Q4 2023 Wynn Resorts Ltd Earnings Call

Operator: Please go ahead. Thank you, Operator, and good afternoon. On the call with me today are Craig Billings, Brian Gilbrandt, and Steve Wightman in our faces. Also on the line are Linda Chen, Frederick Lubizzuto, and Jenny Holloway. I want to remind you that we may make forward-looking statements under the Safe Harbor Federal Securities laws, and those statements may or may not come to pass. I will now turn the call over to Craig Billings. Afternoon, everyone, and thanks for joining us again today. Well,

Thank you operator, and good afternoon, everyone on the call with me today are Craig Billings, Bryan Goldberg, Steve Wyman in Las Vegas.

Speaker Change: Also on the line and Linda Chen Friday.

Speaker Change: And J D holiday I want to remind you that we may make forward looking statements under safe Harbor Federal Securities laws and those statements may or may not come true I will now turn the call over to Craig billings.

Craig S. Billings: Good afternoon, everyone and thanks for joining us again today.

Craig Billings: Well.

Craig S. Billings: What a quarter. And really, what a year. Every single member of the Wynn team should be incredibly proud of what they achieved. Momentum in the business built throughout the year, and we ended on a high note with $632 million in property. All-Time Quarterly Record, capping off a record year in which we generated nearly $2.2 billion of profit. We see tremendous value in our business, as evidenced by our buybacks and sales, and I'm genuinely looking forward... The company is more diversified than it's ever been. In Las Vegas, we continue to distance ourselves from peers as the leader in luxury, and it's more evident than ever that we are the go-to spot for the best customers attending citywide. We have a growing business in Macau that is running structurally higher margins than in the past, much less reliant on the volatile VIP segment, and is increasingly well-positioned. And importantly, we have a substantial growth opportunity in the UAE that will further diversify our portfolio and expand our brand. Turning to the quarter, and starting here in Vegas, Wynn Las Vegas delivered $271 million of adjusted property EBITDA, an all-time quarterly record, up 24% year-on-year on a very difficult quarter.

Craig S. Billings: One a quarter.

Craig S. Billings: And really what a year every single member of the wind team should be incredibly proud of what they achieve together in 2023.

Craig S. Billings: Momentum in the business built throughout the year and we ended on a high note with $632 million of property EBITDA and all time quarterly record capping off a record year in which we generated nearly $2 2 billion of property EBITDA.

Craig S. Billings: We see tremendous value in our business as evidenced by our buybacks in the quarter.

I'm genuinely looking forward to 2024.

Craig S. Billings: The company is more diversified than it's ever been.

Craig S. Billings: In Las Vegas, we continue to distance ourselves from peers as the leader in luxury and its more evident than ever that we are the go to sponsor the best customers attending citywide events like FY.

Craig S. Billings: We have a growing business in Macau that is running structurally higher margins than in the past.

Craig S. Billings: Much less reliant on the volatile VIP segment and is increasingly well positioned to compete.

Craig S. Billings: And importantly, we have a substantial growth opportunity in the UAE that will further diversify our portfolio and expand our brand into new markets.

Craig S. Billings: Turning to the quarter and starting here in Vegas Wynn Las Vegas delivered $271 million of adjusted property EBITDA and all time quarterly record up 24% year on year on a very difficult comp.

Craig S. Billings: While F-1 was clearly a contributor, activity at the property was intense throughout the quarter, with Rev-Par, Table Drop, Slot Handle, and Food & Beverage Revenue all well above what was a very strong win for F-1. In fact, we had our best October, our best November, and our best December ever in terms of EBITDA. We continue to fire on all cylinders here in Las Vegas, and I'm incredibly proud of that. More recently, January 2024 looked a lot like January 2023 from an overall revenue perspective, with Hotel Revenue, particularly. That being said, January isn't where the action is.

Craig S. Billings: If one was clearly a contributor activity at the property was intense throughout the quarter with Revpar table drop slot handle and food and beverage revenue all well above what was a very strong quarter in 2022.

Craig S. Billings: In fact, we had our best October November.

Craig S. Billings: November and our best December ever in terms of EBITDA during Q4.

Craig S. Billings: We continued to fire on all cylinders here in Las Vegas, and I'm incredibly proud of the Vegas team.

More recently January 2024 looked a lot like January 2023 from an overall revenue perspective with hotel revenue, particularly strong.

That being said January isn't where the action is this quarter its all about February <unk>.

Craig S. Billings: It's all about FedEx. The Super Bowl, Chinese New Year, and for us, the best February in our history for group engagement. Please see the complete disclaimer at https://sites.google.com, So a very active February will really set the tone. Turning to Boston, Encore generated $64 million of EBITDA during the quarter, and similar to many other regional markets demanded, the property was largely stable year-on-year. Revenue decreased by about a half percent, but the team has done a great job remaining disciplined on OPEX, driving a 2% year-over-year increase. More recently, underlying demand has remained healthy through January, although a couple of unfortunately timed winter storms have negatively impacted visitation. On the development across from Encore Boston Harbor, we recently received a key environmental approval, and we are advancing through a few remaining items before construction.

Craig S. Billings: Super Bowl Chinese new year and for US the best February in our history for group and convention.

Craig S. Billings: Between Super Bowl and Chinese new year, we have doubled the front money and credits that we had in 2023 and we expect record hotel revenue over Super Bowl.

Craig S. Billings: So very active February will really set the tone for the first quarter.

Craig S. Billings: Turning to Boston Encore generated $64 million of EBITDAR during the quarter similar to many other regional markets demand at the property was largely stable year on year.

Craig S. Billings: Revenue decreased by about a half a percent of the team has done a great job remaining disciplined on opex driving a 2% year over year increase in EBITDAR.

Craig S. Billings: More recently underlying demand has remained healthy through January although a couple of unfortunately timed winter storms have negatively impacted visitation during a few recent weekend.

Craig S. Billings: On the development across from Encore Boston Harbor, We recently received a key environmental approval and we are advancing through a few remaining items before construction can begin.

Craig S. Billings: Earning to Macau, we generated $297 million of EBITDA in the quarter on market share that was consistent with the prior quarter and with 2019. While we held in the normal range in mass, we held a bit high in VIP, so on a fully normalized basis, EBITDA would have been approximately $290 million or 94%. The strength in our business there has continued into Q1. At the casino, our mass drop per day in January increased 32% versus January 2019 and was up sequentially versus Q4. On the non-gaming side, our hotel occupancy was 99%, along with continued strength in tenant retail sales. Overall, strong top-line performance combined with disciplined OpEx control drove healthy margins. On the development front, we opened our first major concession-related capital project during Q4. It is a collaboration with the team behind Las Vegas-based Illuminarium, and initial customer feedback has been positive.

Craig S. Billings: Turning to Macau, we generated $297 million of EBITDA in the quarter on market share that was consistent with the prior quarter and with 2019.

Craig S. Billings: While we held in a normal range in mass, we held a bit high in VIP. So on a fully normalized basis EBITDA would've been approximately $290 million or 94% of Q4 2019 levels.

Craig S. Billings: To strengthen our business. There has continued into Q1 and the casino our mass drop per day in January increased 32% versus January 2019, and was up sequentially versus Q4.

Craig S. Billings: On the non gaming side, our hotel occupancy was 99% along with continued strength in tenant retail sales.

Craig S. Billings: Overall strong topline performance combined with disciplined Opex control drove healthy margins during the month of January.

Craig S. Billings: On the development front, we opened our first major concession related capital project. During Q4, our collaboration with the team behind Las Vegas, basically luminaria and initial customer feedback has been positive.

Craig S. Billings: We are deep into design and planning for our other concession-related CapEx commitments, including our destination food hall, the new event and entertainment center, and a unique production. Lastly, turning to Wynn-Almarjan, construction continues on the project with much of the hotel tower and podium foundation now complete, and we are nearly ready to start going vertical on the hotel. The property's really going to be a stunner, and it's great to see the building start. With that, I'll now turn it over to Julie to run through some additional details. Thank you, Craig.

Craig S. Billings: We are deep into design and planning for our other concession related capex commitments, including our destination food Hall to new events and Entertainment Center and a unique production shaft.

Craig S. Billings: Lastly, turning to win all of our shop construction continues on the projects with much of the hotel tower and podium Foundation now complete and.

Craig S. Billings: And we are nearly ready to start going vertical on the hotel tower.

Craig S. Billings: Property is really going to be a stunner and it's great to see in the buildings start to take shape.

Craig S. Billings: With that I'll now turn it over to Julie to run through some additional details on the quarter.

Julie: In Las Vegas, we generated $270.8 million in adjusted property EBITDA on $696.8 million of operating revenues during the quarter, delivering an EBITDA margin of $38.9 million, up 140 basis points here. I have a normal table games hold, which benefits EBITDA by around $10 million. OPEX excluding gaming tax per day was $4.4 million in Q4 2018, up 16% year-over-year, well below the 19th century. The sequential increase in OPEX was primarily driven by higher programming and staffing costs related to F1.

Julie: Thank you, Craig and Wynn Las Vegas, we generated $278 million and adjusted property EBITDA on $696 $8 million of operating revenues during the quarter delivering an EBITDA margin of 38, 9% up 140 basis points year on year.

Julie: I have a novel table games hold benefited EBITDA by around $10 million in Q4.

Julie: Opex, excluding gaming tax per day was $4 $4 million in Q4, 'twenty three up 16% year over year, well below the 19% increase in revenue the sequential.

Julie: The increase in Opex was primarily driven by higher programming and staffing costs related to F. One.

Julie: Turning to Boston, we generated adjusted property EBITDA. Thank you for watching. We've stayed very disciplined on the cost side with OPEX excluding gaming tax at $1.14 million per day in Q4 2020, down 2% year-over-year, driving a 70 basis point increase in EBITDA margin. The team has done a great job mitigating union-related payroll... with the cost of the business in areas of the business that do not impact the guest experience. Our Macau operations delivered a justice property EBITDA of $297 million dollars in on $910.6 million of operating revenue. As Craig alluded to, we estimate higher-than-expected hold positively impacted EBITDA by around $7 million during this period. However, importantly, mass hold of both properties was in the expected range during the quarter, with the hold impact primarily related to the VIP side of things.

Julie: Turning to Boston, we generated adjusted property EBITDA of $64 4 million on revenue of $217 1 million with an EBITDA margin of 29, 7%.

Julie: We've stayed very disciplined on the cost side with Opex, excluding gaming tax of $1. One 4 million per day in Q4 23.

Julie: One 2% year over year, driving a 70 basis point increase in EBITDA margin. The team has done a great job mitigating union related payroll increases with cost efficiencies in areas of the business that do not impact the guest experience.

Julie: Our Macau operations delivered adjusted property EBITDA of $297 million in the quarter on $910 $6 million operating revenues as Craig alluded to we estimate higher than expected hold positively impacted EBITDA by around $7 million during the quarter importantly must hold a phone.

Julie: Properties within the expected range during the quarter with the hold impact primarily related to the VIP side of the business.

Julie: EBITDA margin was 32.6% in the quarter, an increase of 140 basis points relative to Q4 2019, www.larryweaver.com higher-margin mascot and Operating Leverage on Cost of Business. Our OPEX, excluding gaming tax, was approximately $2.56 million per day in Q4, a decrease of $3,000,000 in Q4 2020. The team has done a great job remaining disciplined. And we're well positioned to continue to drive strong operating leverage as the market continues. In terms of CASEX in Macau, we're currently advancing through the design and planning stages on our concession cabin. And as we noted in the past few quarters, these projects require a number of government approvals, creating a wide range of potential CapEx outcomes in the near term.

Julie: EBITDA margin was 32, 6% in the quarter, an increase of 140 basis points relative to Q4 2019, driven by a combination of the favorable mix shift to higher margin mass gaming and operating leverage on cost efficiencies.

Julie: Our opex, excluding gaming tax was approximately $2 $5 6 million per day in Q4, a decrease of 14% compared to $3 million in Q4 2019.

Speaker Change: The team has done a great job remaining disciplined on costs and we're well positioned to continue to drive strong operating leverage as the market continues to recover.

In terms of Capex in Macao, we're currently advancing through the design and planning stages on a concession commitments and as we noted the past few quarters. These projects require a number of government approvals, creating a wide range of potential capex outcomes in the near term.

Julie: As such, we expect CAPEX related to our concession to be $350 million and $500 million in total between 2024 and the end. www.globalonenessproject.org. Moving on to the balance sheet, our liquidity position remains very strong, with global cash and revolver availability of nearly $4.5 billion as of December 2018. This was comprised of $2 billion dollars of total cash and available liquidity in Macau and approximately $2.45 billion dollars in assets.

Speaker Change: Such we expect capex related to our concession commitments to range between $350 million and $500 million in total between 2022 and the end of 2025.

Speaker Change: Moving onto the balance sheet, our liquidity position remains very strong with global cash and revolver availability of nearly $4 5 billion as of December 31.

Speaker Change: This was comprised of $2 billion of total cash and available liquidity in Macau and approximately $2 $45 billion in the U S.

Julie: Bringing it all together, the combination of strong performance in each of our markets globally, with our properties generating nearly $2.2 billion of property EBITDA in 2023, together with our robust cash and liquidity, creates a very healthy leverage and free cash flow profile for the company. Additionally, the Board approved a cash dividend of $0.25 per share, payable on February 29, 2024, to stockholders of record as of February 20, 2021. We also repurchased approximately 1.6 million shares for $139 million during the quarter, highlighting our commitment to prudently returning capital to shareholders.

Speaker Change: Bringing it all together the combination of strong performance in each of our markets globally with our properties generating nearly $2 $2 billion of property EBITDA in 2023, together with our robust cash and liquidity position creates a very healthy leverage and free cash flow profile for the company globally.

Speaker Change: Further the board approved a cash dividend of <unk> 25 per share payable on February 29, 2024 to stockholders of record as of February 22020, We also repurchased approximately one 6 million shares for $139 million during the quarter, highlighting our commitment to prudently returning capital.

Speaker Change: To shareholders.

Operator: We will consider additional dividend increases at Wynn Resorts and the initiation of a dividend from Wynn Macau as the recovery progresses and the exact timing of our global capital deployment. Finally, our CapEx in the quarter was $113 million, primarily related to the spa villa renovations and food and beverage enhancements at Wynn Las Vegas. With that, we will now open up the call to Q&A. Thank you. To ask a question, press star 1 on your touchtone phone. Make sure you unmute your phone.

Speaker Change: We will consider additional dividend increases at Wynn resorts and the initiation of a dividend from Wynn Macau as the recovery progresses, and the exact timing of a global capital deployment plans become more clear.

Italy, all capex in the quarter with $113 million, primarily related to the spa villas renovations and food and beverage enhancements at Wynn Las Vegas concession related Capex in Macau and normal course maintenance across the business.

Speaker Change: With that we'll now open up the call to Q&A.

Speaker Change: Thank you to ask a question press star one on your Touchtone phone and meet your phone record. Your name clearly after the pumping I will introduce you for your question. Please limit yourself to one question and one follow up question to withdraw your question Press Star two.

Operator: Record your name clearly after the prompt, and I will introduce you for your question. Please limit yourself to one question and one follow-up question. To withdraw your question, press star 2.

Carlo Santarelli: Our first question comes from Carlo Santarelli with Deutsche Bank. Hey Craig, hey Julie, everyone. Guys, as you think about kind of Macau and obviously, you know, with the amenities that come on, whether it's concession related or other, does this kind of 2-5 to 2-6 daily OPEX rate feel like you're in the right place going forward as we think about 2024, at least? Hey Carlo.

Speaker Change: Our first question comes from Carlos Central Valley with Deutsche Bank.

Speaker Change: Hey, Craig Hey, Julia everyone.

Speaker Change: Guys as you think about kind of Macau, and obviously with the amenities that come on whether its its concession related or other does this kind of two to two five to two six daily opex rate feel like Youre in the right place going forward as we as we think about 2024 at least.

Speaker Change: Yes.

Speaker Change: Hey, Carlo I'll start and then I'll end it to Julie.

Craig S. Billings: I'll start and then I'll hand it to Julie. I mean, I think we should put it in perspective, right? Our OPEX in the quarter was about 14% below Q4 2019 and our margins were some I think 140 basis points higher, so we're clearly being disciplined on OPEX, but Julie, do you want to discuss? Yeah, there were some specifics, Carlo, over, you know, sequential. So if you think about it, it increased $160,000 per day or $15 million sequentially. And that was split across three different buckets.

Speaker Change: I think we should put it in perspective right. Our opex in the quarter was think about 14% below Q4 2019 on our margins were.

Speaker Change: I think the 140 basis points higher so we're clearly being disciplined on opex, but Julie do you want to discuss some specifics yeah. There was some specifics Carlo.

Julie: Sequentially. So if you think about it it increased 160 K per day or $15 million sequentially and that was split across.

Julie: Three different buckets. The first one was higher variable cost on the extremely robust business volumes with hotel occupancy up 100 basis points G. G are up 12% F&B up 13%. The second bucket really is payroll. We had we had more overtime pay related to holidays, because there were nine public holidays in the quarter versus just two in the previous call.

Julie: The first one was higher variable costs on the extremely robust business volumes, with hotel occupancy up 100 basis points, GGR up 12%, and F&B up 13%. The second bucket really is payroll. We had more overtime pay related to holidays because there were nine public holidays in the quarter versus just two in the previous quarter.

Julie: And then the third bucket was really the highest spending on concession related non gaming events. Because this was a particularly heavy event quarter.

Julie: And then the third bucket was really the higher spending on concession-related non-gaming events because this was a particularly heavy events quarter. And you remember we kind of foreshadowed that in the previous call when we talked about all the different programming we had going on. And that really kicked off with the Hypercar exhibition that we had, and then we had several well-received arts, sports, and culinary events. So that's really what was driving it, the sequential pop.

Julie: And you remember, we kind of call shadow that in the previous call. When we talked about all the different programming, we had going on.

Julie: And that really kicked off with the hyper car exhibition that we had and then we have several several well received sports and culinary events like I say, that's really what was driving it the sequential comp.

Julie: Going forward, we feel, as Craig said, we leave it on margin at both properties above Q419 levels and with the OPEX well-controlled. We do expect the pace of growth in market-wide GDR, along with our revenue mix, to be a key driver of margins. So there's gonna be some quarter-to-quarter variation as we see different programming coming through and we continue to roll out the programming associated with the concession. Barring, Carlo, a major facility opening, like the event center, number. I don't foresee a step change in our topics, and we're managing it very well. Very helpful; thank you for the detail as well.

Julie: Going forward you know we feel.

Julie: As Craig said with EBITDA margin at Vice Proxies, both Q4, 19 levels and with the Opex well controlled.

Julie: We do expect to you know.

Julie: The pace of growth in market wide TCR, along with our revenue mix to be a key driver of margin. So that's going to be some quarter to quarter variation as we see different programming coming through.

Julie: And we continue to rollout the programming associated with concession commitments R&D Carla barring a major <unk>.

Julie: Facilities like the events center, which is a number of years away.

Julie: I don't foresee a step change in our Opex and we're managing it very very tightly.

Speaker Change: Very helpful. Thank you for the detail as well.

Craig S. Billings: Then just as a follow-up, obviously, the Las Vegas results kind of speak for themselves, and it would be hard to notice anything changed in Las Vegas in the fourth quarter, but obviously, you guys do have a new competitor there to the north, and I was just wondering, now that you have at least a couple months of kind of experience with that, could you talk a little bit perhaps about how Fountain Blue has kind of impacted the asset positively or negatively Yeah, it really has. I feel great about our business. I feel great about where we are; like I said, February is shaping up to be. I, jam-packed, www.globalonenessproject.org, Great.

Speaker Change: Just as a follow up obviously, the Las Vegas results kind of speak for themselves and it would be hard to notice anything changed in Las Vegas in the fourth quarter, but obviously you guys do have a new competitor there to the north and that was just wondering now with at least a couple of months I was kind of experience with.

Speaker Change: With that could you talk a little bit perhaps about about how it felt and blue has has kind of impacted positively or negatively the asset and kind of daily traffic.

Speaker Change: Yeah, It really hasnt.

Speaker Change: So I feel great about our business.

Speaker Change: We feel great about about where we are like I said February is shaping up to be.

Speaker Change: Jampacked between the Super Bowl Chinese new year, and everything else, we have going on I don't I don't really see any impact.

Craig S. Billings: Thank you both. Thank you. Our next caller is Joe Greff with J.P. Morgan. Hi everyone.

Speaker Change: Great. Thank you both.

Speaker Change: Thank you our next caller is Joe Greff with J P. Morgan.

Joseph R. Greff: Hi, everyone. Thanks.

Joseph R. Greff: Thanks. Craig, in the fourth quarter mass table, GGR was 117% of fourth quarter levels up from the 106%, and the 3Q relative to 19 or the 3Q of 19, I know you don't sort of think about it maybe or present it at least externally to the same degree that Las Vegas Sands does between how it defines its premium math and its base math business, but when you think about, you know, within the different tiering that you guys have, would you say all of your math table tiers are fully recovered plus relative to 19 or are there some tiers that still have, you know, relative recovery to get to and exceed 19 levels? Thanks, Joe. I think you have to differentiate between each of the properties.

Joseph R. Greff: Craig in the fourth quarter mass table, <unk> was 117% of fourth quarter levels up from 106%.

Joseph R. Greff: Three Q relative to 19 or the <unk> of 19.

Joseph R. Greff: I know you don't sort of think about it maybe you are presented at least externally to the same degree that Las Vegas Sands does between how we define it as premium ads in its base mass business, but when you think about.

Joseph R. Greff: Within the different hearing that that you guys have.

Would you say all of your your mass table chairs are fully recovered plus relative to 19.

Joseph R. Greff: Or are there some tiers that still have.

Joseph R. Greff: Relative recovery to get to and exceed 19 levels.

Speaker Change: Thanks, Joe I think you have to differentiate between each of the property. So.

Craig S. Billings: So the early portion of the recovery was clearly premium master. We saw that in the different... Revenue Per Head or Revenue Per Visitor in the early portion of the recovery. Clearly, we saw that hit Palace first, and so we've been talking for the past several quarters about how Wynn-McCow would need a little bit longer to recover. And so at Wynn-Palace now, it's really about yielding the rooms and driving the best heads in beds, if you will, in order to continue to grow our position there, and the property is well positioned to do that. At Wy There's still more work to do there, but honestly, if you really look at the numbers that Wynn and McHale produced this quarter, I'm incredibly proud of that, www.kenhub.com just at the end of the third quarter, bridging into the beginning of the fourth quarter, and then also the return of those additional resources that you refer to. Great, that's helpful.

Speaker Change: The early portion of the recovery was clearly premium mass when you saw that in the difference in the <unk>.

Speaker Change: Revenue per head of revenue per.

Speaker Change: Our visitors.

Speaker Change: The early portion of the recovery.

Speaker Change: Clearly we saw that hit pallets first and so we've been talking for the past several quarters about how Wynn Macau would need a little bit longer to recover and so at Wynn Palace now, it's really about yielding the rooms and driving the best heads in beds. If you will.

Speaker Change: Order to continue to grow our position there and the properties.

Speaker Change: The property is well positioned to do that.

Speaker Change: At Wynn, Macau, where we have historically been.

Speaker Change: More reliance on more transient traffic on what other operators name referred to as core mass.

Speaker Change: You saw that start to come through in this quarter. There is still more work to do there, but honestly if you really look at the numbers that Wynn Macau produced this quarter I'm incredibly proud of that team you can see the uptick in and drop you can see any uptick in G. G. R and it was incredibly strong that's really down to the targeted capex.

Speaker Change: We did that we completed just at the end of the third quarter bridging into the beginning of the fourth quarter and then also the return of those additional segments.

Speaker Change: That you referred to in your question.

Speaker Change: Great. That's helpful and then Greg I heard your positive commentary.

Brian: And Craig, we heard your positive commentary about February and the 1Q in Las Vegas and, you know, in addition to the Super Bowl, the group traction. Would you expect 2Q24 through 4Q24 group room nights to be up year over year? Yeah, Brian, do you want to give a little bit more color?

Speaker Change: About February in the <unk> in Las Vegas and.

Speaker Change: In addition to the Super Bowl the group traction would you expect to Q24 through <unk> 'twenty for group room nights to.

Speaker Change: To be up year over year.

Greg: Yeah, Brian you want to give a little bit more color sure.

Brian: Sure. Joe, as we see this year play out, we're really encouraged by the forward group booking trends that we're seeing. The outlook for group business is super strong. 24 is pacing towards a record group room night, so that base is there for us to yield from, and the sales and revenue teams continue to just do a great job at yield-managing our property. And on those group room nights, Brian, what would you say the rate is relative to the 23 price? We don't disclose that, but you can assume that rates are contracted on a multi-year basis.

Greg: Joe is we're seeing this year play out we're really encouraged by the forward group booking trends that we're seeing.

Brian: The outlook for group business is Super strong 24 is pacing towards a record group room nights. So that base is there for us to yield from and the sales and revenue teams continue to just do a great job in yield managing our properties. So I don't know if there is.

Brian: Group room nights, Brian what would you say rate is relative to 'twenty three pricing.

Brian: We don't we don't disclose that but you can assume that rates are contracted on a multiyear basis and there is some relationship to CPI.

Joseph R. Greff: Thank you very much. Thank you. Our next caller is Shaun Kelley with Bank of America. You may go ahead. Hi, good afternoon, everyone.

Speaker Change: Great. Thank you very much.

Speaker Change: Sure.

Speaker Change: Thank you. Our next caller is Shaun Kelley with Bank of America, you May go ahead.

Shaun C. Kelley: Hi, good afternoon, everyone.

Craig S. Billings: Craig, maybe just starting and building off the answer to the last question on, you know, sort of the way the recovery's played out across the properties, just specifically at Wynn Macau. Is that the bigger beneficiary, you know, in the portfolio today as it relates to, let's call it, as we start to see visitation maybe, you know, outpace or, you know, balance out now relative to the spend per visit we saw, again, earlier in the recovery? Is that sort of the implication of the answer to the last question?

Shaun C. Kelley: Craig maybe just starting and building off the answer to the last question on sort of.

Shaun C. Kelley: The way the recovery has played out across the property is just specifically at Wynn Macau is that the bigger beneficiary.

Shaun C. Kelley: Our portfolio today as it relates to let's call. It as we start to see visitation, maybe outpace or balance out now relative to the spend per visit we saw again earlier in the recovery is that sort of the implication of the answer to the last question or can you just elaborate a little bit on where you expect to see some of the.

Craig S. Billings: Or can you just elaborate a little bit on where you expect to see some of the still very strong visitation numbers and that kind of catch up in the base mass business, you know, where should we see that most in your portfolio? Well, I think you're going to see it across the portfolio, but you're going to see it disproportionately at Wynn Macau just based on the geographic location of the property. Please see the complete disclaimer at https://sites.google.com or at www.globalonenessproject.org www.youtube.com.uk, And now as we add incremental amenities like we did with the luminarium, there's a lot of people visit our property more so than they probably ever have been. So I would say it affects both properties to some extent, but I would expect it to disproportionately affect the property.

Shaun C. Kelley: Still very strong visitation numbers and that kind of catch up in the base mass business, where should we see that most in your portfolio.

Shaun C. Kelley: I think you're going to see it across the portfolio, but youre going to see a disproportionately at Wynn Macau just based on the geographic location of the property.

Shaun C. Kelley: Do you tend to have that more transient customer in in downtown and we're gonna be a beneficiary of that there, but it affects it affects pallets as well I mean, there's a lot of a lot of reasons to visit.

Shaun C. Kelley: Visit Palace.

Shaun C. Kelley: And to make pallets of destination for base mass customer you should see the Q just to get on the gondola.

Shaun C. Kelley: Out in front of the lake everyday and now as we add incremental amenities like we did with with the luminary them. There's a lot of reasons to visit our properties more so than they probably ever have been so I would say it affects both properties.

Shaun C. Kelley: To some extent, but I would expect it to disproportionately affect property downtown.

Craig S. Billings: Thank you for that. And then maybe as a Las Vegas question, obviously, you know, some, you know, significant benefit on the event side from F1, which disproportionately seems like it accrued to win. You're gonna have another big one, it seems like with the Super Bowl. Wondering if you could comment a little bit on maybe, you know, as you look year over year, the broader events, business, and calendar, you talk about groups. So how does the broader events calendar post-Super Bowl feel on a year over year basis, and then specifically, because we, you know, we've got some tracking data that looks pretty good for you, any thoughts or comments on the impact of the sphere and how that has played out, especially on some of the bigger concert nights, you know, and what you might see in terms of impact there? Thanks. Sure, on the first portion of your question... The events calendar looks pretty good because we spent a whole bunch of time creating our own events.

Speaker Change: Thank you for that and then maybe as a Las Vegas question, obviously, some significant benefit on the event side from from F. One, which we know disproportionately seems like it it accrued to when you're going to have another big one it seems like with Super Bowl wondering if you could comment a little bit on maybe as you look year over year the broader.

Speaker Change: Our events business in calendar you talked about group. So how does the just broader event calendar post Super Bowl feel on a year over year basis, and then specifically because we we've got some tracking data that looks pretty good for you just any thoughts or comments on the impact of the sphere and how that's played out especially on some of the bigger concert nights.

Speaker Change: And what you might see in terms of impact there. Thanks.

Speaker Change: Sure on the first portion of your question the events calendar looks pretty good because we spent a whole bunch of time, creating our own events. So it's not just the city wise we've been programming.

Craig S. Billings: So it's not just the city-wise, we've been programming the heck out of this joint for several years now, and we've built a lot of momentum on doing that, and that not only helps us from a brand and marketing perspective but clearly from a room nights and a pricing on rooms perspective. So I feel great about the remainder of 2024 as an event. With respect to the sphere, it's been, I tell you, it's been pretty amazing, very high-quality occupancies, talking about kind of the best of the best customers that want to stay with us because we're actually the closest property to the sphere as the crow flies. So it's definitely been additive to us on the margin, and I gotta tell you, I admire and respect what they've done by doing I think it's incredibly novel, it's incredibly unique, and it's yet another kind of only-in-Vegas experience that you can have, and we're delighted that they're next. Thank you very much. Thank you. And once again, to ask a question, you may press star 1.

Speaker Change: Heck out of this joint for several years now and we've built a lot of momentum on doing that and that not only helps us from a brand and marketing perspective, but clearly from a room nights and a pricing on rooms perspective, So I feel great about the remainder of 2024 from from an events perspective with respect to the sphere.

Speaker Change: <unk>.

Speaker Change: It's been I would tell you its been pretty amazing.

Speaker Change: This.

Speaker Change: Doesn't affect our rate, but we sure do you get a whole bunch of request to reside on that side of the building in order to see.

Speaker Change: To see the sphere itself.

Speaker Change: And certainly certainly on the Youtube weekends, we see an uptick in terms of very high quality occupancies talking about kind of the the best of the best customers that want to stay with us because we.

Speaker Change: We're actually the closest property to the sphere as to.

Speaker Change: As the CRO as the Crow flies so it's definitely been additive to us on the margin and I got to tell you I admire and respect.

Speaker Change: What they've done by by doing that I think it's incredibly novel, it's incredibly unique and it's yet another kind of only in Vegas experience that you can have and we are delighted that their next door.

Speaker Change: Thank you very much.

Speaker Change: Thank you and once again to ask a question you May Press Star one our next caller is Dan <unk> with Wells Fargo. You May go ahead Sir.

Dan Pelitzer: Our next caller is Dan Pelitzer with Wells Fargo. You may go ahead, sir. Hey, good afternoon.

Dan: Hey, good afternoon, thanks for taking my questions.

Craig S. Billings: Thanks for taking my questions. Vegas is obviously performing at an extremely high level; there is no real impact from new supply. How do you think about that the parcel, the property parcel, Wynn West that you have? And, you know, obviously, this is a longer-term focus question, but how did your thought process there maybe, you know, expand as it relates to, you know, your CAPEX projects in the UAE, as well as New York? I mean, look, there's a lot. We have a lot of different avenues. We've got a huge land bank here in Vegas, right? We've got the land across the street.

Dan: The biggest is obviously performing at an extremely high level no real impact from new supply. How do you think about that the parcel the property parcel Wynn west that you have and you know obviously, there's a longer term focus question, but how do you how does your thought process there maybe.

Can you expand as it relates to your Capex projects and in the UAE as well as New York.

Dan: Sure.

Dan: Look there's a lot we have a lot of different avenues for growth. We've got a huge land bank here in Vegas right. We've got the land across the Street and we've got the golf course, there's a lot that we can do here. We are in pursuit test I think everyone knows in New York, We have a project thats actually coming out of the ground in the UAE.

Craig S. Billings: We've got the golf course. There's a lot that we... We're in pursuit of, as I think everyone knows, in New York. We have a project that's actually coming out of the ground in the UAE, and that's gonna be a very substantial opportunity for us. There are some additional states that are moving, albeit at a relatively slow pace, that might prove to be opportunities for us. Don't do every possible, every potential jurisdiction. We're very selective.

Dan: And that's going to be a very substantial opportunity for us. There is some additional states that are that are moving albeit at a relatively slow pace that might prove to be opportunities for us. We obviously don't do every possible every potential jurisdiction. We're very selective and then there are certain international jurisdiction.

Craig S. Billings: And then there are certain international jurisdictions, like Thailand, for example, that are also in the process. So we're always balancing two things: really two things, our ability to do what we do so well.

Dan: <unk> like Thailand. For example that are also in the process of considering gaming. So we're always balancing really two things our ability to do what we do so well remember well.

Craig S. Billings: Remember, we're one of the last in the industry that maintains its own design and development group. And so it's not as though you can bang four of these out in any particular year. So that's always a consideration. And then there is capital, as you rightly pointed out. So we're always looking at what is the highest and best use of capital that we can deploy, and then we make decisions accordingly. We will certainly make use of that land. It's not a question of if, it's a question of when, and we'll see how things play out in New York and how things play out in a couple of other jurisdictions in determining the timing of events.

Dan: Well one of the last in the industry that maintains its own design and development group and so it's not as though you can you can bang for these out in any in any particular year. So that's always a consideration and then the other is capital as you rightly pointed out.

Dan: So we're always looking at what is the highest and best use of capital that we can deploy and then we're making decisions. Accordingly, we will certainly make use of that land across the street in Las Vegas, It's not a question of if it's a question of when and we will see how things play out in New York and things play out in a couple of other jurisdictions in determining the timing of the use.

Dan Pelitzer: Got it. And then just for my follow-up, right? Macau is certainly continuing along a nice trajectory here. You have outlined some drawbacks as you think about it for the concession renewals, but how do you balance that with maybe, you know, the subsidiary paying up dividends to the parent? Is that something that we could see within the next, you know, 12 to 18 months? Or is that something longer term that you'd like to imagine coming back? Yeah, it really depends.

Dan: Of that land.

Speaker Change: Got it and then just for my follow up right Macau is certainly continuing along a nice trajectory here.

Speaker Change: Have you you outlined some capex as you think about it for the related to the concession renewals, but how do you balance that with maybe.

Speaker Change: The subsidiary paying of dividends to the parent is that something that we could see within the next 12 months to 18 months or is that something longer term that you'd like to envision coming back.

Speaker Change: Yes, it really depends you are right.

Craig S. Billings: You're right. It's, there's, there's a lot of moving parts there, right? We have a debt maturity later this year there. We need to think about our leverage profile in Macau and what that longer-term leverage profile should be. We have some capital that we need to put in the ground there. We had nearly three years of closure and cash burn.

Speaker Change: Theres a lot of.

Speaker Change: There's a lot of moving parts there right we have had.

Speaker Change: Debt maturity later this year, there we need to think about our leverage profile in Macau and what that longer term leverage profile should be we have some capital that we need to put in the ground. There we had.

Speaker Change: Nearly nearly three years of closure and cash burn.

Craig S. Billings: So the question is, what do we want the balance sheet to be? How will the CapEx plans come together in terms of the timing of capital deployment, which we're studying and learning more about as we go through the design and development process every day? And then, of course, the dividend.

Speaker Change: So the question is what do we want the balance sheet to be.

Speaker Change: How will the Capex plans come together in terms of the timing of capital deployment, which we're studying and learning more about as we go through the design and development process every day and then of course, the dividend and as you know the dividend is a global statement dividends are the cornerstone of our capital return strategy.

Craig S. Billings: And as you know, the dividend, just as a global statement, dividends are the cornerstone of our capital return. So stay tuned, we are looking very closely at it, and we'll figure it out.

Speaker Change: So stay tuned we are looking very closely at it and we'll we'll figure it out in due course.

Speaker Change: Got it thanks, and congrats on the quarter.

Dan Pelitzer: Thanks and congratulations on the quarter. Thank you. Our next caller is Robin Farley with UBS. Great, thanks.

Speaker Change: Thank you. Thank you.

Speaker Change: Our next caller is robin Farley with UBS.

Speaker Change: Great.

Robin M. Farley: I wanted to ask about Vegas. It sounds like, clearly, a very strong events calendar and outlook for February. Your January comments sounded like it was maybe a little bit flattish year-over-year. I'm just wondering how March is looking on kind of a year-over-year basis when you get past some of the big events in February. Thanks. Keep in mind last year Chinese New Year started in January.

Robin M. Farley: I wanted to ask about Vegas, it sounds like clearly very strong.

Robin M. Farley: Calendar and outlooks for February.

Robin M. Farley: January comment sounded like it was maybe a little bit flattish year over year I'm. Just wondering how March is looking on kind of a year over year basis. When you get past some of these the big events and Sam Thanks.

Sam: Sure Robin.

Sam: Yeah January keep in mind last year Chinese new year started in January.

Craig S. Billings: And so this year it starts in February. So, as I mentioned in my prepared remarks, February really sets the tone for the quarter, and it's where all the action is this year in Q1. March has a couple headwinds. Easter timing is one of them.

Sam: And so this year it starts in February so as I mentioned in my prepared remarks February it really sets the tone for the quarter and ex Ware.

Sam: All the action is this year in Q1 March has a couple of headwinds Easter timing is one of them and in the absence of Con agg is another but our forward booking indicators continue to look strong and we feel we feel good about it I've said.

Craig S. Billings: And then the absence of Con Ag is another. But our forward booking indicators continue to look strong, and we feel good about it. I've said, probably five times on the last three or four calls, the trees don't grow to the sky, and I would continue to tell you how things are looking in Vegas, and they continue to look good. They need to look good for us.

Sam: Probably five times over the last the last three or four calls that trees don't grow to the sky and I would continue to tell you how things are looking at Vegas and they continue they continue to look good we continue to look good for us. So how the quarter plays out will be very dependent on on February and again all forward indicators look look strong for February.

Craig S. Billings: So how the quarter plays out will be very dependent on February, and again, all forward indicators look strong for February. But subsequent to that, we'll take it. Okay, great. Thank you very much. Thank you. Our next caller is Brant Montour with Sparkly's.

Sam: But.

Sam: Subsequent to that we will take it from there.

Okay, great. Thank you very much.

Sam: Sure.

Brent Minetour: Thank you. Our next caller is Brent mine tour with Barclays. You May go ahead Sir.

Brant Montour: You may go ahead, sir. Thanks. Good evening, everybody, and congratulations on the results.

Speaker Change: Thanks, Good evening, everybody and congrats on the results.

Craig S. Billings: In Macau and Palace, I guess, specifically, but this is, it's a broader question. Can you comment on just a broader competitive environment for premium mass players? How it's evolved sort of into the end of the year, into the early part of this year, which, you know, with volumes being strong, infrastructure, travel infrastructure coming back, how has that changed? And is that a tailwind for you as we go forward here, and as volumes continue to grow? Sure. Specifically as it relates to Wynn Palace, Wynn Palace is incredibly well positioned, and it has been since the day it opened on CoChi, but it only grows more so as we continue to evolve the amenities in the palace. Competition for premium mass customers has been fierce for ever-ending.

Speaker Change: The cow.

Speaker Change: Palace, I guess, specifically, but these are broader question can you comment on just the broader competitive environment for premium mass players, how it's evolved sort of.

Speaker Change: The end of the year and into the early part of this year, which.

Speaker Change: With volumes being strong infrastructure travel I'm sure it's coming back.

Speaker Change: How has that changed and is that a tailwind for you as we as we go forward here and as volumes continue to grow.

Speaker Change: Sure.

Speaker Change: Specifically as it relates to Wynn Palace Wynn palace's is incredibly well positioned.

Speaker Change: It has been since the day it opened but it only grows more so as we continue to evolve the amenities at Wynn Palace competition for premium mass customers has been fierce for ever and a day. So it's really nothing new.

Craig S. Billings: So it's really nothing new. What we try to do is really focus on what we do well, stay true to who we are, and be really, really disciplined, including on reinvestment. Because at the end of the day, I don't think the banks take market share. I think they take cash.

Speaker Change: What we try to do is really focus on what we do well stay true to who we are and being really really disciplined including on reinvestment because at the end of the day.

Speaker Change: I don't think the bank takes market share I think they take cash and so we're really focused on generating cash and EBITDA. So I think palace turned in a great quarter.

Craig S. Billings: And so we're really focused on generating cash and even... So, I think Palace turned in a great quarter, its future is bright, and we will continue to aggressively chase market share. Great, thank you. Thank you. Stephen Grambling with Morgan Stanley.

Speaker Change: Its future is bright and we will continue to aggressively chase market share responsibly.

Speaker Change: Great. Thanks.

Speaker Change: Thank you Steven Grambling with Morgan Stanley You May go ahead Sir.

Stephen Grambling: Hey, Thank you I may have missed this but I guess how are you thinking about looking currently at the Super Bowl, how that might compare to formula one or is there any way to kind.

Stephen Grambling: You may go ahead, sir. Hey, thank you. I may have missed this, but I guess how you are thinking about looking at the Super Bowl currently and how that might compare to Formula One? Or is there any way to... kind of back out how you think about the contribution from Formula One in the quarter and how that might grow next year? Yes, it's a really good question. The Super Bowl is distinctly more corporate in terms of visitation.

Stephen Grambling: Kind of back out how you think about the contribution from Formula one in the quarter and how that might grow next year.

Speaker Change: Yes, it really gets a really good question.

Speaker Change: The Super Bowl is distinctly more corporate in terms of visitation.

Craig S. Billings: And so I think that's an important point to keep in mind. So we have, I alluded to it, actually explicitly stated it in my prepared remarks, we have very strong front money and credit for the Super Bowl, about double what we had last year. And that'll be a very important segment of our business over the course of the next week, and I expect it will generate very strong results. We also have a lot of folks in-house who will never go near a gaming machine because there's a lot of corporate visitation around this particular event.

Speaker Change: And so I think thats, an important point to keep in mind. So we have I alluded to it actually explicitly stated in my prepared remarks, we have very strong front money and credit for Super Bowl about double what we had last year and that'll be a very important segment of our business over the course of the next week and I expect it will generate very strong results. We also have a lot.

Speaker Change: Folks in house it will never go near a gaming table, because theres a lot of corporate visitation around around this particular event. So.

Craig S. Billings: So the real answer to your question is, we don't know; we're going to see. But if we had to, if we had to spitball it now, what I would say is that it's not going to be as impactful in the casino, and it'll be equally, if not more impactful when it comes to hotel rent. Fair assessment.

Speaker Change: A real answer to your question is we don't know.

Speaker Change: But.

Speaker Change: But if we had to if we had to spitball at now what I would say is that it's not going to be as impactful in the casino and it'll be equally if not more impactful when it comes to hotel revenue.

Speaker Change: Fair assessment Brian.

Stephen Grambling: Yeah, both hotel revenues and rates are very similar to Formula One. The weekend Super Bowl is another great match, I think, for our brand. And as you said, we're going to have double the credit in front money we had previously. So I think we're in for a great, Thanks so much. Thank you. Our next caller is John Decree with CBRE. Hi, everyone.

Speaker Change: <unk> hotel revenues and rates are very similar to formula one.

Speaker Change: We get superbowl Thats another great match, I think for our brand and.

Speaker Change: And as you said.

Speaker Change: Gonna have double the credit front money, we had previously so I think we're in for a great weekend here.

Speaker Change: Great. Thanks, so much.

Speaker Change: Thank you. Our next caller is John decree with C. B R E.

Hi, everyone. Thanks for taking my question.

John Decree: Thanks for taking my question. Maybe two follow-ups. One is on F1, and we've had some conversations.

John Decree: Maybe two follow ups one is on F. One and we've had some conversations this was the first year obviously.

Craig S. Billings: This was the first year, obviously, you know, quite successful for you. Curious how you think about next year and going forward? You know, are there opportunities to calibrate the event and see growth and build upon this? Or, you know, do you have a view that the first one in Vegas might be the best? You know, we've had some different folks, different opinions about that, whether next year will be a tough comp or an opportunity, perhaps, to, you know, just continue to grow that event for you and for the city. Yeah, great question. I guess I'll answer that as someone who cares about the broader market and wants to see everybody in the market participate and do really well. There's clearly, I mean, look. The first time you do anything of this scale, you're going to have learnings, and it's just natural.

John Decree: Quite successful for you I'm curious, how you think about next year and going forward.

John Decree: Is there opportunities to calibrate the event.

John Decree: And see growth and build upon this or do you have a view that this is the first one in <unk>.

John Decree: I guess it might be the best and always have.

Speaker Change: So different.

Speaker Change: Folks different opinions about that whether next year is a tough comp or an opportunity perhaps to just.

Speaker Change: Just continue to grow that event for you and for the city.

Speaker Change: Yes, great question.

Speaker Change: Yes, I'll answer that as the Las Vegas, and someone who cares about the broader market and wanting to see everybody in the market participate and do really well.

Speaker Change: There is clearly I mean look the first time you do anything of this scale youre going to have learnings and it's it.

Craig S. Billings: So I do think that there's a lot that can be done to make the event more relevant to the town more broadly, and I think that F1 understands that, and I think, frankly, the operators in town understand that, even those like us. The Bulletproof Executive 2013, So I think the event is only going to get better and better. I think what this year proved is that the core contingent of people that travel to go to an F1 race is our customer.

Speaker Change: It's just natural.

Speaker Change: And so I do think that there's a lot that can be done to make the event more relevant for them.

Speaker Change: For the town more broadly and I think that everyone understands that and I think frankly, the operators in town I understand that even those even those like us.

Speaker Change: Disproportionately benefited so I think the event is only going to get better and better I think what this year proved is at the core contingent of people that.

Speaker Change: That travel to go to an F. One race is our customer.

Craig S. Billings: And so you better believe that we will program the heck out of this place yet again, just like we did this F1, this last F1, this coming year, and we will do our best to attract the best customers in the market. And hopefully, again, there will be more opportunities for some of the other tiers of properties in the market to participate in the event this year as they continue to evolve and change the event. Thanks, Craig. That's helpful. Maybe one more top-down on the other side of the world.

Speaker Change: And so you better believe that we will program the heck out of this place yet again, just like we did this F. One this last F. One this coming year and we will do our best to attract the best customers in the market and hopefully again there'll be more opportunities for some of the other tiers of properties in the market to participate.

Speaker Change: In the event this year as they continue to evolve and change the event.

Speaker Change: Thanks, Greg that's that's helpful. Maybe one more top down on the other side of the world in Macau, we still.

John Decree: In Macau, we still hear from investors skittish about some of the uncertainty around the macroeconomic picture in China, yet we continue to see monthly numbers out of Macau and your performance. Things just continue to recover and grow. I'm curious if you want to take a stab or someone on the team to weigh in on how Macau's fundamental recovery has been decoupled from that and what you're seeing. It gives some confidence that the recovery trend continues. If you have any top-down, high-level comments, it would be helpful.

Speaker Change: From investors skittish about some of the uncertainty around <unk>.

Speaker Change: The macroeconomic picture in China, yet, we continue to see monthly numbers out of Macau and your performance.

Speaker Change: Things just continue to recover and grow.

Speaker Change: Just curious if you want to take a stab or someone that team to kind of weigh in on on where how macao kind of fundamental recovery has been decoupled from that what youre kind of seeing that.

Speaker Change: Give us some confidence that the recovery trend continues.

Speaker Change: If you have any any top down high level comments it could be helpful.

Speaker Change: Yes ill leave the details.

Craig S. Billings: Yeah, I'll leave the detailed China macro analysis to you. Thank you for watching. You have the ease of proximity to Macau, which actually benefits Macau when, you know, the economic situation is perhaps not as robust as it could be, and you have some modest stimulus efforts. But you also, as you rightly pointed out, clearly have a litany of..., of Difficult Economic Indicators, yet Macau continues to chug along, so to us, it's really the long-term viability of Macau. We So I think it's well observed, maybe not well understood, but well observed that Macau's trajectory does seem to be decoupled from the broader Chinese macro. I think you saw that in 2009 as well.

Speaker Change: China macro analysis to people, who do that for a living but theres certainly a lot of cross currents to consider you have tremendous pent up demand still from several years of near closure.

Speaker Change: The ease of proximity to Macau, which actually benefits Macau.

Speaker Change: When the economic situation, perhaps isn't.

Speaker Change: As robust as it could be and you have some modest stimulus efforts that we've seen but you're also as you rightly pointed out clearly have a litany of.

Speaker Change: Difficult economic indicators.

Speaker Change: Yet Macau continues to shut off so to us it's really the long term viability of Macau, we're thinking in kind of five to 10 years increments. So it's really the long term viability of Macau that is most relevant and we're clearly already at levels that allow us the financial and operating flexibility to plan for that longer term time her.

Speaker Change: Ryzen.

Speaker Change: So I think it's well observed it would be not well understood well observed that Macau Macau trajectory does seem to be decoupled from the broader China macro I think you saw that in 2009 as well.

Craig S. Billings: And I think that bodes well for the future. Does it bode well for the next quarter? I don't know. Does it bode well for the quarter after that? I don't know.

Speaker Change: And I think that bodes well for the future does it bode well for next quarter I don't know if does bode well for the quarter after that I don't know, but it certainly bodes well for the future and that's what we're thinking about.

Craig S. Billings: But it certainly bodes well for the future. Thanks for that. That long-term outlook is a great perspective. I really appreciate it.

Speaker Change: Thanks for that long term outlook is great perspective, I really appreciate it congratulations on the quarter. Thank.

John Decree: Congratulations on the quarter. Thank you, John and Operator. The next question will be our last. Thank you. And our final question comes from Chad Beynon with Macquarie. You may go ahead. Afternoon, nice results.

Speaker Change: Thank you. Thank you John and the operator to the next call that will take the next question will be how long.

Speaker Change: Thank you and our final question comes from Chad Beynon with Macquarie. You May go ahead Sir.

Chad Beynon: Afternoon Nice results. Thanks for taking my question just to kind of pile on on the Macau question wondering if you could elaborate a little bit in terms of the health of the shopping retail market. That's something that we've heard from the luxury operators continues to be strong in specific markets wondering how youre seeing that.

Chad Beynon: Thanks for taking my question. Just to kind of pile on top of that Macau question, wondering if you could elaborate a little bit in terms of the health of the retail shopping market. That's something that we've heard from the luxury operators continues to be strong in specific markets. I'm wondering how you're seeing that right now. And then, as some of the catchment areas recover in terms of visitation, if that could be an additional tailwind in the future. Thanks. I guess what I would say is, if you look at the trajectory over the course of 2023, retail sales have been, and more incredibly, up over 2019.

Chad Beynon: Right now and then as some of the catchment areas recover in terms of visitation if that could be an additional tailwind in the future. Thanks.

Chad Beynon: Sure.

Chad Beynon: I guess, what I would say is if you look at the trajectory over the course of 2023.

Chad Beynon: Retail sales have been.

And we're incredibly strong in Macau.

Chad Beynon: Up over over 2019.

Craig S. Billings: You saw, you can see, you can look at our numbers, Q3 to Q4, you can see that they were up very, very modestly, I think about 10 bases. And so certainly if anything from China Macro is affecting Macau, it's probably there. But again, given the relative strength compared to pre-COVID, I think it's difficult for us to complain.

Chad Beynon: You saw you can see you can look at our numbers Q3 to Q4, you can see that they were up very very modestly I think about 10 basis points.

Chad Beynon: So certainly if anything from China macro is affecting Macao is probably there, but again given the relative strength compared to pre COVID-19 I think it's difficult for us to complain I think.

Craig S. Billings: I think what appears to us to be occurring is... To a certain extent, Macau has become a substitute for Hong Kong from a retail sales perspective. And certainly based on the changing type of visitation that you see, particularly on KOTAK. I think you can support that premise. And so, again, if you look at the long term, I think it's very bright for Macau from that perspective, and I think to the extent that someone goes to Macau with a retail-based motivation and a gaming-based motivation, or eventually, a retail-based motivation and an entertainment-based motivation, that's fine, that's great. I mean, that's the natural evolution of Macau.

Chad Beynon: What appears to us to be occurring is.

Chad Beynon: To a certain extent Macau has become a substitute for Hong Kong from a retail sales perspective, and certainly based on the changing.

Chad Beynon: Type of visitation that you see particularly on Cotai I think.

I think you can support that premise and so I think it's again if you look at the long term I think it's very bright for Macau from from that perspective, and I think to the extent that someone goes to Macau with a retail base motivation and the gaming base motivation or eventually a retail base motivation and entertainment motive based motivation.

Speaker Change: That's fine that's great I mean, that's a natural evolution of Macau, but you can see the quarter over quarter changes in our in our numbers.

Craig S. Billings: But you can see the quarter-over-quarter changes in our. In terms of the interactive business, is there any update to speak about, or could there be an opportunity to monetize or partner this in a shareholder-friendly way? I'll take that one. Thanks, Ciaran. So we announced in August that we were exiting the jurisdictions we operate in. We were leaving New York and Michigan under review. So we're continuing that strategic review of those two states, and we'll stay tuned. We'll have more information on that in the near future. Everything else is pretty much wrapped up now. We're working on closing down Massachusetts Online as well. And wherever we're able to and wherever we can interact with anybody else, obviously with player databases and so on, we'll make sure that we do the best for our shareholders and monetize the assets that we have in a way that works well with what's allowed and what's available.

Speaker Change: Perfect. Thank you and then in terms of the interactive business is there any update to speak about or could there be an opportunity to monetize our partner this in a shareholder friendly way.

Speaker Change: I'll take that one.

Speaker Change: Chad, Yes, so we announced in August that we were.

Speaker Change: The jurisdictions, we operate in and we were leaving New York and Michigan under with you.

Chad Beynon: So we continuing to that strategic review of those two states and.

Speaker Change: We'll stay tuned we'll have more information on that in the near future everywhere else is it.

Speaker Change: It's pretty much wrapped up now we've just we're working on closing, Dan, Massachusetts online as well and.

Wherever we are able to and where we can interact with anybody else you know, obviously with plenty of databases and so on we will make sure that we do the best for our shareholders and monetize the assets that we have in a way that.

Speaker Change: Works, well with what's allowed and.

Ciaran Carruthers: Thank you very much. I appreciate it. Thank you. With that, we'll close the call. Thank you for your interest and we look forward to talking to you again next quarter. Thank you for participating in today's conference call. You may now go ahead and disconnect.

Speaker Change: What's available out there in the market.

Speaker Change: Great. Thank you very much I appreciate it thank.

Speaker Change: Thank you.

Speaker Change: And with that we will close the call. Thank you for your interest and we look forward to talking to you again next quarter.

Speaker Change: Thank you for participating on today's conference call. You May now go ahead and disconnect.

Speaker Change: So.