that happen actually while Tower 3 is under reno?

Good evening everybody. Thanks.

For Marina Bay Sands first in your slide you showed flight capacity hovering around 80% recovered.

Based on the momentum that you guys are seeing in that asset do you still feel like you need that last 20% of China inbound.

We recovered to hit that $2 billion run rate target and can that.

Can that happen actually while tower three is under Reno.

What's happening is in order.

Speaker 3: I mean, this quarter we just did, you know, it's 490. I hate to say this is happening. It goes.

We just.

<unk> hundred 90.

I think the same thats happening.

Good question do we need to we always need China, let's be clear about that we always want more business more countries.

Speaker 11: We always need China, let's be clear about that. We always want more business in all countries.

Patrick Dumont: So in terms of the pale ratio, as we addressed earlier in the call, we're not going to be as heavily weighted towards dividends as we were before. So if you look on page 30, we sort of included a look on what were our prior return of capital programs looking like for both share repurchases and dividend. And on page 30, well you'll see it's historically we were very given and weighted. At your point about pale ratio, we don't typically guide to pale ratio, but the point is, well taken, we're looking really to flip it.

But I think what Youre seeing Singapore is a very diverse bunch of assets all coming together I think the bigger story is the suite product, which you haven't you haven't seen us pretty extraordinary when it goes from 200 to 790 770.

Speaker 11: A bunch of that that's all coming together. I think the biggest story is a sweet product when she haven't seen it's pretty extraordinary.

Speaker 11: When it goes from 200 to 797.70, it's just a very potent combination of great food and beverage, great service.

It's just a very potent combination of great food and beverage great service that enables us to get to places we've never thought of before the real question for me is I think 2 billion is our goal in the future beyond the real question is when you get more China when you get more flights when you open up totally.

Speaker 11: and enables us to get places we've never thought of before. The real question of me is, I think, $2 billion is our goal in the future and beyond.

Speaker 11: The real first is when you get more China, when you get more flights, when you've opened up totally.

Patrick Dumont: So for us, the majority is actually going to end up being share repurchases because we're very focused on growth. So we can grow the company's EPS through share shrink. We're going to do it. We can grow through capital locations or high growth projects. We're going to do it. It's really an ROIC and we're going to pursue it aggressively. And the good thing is we've got cash on the balance sheet, we've got cash-generative assets, and we have a historical program to provide you good guide that we can launch off of and really hopefully drive real show over return in the future. So that's kind of how we're thinking about it. Thank you very much. Sorry, one thing. Thank you, Dan.

Speaker 11: You know, the front of that, we can talk about six or eight, we're open about six quarters of now.

We talked about before it's been open about six quarters of now if you follow the trajectory of Singapore, We're hoping the same thing absent account early stages, Macau, Singapore opened up it wasn't that powerful first couple of quarters.

Speaker 11: If you follow the trajectory of Singapore, we're hoping to see any gaps in Macau. We're at early stages in Macau.

Speaker 11: The thing that were opened up, it wasn't that powerful in the first couple quarters. You know, it lived long, all of a sudden it caught fire and now it's suddenly performed. Where's the, where's the five-house strongies?

And then along all of a sudden it caught fire and now suddenly performed were surprised how strong it is.

Speaker 11: And because the place is kind of torn up, if you've been there, it's got some real challenges from a physical perspective.

Because the places kind of torn up have you been there. It's got some real challenges from a physical perspective. So to answer. Your question. We think we can get through without more one more we'll take all the customers.

Speaker 11: So to answer your question, we think we can get there without more or want more. We'll take all the customers we can get. We think this is a unicorn asset. It's one of those places you just want to go to. You'll pay up for whether it be a room product or a gaming opportunity at retail. It just is going to keep getting stronger. Do we think it's achievable? Yes, but we prefer to have all airlift coming in and all the potential customers and try to have business. Sure. We just have a huge faith in this product. We don't think two is the end. It's the beginning.

Patrick Dumont: You mentioned leverage. And this is a very important thing. So prior to the pandemic, we spent about five years transforming the company to be an investment grade name. We thought this was really important. It gives us access to the largest most liquid debt market in the world because it's a very efficient cost of capital, which in the long run provides flexibility, but also drives returns on our new projects. And so having this investment grade balance sheet also helps us in new jurisdictions because we have the financial capability to execute on projects we propose.

We think this is a unicorn asset is one of the places you just want to go too youll pay up when the room product or the gaming opportunity retail. It just is going to keep getting stronger. So we think it's achievable, yes, but we prefer to have all that's coming in and all the potential customers in China may be sure.

We seven huge faith in this product we don't think two at the end at the beginning we're in.

Speaker 11: So I do think it's important to look at the kind of benefit of understanding we've gone from a dead stop in January to back to the very difficult times of no incoming to a mere nine-month labor, about 80% of Q3, 19. But how much further can I go? I think a lot more. If you look at Singapore, the study object, I think it's very telling what's gonna happen in the count.

So I do think it's important to give the Cabot benefit of understanding we've got the dead stop in January back to the very difficult times, there's no one coming to a mere nine months later, we're about 80% of Q3 19, but how much further can go I think a lot more if you look at the.

Patrick Dumont: So for us, we like being leveraged two to three times on a growth basis. We've said it before. You've heard it from us on prior calls. Nothing's changed. We still believe that. We think we'll deliver over time through EBITDA expansion, but more importantly, I think for us, that's the key metrics that we maintain our investment grade rating for all the benefits we just described. So that's kind of how we're thinking about it. Thanks for that. Thank you.

Singapore This trajectory I think it's very telling what's going to happen in Macao.

Speaker 3: So I think, again, another illustration of what's happening was on page 25. I think the retail spot is just.

So I think again another illustration of what's happening in Singapore is on page 25, I think the retail slides is just.

Speaker 3: you have to look at it. I don't know how many malls you guys have spent time in, but $3,000 a foot is a pretty good local mall. The Four Seasons Macau is $8,400 a foot in the luxury segment, and $3,700 in non-luxury. Even Venetian Macau, which is not a necessary luxury mall, is doing $1,700 a foot. So the power of the spending right now in the retail opportunity always seems to happen first. The gaming seems to follow. It's happened in Singapore. It's going to happen in Macau.

Look at it I don't mean malls you guys spend time in about 3000 Bucks a foot is attributed to local mall.

Brandt Montour: The next question is coming from Brandt Montor from Berkeley's. Brandt, your line is live. Great.

Patrick Dumont: Good evening, everybody. Thanks. So for Marina Bay's fans first in your slide, you show flight capacity hovering around 80% recovered. Based on the momentum that you guys have seen in that asset, do you still feel like you need that last 20% of China inbound to fully recover to hit that $2 billion run rate target? And can that can that happen actually while Tower 3 is under Renault? What's happening, isn't it? I mean, this quarter we just did 490.

The four seasons Macao is 8400 foot in the luxury segment and 3700 non luxury.

Niche Macau, which is not necessarily luxury most 1700 bucks a foot so the power of the spending right now.

Retail opportunity and we've seen that happen first the gaming seems to fall as happened in Singapore, it's going to happen in Macao.

Speaker 11: But to your question, we have huge confidence in the future of MBS. I think our investments will prove, in the end, with networks in these places, supremely strong buildings with great service and great architecture. And that's what you have residing in MBS.

To your question, we have huge confidence in the future of MBS and I think our investments will prove in the end with networks and these places Supreme week strong buildings with Great service and Great architecture, and that's what you have residing in MBS.

Patrick Dumont: I hate to say that it's happening. Good question. Do we need to say China must be clear about that. We always want more business in small countries. But I think what you're seeing Singapore is a very diverse bunch of assets coming together. I think the biggest story is a sweet product, which you haven't seen. It's pretty extraordinary. When it goes from 200 to 777, it's just a very potent combination of great food and beverage, great service and enables us to get places we've never thought of before.

Great that's super helpful and then over in Macau.

Speaker 13: Great, that's super helpful. And then over on Macau, on slide 14, it shows the wind per visitor coming down quarter over quarter, it's the second quarter that's declined. Is that sort of wholly explainable by the reallocation of tables to base mass, which we talked about earlier in the call, or is there any other constraints that you'd wanna highlight why that sort of wind per visitor is hovering around, yeah, some of the quarters that we saw in 2019.

On slide 14.

It shows the win per visitor coming down quarter over quarter, it's the second quarter that's declined.

Is that sort of Holy.

Explainable by the reallocation of tables to base mass, which we talked about earlier in the call or is there any other constraints that you'd want to highlight why.

Patrick Dumont: The real question of me is I think $2 billion is our goal in future and beyond. The real question is when you get more China, when you get more flights, when you've opened up totally. You know, the thing that we talked about is it's been open about six quarters of now. If you follow the trajectory of Singapore, we're hoping it's anything else in the calmer. We're in early stages in the cal.

Why that sort of wind for visitors hovering around some of the quarters that we saw in 2019.

Patrick Dumont: The thing that we're opened up, it wasn't that powerful in the first couple quarters and you know, it's been prolonged and all of a sudden it caught fire and now it's suddenly performed. We're surprised how strong it is and because the place is kind of torn up. If you've been there, it's got some real challenges and a physical perspective. So to answer your question, we think we can get there without more of a lot more.

Speaker 6: Just a quick thought on page 14. This is really driven by visitation by the number of visitors who are showing up to the market as it averages down. But I would like Grant to comment if he's any thoughts just for some additional color.

Just a quick thought on page 14.

This is really driven by visitation by the number of visitors who are showing up to the market added average is down but I would like to comment if he has any thoughts just some additional color.

Yes, Thanks Patrick.

Speaker 8: Yeah, thanks Patrick. No, I think what you're seeing is...

I think what you're seeing is the.

Speaker 8: The E-Volition Premium Mass coming back first. So for the first couple quarters after the borders reopened, you...

<unk> premium mass coming back to us so for the first couple of quarters. After the board has reopened.

So.

Speaker 8: The revenue per Macaupe is a tell rival, which is what this page shows.

The revenue curve Macau visitor arrival, which is what this page shows.

Patrick Dumont: We'll take all the costs to leave you get. We think this is the unicorn asset. If one is placed and you just want to go to, you'll pay up for the room product or the gaming opportunity to retail. It's just there's going to keep getting stronger. Do we think it's achievable? Yes, but we prefer to have, you know, all air lifts coming in and all the potential costus and try out visiting shore.

Speaker 8: skyrocketed versus the historical levels.

Sky rocketed versus historical levels.

Speaker 8: and you're now obviously getting more of the base mass, especially during the summer. So, you are normalizing. But it's important to note that you are still getting a much higher quality mix of customers, even with that, when you compare to the same quarter in 2019. So, I think from this slide, you can see it's 610 per visitor.

And you are now obviously getting more of the base mass, especially during the summer. So you are normalizing, but it's important to note that you are still getting a much higher quality mix of customers, even with that when you compared to the same quarter.

Patrick Dumont: We just have a huge faith in this product. We don't think two is the end. We're beginning, we're in. So I do think it's important to look at the kind of benefit of understanding we've gone from a dead stop in January back to the very difficult times of no-one coming to a mere nine line slave about 8% of Q3, 19. But how much further can I go? I think a lot more if you look at the, if you look at Singapore just a trajectory, I think it's very telling what's going to happen in the count.

In 2019, so I think from this slide you can see 610.

Visitor arrival in in this quarter.

557.

Speaker 8: 557 in the same quarter in 2019. So the narrative continues that you are getting that high quality across every segment, a higher spend per capita, but between the premium and base mass, you're now seeing the base mass starting to accelerate, especially during those July and August .

In the same quarter in 2019 so.

The narrative continues that you are getting that high quality across every segment our highest spend per capita but between the premium and base mass you are now seeing the base mass starting to accelerate especially during those July August summer months.

Patrick Dumont: So, you know, I think again, another illustration of what's happening seems was on page 25. I think the retail spot is just, you have to look at it. I want me to call you guys to spend time in about 3,000 bucks a foot is a period to local mall. The four season of Cal is 8,400 foot in the luxury segment and 3700 in the long laundry, the Indonesian Macau, which is not a necessarily luxury mall, it's doing 17 or bucks a foot.

Got it so just sorry to clarify so its mix to the base mass but also.

Speaker 13: Got it. So just sorry to clarify, so it's mixed to the base math, but also, well, more well-heeled customers that might be gambling slightly less like families and such. Is that kind of way to look at it?

More well heeled customers that might be gambling slightly less like families and such as that kind of the way to look at it.

Patrick Dumont: So the power of the spending right now in the retail opportunity, they always seem to happen first. The game seems to follow us, happens to be important to happen in the Cal. But to your question, we have huge confidence in the future of MBS. I think our investments will prove in the end, it will have networks in any places. It's a extremely strong buildings, with great service and great architecture. And that's what you have residing in MBS.

Okay.

No.

Speaker 8: No, this is actually showing you that the mass revenue per visit arrival is actually higher than the same quarter in 2019.

Is actually showing you that the the the mass revenue per visitor arrival is actually higher.

In the same quarter in 2019.

So actually.

Speaker 8: It's a dress that is the highest spend to a capital. It's actually prevalent.

Suggest that the higher spend per capita.

It's actually prevalent in all segments.

After market right now.

Speaker 8: And that also shows through in the gaming, I started the retumble that well reference as well.

And that also shows through.

In the gaming I'm, sorry in the retail mall that Rob referenced as well.

Patrick Dumont: Great. That's super helpful. And then over on Macau on the slide 14, it shows the wind per visitor coming down quarter of a quarter. It's the second quarter. That's declined. Is that sort of wholly explainable by the reallocation of tables to base mass, which we talked about earlier in the call, or is there any other constraints that you'd want to highlight why, why that sort of wind per visitors hovering around, yeah, some of the quarters that we saw in 2019.

Perfect. Thanks for all the color Thanks Ross.

Yes.

Thanks, Brian .

Speaker 4: Thank you. The next question is coming from George Troy from City.

Thank you. The next question is coming from George Choi from Citi.

George Your line is live.

Thank you very much while we do believe cancers can help to get incremental referenced in Macau, how should we think about the associated incremental expenses and then I guess more specifically do you expect a decent chunk concert at the Benicia this month to be EBITDA accretive and margin.

Speaker 4: Thank you very much. While we do believe concerts can help to get incremental reprise in the cow, how do we think about the associated incremental expenses? And I guess most of the century, do you expect the decent chance concerts and the Venetian this month to be both a creative and much enhancing at the same time?

Patrick Dumont: Just a quick thought on page 14. This is really driven by visitation by the number of visitors who are showing up to the market added averages down, but I would like Grant to comment if he's any thoughts just for some additional color. Thanks, Patrick. No, I think what you're seeing is the evolution of premium mass coming back first. So for the first couple quarters after the borders reopened, you saw the revenue per Macau visitors arrival, which is what this page shows skyrocketed first as the historical levels.

Same time.

So one thing just to begin and thank you for the question Entertainment is a very important part of our business. We're very focused on using entertainment to drive premium mass visitation and create the programs that our customers feel like they'll get experiences with us They can't get other places to a very successful thing in Asia and in fact, we just recently opened.

Speaker 6: So, 1 thing just to begin and thank you for the question entertainment is a very important part of our business. We're very focused on using entertainment to drive premium as visitation and create the programs that our customers feel like they'll get experiences with us. They can't get in other places. It's a very successful thing.

Speaker 6: And in fact, we just really opened a brand new venue in the Londoner that allows us to do that in more scale. But I think for us these programs are very accretive. You know, directionally we think more entertainment as high quality is good, not only for the market, but also for diversification in the cabinet in Singapore. I think it brings a prominence and an entertainment glow to the region. But I would like to turn over to Grant, to see if he has any additional comments about entertainment across associated with it.

Brand new venue in the leather that allows us to do that and more scale, but I think for US. These programs are very accretive.

Directionally, we think more entertainment that's high quality is good not only for the market, but also for diversification in Macao and Singapore I think it brings our prominence in and an entertainment.

Patrick Dumont: And you are now obviously getting more of the base mass, especially during the summer. So you are normalizing, but it's important to note that you are still getting much higher quality mix of customers, even with that when you compare to the same quarter in 2019. So I think from this slide, you can see it's 610 per visitor arrival in this quarter versus 557 in the same quarter in 2019. So the narrative continues that you are getting that higher quality across every segment, a higher spend per capita, but between the premium and base mass, you're now seeing the base mass starting to accelerate, especially during those July and August summer months.

Low to the region, but I would like to turn it over to grant and CCA has any additional comments.

About entertainment and costs associated with it.

Yes.

Yes, I think we've always been pursuing the entertainment strategy.

Speaker 8: Yeah, I think we've always been pursuing the entertainment strategy to create a...

To create.

Speaker 8: better, more attractive destination, and that that hasn't stopped.

A better.

A more attractive destination.

And that Hasnt stopped.

Speaker 8: Since the borders reopen, in fact, we have been

Since the board has reopened in fact, we have seen.

Speaker 8: Redoubling our efforts as Patrick Sird with the opening of the London Arena in May and June .

Redoubling, our efforts as Patrick said with the opening of the London Arena.

May and June so if you look at the third quarter, we actually did around 15 different.

Speaker 8: So if you look at the third quarter, we actually did around 15 different show events.

Show events.

Speaker 8: With about 19 performances across the two arenas and obviously in some only 13 Weekends in the quarter. So there were some weekends where we are doing both a show at the Londoner and also in

With about 19 performances across the two arenas.

Honestly in some weekends.

We can in the corner. So there were some weekends, where we are doing.

Both the show at the London and also in the Venetian.

Patrick Dumont: No, this is actually showing you that the mass revenue per visit arrival is actually higher than the same quarter in 2019. So actually, you suggest that the highest spent our capital is actually prevalent in all segments of the market right now. And that also shows through in the gaming market. I'm starting to re-tumble that well-reference as well.

And we believe this is critical.

Driving not just the diversification.

Speaker 8: driving not just the ductification in Macau and the non-gaming, but also to enhance the Effects.

In Macau in the non gaming.

But also to enhance the attractiveness.

And the propensity to come to the destination, especially on our properties and we can see the impact on our business.

Speaker 8: especially our properties, and we can see the impact.

Speaker 8: The economics office hasn't changed. We've done this for 15 years, so we know how to calibrate the investment in attainment.

The economics of this Hasnt hasnt changed and we've done this for 50 years. So we have to calibrate the inverse.

Grant Chum: Perfect. Thanks for all the color. Thank you. Thanks, friends.

<unk> Entertainment.

Speaker 8: term we get on the overall resource spending and also there are different types of partnerships that we do in entertainment events and that can range from just pure venue rental.

Is that the return we get on the overall regional spending.

George Choi: Thank you. The next question is coming from George Choi from City. George, your line is live.

And also there are different types of partnerships that we do and entertainment events.

And that can range from just pure.

Patrick Dumont: Thank you very much. While we do believe concerts can help you get incremental reps in the market now, how do you think about the associated incremental expenses? And I guess most of the specifically do you expect the decent chance concerts and the Venetian this month to build a creative and much enhancing at the same time? So one thing just to begin and thank you for the question. Entertainment is a very important part of our business.

And new rental.

Speaker 8: us being the actual promoter. So it varies and it's a calibration, it's an analysis between the revenue benefit that we get and the visitation benefit that we get versus the cost and also depends also potentially on the entertainment partner as well whether they invest or they want us to co-invest or us to invest.

The actual promoter so it varies and it's a calibration.

It's in that analysis between.

The revenue benefit that we get this patient benefit that we get.

As to costs.

And also it depends also potentially on the entertainment partner.

As well when they invest they want us to co invest.

So.

Patrick Dumont: We're very focused on using entertainment to drive preview mass visitation and create the programs that our customers feel like they'll get experiences with us. They can't get in other places. It's a very successful thing in Asia. And in fact, we just really opened a brand new venue in the Londoner that allows us to do that in more scale. So I think for us these programs are very accretive. You know, directionally we think more entertainment as high quality is good.

That really hasnt changed and we've been doing it for them.

More than a decade.

What has changed is that we are actually significantly increasing.

The content.

Since we now have.

Our new spectacular venue in London for.

Speaker 8: for life music, which is already getting great feedback in terms of quality.

Like music, which is already getting great feedback.

In terms of quality.

Patrick Dumont: Not only for the market, but also for diversification in Macau and in Singapore. I think it brings a lot of prominence and an entertainment glow to the region. But I would like to turn over to Grant as you be out in the additional comments about entertainment across associated with it. Yes, that's right. I think we've always been pursuing the entertainment strategy to create a better, more attractive destination. And that hasn't stopped since the borders reopened.

As a venue.

For the audience, but also for the office.

George I would say.

Speaker 11: George, I would say, in my experience, entertainment is an essential component of any top-tier resort. And you can never underestimate how powerful it is as a statement of customer, longevity, commitment. And honestly, for us, it's been a staple. I wish, with all the regret I have, we can't do more.

My experience entertainment is an essential component of any top tier resort you can you can never underestimate how powerful it is as the statement in customer longevity commitment and honestly for us has been the staple I wish.

We can do more.

Speaker 11: It's so powerful. Just like retail, it's part of the package and they want to come and visit. We've been so successful at the Venetian, be a renet and it was true in Las Vegas, it was true in LAX, it was true in A&P, it had our work.

So powerful just like retail just like it's part of the package that makes people want to come and visit the reason why we've been so successful at diminished would be reason and it was true in Las Vegas. It was true in <unk>. It was true in any place ever works. It's always been an essential component can be very powerful in Singapore as well so to me, it's not even a question.

Patrick Dumont: In fact, we have been redoubling our efforts as Patrick said with the opening of the Londoner arena in May and June. So if you look at the third quarter, we actually did around 15 different show events with about 19 performances across the two arenas. And obviously in some only 13 weekends in the pandemic, we are doing both a show at the Londoner and also in the Venetian. And we believe this is critical to describing not just the diversification in Macau in the non-gaming, but also to enhance the attractiveness and the propensity to come to the destination, especially our properties.

Speaker 3: It's always been an essential component to be very powerful in Singapore as well. So to me, it's not even a question, it's a question of how we do more of this stuff because it pays and pays and pays very powerfully.

Of course, how we do more of this stuff because it pays and pays and pays very pounds.

That's fair to kind of thank you very much.

Thanks George.

Thank you. The next question is coming from Bob.

Speaker 4: Thank you for the next question coming from Dan Politzer from El Fargo. Dan, your line is live.

Pulitzer from Wells Fargo Bonnie Your line is live.

Hey, good afternoon, everyone.

Speaker 14: Um, 1st, on on Singapore, the capex, the 750M for phase 2, how do you think about this? Maybe relative to your longer term expansion plans at the property? I know that that's been pushed out and the budget's probably higher than it initially was. But, I mean, is this more kind of a bridge to that or or how should we think about that? You know, long term, and maybe when we get an update there.

Singapore, the Capex the $750 million for phase two how do you think about this maybe relative to your longer term expansion plans at the property I know that's been pushed out in the budget is probably higher than initially was but I mean is this more kind of a bridge to that or how should we think about that long term.

And maybe when we get an update there.

Patrick Dumont: And we can see the impact on our business. The economics of this hasn't hasn't changed. We've done this for 15 years. So we know how to calibrate the investment and the entertainment. Justice, the return we get on the overall resource spending, and also there are different types of partnerships that we do in insane events, and that can range from just pure venue rental to us being the actual promoter. So it varies and it's the calibration.

Its commitment to phase one because the product is good as it was externally architecturally.

Speaker 3: It's committed to Phase One because the product is good as it was externally, architecturally. It's left, frankly, it was necessary that what happens to Phase Two is the best money would just spend to make that product successful and strong.

Frankly, it was necessary that what happens in phase two is the best money spent to make that product successful and stronger it's going to have enormous dividends in the future. The room product was lacking both from a size perspective, but also a finished perspective.

Speaker 3: enormous dividends in the future, the room product was lacking both from a size perspective but also a finish perspective.

Speaker 11: Some of the casinos space we just not very good

Some of the casino is basically just not very good I always felt the mbs's goods was architecturally.

Speaker 11: I always thought that MBS, as good as it was architecturally, it lacked the pizzazz inside the building. And in our business, great buildings always prevail and prevail for decades and just grow and grow. So that money is money very well spent. It's not connected at all. It's meant to make MBS One a very powerful two plus billion dollar product. We built it in Singapore years ago. The speculation was that it'd never be, you know, more than five, $600 million.

<unk> that possess inside the building.

Patrick Dumont: It's an analysis between the revenue benefit that we get and the patient benefit that we get versus the cost. And also depends also potentially on the entertainment partner as well whether they invest or they want us to co-invest or us to invest. So that really hasn't changed and we've been doing it for more than a decade. But what has changed is that we are actually significantly increasing the content because we now have a new spectacular venue in the Londoner for life music, which is already getting great feedback.

Our business, great buildings boys to avail, and prevail for decades, and just grow and grow so that money is money very well spent it's not connected at all it's meant to make Mds one a very powerful two plus billion product we built.

Singapore years ago, the speculation was that could never be more than $5 $600 million EBITDA.

Speaker 3: We're going to push through $2 billion and beyond, and I think it's a testament to reinvestment and spending money wisely. It doesn't have any association with Phase 2.

We're going to push through $2 billion and beyond and I think it's a testament to reinvestments and spend money wisely. It doesn't have any association with phase two Patrick base to.

Just.

Speaker 6: to follow with Rob said, so fundamentally, we believe it's a product that's in business, right? And so that investment in quality, investment in innovation with great service and guest experience are gonna drive the outside returns of

To follow on with Rob said, so fundamentally we believe there's approximately business right and so that investment in quality investment and innovation with great service and guest experience are going to drive outside returns overtime.

Patrick Dumont: In terms of quality as a venue, a birth for the audience, but also for the office. George, I would say in my statement, an essential component of any top two resort, and you can, you can never underestimate how powerful it is as a statement of the customer longevity, commitment, and honestly for us it's been a stable. I wish only one regret how we can't do more because it's so powerful. It's just like retail.

Speaker 6: Right. So, you know, I think you're seeing that with the Londoner. And in Marina Bay Sands, the rooms we just completed, Tower 1 and Tower 2, the design is luxurious, it's residential, it has unmatched levels of service. These are the best things we've ever done and they're basically setting a new standard for hospitality and customer experience at our property.

Right so.

I think youre seeing that with the Londoner.

And in Marina Bay Sands arose we just completed our one tower too.

The design is luxurious residential that is unmatched levels of service.

These are the best things, we've ever done and basically say, a new standard for hospitality and customer experience on our properties.

Patrick Dumont: It's like it's part of the package needs to want to come and visit. The reason why we have been so successful at diminishing the arena and it was true in Las Vegas. It was true in LAX City. It was true in any place that our works. It's always been an essential component to be very powerful in Singapore as well. So to me, it's not in the questions, of course, how we do more of this stuff because in pace and pace and pace. It's very powerful. That's very good. Thank you very much. Thank you, George.

Speaker 6: And to Rob's point, when Tower 3 is done, Marina Bay Sands is going to be the oldest hotel property in the world. We're really focused on it. From a food and beverage standpoint, from a retail standpoint, as Rob said before, from a guest experience standpoint, that's what we're focused on.

And to Rob's point wind tower three is done.

Unknown Executive: Thank you.

Sam is going to be.

Our property in the world focused on it from a food and beverage standpoint from a retail standpoint, as Rob said before from a guest experience standpoint, that's what we're focused on.

Speaker 6: IR2 is going to be something different. It's going to be a new standalone development. It's going to have unique spaces, unique design, unique service, but it's something that's probably

<unk> is going to be something different it's going to be a new standalone development.

Going to have unique spaces unique design service, but its something thats probably <unk>.

Speaker 6: six months to a year away, depending on how things go with approvals in order to get started. It will be additive to Marina Bay Sands. It will grow the market for us, be a different product, and allow us to also have a live entertainment venue in Singapore, which is something that we really haven't had in scale before.

Six months to a year away depending on how things go with approvals in order to get started.

Dan Politzer: The next question is coming from Dan Politzer from Wells Fargo. Dan, your line of life.

It will be additive to Marina Bay Sands and will grow the market for us to be a different product and allow us to also have a live entertainment venue in Singapore, which is something that we really haven't added scale before and so if you put the power of the Venetian and what we're doing the londoner with the value that Brad mentioned.

Patrick Dumont: Good afternoon, everyone. First, on Singapore, the capex, the 750 million per phase two. How do you think about this maybe relative to your longer term expansion plans at the property? I know that that's been pushed out and the budget's probably higher than it initially was. But I mean, is this more kind of a bridge to that or how should we think about that long term and maybe when we get an update there?

Speaker 6: And so if you look at the power of the Venetian and what we're doing in the Londoner with the venue that Grant mentioned.

Speaker 6: We will not have that capability in Singapore to drive high-value tourism, to drive further growth, and to really work that tourism that's related to live entertainment that we never really could do before.

That capability in Singapore to drive high value tourism to drive further growth and to really work that tourism.

That's related to live entertainment, but we never really could do before so for us the expansion room <unk> Sands is a step function in growth potential. We're looking forward to doing it we think it will be the unbelievable product we've been spending a lot of dive on it.

Speaker 6: So for us, the expansion of Marina Bay Sands is a step function in growth potential. We're looking forward to doing it. We think it'll be an unbelievable product. We've been spending a lot of time on it and hopefully we'll get a chance to start soon, but completely different thing.

Patrick Dumont: It's committed to phase one because the product is good as it was externally architecturally. It's left. Frankly, it was necessary that what happened to phase two is the best money would just spend to make that product successful and stronger. It's going to have enormous dividends in the future. The room product was lacking both from the size perspective, it also finished perspective. Some of the casinos space was not very good. I always thought the MBS is good as well as architecturally is lack that is at inside the building.

And hopefully we will get a chance to start soon but completely different thing.

Got it thanks, and then just moving to Macau.

Speaker 14: Got it. Thanks. And then just moving to Macau, I think for the last two to three quarters, your non-rolling ship win has been kind of in that 22 to 23% range. Is this a function of just really, you know, premium mass being a bigger piece of the mix or, you know, and so we should think about this kind of edging up over time back to that 23 to 24% plus range, or is there something different in this market? And I'm sorry to harp on, you know, 1%, but when we're talking $24 billion, you know, I'm very... You're right to harp on it.

I think for the last two.

Two to three quarters. Your your non rolling chip win it's been kind of in that 22% to 23% range is this a function of just really premium mass being a bigger piece of the mix or so.

So we should think about this kind of hedging.

Hedging up over time back to that 23% to 24% plus range or is there something different in this market and I am sorry to harp on 1%, but when we're talking 24 billion.

Patrick Dumont: And in our business, great buildings, boys, prevail and prevail for decades and just grow and grow. So that money is money very well spent. It's not connecting at all. It's meant to make MBS one. It's a very powerful two plus. We built many Singapore years ago. The speculation was it'd never be more than five six hundred million dollars. Here, we're going to push through two billion and beyond. And that is a testament to the re-investment is paying money wisely.

Hum.

Youre right to harp on it.

Think about quite a bit.

Speaker 3: quite a bit. You know, your question is an excellent one, and we look at it all the time. I was before last night with our...

Quite a bit.

<unk> is an excellent one and we look at all the time I was the phone last night with our teams' mchouses discussing as fast things, we won't have the honest answer to tell you exactly why the entire industry seems to be down a point or two points is very impactful.

Speaker 3: I keep my cows is disgusting and fast things. We don't have an honest answer to tell you exactly why the entire industry seems to be

Speaker 11: down a point, point, and a half, two points. It's very impactful. The kind of money we're talking about, it'd be worth probably, you know, a couple hundred million dollars a year to let something go back 2% and just eat the top.

Patrick Dumont: It doesn't have any association with phase two. Patrick, face to. Yeah, just to follow with Rob said, so fundamentally, we believe it's a product for business, right? And so that investment in quality, investment in innovation with great service and guest experience are going to drive the outside returns, over time. Right? So, you know, I think you're seeing that with the Londoner. And in Marina Bay Sands, the rooms we just completed are one and tower two.

Maam you were talking about it would be worth probably a couple hundred million dollars you to US we'll go back to 2% does EBITDA. So it's very impact. We just don't have a good answer is mix maybe is the removal of junket.

Speaker 3: So it's very impactful. We just don't have a good answer. Is it mixed? Maybe. Is it a removal or junket and that type of thing? Maybe. But until we have a really coherent and certain answer, we don't want to give you a response. I'd like to believe the whole industry trades up a point or two. I'd vote for that. I'm sure our competitors would. But we didn't make it happen.

Maybe but until we have a really coherent.

Certain answer we don't want to give you a response I'd like to believe that the whole industry trades up a point or two I view both of that I'm sure our competitors would but we didn't make it happen we need perhaps it's very simple math on that on the baccarat games don't change the customer best can change ties a bear's tendency slap X gene. So the point is we don't know the answer.

Patrick Dumont: Design is luxurious, it's residential, it's unmatched levels of service. These are the best things we've ever done. And they're basically say a new standard for hospitality and customer experience at our properties. And to Rob's point, when tower three is done, Marina Bay Sands is going to be the hotel property in the world. Look focused on it. From a food and beverage standpoint and retail that standpoint and Rob said before, from a guest experience standpoint, that's what we're focused on.

Ourselves a lot of people scratch their head until we have a certain answer we can say with confidence.

Along with US that we've turned up to 24 again, because it is a wonderful thing for us with our volumes will be incredibly impactful we'd be at 700 million Bucks, probably this quarter of EBITDA. So excellent question I don't have an excellent answer we're working through it granted.

Patrick Dumont: IR2 is going to be something different. It's going to be a new standalone development. It's going to have unique spaces, unique design, unique service. But it's something that's probably six months to a year away, depending on how things go with rules and order to get started. It will be additive to Marina Bay Sands. It will grow the market for us, be a different product, and allow us to also have a live entertainment venue in Singapore, which is something that we really haven't had in scale before.

Speaker 8: We're working through it. Grant, do you have that answer? No, you're exactly right. We don't have a clear answer on that. There's in theory, actually, but just the point to make is, in theory, the premium S being higher mix in the drop actually should be positive for the whole percentage. And it could also, obviously, add more volatility to the metric. But I think Rob is absolutely right.

Yes.

Speaker 15: All right.

That answer.

Speaker 16: No, you're exactly right, we don't have a clear answer on that.

No.

Youre right, we don't have a clear.

So on that.

Because in theory actually just the point to make is in theory, the premium that's being higher higher mix in the drop actually should be positive for <unk>.

Speaker 16: In theory, actually, but just a point to make is in theory, the premium mass being higher, higher mix in the drop actually should be positive for the whole percentage. And it could also obviously add more volatility to the metric. But I think Rob is absolutely right that

Patrick Dumont: And so, if you put the power of the Venetian and what we're doing in the Londoner with the venue that Grant mentioned, you will not have that capability in Singapore to drive high value tourism, to drive further growth, and to really work that tourism that's related to live entertainment that we never really could do before. So, for us, the expansion Marina Bay Sands is a step-functioning growth potential. We're looking forward to doing it. We think it'll be an unbelievable product. We've been spending a lot of time on it, and hopefully we'll get a chance to start soon. But, completely different things. Got it. Thanks.

Yes.

It could also obviously adds more volatility to them.

But I think Rob is absolutely right.

Speaker 8: We don't have a clear answer and in truth, I mean, this is only like eight, nine months.

We don't have a clear answer.

And in truth I mean this is this isn't only about eight nine months.

Speaker 8: to recovery where the segments and the customers, I mean, all that is still evolving. So I think it's also premature to make specific pronouncements on what should be the non-rolling whole percentage.

So the recovery, where the segments and the customers I mean, all of that is still evolving. So I think it's also premature.

To make.

Pacific current.

<unk>.

What should be.

Non rolling.

Patrick Dumont: And then just moving to McHale, I think for the last two to three quarters, your non-rolling chip win has been kind of in that 22-23 percent range. Is this a function of just really pre-emmassing a bigger piece of the mix, or, you know, and so we should think about this kind of edging up over time back to that 23 to 24 percent plus range, or is there something different in this market?

<unk> range.

Speaker 8: So, right now, the numbers are what they are, but as you referenced, as Rob also said, you know, half a point of difference, not even just one point, makes a tremendous difference to...

So right now the numbers on what they are.

But as you rightly referenced as Rob also.

Great.

Half a point of difference not just one point makes makes a tremendous difference.

Yes.

The numbers.

The EBITDA margin et cetera. So.

Speaker 8: but to the margin etc so you know we're closely watching this but

Patrick Dumont: And I'm sorry to harp on, you know, 1 percent, but when we're talking 24 billion, you know, I'm going to move. You're right to harp on it, so we think about quite a bit. Now that your question's an extra one, then we look at all the time I was before in the last day with our team and the cows that were discussing, and it's fast things. We won't have an honest answer to tell you exactly why the entire industry seems to be down a point, point and two points.

Closely watching this but.

Speaker 16: No, he doesn't pray out so we can keep on that. And guns of Y.

There is no it does not.

Obviously, we can give on that in terms of why.

The whole percentages is where it is versus before.

Speaker 3: You know, we're in a new world, Mikal, and I think people really don't understand.

We're really in a new world in Macao, I think people really don't understand.

I think SaaS fast thing people understand how quickly. This thing has reopened I mean, I know you know it but the problem is Vegas.

We opened regional so consumables.

A while ago Macau is new to the game, it's going to open for eight months eight months. So thank you for evolving turning copies.

Patrick Dumont: There's a very impactful, money we're talking about, it'll be worth it. We, you know, a couple hundred million dollars used to let's go back 2 percent, and it does eat the top. So it's very impactful. You just don't have a good answer. Is it next, maybe? Is it the removal of junk it, and that type of thing, maybe? But until we have a really coherent and certain answer, we don't want to give you a response.

Speaker 14: It's only been open for eight months, eight and a half months. So things are evolving and turning, and it's happening quickly. Again, I think it's an instructive look at the trajectory of what happened in Singapore. Go back to eight months after it opened and watch what's happened double that time. It's incredibly, I think, interesting to see the comparisons. I think this whole percentage thing is evolving. We don't know. It would be wonderful to find out we're back to 24 in Q2. It would be wonderful. But without certainty, we can only give you an answer which we don't have clarity on ourselves. But we do, we're happy to share with the market.

Quickly again, I think it's instructive to look at the trajectory of what happened in Singapore go back to eight months after opening watches happen double that tons incredibly.

I think interesting to see the comparisons I think this whole percentage thing.

Patrick Dumont: Unlike to believe it, the ones you trade up a point or two, I'd be a wide vote for that. Yeah, I'm sure I can bet this would, but we can't make it happen. We can perhaps, you know, it's very simple. The map on the on the back row game, no change, the customer bets can change, ties and bears can change, lap X change. So the point is, we don't know the answer ourselves.

But we don't know what would be wonderful find their way back in 24 in Q2, it would be wonderful, but without certainty. We only give you an answer we don't have clarity on ourselves and we do we're happy to share with the market.

Speaker 14: And we do what we have to share with the market. Got it. I appreciate.

Got it I appreciate all the detail and the perspective thanks.

Okay.

Patrick Dumont: A lot of people scratch their heads, and until we have a certain answer, we can do a confidence. I want to hope along with you that we trade up to 24 again, because you do a wonderful thing for us, with our volumes, it'll be incredibly impactful. We'd be at 700 million bucks probably this quarter of eating it up. So an excellent question. I don't have an excellent answer, but we'll work them through it.

Thank you and the last question today is coming from David Katz from Jefferies. David Your line is live.

Speaker 4: Thank you and the last question today is coming from David Katz from Jeffries. David Jarlinas.

Hi, Good day, everyone and thanks for taking my question.

Speaker 17: Hi, good day, everyone. Thanks for taking my question. I just wanted to go back on one detail. I'm not sure if you discussed this, but I'm just looking at the historical margin levels in Singapore, which, you know, we're north of 50.

I just wanted to go back on one detail I'm not sure. If you discussed this but I'm just looking at the historical margin levels in Singapore, which we're north of 50.

Patrick Dumont: Grant a, you have that answer. Yeah, exactly right. We don't have a clear answer on that. You know, there's in theory actually, but just the point to make is in theory, the premium mass being higher, higher mix in the drug actually should be positive for the whole process. And it could also obviously add more volatility to the metric. But I think Rob is absolutely right that we don't have a clear answer.

Could you just talk about the puts and takes of getting back to that level again or if there's some specific headwinds and then I have one quick follow up.

Speaker 17: Could you just talk about the puts and takes of getting back to that level again, or if there's some specific headwind, and then I have one quick follow up.

Speaker 6: Yeah, no problem. I think 1 thing to highlight is that it was increased our tax rate by 3 percentage points and then there was a 1% G. S.

Yeah, No problem I think one thing to highlight is that in order to increase our tax rate by three percentage points.

And then there was a 1% GST.

Speaker 6: So what you see there is the impact of that, along with inflation in the market. We've been able to manage expenses, manage business mix, manage pricing, and push the business to be better. But our long-term there is gonna be with strong margins, with revenue growth, just based on our investment and what we're seeing in the market.

What you see there is the impact of that along with inflation in the market.

We've been able to manage expenses managed business mix manage pricing and push the business to be better, but our long term there is going to be with strong margins with revenue growth just based on our investment and what we're seeing in the market. So we sort of we sort of manage the productivity.

Patrick Dumont: And in truth, I mean, this is only like eight, nine months into recovery where the segments and the customers mean, all that is still evolving. So I think it's also premature to make specific pronouncements on what should be the non-rolling old percentage range. So right now that the numbers are what they are. But as you reference, as Rob also said, you know, half a point of difference, not even just one point makes it tremendous different to the numbers, to the margin, etc.

Speaker 6: So, you know, we sort of managed to put into the yield and we're turning on a domestic capital. You know, obviously we look at margins and do our best, but we like where this business is going and we think the future is very strong.

<unk> yield and return on invested capital obviously, we look at margins into our best.

But we like where this business is going and we think the.

The future is very strong.

Speaker 17: Understood. And as my follow up, with the very, very good quarter that you had, and it's not just for your stock, but many in our coverage, the market seems to expect some macro pressure in the future. And it's almost an obligatory question for all of our management teams. Are you seeing anything or providing anything that would validate any macro pressure?

Understood.

My follow up.

With the very very good quarter that you had.

And it's not just for your stock, but many in our coverage.

Market seems to expect.

Some macro pressure.

In the future.

Patrick Dumont: So, you know, we're closely watching this, but there's no clear answer we can give on that in terms of why the whole percentage is where it is versus before. You know, we're doing a new world in the Cal, and I think people really don't understand, and I think it's fast that people don't understand how quickly this thing is reopened. I mean, I know you know it, but the problem is, you know, Vegas open, regionals open, people in quite a while ago.

It's almost an obligatory question for all of our management teams.

Are you seeing anything or providing anything.

That would validate any macro pressure at this point.

So I'll tell you what's interesting you heard Rob earlier reference our retail productivity.

Speaker 6: So I'll tell you what's interesting, you heard a rob earlier, reference our retail product.

Speaker 6: We are in very fortunate markets. So Singapore is an unbelievable place to business. It's just a great place to visit.

Yeah.

We are very fortunate markets. So Singapore is an unbelievable place to do business.

It's just a great place to visit as a tourist.

Patrick Dumont: Macal is near the game. It's under open for eight months, eight hit months. So, things are evolving and turning and it's happening quickly. I think it's an instructive look at the trajectory that would happen in Singapore, go back to eight months after open and watch us happen to double that time incredibly. I think the interesting thing is the comparisons. I think this whole percentage is evolving. We don't know it would be wonderful to find out we're back at 24 in Q2.

Speaker 6: There's a lot of exciting things to do there. It's a great business environment to trade. And I think Singapore has benefited from its years of investment in its structure. People are going there. And people are going there and...

Theres a lot of a lot of exciting things to do there. It's a great business environment to trade and I think Singapore has benefited from its years of investment in the structure and people are going there and people are going there and consuming.

Speaker 6: And so, you know, we don't have a huge physical plant there, you know, we've got, you know, 2500 hotel rooms or, you know, going down as we have more suites.

So we don't have.

A huge physical plant there we've got.

2500 hotel rooms.

Patrick Dumont: It would be wonderful. But without certainty, we know we give you an answer if we don't have clarity ourselves. And we do, we're happy to share with the market. Got it. I appreciate all the detail and the perspective. Thank you.

<unk> down as we add more suites.

Speaker 6: And I think in MacPow, we're less than 1% penetration in the market.

And I think in Macau.

We're less than 1% penetration of the market.

Speaker 6: And so, when you look at, you know, business and leisure tourism opportunities, I don't know that, you know, we're, we're impacted like a, like, a broad staple. I think we're for a narrower segment. We don't. We don't appeal to everyone, but I think we're a great tourism assets in both of our markets and we've continued to see growth through different cycles because of who we appeal to and the volumes that we need to be successful.

And so when you look at business and leisure tourism opportunities I don't know that.

David Katz: And the last question today is coming from David Katz from Jeffries. David, your line of life. Hi, good day everyone. Thanks for taking my question. I just wanted to go back on one detail. I'm not sure if you discussed this, but I'm just looking at the historical margin levels in Singapore, which, you know, were north of 50. Could you just talk about the puts and takes getting back to that level again, or if there's some specific headwind, and then I have one quick follow up.

Where we're impacted like a like a broad based consumer staple.

I think were for a narrower segment, we don't we don't appeal to everyone, but I think we're a great tourism assets in both of our markets and we've continued to see growth through different cycles, because of who we appeal to and the volumes that we need to be successful.

Got it thank you very much I appreciate it.

Thank you.

Speaker 4: Thank you ladies and gentlemen, this does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

Thank you ladies and gentlemen, this does conclude today's conference call.

You may disconnect your phone lines at this time and have.

David Katz: Yeah, no problem. I think one thing to highlight is that there was increased in our tax rate by three percentage points. And then there was a 1% GST. So what you see there is the impact of that along with inflation of the market. We've been able to manage expenses, manage business mix, manage pricing, and push the business to be better. But our long term there is going to be we start margins with revenue growth just based on our investment in what we're seeing in the market.

A wonderful day, we thank you for your participation.

Yeah.

Speaker 4: and have a wonderful day. Thank you for your participation.

Phone lines at this time and have a wonderful day, we thank you for your participation.

David Katz: So, you know, we sort of we sort of managed to put a committee yield and return on investing capital. We know obviously we look at margins and do our best. But we like where this business is going and we think the future is very strong. I just showed it as my follow up, you know, with, you know, the very, very good quarter that you had. And it's not just for your staff, but, you know, many in our coverage, the market seems to expect, you know, some macro pressure, you know, in the future.

David Katz: And it's almost an obligatory question for all of our management teams, you know, are you seeing anything or providing anything, you know, that would, you know, validate any macro pressure at this point. So I'll tell you what's interesting, you heard Rob earlier, reference our retail productivity. We, you know, we are in very fortunate markets. So Singapore is an unbelievable place to business. It's just a great place to visit as a tourist.

David Katz: There's a lot of a lot of exciting things to do there. It's a great business environment to trade. And I think Singapore has benefited from its years of investment in this structure and people are going there and people are going there and consuming. And so, you know, we don't have a huge physical plant there, you know, we've got, you know, 2500 hotel rooms are, you know, going down as we have more sweets.

David Katz: And I think in Macau, we're less than 1% penetration of the market. And so when you look at, you know, business and leisure tourism opportunities, I don't know that, you know, we're, we're impacted like a, like a broad, you know, we're not based on stable. I think we're, for a, a, an hour or segment, we don't, we don't appeal to everyone, but I think we're a great tourism assets in both of our markets. And we've continued to see growth through different cycles because of who we appeal to and the volumes that we need to be successful. Thank you very much. Appreciate it. Thank you.

Unknown Executive: Thank you, ladies and gentlemen, this does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation. Thank you very much.