Q1 2024 Las Vegas Sands Corp Earnings Call

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Operator: Good morning, ladies and gentlemen, and welcome to the Sands First Quarter 2024 earnings call. At this time, all participants have been placed on a 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 Sands. Sir, the floor is yours.

Good day, ladies and gentlemen, and welcome to the <unk> first quarter 2024 earnings 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 Sam's sorry the.

Daniel J. Briggs: Floor is yours.

Daniel J. Briggs: Thank you, Paul. Joining the call today are Rob Goldstein, our Chairman and CEO, Patrick Dumont, our President and COO, Dr. Wilfred Wong, Executive Vice Chairman of SANS China, and Grant Chung, CEO and President of SANS China and EVP of Asia Operations. Today's conference call will contain forward-looking statements. We will be making these statements under the Safe Harbor provision of federal securities laws. The company's actual results may differ materially from the results reflected in those forward-looking statements. In addition, we will discuss non-GAAP measures. Reconciliations for the most comparable GAAP financial measure are included in our press release.

Thank you Paul joining the call today are Rob Goldstein, our chairman and CEO, Patrick Dumont, President and COO, Dr. Wong Executive Vice Chairman since China, and grant Chubb, CEO and President of Sands, China, and EVP of Asia operations Today's conference call will contain forward looking statements.

Daniel J. Briggs: We will be making these statements under the safe Harbor provision of federal Securities laws. The company's actual results may differ materially from the results reflected in those forward looking statements. In addition, we will discuss non-GAAP measures reconciliations to the most comparable GAAP financial measure are included in our press release, we have posted an earnings presentation on our website, we will refer to that presentation during the call.

Daniel J. Briggs: We have posted an earnings presentation on our website. We will refer to that presentation during the call. Finally, for the Q&A session, we ask those with interest to please pose one question and one follow-up. We may allow everyone with an interest the opportunity to participate. This presentation is being recorded. I will now turn the call over to you.

Daniel J. Briggs: Finally for the Q&A session. We ask those who are interested please pose one question and one follow up so we might allow everyone with interest the opportunity to participate this presentation is being recorded.

Daniel J. Briggs: Now I'll turn the call over to Rob Thanks, Dan and thanks for joining US today, the Macao market continues to grow as it has.

Robert Glen Goldstein: Thanks Ben, and thanks for joining us today. The Macau market continues to grow as it has for each of the past five quarters. Since the reopening in early 2023, the annual run rate of the market has grown every quarter from $17 billion in Q1 of last year to $22 billion, then $24 billion, then $26 billion, now reaching $20 billion in annualized gaming revenue. We remain confident, supremely confident, in the future growth of the Macau market. I have said in the past that the Macau market will grow to $30 billion, and then $35 billion, and then $40 billion and beyond in the years ahead. I remain steadfast in that belief.

Rob: Five quarters Susan.

Rob: Since reopened in early 2020 through the annual run rate Mark has grown every quarter from 17 billion in Q1 of last year to $22 billion 4 billion in 2006, now reaching $21 billion.

Rob: <unk>.

Rob: We remain confident supremely confident in future growth retail market.

In the past and Caremark will grow to $30 billion 35, 40 and beyond is ahead.

Speaker Change: That does not believe.

Robert Glen Goldstein: We remain equally confident in our business strategy to invest in both the quality and scale of our market-leading assets in Macau. Our capital investment programs ensure that we will continue to be a market leader in the years ahead. Our investments position us to grow faster than the market over the long term, to grow our share of EBIT below the market, and to generate industry-leading returns on investment. Turning to our current financial results in the CAB, we delivered a solid result for the quarter despite the disruption of our ongoing capital investment programs.

Speaker Change: We remain equally confident our business strategy to invest in both the quality and scale of our market leading assets in Macau.

Speaker Change: Our capital investment programs to ensure that we will continue to be the market leader in years ahead.

Speaker Change: <unk> position us to grow faster than the market over the long term to grow our share of EBITDA in the market and to generate industry, leading returns on invested capital.

Speaker Change: Turning to our current financial results Macao, we delivered solid results for the quarter. Despite the disruption of our ongoing capital investment programs SCL continues to lead the market in gaming and non gaming revenue and most importantly, and the market share of EBITDA.

Robert Glen Goldstein: SCL continues to lead the market in gaining and non-gaining revenue, and most importantly, in market share. Because of our market-leading investments, we will capture high-value, high-margin tourism over the long run. We have a unique competitive position in terms of scale, quality, and diversity of product. Upon completion of the second phase of London and our Code Tyranny redevelopment program, our product advantage will be more substantial than ever. Turning to Singapore, we delivered a record quarter. We believe it's a record for the industry.

Speaker Change: Our market, leading investments, we will capture a high value high margin tourism over the long run.

Speaker Change: Have a unique competitive position in terms of scale quality and diversity of product offerings. Upon completion of the second phase of the London, and our Cotai Arena redevelopment program.

Speaker Change: <unk> advantage will be more substantial than that.

Speaker Change: Turning to Singapore, we delivered a record quarter, we believe is a record for the industry.

Robert Glen Goldstein: The team has done an extraordinary job, and this is what happens when a superior product is located in the proper market. Our financial results in Singapore reflect the impact of our capital investment programs and our service capabilities. The appeal of Singapore is its tourism destination, and the robust entertainment and lifestyle event calendar also contribute to the growth at MBS. As we complete the balance of our investment programs, there will be a lot more runway for growth in the future. Thanks for joining us today. I'll turn it over to Patrick for more details. Thanks, Rob.

Speaker Change: The team there has done an extraordinary job and this is what happens with superior product is located in the copper market.

Our financial results in Singapore reflect the impact of our capital investment programs.

Speaker Change: Service capabilities, the appeal of Singapore is towards the in destination in the road.

<unk> Entertainment and lifestyle event calendar also contributed to the growth at <unk> as we complete the balance of our investment programs there will be a lot more runway for growth for the future.

Speaker Change: Thanks for joining us today, I'll turn it over to Patrick more detail. Thanks, Rob Macau EBITDA was $610 million. If we had held as expected in our rolling program, our EBITDA would have been higher by $31 million.

Patrick Dumont: Macau EBITDA was $610 million. If we had held as expected in our rolling program, our EBITDA would have been higher by $31 million. When adjusted for lower-than-expected holds in the rolling segment, our EBITDA margin would have been 34.4%, or up 380 basis points compared to the first quarter of 2023. This highlights our focus on cost discipline and profitability. The ongoing capital investment programs at the Lunderer and at the Kochai Arena had an impact on our results this quarter. The Kota Arena was closed for renovation in January of this year.

Patrick: When adjusted for lower than expected hold in the Rolling segment, our EBITDA margin would have been 34, 4% or up 380 basis points compared to the first quarter of 2023. This highlights our focus on cost discipline and profitability.

Patrick: The ongoing capital investment programs at the Londoner and the Cotai Arena had a impact on our results this quarter.

Patrick: Our Cotai Arena was closed for renovation in January of this year.

Patrick Dumont: After a significant reinvestment and renovation, the arena is expected to reopen in November. In terms of the second phase of the Lundner, we have now commenced the room renovation on the first shard in town. We plan the completion of the first tower by year end and the second tower by golden week in May of 2025. The renovation of the casino on the Sheridan side of the Lunder will commence in May of this year, with the reopening scheduled for December of 2024.

Patrick: After the significant reinvestment and renovation urea is expected to reopen it in November.

Patrick: In terms of the second phase of the lender. We have now commenced the room renovation on the first short in time.

Patrick: We plan to completion of the first tower by year end and the second tower by Golden week in May of 2025.

Patrick: The renovation of the casino on the short side of the lender will commence in may of this year with the reopening scheduled for December of 'twenty three 'twenty four.

Patrick Dumont: While there will be ongoing disruption from these capital projects, as these products come online between the end of 24 and the first half of 25, our competitive position will be stronger than ever. The scale, quality, and diversity of products will be better than we have ever offered before. They will be unmatched in the market.

Patrick: While there will be ongoing disruption from these capital projects as these products come online between the end of <unk> 24 in the first half of 'twenty five our competitive position will be stronger than ever.

Patrick: <unk> quality and diversity of product will be better than we've ever offered before.

It will be unmatched in the market.

Patrick Dumont: According to Singapore, MBS's EBITDA came in at $597 million, an all-time record for the property and for the industry. Our strong results reflect the impact of high-quality investment in market-leading products. Had we held as expected in our rolling play segment, EBITDA would have been $77 million lower. Had we held as expected in the rolling play segment, MBS's EBITDA margin would have been 49.1%, or 180 basis points higher than in Q1 of 2023.

Patrick: Turning to Singapore, MBS as EBITDA came in at $597 million, an all time record for the property and for the industry. Our strong results reflect the impact of high quality investments and market leading product.

Patrick: How do we held as expected in our Rolling play segment EBITDA would have been $77 million lower.

Patrick: We held as expected.

Patrick: And the Rolling play segment, MBS EBITA margin would've been 49, 1% or 180 180 basis points higher than in Q1 of 2023.

Patrick Dumont: We have now completed both Tower 1 and Tower 2 of the Marina Benitez Sands Hotel refurbishment. While we have substantially completed the original $1 billion CapEx program, we are still in the initial stages of realizing the benefits of these new products. We have now commenced the next phase of our capital investment program at Marina Bay Sands, the $750 million renovation that includes Tower 3. Tower 3, which is scheduled to be completed by the second quarter of next year,

Patrick: We have now completed both tower water tower too of the Marina Bay Sands Hotel refurbishment.

Patrick: While we have substantially completed the original 1 billion Capex program. We are still in initial stages of realizing the benefits of these new products.

Patrick: We have now commenced the next phase of our capital investment program at Marina Bay Sands.

Patrick: 750 million renovation that includes tower three.

Patrick: <unk> is scheduled to be completed by the second quarter of next year. This.

Patrick: This will support further growth in 2025 and beyond.

Patrick Dumont: This will support further growth in 2025 and beyond. Turning to our program to return capital to shareholders, we repurchased $450 million of LVS stock during the quarter. We also paid our recurring quarterly dividends. In addition, LVS completed the previously announced purchase of $250 million of SEL stock, which increases the parent company's ownership interest in SEL to approximately 71%. We continue to see value in both repurchasing LVS stock and increasing our ownership interest in SEL. We look forward to continuing to utilize the company's capital return program to increase returns to shareholders in the future. Thanks again for joining the call today. Now, we have some questions. Thank you.

Patrick: Turning to our program to return capital to shareholders, we repurchased $450 million of Lvs stock during the quarter. We also paid a recurring quarterly dividend. In addition to Lvs is completed the previously announced purchase of $250 million of Lvs, SCL stock, which increases the parent company's ownership interest in SCO to approximately 71%.

Patrick: We continue to see value in both repurchasing lvs stock and increasing our ownership interest in SCO.

We look forward to continuing to utilize the company's capital return program to increase return to shareholders in the future. Thanks again for joining the call today now let's take some questions.

Speaker Change: Thank you ladies and gentlemen, the floor is now opened for questions if you'd like to enter the queue to ask a question. Please press star one on your telephone keypad now.

Speaker Change: If listing on speakerphone today, please pickup your handset to provide optimum sand quality.

Speaker Change: Also we ask each participants to limit yourself to one question and one follow up please hold a moment, while we poll for questions.

Operator: Thank you. Ladies and gentlemen, the floor is now open to questions. If you would like to enter the queue to ask a question, please press star 1 on your telephone keypad now. If you are listening on speakerphone today, please pick up your handset to provide optimum sound quality. Also, we ask each participant to limit themselves to one question and one follow-up. Please hold a moment while we poll for questions. And the first question today is coming from Stephen Grambling from Morgan Stanley. Stephen, your line is live.

Speaker Change: And the first question today is coming from Stephen Grambling from Morgan Stanley Steven Your line is live.

Stephen White Grambling: Hey, thanks, so much.

Stephen White Grambling: Talk to the large higher for the market in Macao.

Stephen White Grambling: This quarter it looks like the margin flow through and EBITDAX, even in the other direction, how should we be thinking about flow through in the cow and operating expenses going forward in that market.

Stephen White Grambling: Okay.

Speaker Change: Yes, I just wanted to say one thing before we turn it over to grant I think some of this has to do in Macau with some of the disruption that we experienced during the quarter. So when we take the readout in January we lose the benefit of our entertainment programs during our peak periods.

Speaker Change: Did have an impact.

Stephen White Grambling: Hey, thanks so much. You talked about the March hire for the market in Macau, but this quarter looks like the margin flow through and even actually went in the other direction. How should we be thinking about flow through in Macau and operating expenses going forward in that?

So when you look at our operation you compare to Q1 of last year Q1 of last year, where we're coming out of the pandemic and it really took a while for visitation to get started again. This year. Unfortunately, we did this to ourselves we started renovating our arena.

Speaker Change: So very powerful asset it has lots of entertainment and went through the Chinese new year period, and unfortunately, with some hotel rooms out any readout, we felt on the revenue side. So as we've said before as the market continues to grow we will do well we have the best product. We've invested the most in non gaming assets. We are devoting most of that he has to offer.

Patrick Dumont: Yeah, I just want to say one thing before we turn it over to Grant. I think some of this has to do with Macau with some of the disruption that we experienced during the quarter. So when we take the arena out in January, we lose the benefit of our entertainment programs during a peak period. That did have an impact. So when you look at our operation, you compare it to Q1 of last year. In Q1 of last year, we were coming out of the pandemic, and it really took a while for visitation to get started again.

Speaker Change: To our patrons.

Speaker Change: High quality.

Speaker Change: Retail diversity.

Speaker Change: Diversity of entertainment, which is very important.

Speaker Change: We didn't have that tool this quarter.

Speaker Change: In full swing and we only had the lender arena, which is good but it can't compete with the Cotai Arena. So I think for us as the revenues continue to grow as <unk> seen in prior quarters, our margins will fall in line and you see that in the Venetian as revenues are where they need to be to margins fall in line as well. So that's sort of the headline from the margin performance this quarter I do.

Patrick Dumont: This year, unfortunately, we did this to ourselves; we started renovating our arena. It's a very powerful asset. It has lots of entertainment. It went through the Chinese New Year period.

Patrick Dumont: And unfortunately, with some hotel rooms out and the arena out, we felt it on the revenue side. So, as we've said before, as the market continues to grow, we will do well. We have the best product. We've invested the most in non-gaming assets. We have the most amenities to offer to our patrons, and they're very high quality.

Speaker Change: Wanted to turn it over to grant to see if he has any additional color.

Speaker Change: Okay.

Grant: Yes, Thanks Patrick.

Grant: I think the most important point is still the CJR is growing in the market.

Grant: And I think if you look at our profitability at this level of <unk> I think we should be looking at.

Grant: Low to mid thirties.

Grant: And operating margin EBITDA margin.

Patrick Dumont: Diversity of retail, diversity of food and beverage, diversity of entertainment, which is very important. Unfortunately, we didn't have that tool this quarter in full swing. You know, we only had the London Arena, which is good, but it can't compete with the Kotai Arena.

Speaker Change: And we are right at the high end of the range there.

Speaker Change: Obviously each quarter there is seasonality.

Speaker Change: Relating to different parts of the business the revenue mix. So it's sort of the first quarter I think 34, 4% in terms of the underlying margin.

Speaker Change: <unk> is a really good number.

Speaker Change: I think 2024.

Speaker Change: It's going to be one that is impacted by capital works and the renovations that Patrick.

Patrick Dumont: So I think for us, as revenues continue to grow, as you've seen in prior quarters, our margins will fall in line. And you see that in the Venetian, as revenues are where they need to be, the margins fall in line as well. So that's sort of the headline on the margin performance this quarter.

Speaker Change: Referenced also in his opening remarks.

Speaker Change: We have obviously started the hotel renovation in the first half Sheraton.

Speaker Change: The down part of it.

Speaker Change: 600 rooms in the first quarter on average.

Speaker Change: Hello.

Grant Chung: I do want to turn it over to Grant to see if he has an additional color.

Speaker Change: The number of keys that will be out of the inventory will increase further in the second quarters.

Grant Chung: Yeah, thanks, Patrick. Yeah, I think the most important point still is that GGR is growing in the market. And I think if you look at our profitability at this level of GGR, I think we should be looking at the low to mid-30s in operating margin, EBITDA margin. And we're right, you know, at the high end of the range there.

Speaker Change: And of course, Cotai arena as Patrick referenced that's always been a core part of our content programming content offering.

Speaker Change: And we were able to offer plenty of shows at the London Arena, but if you just compare just the sheer number of shows that we had in the first quarter. We had 12 shows.

Speaker Change: Compared with the fourth quarter last year, we had 31 shows.

Grant Chung: And we were able to offer plenty of shows at the London Arena. But if you just compare just the sheer number of shows that we had in the first quarter, we had 12 shows. Compared with the fourth quarter last year, we had 31 shows. It's a big difference, and obviously, in terms of capacity, there's a big difference.

Speaker Change: It's a big difference.

Speaker Change: And obviously in types of capacity, that's the big difference so the attendance.

Speaker Change: Obviously it was much higher.

Speaker Change: Fourth quarter as well so.

Speaker Change: Hopefully that gives you some color.

Speaker Change: So the disruption.

Speaker Change: On a business with the with your arena being closed for renovation.

Speaker Change: And as I said the whole.

Speaker Change: So renovation is ongoing.

Speaker Change: You're going to see more.

Stephen White Grambling: Got it. And maybe one clarification, I guess in the quarter industry-wide, I'm not sure, maybe I missed this in the presentation or I haven't seen the slides, but did VIP actually grow faster than mass overall in the first quarter for the industry? And how are you thinking about base mass versus premium mass from here? I know you kind of touched on this a little bit, but I was curious about the industry-wide kind of thought process.

Speaker Change: More keys out of inventory in.

Speaker Change: In the next couple of quarters.

Speaker Change: Got it and maybe one clarification I guess in the quarter industry wide I'm not sure maybe I missed this in the presentation or havent seen the slides but.

Speaker Change: VIP, the VIP actually grow faster than mass overall in the first quarter for the industry and how youre thinking about base mass versus premium mass from here I know you've kind of touched on this a little bit but would be curious about the industry wide kind of thought process.

Robert Glen Goldstein: Rob, should I take that?

Speaker Change: Sure I'll take that Brian.

Robert Glen Goldstein: Yes, please; I'll follow up on it, yeah.

Speaker Change: Im pleased to the bottom line.

Speaker Change: Yes.

Grant Chung: Yes, you're right. I think...

Speaker Change: Yes, Youre right.

Speaker Change: Thank you.

Grant Chung: If you look at our slides, the mass revenues sequentially were around 4%, and the overall GGR for the quarter grew at 6% sequentially. So yes, the VIP revenues in the market as a whole grew faster than the mass revenues queue on queue. I think in terms of the premium mass doses... Based Assets. Again, I think you can see from our slides that premium mass grew slightly faster for us in this quarter. But the difference is not material when you account for things like hold percentage and patron counts and so forth. So I wouldn't say there's a material divergence in growth.

Speaker Change: If you look at our slides.

Speaker Change: The mass revenues sequentially.

Speaker Change: Around 4%.

Speaker Change: And the overall jgr.

Speaker Change: Quarter grew at 6% sequentially. So yes.

Speaker Change: Revenues in the market as a whole grew faster than the mass revenues Q on Q.

Speaker Change: I think in terms of the premium that crisis.

Speaker Change: Base mass again, I think you can see from our sites.

Speaker Change: Premiums grew slightly faster.

Speaker Change: For us in this quarter.

Speaker Change: The difference is not is not material.

When you account for things that hold percentage.

Speaker Change: And counts and so forth so.

Speaker Change: I wouldn't say it is a material divergence in the growth rates between premium mass and <unk>.

Robert Glen Goldstein: You know, I think it's important to note that visitation still isn't what we'd like it to be. Obviously, there are still millions of people who have not come versus the 2019 visitation numbers. We believe long-term visitation GDRs to get grow, whether it be base or premium, will get more than our fair share. And I think we've seen, obviously, I'll say the obvious, the promotional situation in the market has changed. There's more consenting people doing things.

Speaker Change: At least for our business for the quarter.

Speaker Change: I think it's important to note that.

Speaker Change: It is important that the visitation still isn't where we'd like it to be obviously, there's still millions of people have not.

Speaker Change: Versus the 2019 as patient numbers, we believe long term visitation <unk> did grow whether the base of premium we will get more than our fair share and I think we've seen obviously I'll say the obvious the promotional.

Speaker Change: The situation the market has changed.

Speaker Change: Consenting doing things once everything starts playing that game I believe that will.

Robert Glen Goldstein: Once everyone starts playing that game, I believe that will resolve itself. We believe that assets will prevail. We believe London will be an extraordinary asset, much like what's happening in Singapore. I think our results in Singapore reflect a fully developed program. And the execution in Singapore shows what can be done. We have the right kind of assets. What hasn't been done in Singapore; the numbers are extraordinary. The same will happen in our business in Macau in time. As GDRs accelerate, and they will, visitation accelerates, and it will. We'll continue to be margin-focused, even without focus, and get more than our fair share. And assets will prevail over promotions, Mark.

Speaker Change: Resolve itself, we believe that access will prevail, we believe London will be extraordinary asset Muslims happening in Singapore, I think our results in Singapore reflect a fully developed program.

Speaker Change: <unk> four shows what can be done we have the right kind of assets might have been done. This in reported numbers absorbed nearly the same will happen in our business in Macau in time digital is accelerating and they will displace accelerates and it will we will continue to be margin focused EBITDA focused and get more nonferrous here and assets available to promote.

Stephen White Grambling: Got it. Thanks. I'll jump back in the queue. Appreciate it.

<unk> more perspective.

Speaker Change: Got it thanks, I will jump back in the queue appreciate it.

Speaker Change: Thank you.

Speaker Change: Thank you.

Carlo Santarelli: The next question is coming from Carlo Santarelli from Deutsche Bank. Carlo, your line is live.

Speaker Change: Question is coming from Carlo Santarelli from Deutsche Bank currently your lineup lives.

Carlo Santarelli: Hey guys, thank you. Just following up on the first quarter margins, if I look at the fourth quarter, for example, and kind of extract the big element of turnover rent that comes in and obviously very high flow-through, it looks like margins are probably fairly similar. So it doesn't seem like a lot changed on that front. Is that accurate, or am I missing something else season later?

Carlo Santarelli: Hey, guys. Thank you.

Carlo Santarelli: Just following up on.

Carlo Santarelli: The first quarter margin.

Carlo Santarelli: If I look at the fourth quarter for example in kind of extract the big element of turnover rent that comes in and obviously very high flow through it looks like margins are probably fairly similar.

Carlo Santarelli: So it doesn't seem like a lot changed on that front is that accurate or am I missing something else seasonally that.

Patrick Dumont: You're primarily correct, Carl. That's a fair state of the debate. As you know, it occurs in the fourth quarter, and it's material. Grant, do you want to add to that?

Speaker Change: Youre, primarily youre correct.

Speaker Change: Thursday.

Speaker Change: Sure Brett as you know as you've noted fourth quarter.

Speaker Change: Material Grant you want to add to that.

Grant Chung: Yeah, exactly. You're right.

Yes, it's accurate youre right.

Carlo Santarelli: Great, thank you. And if I could, just one follow-up on capital allocation. Obviously, over $400 million of buyback is in this quarter. As you guys think about the capital needs here going forward, the stuff that you've announced, the stuff that obviously is being contemplated and looking at budgets around and whatnot, do you feel like this pace is adequate and where you want to be as you look throughout the balance of this year?

Brett: Great. Thank you and then if I.

Grant: Could just just one follow up on capital allocation, obviously over $400 million buyback in this quarter.

Grant: As you guys think about the capital needs here going forward stuff that you've announced the stuff that obviously is being contemplated in looking at budgets around and whatnot do you feel like this pace is adequate and where you want to be as you look throughout the balance of this year.

Patrick Dumont: Yeah, so I think first off, I just want to say we see value in both of them. And I think we have a very long-term bullish view, given the market opportunity for growth, our market-leading investments and our assets, and just how we feel about the opportunities of both markets that we have. So, you know, as we said before, we're going to be overweight in share repurchases. As we think about future capital return, we are going to be more heavily weighted towards share repurchases than dividends. We think that repurchases are going to be more accretive than dividends over time, and we want to shrink that denominator.

Speaker Change: Yes, So I think first of all I just wanted to say, we see value in both equities and I think we have a very long term bullish view given the market opportunity for growth our market leading investments in our assets.

Speaker Change: And just how do we feel about the opportunities of both markets that we have so.

Speaker Change: As we said before we're going to be overweight share repurchases.

Speaker Change: As we think about future capital return, we are going to be more heavily weighted towards share repurchases and dividends.

Speaker Change: We think the repurchases are going to be more accretive than dividend over time, and we want to shrink that denominator.

Speaker Change: So I think we're going to we're going to look to make purchases.

Patrick Dumont: And so I think we're going to look to make purchases that are consistent with our share authorization by the board and with prior practice, and I think we'll look to be a little bit opportunistic. We may vary levels, but I think we're going to continue to be aggressive in the market. I mean, I think you see the 450 million VLVS shares, and the SEL share repurchases.

Speaker Change: That are consistent with our share authorization by the board and with prior practice and I think we will look to be a little bit opportunistic we may vary levels, but I think where we're going to continue to be aggressive in the market I mean, I think you see it.

Speaker Change: $450 million.

Speaker Change: Yes shares the share repurchases. We think this represents an interesting opportunity just a moment in time.

Patrick Dumont: We think this represents an interesting opportunity, just a moment in time, and so we're going to try to take advantage of it. We happen to have a very strong balance sheet. We have a lot of liquidity, and we tend to put it to use. So I think we're pretty happy with where the program has taken us so far, and we'll continue to use it. And we'll see how it goes throughout the year. But we're going to look to repurchase more shares. Thanks for that, Patrick. Just want to say

Speaker Change: And so we're going to try and take advantage of it we happen to have a very strong balance sheet, we have a lot of liquidity.

Speaker Change: We tend to put it to use so I think we're pretty happy with where the program has taken us so far so.

Speaker Change: So far and we'll continue to use it.

Speaker Change: We'll see how it goes across the year, but we're going to look to repurchase shares.

Patrick Dumont: Thanks for that, Patrick. Just one aside, guys, I'm not sure the slides are actually posted yet. It certainly could be user error, but it looks like they haven't posted yet for the first quarter. Yeah, we're working on it.

Speaker Change: So that Patrick just one aside guys I'm not sure. The slides are actually posted yet it certainly could be user error, but it looks like that they have been posted yet for the first quarter.

Patrick: Yes, we're working on it.

Thank you.

Carlo Santarelli: Thank you. The next question is coming from Joe Greff from J.P. Morgan. Joe, your line is live.

Patrick: Thank you. The next question is coming from Joe Greff from JP Morgan Joe Your line is nice.

Joseph Richard Greff: Hey everybody, I was hoping one of you could help quantify the revenue and EBITDA impact from the renovations going on at Montour and Code Sky Arena. And then, do you see that renovation disruption impact accelerating, and when do you start to see that decelerate? I know you kind of talked about the two towers and when they would open up, but to kind of help understand that renovation impact in terms of how you're seeing it, I think it would be helpful for everybody.

Joseph Richard Greff: Hey, everybody.

Joseph Richard Greff: I was hoping one of you can help.

Joseph Richard Greff: Help quantify the revenue and EBITDA impact from the renovations going on at under the Cotai Arena and then do you see that renovation disruption impact.

Joseph Richard Greff: Accelerating and when do you start to see that decelerate I know you kind of talk about the.

Joseph Richard Greff: The two towers and when they open up but to kind of help understand that renovation impact in terms of how youre seeing that I think would be helpful for everybody.

Yeah.

Patrick Dumont: Yeah, I don't know that we can necessarily quantify accurately what the impact was because we can't know what we displaced. You heard Grant describe the number of missing shows and the number of people typically who would go to the shows in Kocharian. You get a sense of the type of high-quality patron that we bring in when we have live entertainment, and it is impactful. You know, I think Q1 typically is a very powerful quarter for us, as is Q4.

Yes, I don't know that we can necessarily quantify accurately what the impact was because we can know what we displaced you heard grant describe the number of missing shows and the number of people typically will go to the shows in our Cotai Arena and you get a sense of the type of high quality patron that we bring in when we have live entertainment and it is impactful.

Joseph Richard Greff: I think Q1 typically is a very powerful quarter for us as is Q4 and you can see the different city impact had for entertainment. We made a decision that if we take the arena offline and do it and make it the highest one of the highest quality arenas in Asia in the long run we will benefit from the entertainment.

Patrick Dumont: You can see the difference that the impact had on entertainment. You know, we made a decision that if we took the arena offline and did it and made it one of the highest quality arenas in Asia, then in the long run, we will benefit from the entertainment. And so we decided to do it as quickly as possible, and so that meant taking it offline in January this year and trying to get it done by October or November.

Joseph Richard Greff: And so we decided to do it as quickly as possible and so that meant taking it offline in January of this year and trying to get it done.

Joseph Richard Greff: By October November and so once we do that we're going to have an incredibly high quality arena with amenities that we've never had before them. So will make us more competitive in the market actually drive additional high quality tourism.

Patrick Dumont: And once we do that, we're going to have an incredibly high-quality arena with amenities that we've never had before. So it will make us more competitive in the market and actually drive additional high-quality tourism from both traditional markets and other markets. It will also help drive high-quality tourism from our core customer base and allow for more repeat visits from our high-value customers. We're very excited about the opportunities this new entertainment asset will present for us.

Joseph Richard Greff: From both traditional markets and other markets that will also help drive high quality tourism from our core customer base and allow for more repeat visits from our high value customers. We're very excited about the opportunities. This new entertainment asset will present to us. Unfortunately, we're going to take some pain, while it's offline and that really started January of this year I can't quantify the exact amount, but you hear the count from grant and your <unk>.

Patrick Dumont: Unfortunately, we're going to have some pain while it's offline, and that really started in January of this year. I can't quantify the exact amount, but you hear the count from Grant, and you realize that it is not immaterial.

Joseph Richard Greff: Is that it is not immaterial.

Patrick Dumont: And then the other side is we're taking the Sheraton out. And when we're done, it's going to be one of our best properties in Macau. The design will be high-level. The fundamentals of the Sheraton Tower are quite good. Both towers are quite good. They're actually a little bit better than the existing Londoner side, believe it or not.

Joseph Richard Greff: And then the other side is we're taking the short it out and when we're done it's going to be one of our best properties in Macau. The design will be high level. The fundamentals of the Sheraton tower are quite good. Both towers are quite good there are actually a little bit better than the existing londoner side believe it or not.

Patrick Dumont: The layout of the casino will be very good, and the additional food and beverage amenities that we can add. And I think the connectivity will be a very good driver of future results for that property. That's the reason why we're pretty confident that the results when it's done will be the same or exceed that of the Venetian. So I think for us, we're doing it now because it is going to be disruptive. The worst is going to be across the summer when we have the lowest key count that we've had since we really opened what was then Sands Coast High Central because we're taking out, we're gonna take the Sheraton out.

Joseph Richard Greff: The layout of the casino will be very good.

Joseph Richard Greff: The additional food and beverage amenities that we could add and I think the connectivity will be.

Joseph Richard Greff: A very good driver of future results for that property. That's the reason why we're pretty confident that.

Joseph Richard Greff: The result, when it's done we'll be that or exceed that of the Venetian.

Joseph Richard Greff: I think for US we're doing it now is going to be disruptive the worst is going to be across the summer. When we have the lowest key count that we've had.

Joseph Richard Greff: Since we really opened what was that in sands cotai central because we're taking out that we're going to take the sheraton out.

Patrick Dumont: And so there's going to be more of this disruption across the summer, but then hopefully, as keys come back online across the phasing and as we get the arena back, let's call it October or November, we'll have a much more powerful set of assets to drive tourism and create cashflow. I can't quantify it for you, but it's not gonna be immaterial. Grant, I don't know if you have other things you'd like to add.

Joseph Richard Greff: And so it's going to be more of this disruption across the summer, but then hopefully as kees come back online across the phasing and as we get the arena back.

Joseph Richard Greff: Call. It October November we will have a much more powerful set of assets to drive tourism and create cash flow. So there will be disruption I can't quantify for you, but it's not going to be immaterial.

Speaker Change: I don't know if you have one of the things you'd like to add to that.

Grant Chung: I think you covered it perfectly. I think the only thing I would add is, yeah, London at phase one really gave us that elevation in the shared quality of product, as well as a very successful rebranding and repositioning of the entire property. But what phase two gives us is that scale, that scale of a high quality product and the diversity of it. And that's when I think the earnings power of this resort will be fundamentally transformed.

Speaker Change: I think you covered it perfectly I think the only thing I would supplement is London phase one greater gave us that elevation in the sheer quality of product.

Speaker Change: As well as a very successful rebranding and repositioning of the entire property.

But what phase II gives us is at scale.

Speaker Change: The scale of high quality product and the diversity of it.

Speaker Change: And that's where I think the earnings power of this resort will be fundamentally transformed.

Robert Glen Goldstein: I believe... We think once London is done, Joe, we'll have the one, two, number one and two assets in Calgary Park. Not sure where it'll be, who'll be in front, but that company arena gives us a unique position for 25 years ahead to dominate the market in terms of the largest resorts and those proper resorts, both one and two.

Speaker Change: I believe so.

Speaker Change: We think once London has done Joe have the one two is number one and two assets in the Jamba launch.

Not sure whether this could be the front, but that couple of your really gives us unique positioning for 25 years ahead to dominate the market in terms of the largest resorts and those properties, which both wanted to.

Joseph Richard Greff: Great. Thanks, Rob. You may have answered my follow-up question indirectly in your prior margin commentary. And maybe this is something Grant could talk about. But can you talk about the level of the markets, premium mass, reinvestment levels, has that been pretty consistent in the first quarter and what you're seeing year-to-date versus how the end of the year finished? Or is there any kind of trend change on that front? That's all for me.

Speaker Change: Great. Thanks, Rob you May have answered my follow up question indirectly on your prior margin commentary.

Speaker Change: And maybe this is something grant can talk about but can you talk about.

The level of the markets premium mass reinvestment levels.

Has that been pretty consistent.

Speaker Change: In the first quarter, and what Youre seeing year to date versus how the end of the year finished.

Speaker Change: Or is there any kind of trend change.

Speaker Change: On that front, that's all for me thanks.

Thanks, Joe.

Grant Chung: For us, yes, our profitability, the structure of the margin in every segment, actually, quarter on quarter, very consistent, no significant changes there. And that obviously fed through to the result that the earlier question described, which is that we had a very consistent margin, quarter on quarter, despite obviously some inflation.

Speaker Change: For us yes.

Speaker Change: Profitability.

Speaker Change: The structure of our margin and in every segment actually quarter over quarter.

Speaker Change: Very consistent.

Speaker Change: No significant changes there.

Speaker Change: And that obviously cut through.

Two the result that the earlier question described which is that we had a very consistent margins quarter to quarter.

Speaker Change: Despite obviously some.

Speaker Change: Inflation in the payroll costs.

Speaker Change: Due to holiday pay and salary increases.

Joseph Richard Greff: My question, maybe I didn't explain it that clearly, the level of premium max reinvestment from your competitors? How would you characterize that year to date versus the end of public?

Speaker Change: My question, maybe I didnt explain it that clearly.

Speaker Change: The level of premium that reinvestment from your competitors, how would you characterize that year to date versus the end of last year.

Grant Chung: Oh, sorry, you're talking about the overall market. Yes, it was a direct investment right invested to tell.

Speaker Change: Oh, sorry, Youre talking about the overall market now.

Speaker Change: Yes.

Speaker Change: Industrial REIT investors to customers.

I think I think the promotion activities.

Grant Chung: I think the promotion activity levels are relatively intense right now. Is it higher than Q4? I don't think so.

Speaker Change: Levels.

Speaker Change: Relatively intense right now is it higher than Q4.

Speaker Change: I don't think so but it comes and goes and goes up it goes up it has ups and downs.

Grant Chung: But it comes and goes and has ups and downs. But I think over time, there really isn't any necessity in this market to be too aggressive on promotions. The demand and supply are a supply-constrained market. The quality of supply is exceptional, and we are a big contributor to that. And as GGR rises, that becomes even less of an issue over time.

Speaker Change: But I think over time.

Speaker Change: There really isn't any necessity in this market to be too aggressive on promotions.

Speaker Change: Demand and supply supply constrained market the quality of supply is exceptional.

Speaker Change: They contributed to that and as GTR rises.

Grant Chung: For us, it doesn't matter. We stick to our strategy, which is, as Rob referenced, product-based. Transcripts provided by Transcription Outsourcing, LLC are really based on the quality execution of a product and the service that goes with it.

Speaker Change: That becomes even less.

Speaker Change: Of an issue over time.

Speaker Change: And for US it doesn't matter, we stick to our strategy, which is as Rob referenced product base is driven off our asset base. The upgrades, we're making the quality of the assets.

On the surface that go with that.

Robert Glen Goldstein: Joe, we're obviously keenly aware of the promotional environment in the catalog, with Brandt's reference, and we're certainly aware of what's happening with catalog promotions, but we remain steadfast in our belief that our product, once completed, will be superior, the scale is greater, the market will grow, and that's how we'll capture our fair share and remain focused on margins and keep our EBITDA where it's going to be We're not going to play the game of chasing $10 more for promotions.

Speaker Change: <unk> to the programming content programming and.

Speaker Change: <unk> talked about were very big believers in that entertainment and core offering and Thats why we are investing this 200 million.

Speaker Change: And the upgrade of Cotai arena.

Speaker Change: So yes, when it's all said and done right. We believe that <unk> continues to rise.

Speaker Change: Our asset base is going to be better than before.

Speaker Change: And better than ever and.

Speaker Change: That's the way we're going to compete.

Speaker Change: And that's the only way we think we can compete on a sustainable and profitable basis is really based on the quality.

Execution of.

Speaker Change: Of our product.

Speaker Change: Surface that go with that.

Robert Glen Goldstein: We don't think it's our business and who we are. We're an asset-driven company with quality assets and scale, and again, we've proven that time and time again, and once this is longer done, the arena will be just as we want it to be in terms of market leading and margin leading assets in the catalog.

Speaker Change: Joe obviously key.

Speaker Change: Most of the money you would brands referenced and we're certainly aware of what's happening in the channel with promotions, we remain steadfast in our belief that our product once complete it will be superior.

Speaker Change: Scale is greater the market will grow and that's how we'll capture our fair share.

Speaker Change: Focused on margins and keeping our EBITDA once it goes so we're not going to play the game of chasing $10 more for promotions. We don't think it's our business who we are we're an asset driven company with quality assets in scale and again, we've proven that time and time again and once longer has done your readout will be just want to be in terms of market leading margins in the <unk>.

Shaun Clisby Kelley: Thank you. The next question is coming from Shaun Kelley from Bank of America. Shaun, your line is live.

Speaker Change: Assets in Macau.

Speaker Change: Thank you. The next question is coming from Shaun Kelley from Bank of America.

Shaun Clisby Kelley: Your line is live.

Shaun Clisby Kelley: Good afternoon, everyone. Sorry if I'm beating the dead horse here, but I did want to just kind of stick with the margin commentary, but I'll give it a little bit of a longer-term view. My question is really just trying to get a sense of, you know, what it would take to get back to, let's call it the mid to high 30s on margins here. Is what we're seeing today and now increasingly expecting for the balance of 24 more about customer mix, or is it about sort of one-time call-outs around renovations and maybe some lost very high-margin non-gaming?

Shaun Clisby Kelley: Hi, good afternoon, everyone.

Shaun Clisby Kelley: Sorry, if I'm, beating the dead horse here, but I did I did want to just kind of stick with the margin commentary, but I'll give it a little bit of a longer term view.

Shaun Clisby Kelley: My question is really just trying to get a sense of.

Shaun Clisby Kelley: What would it take to get back to let's call. It the mid to high <unk> mid to high Thirty's on margins here.

Shaun Clisby Kelley: What we're seeing today and now increasingly expecting for the balance of 'twenty four more about customer mix or is it about sort of one time callouts around renovations and maybe some lost dairy high margin non gaining revenue.

Patrick Dumont: So it's a very interesting question, and it's the right question to ask. So as these properties reach run rate, so as they reach their full potential, the margin should be in the upper 30s., Sorry, I think someone in Sands China put us on hold.

Shaun Clisby Kelley: So it's a very interesting question and it's the right question to ask so as these properties reached run rates so as they reach their full potential the margins should be upper thirties.

Shaun Clisby Kelley: Sorry.

Speaker Change: Thank you Matt.

Speaker Change: Sorry, I think somewhat to SaaS shine and put us on hold please excuse us.

Patrick Dumont: Please excuse us. So, you know, we think about margins in the upper 30s. If you look at the performance of the Venetian, that's a good benchmark, right? It was impacted a little bit this quarter, again, by the entertainment not being there in the Cotai Arena, but, and mix-wise, to be fair, pre-pandemic, it had more mass play, and that's higher margin.

Speaker Change: So we think about margins in the upper <unk>. If you look at the performance of the Venetian Thats a good benchmark right. It was impacted a little bit this quarter again also by the entertainment not being there in the Cotai Arena.

Speaker Change: But and mix wise to be fair pre pandemic it had more mass play and that's higher margin.

Patrick Dumont: And so as tourism returns, so as visitation increases, which means more mass play, and we have plenty of capacity for it. So if you look at our asset base, the scale of the assets, the support of veterans we have, the amenities we have, we can accommodate a lot of mass play. And we have the positions to do it. And so for us, as visitation shows up and continues to on an upward trend, our assets are ready to take that visitation; revenue will grow, margins will grow, and they will normalize back towards a more traditional mix.

Speaker Change: So as a tourism returns so as visitation increases.

Which has more mass play and we have plenty of capacity for it. So if you look at our our asset base the scale of the assets of food and beverage. We have the advantage. We have we can accommodate a lot of that plane.

And we have the physicians to do it and so for us as visitation shows up and continues to on an upward trend our assets are ready to take that visitation and revenue will grow margins will grow and it will normalize back towards a more traditional mix that being said the londoner has the opportunity to also bring a lot of high value tourism. So work.

Patrick Dumont: That being said, London has the opportunity to also bring a lot of high-value tourism, so we're carrying the expense base without the revenue. So we have the team members, we have all the things going on that you have that are fully operating, but it's not fully operating yet. So the margins are naturally not going to look right. So as the revenue comes in, and as the visitation comes in, as the patrons come in, as the hotel is completed, and as the rest of the amenities are done, that will look more normal. The only problem is it's in 25.

Speaker Change: Carrying the expense base without the revenue right. So we have that we have the team members. We have yet we have all the things going on that you have and we're fully operating but it's not fully operating at sort of margins naturally are not going to look right. So as the revenue comes in as a visitation comes in as the patients come in as the hotel was completed and as the rest of the amenities are done that will look.

Speaker Change: More normal the only problem is it in 'twenty five.

Patrick Dumont: So we have a little bit of time that we have to get through with this investment. Are there some high-value things that are very high-margin that we're missing because of entertainment or ease out? Yes, that's true.

Speaker Change: So we have a little bit of time that we have to get through with this investment are there. Some high value things that are very high margin that we're missing because of entertainment or ease out yes that is true, but when you look at the asset base that we have experienced that we have the team that we have there our ability to execute and how they've executed so far and the asset base that we're creating with these investments we're going to.

Patrick Dumont: But when you look at the asset base that we have, the experience that we have, the team that we have there, their ability to execute, how they've executed so far, and the asset base that we're creating with these investments, we're going to be in a great position. And the margins, we believe we'll get there. But we need visitation to continue. That will be helpful for the Venetians; it'll be helpful for the masses to recover.

Speaker Change: In a great position and our margins, we believe we'll get there, but we need visitation to continue that will be helpful. For the Venetian it'll be helpful for the mass to recover we need to have all of our assets in lines. So thats. The cotai arena to be finished and the sheraton to become.

Patrick Dumont: We need to have all of our assets in line, so that's the Kota Arena to be finished. And the Sheraton to become fully Londonerized, that's a word, and get to our full key count. And then you'll see the true power of these assets, and the margins will get there. We have a lifestyle program that we run with high-quality amenities. If you haven't been to Macau, you haven't seen what we do, I would encourage you to do it.

Speaker Change: Fully London, Arised, that's a word and get to our full key count and then Youll see the true power of these assets and the margins will get there we have a lifestyle program that we run between high quality amenities. If you haven't been to Macau and you haven't seen we've done I would encourage you to do it.

Patrick Dumont: It's not simply one thing. It's not simply hospitality. It's not simply gaming. It's not simply retail.

Speaker Change: It's not simply one thing, it's not simply hospitality simply gaming, it's not simply retail it's an ecosystem that allows our customers to travel around all of our assets and having an experience they can't get any place else and Thats really what we have on offer and it's unique and it's been invested in and will continue to get better so for us as Rob said, we're not.

Patrick Dumont: It's an ecosystem that allows our customers to travel around all of our assets and have an experience they can't get anywhere else. And that's really what we have on offer. And it's unique. And it's been invested in and will continue to get better. So for us, as Rob said, we're not chasing promotional activity; we're chasing asset development. And that will drive our success.

Speaker Change: Chasing promotional activity, we're chasing asset development and that will drive our success.

Shaun Clisby Kelley: Thanks, Patrick, and appreciate the insight. As a quick follow-up, for whoever's appropriate, just looking at Singapore, I mean, obviously, a breakout quarter with a run rate above $500 million, there were some one-time things in that market, Taylor Swift, I believe, being one, and then, of course, which I think you called out, event activity, broadly speaking. But also, there was a change in, I think, Chinese visa policies that was probably, potentially fruitful for the market.

Speaker Change: Thanks, Patrick and appreciate the insight.

Speaker Change: As a quick follow up for whoever is appropriate just just looking at Singapore, I mean, obviously, a breakout quarter with a run rate above $500 million.

Speaker Change: There were some onetime things in that market.

Speaker Change: Taylor Swift I believe being one and then of course, which I know you called out event activity broadly speaking, but also there was a change in I think Chinese visa policies that was probably potentially fruitful for the market. So just the big question here is what's the right run rate or do you think and again maybe event activity agnostic.

Shaun Clisby Kelley: So just the big question here is, what's the right run rate, and do you think, again, maybe event activity agnostic, we could sustain above the $500 million mark, and are we kind of off to the race here? And notwithstanding the fact that even that number sounds like it included a little bit of Tower Three disruption.

Speaker Change: We could sustain above the $500 million Mark and are we kind of after the race here and notwithstanding the fact that Eaton that number it sounds like it included a little bit of a tower three disruption.

Robert Glen Goldstein: I think the first thing you should know...

Speaker Change: I think the person you should note is that the building is still.

Robert Glen Goldstein: I think the first thing you should note is that the building is still under renovation. I think $500 million a quarter annualized is very doable, and more. And the most important thing you should note is two things. The growth in Singapore as a desirable destination is soaring. It's not just Taylor Swift, it's Bruno Mars, it's the Hamilton Show, it's endless events, F1, it's a juggernaut.

Under renovation I think we believe $500 million a quarter annualized is very doable and more and the most important thing you should notice.

Speaker Change: Two things the growth in Singapore as a desirable destination resort is not just Taylor Swift as Bruno Mars as to Hamilton shows endless events F. One it's a juggernaut and it really has become the accelerated this market has become very special and in very short order and I think thats attributes of government there and the program is happening.

Robert Glen Goldstein: And it really has become accelerated. This market has become very special in very short order. And I think that's a tribute to the government there and the programs happening, entertainment, et cetera. So Singapore is highly desirable. And yes, that's very sustainable. And as good as Taylor Swift was, there's a lot more in the pipeline that will make that continue.

Speaker Change: Your team et cetera, So Singapore is highly desirable and yes, that's very sustainable in as good as Taylor Swift was there's a lot more in the pipeline that will make that continue secondly, our building had mcglasson 200 top tier suites. Upon completion, we will have in excess of seven times at the sweet spot of the market is in premium mass.

Robert Glen Goldstein: Secondly, our building had less than 200 top tier suites. Upon completion, we'll have an excess of 700. The sweet spot of the market is the premium mass and super premium mass rolling and non-rolling.

Speaker Change: Super premium mass rolling non rolling we can I think we're approaching $1 billion a slot, where we may be out of bullets. There as we have more capacity, but this is a very special market our ability to the special building.

Robert Glen Goldstein: We can't, I think we're almost approaching a billion dollars a slot when we may be out of bullets there as we have more capacity. But this is a very special market. Our building is a special building. I don't think there's any reason to doubt that 520, 540, 600, look, this is gonna keep growing. This is a great place to be.

Speaker Change: The reason is down $5 $25 4600 look this is going to grow this is a great place to be.

Robert Glen Goldstein: We're lucky to be here. We're lucky that the government's very supportive, and we have an excellent team in place. But most importantly, the assets, it didn't happen by luck.

Speaker Change: It would be there we're looking at the governance very supportive and excellent team in place.

Speaker Change: Most importantly passes and it didn't happen by luck.

Robert Glen Goldstein: We are doing, spend a lot of money to make sure those assets are superb, and the customers come back time and time again. The real question is, what happens when the building has four wheels instead of three? That's gonna happen later this year or early 2025 when those suites are rolled out, and they're great suites; they're phenomenal suites. Can that building go to two, two, two, four, two, five? It can, and it will. And I think, again, what we're trying to tell you about Macau is that we're frustrated with Macau. The operating environment's more difficult.

Speaker Change: We are doing spending a lot of money to make sure those assets are superb and the customers come back time and time again. The real question is what happens when the building has four wheels is that Bruce that's going to happen later this year and early 2025, when those fleets are rolled out in their grid suites phenomenal suites in that building to two to 2425.

Speaker Change: It can and it will and I think again, we're trying to tell you about Macau as we're frustrated by my count a couple of the operating environment is more difficult. We are under construction a self inflicted wound, but once we emulate Macao we've done Singapore. The same thing will prevail londoner, and wuxi neck and neck to drive that market and again I think the government recently talked to.

Shaun Clisby Kelley: We're under construction, a self-inflicted wound. But once we emulate in Macau what we did in Singapore, the same thing will prevail. Londoner, and we should be neck and neck to drive that market. And again, I think the government recently talked about a lot of things they're trying to do, increased tourism, visas, et cetera. We see a really nice support system coming out of Macau, and we're grateful to the government for recognizing a session this week about increased tourism and increased entertainment.

Speaker Change: Not a lot of things they are trying to increase tourism. These to the extent, we see a real nice supports is dependent on them and we're grateful to government for recognizing the assistance. We can about increased tours increased entertainment, we're lucky to be in two very very special places and yes, Singapore can do 500 <unk> hundred 50 is not about Taylor Swift, it's about a great <unk>.

Shaun Clisby Kelley: We're lucky to be in two very, very special places. And yes, Singapore can do 500; they can do 550. It's not about Taylor Swift; it's about a great market, a great asset, and a team running it.

Market, a great asset and the team running it.

Thank you all.

Robin Margaret Farley: Thank you. The next question is coming from Robin Farley from UBS. Robin Yerlein, Great, thanks. I just wanted to circle back.

Speaker Change: Okay.

Speaker Change: Thank you. The next question is coming from Robin Farley from UBS Robin Your line is now.

Robin Margaret Farley: Great. Thanks, just wanted to circle back you were commenting earlier in the slides were not up yet.

Robin Margaret Farley: Great, thanks. I just wanted to circle back, you were commenting earlier in the slides, we're not up yet, so I haven't been able to go through them, but that it sounded like you were saying that your sequential growth in mass and premium were both at a similar rate sequentially, and I'm just wondering if there's anything to add, any color around that since, you know, the market is, generally speaking, been seeing better premium mass recovery, just any color you'd add.

Robin Margaret Farley: Haven't been able to go through it but.

It sounded like you were saying that your sequential growth.

Robin Margaret Farley: Mass and premium were both at a similar rate sequentially and just wondering if theres anything to.

Robin Margaret Farley: Any color around that.

Robin Margaret Farley: The market is.

Robin Margaret Farley: Generally speaking been seeing better premium mass recovery, just any color you had out there.

Robin Margaret Farley: Brian I think you should take that.

Grant Chung: Yeah, Robin, I don't know if the deck is up yet. It's up now, Drew. It's up, guys.

Robin Margaret Farley: Grant.

Brian: Yes Robin.

The deck.

Speaker Change: Its out now.

Speaker Change: Is that guidance yet.

Grant Chung: Yeah, so if you look at premium mass, wind, we're up 2% quarter-on-quarter, and base mass, we're down 3% quarter-on-quarter. But I think my point earlier, the difference is here and there, and can be related to any number of, I think, non... Non-substantive factors. So I wouldn't describe this as a divergence in trend, but you know this quarter we just had visitation. So you might see the wider market growing, actually growing sequentially as well. Nothing, nothing significant to remark, segment.

So these look at premium mass when we're up 2% quarter on quarter and base mass, but down 3% quarter on quarter, but I think my point earlier.

Speaker Change: The difference is here.

It could be related to any number.

Speaker Change: I think no.

Non substantive factors so I wouldn't describe this as a divergence in trend.

Speaker Change: But this quarter, which is which is probably better premium mass versus base mass.

Speaker Change: Is it patients so can you just.

Speaker Change: See the wider market growing property visitations actually grew sequentially as well so.

Speaker Change: Nothing nothing significant to remark on in terms of the.

The second a divergence.

Robin Margaret Farley: Okay, great. That's helpful. Thank you. And just any thoughts around New York timing and your expectations there? Anything new to add there? Thanks.

Speaker Change: Okay, Great. That's helpful. Thank you and then just.

Any thoughts around.

Speaker Change: Sure.

Speaker Change: And your expectations there.

Robert Glen Goldstein: Yeah, but we're very disappointed.

Speaker Change: Anything new to add there thanks.

Robert Glen Goldstein: Yeah, but we're very disappointed in New York. I mean, we've been working there for a long time, and we thought it was going to happen in 24. That was a mistake.

Yes, but we're very disappointed by New York I mean, we've been working there for a long time, and we thought was going to happen in 'twenty four.

Robert Glen Goldstein: Now they're saying 25 or 26, but I don't think we have any real clarity. And to be honest with you, it's confusing and disappointing because there's a lot of work in New York and a lot of time into it. So I have no guidance, but I don't want to tell you with candor and insight. I just don't know about New York.

Speaker Change: Now they are saying, 25% to 26, but I don't think we have any real clarity and to be honest with you. It's confusing and disappointed because there's a lot of work in New York and Golan time into it. So I don't know guidance development value with candor and insight just don't know about New York.

Robert Glen Goldstein: And it's just we wish they'd figure it out and let us know. We just don't know. So we'll remain hopeful that things are turned around there.

Speaker Change: We wish the.

Speaker Change: I figure it out and let US know, we just don't know so will remain.

Speaker Change: Hopeful that things turn around there.

Okay, great. Thank you.

Speaker Change: Thanks Robyn.

Unknown Executive: Thank you. The next question is coming from Vitaly Umansky from Seaports. Vitaly, your line is live.

Speaker Change: Thank you. The next question is coming from Vitaly Umansky from seaports fatality your line of sight.

Unknown Executive: Good morning, guys. If we think about, kind of quantifying the effect of what the renovations at that property have already done, and Rob, you talked about potentially this property getting up to about 2.4, 2.5 billion. In theory, once the renovations are done in the first phase of the property, where do we see kind of constraints being built in?

Unknown Executive: Hi, good morning, guys.

Unknown Executive: I think maybe switching over to Singapore.

Unknown Executive: If we think about.

Unknown Executive: Quantifying the effect of what the renovations at that property have already done.

Unknown Executive: And Rob you talked about potentially its property getting up to about $242 5 billion.

In theory once the renovations are done.

Unknown Executive: This change of the property.

Unknown Executive: Where do we see kind of constraints being built and because if you look at kind of occupancy rates in the hotel rooms today, and we look at ADR as they continue to expand.

Robert Glen Goldstein: Because if we look at the occupancy rates in hotel rooms today and we look at ADRs, they continue to expand. At some point, we're going to reach a limit as to how many rooms can be filled. And then we're talking about trying to fill rooms with higher-value customers. So when we think about, before we get to the expansion, where is that constraint, and how quickly do you think we can get there?

Unknown Executive: At some point, we're going to reach a limit as to how many rooms can be filled.

Unknown Executive: And then we're talking about trying to fill rooms with higher value customers.

Unknown Executive: So when we think about before we get to the expansion.

Yes.

Unknown Executive: Where is that constraint and how quickly do you think we can get there.

Robert Glen Goldstein: It's a good question. I think, unfortunately, it's probably an answer that we've seen that sponsors a billion dollars on property, yet they're approaching that. We never dreamed that in this environment so quickly after COVID, we reached the kind of epic levels we're seeing growth in the premium masses and powerful. And I was enjoying Grant on the call last week, telling us there's still a drop in the bucket, there's so much more to go.

Speaker Change: It's a good question I think unfortunately, there's probably an answer that we have seen that we never dreamed of sponsors of $1 billion in the property at the approaching that we never dreamed of in this environment. So quickly after the Covid, we reached a kind of epic levels, we're seeing the growth.

Speaker Change: In the premium mass is powerful and now enjoying grant on the call. This week.

Speaker Change: Is that still a drop in the bucket. There's so much more to go and so I think the growth will come out of the Super premium mass low non rolling I don't think all of that impact.

Robert Glen Goldstein: And so I think the growth will come out of this super premium mass both going non-rolling. I don't think 80 hours will be all that impactful, because hopefully, someday, we won't sell many rooms, this will be a product that is mostly, you know, gaming customers. The rooms, I hope the suites we're building are just exemplary. And I think that this product is only going to have more good days ahead. Like I used to do five as a goal for our company as the decade progresses, and it's very attainable to reach 600 million almost this quarter in real time. It's very stimulating, it's very exciting. But the cap's going to be the capacity.

Speaker Change: Actual because hopefully someday, we won't sell many rooms this will be a.

Speaker Change: Prior to that as mostly gaming customers rooms, I hope the suites. We're building are just exemplary.

Speaker Change: I think that this product is going to have.

Speaker Change: More good days ahead I used two five as a as a goal for our company as the decade proved message very attainable to reach $600 million almost this quarter in.

Speaker Change: Actual is very stimulating its very excited but the catchment capacity.

Robert Glen Goldstein: It's already a problem for us in terms of slot machines; it'll be a room problem. We wish you had more exposure to Singapore; that's where we're building more products. This is a very, very special place that people gravitate to. And as Singapore does its job as a lifestyle, entertainment, and exciting place to visit, demands have grown. So the only concern we have in Singapore is how quickly we get there. Once these suites are unleashed in the market, and they see it, I think we'll have some very bright days ahead.

Speaker Change: The problem for us in terms of slot machines, you'll be room problem. We wish you had more exposure to Singapore. That's why we're building more products. This is a very very special place that people gravitate to Singapore. It does its job as a <unk>.

Speaker Change: Style entertainment exciting place to visit management growth.

Speaker Change: The only concern we haven't seen the blues.

Speaker Change: How quickly we get there once these leads from our niche in the market and we see it I think we'll have some very bright days ahead, but obviously, it's a capacity constraint. So many rooms will have somebody in the slot machines and I don't wanted a game that I just think we get there will be disappointing at more exposure.

Robert Glen Goldstein: But obviously, it's a capacity constraint. We have so many rooms, we have so many slot machines, and I don't worry about getting there. I just think we get there when we disappoint and can't have more exposure. And that's what we're building phase two. Hey, Vitaly, one thing and welcome.

Speaker Change: Things too.

Speaker Change: Hey, Vitaly, one thing and welcome back to the call.

Patrick Dumont: Hey Vitaly, one thing and welcome back to the call. I think the key thing for us is that we have a very strong view of the future success of Singapore. So strong that we're investing a couple of billion dollars in this property, and we're looking to do IR2 as quickly as we can. We think that this market is benefiting from a lot of the factors that make Singapore Singapore. Great infrastructure, strong, stable government, great investment, great policy. And to be fair, you're seeing the result of it, and it's not only our business; it's many businesses in Singapore. And so I think that that's a very helpful indicator.

Unknown Executive: The key thing for US is we have a very strong view of the future success of Singapore.

Unknown Executive: So strong that we are investing a couple of billion dollars in this property and we're looking at <unk> as quickly as we can.

Unknown Executive: We think that this market is benefiting from a lot of the factors that make Singapore, Singapore, great infrastructure.

Strong stable government, great investment, great policy and to be fair Youre seeing youre seeing the results of it and it's the only our business as many businesses in Singapore, and so I think thats, a very helpful indicator, but more importantly, the more other investment that goes into Singapore will help drive further visitation. So the infrastructure is already there.

Patrick Dumont: But more importantly, the more other investment that goes into Singapore will help drive further visitation. So the infrastructure is already there. The real question is how many more hotel rooms will go in? We feel very strongly that the more hotel rooms that are added will help add to the critical mass of tourism that Singapore already has today. If you look at the wealth creation going around in Southeast Asia, it's pretty substantial. The last four years, even during the pandemic, have been pretty meaningful.

Unknown Executive: The real question is how many more hotel rooms will go in we feel very strongly that the more hotel rooms were added will help add to the critical mass of tourism in Singapore already has today. If you look at the wealth creation going around in southeast Asia, It's pretty substantial over the last four years, even during the pandemic have been pretty meaningful and there are a lot of customers that are new to Singapore, new to Marina Bay Sands and their affluence and various.

Patrick Dumont: And there are a lot of customers that are new to Singapore, new to Marina Bay Sands, and they're affluent and very successful. And they want to consume, and they want to take advantage of the many things Singapore has on offer. And so we feel very strongly about the future visitation to Singapore. It's an interesting question. Where is the peak of demand? We don't really see it right now. What we see is a supply constraint. Right? When you look at who's trying to come to Singapore and the activities that are going on, we feel very strongly about future investment.

Unknown Executive: Accessible and they want to consume and I want to take advantage of the Singapore, Singapore has on offer and so we feel very strongly about the future visitation, Singapore. It's an interesting question where is the where's the peak of demand, we don't really see it right now what we see is a supply constraint.

Unknown Executive: When you look at who is trying to come to Singapore and the activities that are going on we feel very strongly about future investment.

Unknown Executive: I think it's there.

Unknown Executive: Thanks, Patrick and Rob. Maybe just a follow-up, switching gears to Macau. And Grant, you talked a little bit about kind of the base math, and the growth you've seen in the quarter is very similar to the premium business. But I think overall, if we kind of think about Sands in Macau, obviously, you're very strong in the direct VIP business, you're very strong in the premium business. But where you have a massive competitive advantage, in my view, is just your scale, which then talks about base mass and the higher margin available from base mass.

Speaker Change: Thanks, Patrick.

Speaker Change: Rob maybe just a follow up switching gears to Macau.

Rob: Grant you talked a little bit about kind of the base mass and the growth you've seen in the quarter is very similar to premium, but I think overall, if you kind of think about stands in Macao, obviously, you're very strong in the direct VIP business, you're very strong in the premium business.

Rob: Where you have a massive competitive advantage and my view is just your scale, which then talks about base mass and the higher margin available from base mass.

Unknown Executive: If you look at the recovery and overall base math, it has not been as strong as the more premium end of the market. Can you maybe give an explanation as to why you think that is, if you agree with that statement? How does the market maybe change or need to change over the next couple of quarters in order to get some of that base mass back, which I think would benefit Sands?

Rob: If you look at the recovery overall based that it has not been as strong as the more premium end of the market.

Yes.

Speaker Change: Can you maybe give an explanation as to.

Speaker Change: Why do you think that is.

Speaker Change: Agree with that statement and then.

How does the market, maybe change or need to change over the next couple of quarters.

Speaker Change: In order to get some of that base mass back, which I think would benefit fans.

Relative to others in a much stronger way.

Grant Chung: Yeah, thanks for the question. Yeah, sure, Patrick. Yeah, I'll take it.

Speaker Change: Yes.

Brian I'm going to go ahead Sachin.

Sachin: Yes sure Patrick.

Sachin:

Grant Chung: I think the first point is that I agree that we have a huge advantage with our scale, but I think the scale advantage speaks to all the segments. I think if you looked at historically how the companies developed, absolutely the base mass with our scale has been a core advantage, but in the sense of how we describe all of these capital investments that we're making, especially in London, the scale we have on the quality of the premium product is really unprecedented. So I think our scale advantage will apply to all sectors.

Speaker Change: First point is your I agree.

Speaker Change: We have a huge advantage without scale.

Sachin: But I think the scale advantage speaks to speak to all of the segments.

Sachin: I think.

Sachin: If you looked at historically, how the company is absolutely be the base mass without scale that that has been a core advantage.

Sachin: In.

In the sense of how we described all of these capital investments that we're making especially in London.

Sachin: The scale that we have on <unk>.

Sachin: Quality of the premium product.

Sachin: It's really unprecedented so I think.

Scott advantage.

Sachin: Applied to all segments in my view.

Sachin: Specifically on base mass.

Sachin: If you look at actual numbers are.

Grant Chung: [inaudible] Actually, they're not too dissimilar now in terms of the rate of recovery from a volume and revenue perspective. But it is true that in terms of customer count, and patron hours, we're still missing more from the base mass. So really, it tells you two things: one is that the quality of patronage has risen significantly because the revenue per patron is higher than before COVID. And secondly, there is still room for that base mass revenue and visitation to further recover. And I think there are many reasons, and it's hard to specifically attribute them to one. Oh, sorry.

Sachin: The way, we break it out between premium mass and base mass.

Sachin: Through.

Sachin: The recovery since the reopening after the Covid restrictions.

Sachin: Actually that then oxy to similar now in terms of rate of recovery from a fall in.

And revenue perspective.

Sachin: But it is true that.

Sachin: In terms of customer.

Sachin: Customer count patron hours.

We're still missing.

Sachin: More from from the base mass.

Sachin: So really it's two things.

Sachin: It tells you one is the quality of patronage has risen significantly because the revenue per patron.

Higher than before Covid.

Sachin: Secondly, there is still room for that base mass.

Sachin: Revenue and visitation.

Sachin: To further recover.

Sachin: And I think.

Sachin: I think there are many reasons.

Sachin: It's hard to specifically attribute.

Sachin: One or two.

Grant Chung: But I think over time, especially as the economy improves, and also as people, All of the events, all of the non-gaming products and assets and events that are actually distributed out there, I think you'll see a progressive improvement in that base-net sector. Obviously, we will.

Sachin: Factors.

Sachin: But I think over time, especially as the economy improves.

Sachin: And also I think.

Sachin: People.

Sachin: The distribution.

Sachin: Hum.

Sachin: Content.

Sachin: In terms of the lifestyle destination attractions all of the events all of the non gaming.

Sachin: Our products and assets.

Sachin: The events.

Sachin: Actually distributed out there I think youll see.

Sachin: Progressive improvement in that base mass segment.

Sachin: Obviously.

We will be obviously best place to capture that growth when that comes.

Unknown Executive: Thanks. Thanks, Grant. That's helpful.

Speaker Change: Thanks Grant.

Chad C. Beynon: Thank you. The next question is coming from Chad Beynon from Macquarie. Chad, your line is live.

Speaker Change: Yeah.

Speaker Change: Thank you. The next question is coming from Chad Beynon from Macquarie Chad Your line is nice.

Robert Glen Goldstein: Afternoon, thanks for taking my question and thanks for posting the slides. On slide 44, the flags of interest remain the same as what we've seen on the past couple decks, Macau, Singapore, New York, and you've talked through all these. There's been some recent discussions around Thailand, and some even think that an integrated resort could open in Thailand, maybe even ahead of Japan. So wondering if you could opine on your views, I know it's early, but could this market be big enough, you know, could a resort generate the cash flow meaningful enough for you guys to look at the market? Any views on that? Thanks.

Chad C. Beynon: Afternoon, Thanks for taking my question.

Chad C. Beynon: Thanks for posting the slides on slide 44, the flags of interest remain the same as what we've seen in the past couple of Ducks, Macau, Singapore, New York and you've talked through all of these there's been some recent discussions around Thailand, and some even thanks Ed.

An integrated resort could open in Thailand, maybe even ahead of Japan. So wondering if you could opine on your views I know early but.

Chad C. Beynon: Could this market be big enough.

Chad C. Beynon: Could a resort generate the cash flow meaningful enough for you guys to look at the market any views there. Thanks.

Robert Glen Goldstein: Yeah, we absolutely have an interest in Thailand. To your point, it could happen quicker than Japan. I think it's conceivable. It's early days, though, and we still have work to do with the numbers and understanding them. It's a very, very exciting market on a lot of levels, and just the sheer size of the populations, the accessibility, and the willingness of people to travel to Thailand. It's obviously, I think, one of the most contested cities in Asia.

Chad C. Beynon: Yes.

Chad C. Beynon: Absolutely have interest in Thailand to your point it could happen quicker than Japan receivable. It's early days, though we still have work to do in the numbers and understanding that it's a very very exciting market and the locals and just the sheer size of the population the accessibility and the willingness of people traveled to talent.

Chad C. Beynon: Obviously, I think one resort destination cities in Asia. So we're interested but again, it's early days I agree with your comments that could be fast in the Japan as possible.

Robert Glen Goldstein: So, yeah, we're very interested. But again, it's early days. I agree with your comments. It could be faster than Japan, which is possible.

Robert Glen Goldstein: Certainly, there's usually a lot of pent-up desire from both business and government to work towards this. So, we're interested. We're listening. We're doing the work to find out what makes sense for us there, and we'll keep you posted.

Chad C. Beynon: There's usually a lot of pent up desire from both business and government to work towards that so we're interested we're listening we're doing the work to find out what makes sense for us there.

Speaker Change: We will keep you posted.

Speaker Change: Thank you and then.

On the P&L statement.

Chad C. Beynon: And then on the P&L statement, you know, investors are increasingly looking at EPS, just given what you're generating and kind of where the stock is trading. I believe there was a tax benefit in Q1. Could you talk about that potential benefit and then any additional color in terms of will the tax rate start to look, you know, similar to what we saw in prior years, given your mix of Singapore and Macau?

Speaker Change: Investors are increasingly looking at EPS.

Speaker Change: Just given what youre generating in kind of where the stock is trading.

Speaker Change: I believe there was a tax benefit in Q1 could you.

Talk to that potential benefit and then any additional color in terms of will the tax rate start to look.

Speaker Change: Similar to what we saw in prior years, given your mix of Singapore and Macau.

Patrick Dumont: I'll answer this in reverse, yes, it will look more normal, it was a one-time item, it was related to a reversal in Macau, $57 million, but the tax rate will look more normal going forward. Thanks, Patrick. Appreciate it, guys.

I'll answer this in reverse yes, it will look more normal it was a onetime item it was related to a reversal in Macau $57 million.

Speaker Change: The tax rate will look more normal going forward.

Speaker Change: Okay.

Speaker Change: Thanks, Patrick I appreciate it guys.

David Brian Katz: Thank you. The next question is coming from David Katz from Jefferies. David, your line is live.

No problem.

Speaker Change: Thank you. The next question is coming from David Katz from Jefferies. David Your line of sight.

David Brian Katz: Hi, evening. Thanks for taking my questions.

David Brian Katz: Hi, good evening, thanks for taking my questions.

David Brian Katz: When we look at the Macau strategy in view of the renovations that are going on this year, I would think about, you know, the reinvestment credit and referral programs that people are talking about. What's your philosophy on those this year? And do you sort of dial them back until next year? Or how should we think about that?

David Brian Katz: When when we're looking at the cash strategy and view through renovations that are going on this year.

I would think about.

David Brian Katz: Reinvestment credit.

David Brian Katz: Referral programs people are talking about what's your philosophy on those this year.

We sort of dial them back until next year or how should we think about that.

David Brian Katz: I'm not sure we've ever seen a question where we tie back our investment programs to those run around the country.

Speaker Change: Obviously I understand your question, we brought back our investment program because under renovation.

Robert Glen Goldstein: That's right. A level of conservatism versus aggressiveness and sort of how you're doing it. No, no, we're not going to die. We will not dial back. We just may not be as aggressive. You know the competitive pressures on the promotional front right now. It's been talked about quite a bit.

Speaker Change: That's right level of conservatism versus aggressiveness.

Speaker Change: So the hiring.

Speaker Change: We're not going to that we live in.

Speaker Change: No no we will not dialed back we just may not be as aggressive as some of you know the competitive pressures on the promotional front right now it's been it's been talked about quite a bit we're not we're not believers that approach with readers and we make on building the best in class. We have the scale, we have a lifestyle front, we just believe long term.

Robert Glen Goldstein: We're not believers in that approach. We believe we make our buildings the best in class. We have the scale. We have the lifestyle product.

Robert Glen Goldstein: We just believe long-term GTRs will grow. We'll participate in that. We'll be very, very adherent to good margins. And that's an important part of our business. But no, we won't dial back our current reinvestment strategy. We won't necessarily dial it up either to compete in the market right now.

Speaker Change: <unk> will grow we will participate in that we will be very brief here into good margins.

Speaker Change: Portfolio business, but no we will dial back our current investment strategy respond necessarily done without either to compete in the market right. Now. So this will be a year of reinvestment.

David Brian Katz: So this will be a year of reinvestment, as I think Patrick and Grant alluded to. Perfect. And I wanted to just ask about one of the slides we showed your maturities, you know, forthcoming 2526. Any sort of updated thoughts about, you know, how you're approaching, and that's it for me. Thanks.

Speaker Change: We went to both the arena in London, but we're not going to pull back if any of them will stay consistent.

Speaker Change: Perfect and I wanted to just ask about one of the slides.

You show your.

Speaker Change: Maturities.

Speaker Change: Coming 'twenty five 'twenty six.

Speaker Change: Any sort of updated thoughts about.

Speaker Change: Lynn Youre approaching those and Thats it for me.

Patrick Dumont: So, you know, we're gonna look to deal with, so if you go to page 32, page I think you're referring to, and if you look at the LVS maturities, we should deal with those in short order. That's kind of our intent. And then on August 25, we have the billion eight that you see at the SEL level.

So we're going to look to deal with so if you go to page 32 page I think you're referring to.

Speaker Change: And if you look at the Lvs maturities, we should deal with those in short order that's kind of our intent.

Speaker Change: Then in August of 'twenty, five we have the $1 billion that you see at the ICL at the wholesale level I will address those in due time, we mentioned that we wanted to bring down our total debt level in Seattle, given that we borrowed during the pandemic, so you'll see us reduce the quantum of debt there.

Patrick Dumont: We'll address those in due time. We mentioned that we wanted to bring down our total debt level at SEL, given that we borrowed during the pandemic. So you'll see us reduce the quantum of debt there, and then, as part of the MBS credit facility, we'll address that, of course, along with the IR2 start. So that's kind of how we'll deal with our capital structure. You'll see us turn that out as we did previously.

Speaker Change: And then as part of the MBS credit facility will address that and of course.

Speaker Change: Along with the IR to start so that's kind of how we will deal with our capital structure, you'll see us turn that off to term that out as we've done previously.

David Brian Katz: Perfect, thanks. Thank you. The next question will be from Daniel Politzer from Wells Fargo. Daniel, your line is live.

Speaker Change: Okay. Thanks.

Speaker Change: Thank you. The question next question will be from Daniel <unk> from Wells Fargo. Daniel Your line is nice.

Daniel Brian Politzer: Hey, good afternoon. Thanks for taking my question. First one on Macau.

Daniel: Hey, good afternoon, Thanks for taking my question.

Daniel: First one on Macau this is.

Daniel Brian Politzer: This is, I think, the second quarter in a row your mass shares declined a little bit. Obviously, there were a lot of, you know, different factors this quarter. But if you could kind of maybe give us a little bit more color. Is this really just disruption, you know, heightened promotional levels? Or is it the customer that you're seeing coming into the market, or maybe something else altogether that's kind of driving the market share shifts we're seeing on the mass side?

Daniel: I think the second quarter in a row your mass shares declined a little bit obviously, there was a lot of different factors this quarter, but if you could kind of maybe give us a little bit more color is it is this really just disruption.

Daniel: Heightened promotional levels or is there a difference in the customer that youre seeing coming into the market or maybe something else altogether thats kind of driving the market share shifts that we're seeing on the mass side.

Grant Chung: Yeah, I do want to point out before Grant answers this question that when we have less revenue because of disruption, we'll have less market share. So I do want to point out that with the arena being out with less revenue and a slightly lower margin because of the impact, having some hotel rooms out, our market share will be impacted because it's the same thing. So with that, I'll just turn it over to Grant.

Speaker Change: Yes, I do want to point out before grant answers. This question that when we have less revenue because of disruption will have less market share.

Speaker Change: So I do want to point out that with the arena being out with less revenue and slightly lower margins because of the impact having some hotel rooms out at our market share will be impacted because it's the same thing so.

And with that I'll, just turn it over to grant.

Speaker Change: Yeah.

Grant Chung: Yeah, I think it's hard to say which factors I mean. You have a lot of disruption in the promotion environment out there that people have been talking about and that Rob referenced. You have obviously the disruptions that we've encountered because of our own projects.

Grant: Yes, I think it's hard to say, which which factors I mean, you have a you have a.

Grant: Promotional environment out there that people are talking about in that Rob referenced.

Grant: You have obviously the disruptions that we've.

Grant: Encountered because of our own projects.

Grant Chung: But on the other hand, it's also just looking at a very short time period here and there. So yes, our mass revenues were flat for the quarter, and the market grew 3%, 4%. But there are also a lot of factors that could have swung our way during the quarter, and we would have been much closer to the market growth rate. So I wouldn't draw too much conclusion from that.

Grant: But on the other hand.

Grant: It also just looking at a very short time period here and there.

Grant: So yes, our mass revenues were flat for the quarter.

Grant: Market grew three 4%.

But.

Grant: Theres also.

Grant: A lot of factors.

Grant: Could it could have swung our way during the quarter, we would've been much closer to the market growth rate.

Speaker Change: So I wouldn't I wouldn't draw too big a conclusion from that if you look at it.

Grant Chung: If you look at historically how we've sustained our share of EBITDA pre-pandemic, the market shares fluctuate, but we always end up back in that low to mid-30s range in terms of EBITDA share. And to be fair, let's look at a longer time frame; let's look at the scorecard for 2023. We achieved 35% EBITDA share against the GCR share of 26%. We were leaders in GCR, yes, but by a much bigger margin, the leader in EBITDA share, as well as non-gaming revenues, where we had 41% of the share of the market.

Speaker Change: Historically how.

Speaker Change: We sustained our share of EBITDA.

Speaker Change: Pre pandemic.

Speaker Change: The market shifts fluctuate, but we always end up back in that low to mid 30 range in terms of EBITA sure.

Speaker Change: And to be fair, let's let's look at our.

Speaker Change: Longer time frame to look at this.

Speaker Change: The scorecard for 2023.

Speaker Change: We achieved 35% EBITDA share against the GTR show a 26%.

Speaker Change: We will need it.

Yes, but not.

Speaker Change: Not much bigger margin are the leader in EBITDAR share as well as.

Speaker Change: Non gaming revenues were where we had a 41%.

Grant Chung: So in aggregate, for the year, if you look at revenue, gaming, non-gaming, and EBITDA, I think our performance has been solid. But quarter to quarter, obviously, there will be fluctuations depending on those factors that we just discussed.

Speaker Change: The market so in aggregate for the year. If you look at revenue gaming non gaming EBITDA.

Speaker Change: I think I think up for us.

Speaker Change: All of it.

Speaker Change: But quarter to quarter, obviously there'll be fluctuations depending on those factors.

Daniel Brian Politzer: Got it. And then just for the follow up, I think you guys have gone up to 71% of 1928 HK. Can you talk about maybe where that goes over time? Is there an upper limit there? And maybe some of the puts and takes to increasing that ownership stake? So I think there's

Speaker Change: Scott.

Scott: Got it and then just for the follow up.

Speaker Change: You guys have gone up to 71% share of <unk> 19 to 28 HK.

Speaker Change: Can you talk about maybe where that goes over time is there an upper limit there and maybe some of the puts and takes to increasing that that ownership stake.

Speaker Change: So I think there is an upper limit of 75% by exchange rules, although they do get waivers based on the size of the equity depending on the name.

Patrick Dumont: So I think there's an upper limit of 75% by exchange rules, although they do give waivers based on the size of the equity, depending on the name. For us, I think, as I said before, SEL is investing a lot for the future and has a bright future ahead of it. And we'd like to own more of it. So you'll see us be aggressive. And I think where we stand, you know, we see value in the stocks today meaningfully. So that sort of is a repeat of what we said before, but I think you understand our conviction.

For Us I think as I said before <unk>.

Speaker Change: Investing a lot for the future has a bright future ahead of it and we'd like to own more of it so youll see us be aggressive and I think.

Speaker Change: Where we stand.

Speaker Change: We see value in the stock to date meaningfully so.

Sort of as a repeat of what we said before but I think you understand our conviction.

Colin Mansfield: Thank you. The next question is coming from Colin Mansfield from CBRE Institutional Research. Colin, your line is live.

Understood. Thank you.

Speaker Change: Thanks, Dan.

Speaker Change: The next question is coming from Colin Mansfield from CBRE Institutional research Colin Your line is live.

Colin Mansfield: Hey, everybody, thanks for taking my call. And congratulations on getting your last rating up to investment grade during the quarter. You know, maybe following on David's question about the refinancing, maybe just an updated thoughts on how you're thinking about the subordinated term loan down at Sands China. And I know there's a lot of liquidity up at the parent, but how are you guys thinking about the timing of potentially taking that out of the capital structure down there? And then I have one follow up on rating.

Colin Mansfield: Hey, everybody. Thanks for taking my call and congratulations on getting the Lacerating up to investment grade during the quarter.

Colin Mansfield: Maybe following on to David's question about the refinancing maybe just an updated thoughts on how youre thinking about the subordinated term loan down at Sands, China and I know there is a.

Colin Mansfield: A lot of liquidity up at the parent, but how are you guys thinking about timing of potentially taking.

Speaker Change: Taking that out of the capital structure down there and then I have one follow up on ratings.

Patrick Dumont: Sure. I think you'll see us deal with the LVS maturities and the SEL 25s before you see any activity around the LVS Parenco term loan down to SEL. The one thing I'd like to point out is that it benefits SEL. It's a very favorable loan and allows them to have high-quality financing, deeply subordinated at a favorable rate. So from that standpoint, the maturity is 28, and we'll see how it goes with SEL and what their needs are and kind of go from there. But I think we have ample equipment up at Parenco, we believe, to do what we need.

Speaker Change: Sure I think youll see us deal with the Lvs maturities.

Speaker Change: And the SPL 20, fives before you're seeing activity around the obvious <unk> term loan down SCL.

Speaker Change: And one thing I'd like to point out is that it benefits that C. L.

Speaker Change: Favorable loan that allows them to have high quality financing deeply subordinated at a favorable rate.

Speaker Change: So from that standpoint.

Speaker Change: A maturity as 28, and we will see how it goes with SCL and what their needs are and kind of go from there, but I think we have ample liquidity up at Perenco, We believe as do we need.

Colin Mansfield: Great. Thanks, Patrick. And then just one follow up on Radians.

Speaker Change: Yeah.

Speaker Change: Great. Thanks, Patrick and then just one follow up on ratings I mean, obviously the company fully back in investment grade now and I think with the development pipeline that you guys. Do you have ahead of you I'd just be curious, how you're thinking about any sort of change.

Colin Mansfield: I mean, obviously, the company is fully back in investment grade now, and I think with the development pipeline that you guys do have ahead of you, I'd just be curious how you're thinking about any sort of change to financial policy as it relates to target ratings. I think this is one of the companies that could eventually get to mid triple B if you guys so desired. So I guess, how do you guys balance any sort of desire to have those levels of ratings as it relates to cost of capital relative to the obviously the development pipeline you have ahead of you?

Change the financial policy as it relates to target ratings.

Speaker Change: This is one of the companies that could eventually get to mid Triple B.

Speaker Change: You guys. So desired so I guess, how do you guys.

Speaker Change: Balance any sort of desire to have those level of ratings as it relates to cost of capital relative to obviously the development pipeline you have ahead of yourself.

Patrick Dumont: Thanks. So, I think, you know, as we look back, pre-pandemic, you know, we spent five years working towards investment grade. We think it's very important for us to actually be investment grade because it gives us access to the largest, most liquid debt market in the world, gives us a very efficient cost of capital, which in the long run provides us with flexibility but really drives returns on new projects. You know, we have this investment grade balance sheet. It helps us in new jurisdictions. You know, you heard Rob talk about several of them.

Speaker Change: Thanks, So I think as we look back pre pandemic.

Speaker Change: Five years working towards investment grade, we think it's very important for us to actually be investment grade, but 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 us flexibility, but really drives returns on new projects.

Speaker Change: We have this investment a balance sheet that helps us in new jurisdictions.

Speaker Change: Rob talk about several of them, we have the financial capability to execute on these projects our financial policy always been that we like gross leverage to be between two and three times.

Patrick Dumont: We have the financial capability to execute on these projects. Our financial policy has always been that we like gross leverage to be between two and three times. You know, we've said this for many years. But nothing's really changed.

Speaker Change: We said this for many years and nothing's really changed its our consistent view I think over time, we're going to Delever just because of the EBITDA expansion. If you look what happened to MBS it occurred.

Patrick Dumont: It's our consistent view. I think over time, we're going to deliver just because of EBITDA expansion. If you look at what happened in MBS, it happened.

Patrick Dumont: And, you know, our belief is that this will continue to occur at Sands China as well. So, I think for us, the investment grade is very important. That gross leverage parameter of two or three times is consistent with prior statement and prior practice. And I actually think, you know, we're very favorably levered on a net basis and on a gross basis, and we're looking forward to doing some new development. I think that it will fit within our leverage profile based on the prior discussions that we've had about the progression of funding and EBITDA development.

Speaker Change: Our belief is that it will continue to occur at us and China as well, so I think for us.

The investment grade is very important that gross leverage parameter of two to three times is consistent with prior statements. Prior practice and I actually think we're very favorably levered on a net basis and on a gross basis.

Speaker Change: And we're looking forward to doing some new development I think that will fit within our our leverage profile based on sort of the prior discussions that we've had about progression of funding and EBITDA development. So we're very focused on it we think we can handle or new developments our investment in our existing assets.

Patrick Dumont: So, we're very focused on it. We think we can handle our new developments, our investments, our existing assets, and have a very healthy return on capital program while balancing all these things and having an investment grade balance sheet. That's our goal, and that's our vision.

Speaker Change: And I have a very healthy return of capital program, while balancing all of these things that having an investment grade balance sheet, that's our goal and Thats our view.

Colin Mansfield: Great. Thanks again, guys. Thanks again for taking the question and congrats again on getting fully back to IG.

Speaker Change: Great. Thanks again, guys for thanks again for taking my question and congrats again on getting fully back to energy.

Speaker Change: I appreciate it thanks, so much.

Operator: Thank you, and this does conclude today's conference call. You may disconnect your lines at this time and have a wonderful day. We thank you for your participation.

Speaker Change: Thank you.

Speaker Change: This does conclude today's conference call you may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation.