Q1 2024 Melco Resorts & Entertainment Ltd Earnings Call
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Operator: Ladies and gentlemen, thank you for participating in the first quarter 2024 earnings conference call of Melco Resorts and Entertainment Ltd. At this time, all participants are in listen-only mode. After the call, we will conduct the question and answer session. Today's conference has been recorded. I would now like to turn the call over to Ms. Jeanny Kim, Senior Vice President, Group Treasurer of Melco Resorts and Entertainment Ltd.
Speaker Change: Ladies and gentlemen, thank you for participating in the third quarter 'twenty 'twenty earnings conference call of Melco resorts.
Speaker Change: <unk>.
Speaker Change: At this time all participants are in listen only mode. After the call, but we'll conduct a question and answer session. Today's conference is being recorded.
Speaker Change: I would now like to turn the call over to MS. Julie Kim Senior Vice Presidents at group Treasurer of Melco Resorts <unk> Entertainment Limited. Please go ahead.
Jeanny Kim: Thank you, Operator, and thank you for joining us today for our first quarter 2024 earnings call. On the call are Lawrence Ho, Geoff Davis, Evan Winkler, and our property presidents in Macau, Manila, and Cyprus. Before we get started, please note that today's discussion may contain forward-looking statements made under the safe harbor provision of federal securities laws. Our actual results could differ from our anticipated results.
Jeanny Kim: Thank you operator, and thank you for joining us today for our first quarter 'twenty three 'twenty four earnings call on the call are Lawrence Ho, Geoff Davis, Evan Winkler, and our property presidents in Macau and Manila in Cyprus before we get started please note that today's discussion may contain forward looking statements made under the safe Harbor provision of federal Securities.
Our actual results could differ from our anticipated adults. In addition, we may discuss non-GAAP measures a definition and reconciliation of each of these measures to the most comparable GAAP financial measures are included in the earnings release. Finally, please note that our supplementary earnings slide deck posted on our Investor Relations website with that I'll now turn the call over to <unk>.
Jeanny Kim: In addition, we may discuss non-GAAP measures. The definition and reconciliation of each of these measures to the most comparable GAAP financial measures are included in the earnings release. Finally, please note that our supplementary earnings slides are posted on our investor relations website. With that, I'll now turn the call over to Mr. Lawrence Ho.
What's your lifestyle.
Lawrence Ho: Thank you, Jeanny, and thank you all for joining us today. We have had an eventful year so far. We've had a shift in management, and our sales floor has been restructured. We've knocked down walls and started reconfiguring our gaming areas and opened several new retail outlets at Studio City, to name a few highlights. On the financing side, we paid down another $250 million in debt, raised $750 million in bonds, and extended the maturity of our $1.9 billion revolving credit facility.
unknown: Thank you Jenny and thank you all for joining us today.
Speaker Change: We have had an eventful year so far.
Speaker Change: We've had a shift in management our sales force has been restructured we've knocked down walls and started reconfiguring, our gaming areas and.
Speaker Change: And opened several new retail outlets at studio city to name a few highlights.
Speaker Change: On the financing side, we paid down another 250 million in debt.
Speaker Change: $750 million in bonds and extended the maturity of our $1 9 billion revolving credit facility.
Lawrence Ho: Significantly reducing our refinancing risk in 2025. We had a slow start in January, but we recovered in February, in part due to the Chinese New Year, and the improvement in our performance in March and April reflects the steps that we've taken toward regaining our leadership position in premium mass. Melco Macau's 1st Quarter Theo Property EBITDA reached 89% of 2019, In March, both COD Macau and Studio City recorded their highest Mass table game drop ever, And in April, we continue to gain market share, recording their highest daily gaming revenue since Macau's reopening in January 2023.
Speaker Change: Significantly reducing our refinancing risks in 2025.
Speaker Change: We had a slow start in January but we recovered in February in part due to Chinese new year and the improvement in our performance in March and April reflects the steps that we've taken towards regaining our leadership position in premium mass.
Speaker Change: Melco Macau.
First quarter for your property EBITDA reached 89% of 2019.
In March both.
Speaker Change: Macau studio city recorded the highest.
Speaker Change: Mass table games drop ever.
Speaker Change: And in April we continued to gain market share.
Speaker Change: According the highest daily gaming revenue since Nick has reopening in January 2023.
Lawrence Ho: We remain extremely optimistic about Macau's continued growth potential. Various initiatives recently announced by the Chinese government, such as the multi-entry group tour visas between Macau and Hengcheng, the new cities added to the IVS program in March, Easier online visa application process for residents of China's 20 largest cities, as well as the proposed connection of Shenzhen to the Macau-Zhuhai bridge, which increases accessibility to Macau and enlarges our customer base. We are confident that we will maintain our market-leading position based on the quality of our properties and our continued efforts to enhance our services and offerings. In the Philippines, City of Dreams Manila continues to generate solid results But we had some bad luck in VIP this past quarter.
Speaker Change: We remain extremely optimistic about like house continue growth potential.
Speaker Change: Various initiatives recently announced by the Chinese government such as the multi entry group tour visa is between Macau and hang Chang the new cities added to the Ibs program in March.
Speaker Change: Is your online visa application process for residents of Chinas 20 largest cities.
Speaker Change: As well as the proposed collection of Shenzhen to the Macau Zhuhai bridge increases assess ability to Macau and enlarges our customer base.
Speaker Change: And we are confident that we will maintain our market leading position based on the quality of our properties and our continued efforts to enhance our services and offerings.
Speaker Change: In the Philippines City of Dreams, Manila continues to generate solid results in mass table games as loss, but we had some bad luck and VIP this past quarter.
Lawrence Ho: City of Dreams Mediterranean and our satellite casinos in Cyprus showed positive EBITDA and cash flow through the first quarter. We have been working on expanding our marketing efforts throughout Europe as well as the Middle East, and we are cautiously optimistic that we can continue to expand profitability despite the continued conflicts in the region. Today we announce that we are working with the John Keoghs Group in Sri Lanka in relation to their new integrated resort development.
City of Dreams, Mediterranean and our satellite casinos in Cyprus showed positive EBITDA and cash flow through the first quarter.
Speaker Change: We have been working on expanding our marketing efforts throughout Europe as well as the middle East and we're cautious cautiously optimistic that we can continue to expand profitability. Despite the continued conflicts in the region.
Speaker Change: Today, we announced that we are working with the <unk> group in Sri Lanka in relation to their new integrated resort development.
Lawrence Ho: The integrated resort will be rebranded as City of Dreams Sri Lanka and will be the first of its kind in Sri Lanka and South Asia. We will be responsible for the fit-out and operations of the casino, which we expect to open in mid-2025. While the City of Dreams, the Sri Lanka Integrated Resort itself, is expected to open in the third quarter of 2024. This is a landmark development in Sri Lanka, and we're thrilled to participate in this opportunity.
Speaker Change: Integrated resort will be rebranded at city of Dreams for Lanka and will be the first of its kind <unk> Lanka and South Asia.
Speaker Change: We will be responsible for the fit out and operations of the casino, which we expect to open in mid 2025.
Speaker Change: While the city of dreams or Lanka integrator resort itself is expected to open in the third quarter of 2024.
Speaker Change: This is a landmark development in Sri Lanka, and we are thrilled to participate in this opportunity.
Lawrence Ho: This is a capital-light investment with an attractive return profile allowing us to expand the City of Dreams brand and broaden our customer reach. And finally, I'm excited to announce that we have hired Tim Kelly as property president of City of Dreams, Macau. Tim was most recently president of Atlantis Global for Kirzner International based in Dubai and has achieved great success in building the Atlantis brand since joining them in 2017. He has a unique blend of skills and experience that we believe positions him perfectly to lead this next chapter of City of Dreams, and I would like to welcome him to the Melco family. With that, I turn the call over to Geoff to go through some of the numbers. Sponsored American Deposit Receipt Repr 3
Speaker Change: This is a capital light investment with an attractive return profile, allowing us to expand the city of dreams, Brian and broaden our customer reach.
Speaker Change: And finally I'm excited to announce that we have hired Tim Kelly as property President of city of Dreams Macau Tim.
Speaker Change: Tim was most recently president at Atlantis Global brokers. They are international based in Dubai and has achieved great success in building the Atlantis brand since joining them in 2017.
He has a unique blend of skills and experience that we believe positions in perfectly to lead. This next chapter of city of Dreams, and I would like to welcome him to the local family with that I'll turn the call over to Jeff to go through some of the numbers.
Geoffrey Stuart Davis: Our group-wide adjusted property EBITDA for the first quarter of 2024 was approximately $299 million. Luck Adjusted Groupwide Property EBITDA for the first quarter of 2024 came in at $329 million. Unfavorable win rates negatively impacted our results at City of Dreams Macau and City of Dreams Manila by approximately $33 million, whereas a favorable win rate at Studio City had a slight positive impact of approximately $2 million.
Speaker Change: Laurence.
Jeff: Our group wide adjusted property EBITDA for the first quarter of 2024 was approximately $299 million.
Jeff: Luck adjusted group wide property EBITDA for the first quarter of 2024 came in at $329 million.
Jeff: Unfavorable win rates negatively impacted our results at city of Dreams, Macau and city of Dreams, Manila by approximately $33 million.
Jeff: Whereas a favorable win rate in studio city had a slight positive impact of approximately $2 million.
Geoffrey Stuart Davis: Details of these adjustments can be found in the supplementary earnings slides posted on our Investor Relations website. In April, we significantly reduced our refinancing risk for 2025 with a series of transactions that included the extension of our $1.9 billion revolving credit facility to 2027. A $750 million bond issue and a $100 million tender offer on the Studio City Bonds due 2025. The proceeds from the $750 million bond issue have been used to repay loans under the RCF.
Jeff: Details of these adjustments can be found in the supplementary earnings slides posted on our Investor Relations website.
Jeff: In April we significantly reduced our refinancing risk in 2025 with a series of transactions that include the extension of our $1 9 billion revolving credit facility to 2027.
Jeff: $750 million bond issuance and a $100 million tender offer studio city bonds due 2025.
Jeff: The proceeds from the $750 million bond issue have been used to repay loans under the Rcs and.
Geoffrey Stuart Davis: And the extension of the RCF allows us to draw down again in 2025 to refinance the $1 billion in bonds due at Melco. We have always been prudent as well as opportunistic in managing our financing structure and maturities, and we believe that the actions taken can reduce our exposure to future market volatility.
Jeff: And the extension of the Rcs allows us to draw down again in 2025 to refinance the $1 billion in bonds due at Melco.
Jeff: We've always been prudent as well as opportunistic in managing our financing structure in maturities and we believe.
Jeff: The actions taken to reduce our exposure to future market volatility.
Geoffrey Stuart Davis: We now have $300 million to refinance at Studio City by July 2025, and we are actively reviewing alternatives. As of March 31, 2024, we had around $1.3 billion of consolidated cash on hand. Melco, excluding its operations at Studio City, the Philippines, and Cyprus, accounted for around $635 million. Of this, approximately $125 million was restricted as collateral required for the concession-related guarantees issued to the Macau government. Proforma for the recent bond issue, our undrawn and available credit lines for additional liquidity increased to $1.8 billion.
Jeff: We now have $300 million to refinance at studio City by July 2025, and we are actively reviewing alternatives.
Jeff: As of March 31, 2024, we had around $1 3 billion of consolidated cash on hand, melco, excluding its operations at studio city in the Philippines in Cyprus accounted for around $635 million.
Jeff: Of this approximately $125 million was restricted as collateral required for the concession related guarantees issued to the Macau government.
Jeff: Pro forma for the recent bond issue, our Undrawn and available credit lines for additional liquidity increased to $1 8 billion.
Geoffrey Stuart Davis: As we normally do, we'll give you some guidance on non-operating line items for the upcoming second quarter of 2024. Total depreciation and amortization expense is expected to be approximately $135-$140 million. Corporate expense is expected to come in at approximately $20 million, and consolidated net interest expense is expected to be approximately $120-$125 million. This includes finance liability interest of around $7 million relating to fees payable in relation to the Macau Gaming Concession and the Cypress Gaming License, and finance lease interest of approximately $6 million relating to City of Dreams Manila. That concludes our prepared remarks. Operator: back to you for the Q&A.
Jeff: As we normally do we'll give you some guidance on nonoperating line items for the upcoming second quarter of 2024.
Jeff: Total depreciation and amortization expense is expected to be approximately 130 $135 million to $140 million.
Jeff: Corporate expense is expected to come in at approximately $20 million.
Jeff: And consolidated net interest expense is expected to be approximately $120 million to $125 million.
Jeff: This includes finance liability interest of around 7 million relating to fees payable in relation to the Macau gaming concession in the Cypress gaming license and finance lease interest of approximately $6 million relating to city of Dreams Manila.
Speaker Change: That concludes our prepared remarks, operator back to you for the Q&A.
Speaker Change: Thank you Dear participants as a reminder, if you wish to ask a question. Please press star one on your telephone keypad and wait for your name to be announced towards your question. Please press star one again Nathan.
Speaker Change: Mr. Bob will compile the Q&A narrow studies will take a few moments.
Speaker Change: And now we're going to take our first question and this comes from the line of George Choi from Citi. Your line is open. Please ask your question.
Operator: Thank you, dear participants. As a reminder, if you wish to ask a question, please press star 11 on your telephone keypad and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roll studies. We'll take a few moments. Now we're going to take our first question, and it comes from the line of George Choi from CT. Your line is open; please ask your question.
Thank you for the presentation.
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If I may firstly, given the recently announced expansion Macau multi entry.
Karl Choi: Management would you. Please let us know what melco will be doing specifically to capitalize on that in particular with Sydney.
Karl Choi: Secondly, which please give us an update on your adoption of smart gaming tables.
And then finally would you please remind us your priorities in terms of cash deployment I guess that specifically is that each has about <unk> that would be assumption. Thank you very much I'll jump back in queue.
Karl Choi: Thank you for the presentation. I have a few questions by May. Firstly, given the recently announced pension Macau multi-entry visa arrangement, would you please let us know what Melco will be doing specifically to capitalize on this, in particular with Studio City? And secondly, would you please give us an update on your adoption of smart gaming tables? And finally, would you please remind us your priorities in terms of cash deployment? In particular, is there any chance of a dividend resumption? Thank you very much, and I'll jump back to you.
Karl Choi: Hey, George as Laurence So maybe let me take.
Laurence: Take the broader question and then I'll let.
Speaker Change: Even then Kevin talk about the studio City Park, but.
Speaker Change: First of all.
Laurence: In terms from a from a cash deployment standpoint, where our number one focus continues to be.
Laurence: Debt reduction so that is by far and away our number one focus and I'm glad that maybe Jeff Kevin supplement later on last year, we took down in the prepared remarks more than a $1 billion of debt and that will continue to be our goal.
Laurence: The Sri Lankan opportunity is a very unique one is asset light and I think thats why we still view ourselves as you know.
Laurence: Balance sheet, allowing it to be a development company and so we'll continue to look at look forward a development if that fits the balance sheet.
Lawrence Ho: Hey, George, it's Lawrence. So maybe I can take the broader question and then I'll let, you know, Evan and Kevin talk about, you know, the Studio City part. But, you know, first of all, in terms of a cash deployment standpoint, where our number one focus continues to be debt reduction, so that is by far and away our number one focus, and I'm glad that maybe Geoff can supplement later on.
Laurence: And on the on that in Macau, and Hangsang multiple visa entry.
Speaker Change: I'll, let Evan let Kevin talk about the the.
Kevin: The details of what our strategy, there, but I think naturally.
Kevin: So far year to date, there has been numerous positive China announcements.
Kevin: Those increasing the individual travelers cities Ibs cities to TR and Qingdao too.
Lawrence Ho: Last year we took down in the prepared remarks more than a billion dollars of debt, and that will continue to be the goal. The Sri Lankan opportunity is a very unique one, Shs Sponsored American Deposit Receipt Rep 3 Sponsored American Deposit Receipt Rep 3
Kevin: Extending the Hong Kong, Shanghai, Macao Bridge, and then now with the most recent hedging Macau news and other.
Kevin: And the so called other visa is that allow people to come to Macao multiple times. So.
Kevin: On a long.
Long term directional basis as all excellent news and.
Evan Andrew Winkler: Sure, I can start, and Kevin can supplement. I think on that issue in particular, we've done some of the initial work. I think we Obviously, if you look at where we're physically positioned at Studio City, we're well positioned to take advantage. We've evaluated some of the hard infrastructure we have in terms of a bus drop-off and things that would allow us to facilitate a greater tour volume going through that point of entry into Macau, and I think that we have some opportunities there, I would say in terms of concrete plans.
Speaker Change: So maybe I hand, it off to Evan and Kevin to talk about sure I can start and Kevin can supplement.
Evan Andrew Winkler: I think on that issue in particular.
Evan Andrew Winkler: We've done some of the initial work I think we obviously if you look at where we're physically positioned at studio city.
Kevin: We are well positioned to take advantage, we've evaluated some of the hard infrastructure, we have in terms of bus drop off.
Kevin: Things that would allow us to facilitate a greater tour volume going through.
And to that point of entry into Macau, and I think that we have some opportunities there.
Evan Andrew Winkler: We are early on in sort of exploratory discussions, so I think we believe that there may be an opportunity there, but we're going to spend time to make sure we're bringing the right groups to the property if that's the direction that we go. But, as Lawrence indicated, I think it's a long-term positive. I think Evan summarized it well: we already have a very strong agent business with a lot of our current attractions And we also have great connectivity from the train station that's being built on the other side, right next to the current Macau light rail, so just a lot of positive opportunities.
Kevin: I would say in terms of concrete plants, we are early on and sort of exploratory discussions. So I think we believe that there may be an opportunity there, but we're going to spend time to make sure we're bringing the right groups on the property. If that's the direction that we go but as Lawrence indicated I think it's a long term positive.
Lawrence Ho: I think having summarized it well, but where we already have a very strong agent business with a lot of our current attraction was particularly with the waterpark. So we have really strong relationship with a lot of the group tour operators. So we see a lot of upside as does visa.
Lawrence Ho: <unk> continues to evolve.
Lawrence Ho: We also have great connectivity from the train station that's being built on the other side right.
Lawrence Ho: Next to the current Macau light rail so just a lot of positive opportunities.
Evan Andrew Winkler: Sponsored American Deposit Receipt Repr 3, We are obviously prioritizing the adoption of smart table technology. We are getting delivery of our first set or a small set of tables this quarter. Although it will be a small enough number, it will really be more on a pilot or trial basis as we continue to do our learnings, with full-scale adoption pacing out really over the next year until we have our full force of tables.
Lawrence Ho: In terms of smart tables.
Lawrence Ho: We are obviously prioritizing the adoption.
Lawrence Ho: Smart table technology.
Lawrence Ho: We are getting delivery.
Lawrence Ho: Our first set or a small set of tables.
Lawrence Ho: This quarter.
Lawrence Ho: Although it will be a small enough number it will really be more on a pilot trial basis as we continue to do our learnings.
Lawrence Ho: Full scale adoption.
Lawrence Ho: Pacing out really over the next year until we have all for our full force.
Evan Andrew Winkler: In the short term, we're looking at how we might deploy them within specific areas within the property, both to use them strategically and then also to enhance our learnings on how we're going to use this technology in our roll-forward basis, but approximately this time next year, we should be at full implementation.
Lawrence Ho: Tables.
Lawrence Ho: In the short term, we're looking at how we might deploy them within specific areas within the property.
Lawrence Ho: Both to use them strategically and then also to enhance our learnings on how we're going to use this technology in a roll forward basis.
Lawrence Ho: But approximately this time next year, we should be around at full implementation.
Speaker Change: Thank you.
Luis Ricardo Chinchilla: Now we're going to take our next question, and the question comes from the line of Ricardo Chinchilla from Deutsche Bank. Your line is open. Please ask your question.
Speaker Change: Now we will take our next question.
Yeah.
Speaker Change: And the question comes from the line of Eric <unk> from Deutsche Bank. Your line is open. Please ask your question.
Evan Andrew Winkler: Hey guys, this is Ricardo from Deutsche. Thank you so much for taking my question. I was hoping you could comment a little bit on the promotional environment. We keep hearing from your competitors that the competitive environment and the promotional environment keep being pretty intense. Have you seen a material difference between the fourth quarter and the first quarter? And, you know, if you could also comment a little bit on flow during this particularly promotional environment?
Eric: Hey, guys did you guys have been very Chad. Thank you. So much for taking my question I was hoping if you could comment a little bit on the promotional environment, we keep hearing.
Eric: From your competitors that the competitive environment and promotional environment keeps being bringing tons have you seen a material difference between the fourth quarter or the first quarter and you know if you could also comment a little bit on a flow through in these particularly promotional environment.
Evan Andrew Winkler: Sure, why don't I take that? I do think, again, we are seeing a fairly intense competitive environment over the last quarter and into this quarter. If you go to Macau and you walk around, you see evidence of that even if you just look at people's gaming floors in terms of the number of freebies that are going out to mass players, and if you see what's happening on the mass floor, that obviously is continuing on to our premium areas in terms of people competing for that premium mass player by improving their game in terms of products and services.
Eric: Sure.
Speaker Change: Why don't I take that.
Speaker Change: I do think again, we are seeing a fairly intense competitive environment.
Speaker Change: Over the last quarter and into this quarter. If you go to Macau and you.
Speaker Change: Walk around you see evidence of that even even if you just look at People's gaming floors in terms of the number of freebies that are going out to mass players and if you see what's happening on the mass for that obviously is continuing on into our premium areas in terms of people competing for that premium mass player.
Speaker Change: In improving their game in terms of product and services I do think that there has probably been a little bit of a peak.
Evan Andrew Winkler: I do think that there has probably been a little bit of a peak in terms of some of the player reinvestment programs where I don't think it's accelerating beyond where it was, and I think all of us are taking a look at what we're doing. And so I would expect, over time, for it to stabilize and eventually come back down. But in the short term, as the market recovered, I think we've been in a little bit of a feeding frenzy trying to go after the highest value premium mass players, and that's probably taken up investment levels to probably as high as we'd like them to go. And I think we're probably getting to the peak and looking to have them taper and come back down.
Speaker Change: In terms of <unk>.
Speaker Change: Some of the player reinvestment programs, where I don't think its accelerating beyond where it was that I think all of US are taking a look at what we're doing.
And so I would expect over time for it to stabilize and eventually come back down.
Speaker Change: But in the short term as the market recovered I think we've been in a little bit of a feeding frenzy trying to go after.
Speaker Change: The highest value premium mass players and thats probably taken up.
Speaker Change: Investment levels.
Speaker Change: Two probably as high as we'd like them to go.
Speaker Change: And I think we're probably getting to the peak is looking to have the paper and come back half.
Geoffrey Stuart Davis: Got it, thank you. If I may follow up with a housekeeping item, could you please, you know, provide some cap pegs, figures for the year, split between, you know, the Melco Resort Group, meaning the City of Dreams, Manila, and the Melco Clubs, and then for the City on its own? That would be very helpful. Thank you.
Speaker Change: Got it. Thank you if I may follow up housekeeping item could you. Please.
Speaker Change: Some capex figures for the year.
Speaker Change: The team.
Speaker Change: Now of course, you take little meaning the CDC.
Speaker Change: D.
City of dreams.
Speaker Change: Manila and Mocha clubs and then four.
Speaker Change: Okay.
Speaker Change: That would be very helpful. Thank you.
Speaker Change: Yes.
Geoffrey Stuart Davis: Okay, thank you. So including the recently announced Sri Lanka project, our total capex for 2024 is estimated to be approximately 415 million, 50 of which would be Sri Lanka. So I think you were asking for a property by property breakdown. So at COD Macau, that's around 140. Studio City is about 75. Manila is in the range of 40, and C.O.D. Mediterranean is approximately 20.
Speaker Change: Okay. Thank you so, including the recently announced Sri Lanka project, our total Capex for 2024.
Speaker Change: Is estimated to be approximately $415 million.
Speaker Change: 50 of which would be Sri Lanka.
Speaker Change: So I think you were asking for a property by property breakdown. So at Cod Macau, that's around 140 studio city is about 75.
Manila is in the range of 40 and CRD Mediterranean is approximately 20.
Operator: Thank you so much. And just to round that off, in respect of project spending, with some tail expenditures relating to Phase 2 and the Cypress project, that constitutes approximately $25 for Studio City Phase 2 and about $30 remaining for the ICR in Cypress. Operator, please go ahead with the next question. Sponsored American Deposit Receipt Repr 3
Speaker Change: Thank you so much.
Speaker Change: And just to round that out.
Speaker Change: In addition to that some with respect to project spending.
Speaker Change: With some tail expenditures relating to phase two and.
Speaker Change: The Cyprus project.
Speaker Change: That constitutes approximately 25.
Speaker Change: For studio City phase two in about 30 remaining.
Speaker Change: For the ICR in Cyprus.
Operator. Please go ahead with the next question.
John G. DeCree: Now we're going to take our next question, and the next question comes from John DeCree from CBRE. Your line is open. Please ask a question.
Speaker Change: Q.
Speaker Change: Yes.
Now, we'll take our next question.
Speaker Change: And the next question comes from the line of John Decree from CBI. Your line is open. Please ask your question.
John G. DeCree: Hi, good evening everyone.
John G. DeCree: Maybe two or three questions on some of the changes that you've made in the quarter. Obviously, some new management is starting to roll up their sleeves.
John G. DeCree: Maybe two or three questions on some of the changes that you've made in the quarter obviously.
John G. DeCree: The new management and starting to roll up their sleeves Laurence I think your prepared remarks, you spoke about maybe moving some malls.
Lawrence Ho: Lawrence, I think you prepared remarks. You spoke about maybe moving some walls, and updating some retail. So, you know, curious if you could kind of elaborate a little bit on what you've done kind of there at the property level, CITI and COD, I guess, specifically. And then a little bit more on maybe some of the early success or feedback that you're seeing from some of those developments. I think you mentioned a pretty strong mass market drop in March, but if there's anything else you could add, that'd be great.
John G. DeCree: Updating some some retail so curious if you could kind of elaborate a little bit on on what you've done kind of bare at the property level.
City, and Sidoti I guess, specifically.
John G. DeCree: And then a little bit more on maybe some of the early.
John G. DeCree: Early success or feedback that youre seeing from some of those developing thank you mentioned.
Pretty strong mass market dropped in March, but if there's anything else you could add that'd be great.
Lawrence Ho: Sure John, you know I think when we made the management change, it was also a bit of a culture change. I think that was quite important because, you know, over the years, Melco's DNA was always, you know, in terms of providing the best services and the best product, and we had the hardware built for that, and so I think changing up the team dynamics really helped that. I think in terms of the details, maybe you know, in terms of the good work at both City of Dreams and Studio City, I'll let Evan and Kevin talk about that.
Speaker Change: Sure John I think when we made the management change there was also a bit of a culture change I think that was quite important because over the years. The DNA of Melco was always.
Speaker Change: In terms of providing the.
John G. DeCree: The best services and the best product and we had the hardware bill for that and so I think changing up the team dynamics really helped us I think in terms of the details maybe in terms of the good work.
John G. DeCree: At both city of Dreams and studio City I'll, let.
Evan Andrew Winkler: In terms of the numbers, I think you know March was For the market itself, March was the best month since the pandemic, but for us, it was one of the best months we've ever had. April was shaping up to be another great month for us, even though seasonality plays a factor. April tends to be a pretty slow month for the market, but I think for us, it's been a great month. In terms of the nitty-gritty details of what we've done at COD and Studio City, why don't I let Evan and Kevin talk about that?
John G. DeCree: Kevin and Kevin talk about it.
In terms of the numbers I think.
John G. DeCree: March was for.
Kevin: The market itself March was the best month since the pandemic.
Kevin: But for US It was it was one of the best month, we've ever had.
Kevin: And April is shaping out to be another great month for us even though seasonality plays a factor April tends to be a pretty slow months for the market, but I think for us has been a great month, but in terms of the.
Kevin: The Nitty gritty details of what we've done at CODI and studio city at one of our evidence and Kevin talked about it.
Evan Andrew Winkler: When we went through our management shift, Lawrence really directed the team to regain our leadership position within premium mass. And so we've been taking a look at really every aspect of our business from a customer-centric perspective to make sure that our product and service offerings and our gaming experience are commensurate with that leadership position. If you specifically go onto the floor at City of Dreams, you'll see that we've already moved the electronic product and consolidated that at the end of the floor by Hyatt. We've added tables where that was.
Kevin: Why don't I start and I'll, let.
Kevin: Kevin chime in on.
Speaker Change: Studio city so.
Speaker Change: When we went through our management shift Lawrence is really directed the team to regain our leadership position.
Within premium mass and so we've been taking a look at really every aspect of our business from a customer centric perspective to make sure that our product and service offerings in our gaming experiences commensurate with that leadership position.
Speaker Change: If you specifically go onto the floor at city of Dreams, Youre going to see that already we've moved the electronic product and consolidated that on the end of the floor by Hyatt.
Evan Andrew Winkler: We've opened up our previous carded pit to allow better flow of customers into a premium area. We've added sort of free-flowing food and beverage, so we now have 24-7 snacks and beverages on the mass floor. There's an enhanced offering as you go into the higher-limit area, and then there's a highly enhanced offering into our carded premium areas, which is including free-flowing Mautai and single-malt scotch, where we've actually had players staying after play, enjoying themselves, and then instead of where they would typically have left property to go eat and drink, they're staying within that environment, finishing, and then going back, and we're getting more play hours out of that player, so we're able to expand our patrons' gaming day, which is obviously helping out for drop and for results.
Speaker Change: We've added tables, where that was we've opened up our previous card at pit.
Speaker Change: To allow a better flow of customers into our premium area, we've added sort of free flowing food and beverage. So we now have $24 seven snacks and beverages on the mass floor. There's an enhanced offering if you go into the higher limit area and then theres a highly enhanced offering into our card.
Speaker Change: Premium areas, which is including free flowing mao-tai in single malt Scotch, where we've actually had play.
Speaker Change: Players, saying after play in.
Speaker Change: Enjoying themselves and then instead of where they would typically have left property to go eat and drink theyre staying within that environment, finishing and then going back and we're getting more play hours out of that player. So we're able to expand.
Speaker Change: Our patrons gaming day, which is obviously, helping out for drop in for results.
Evan Andrew Winkler: In addition to that, we've been looking across our staffing in almost every area of the business, so this goes down to the number of people we have on the floor serving the guests from a food and beverage standpoint. We're looking at butler service within our high-value and villa areas, and so really, we're looking at all of the little pieces of the business and looking where we can invest in a way that we think is going to improve that experience, so we're either getting a gamer that's going to be playing longer or a better gamer or a better cash guest into the property.
Speaker Change: In addition to that we've been looking across our staffing in almost every area of the business. So this goes down too.
Speaker Change: The number of people we have on the floor servicing the gas from a food and beverage standpoint.
Speaker Change: We're looking at Butler service within our high value and Villa areas and so really we're looking at all of the little pieces of the business and looking where we can.
Speaker Change: Invest in a way that we think is going to improve that experience. So we're either getting.
Speaker Change: Gamer, that's going to be playing longer or a better gamer.
Speaker Change: Or a better cash guest into the property.
Evan Andrew Winkler: It's probably too early for us to declare victory on any of the initiatives, but I would tell you that we're looking at every little aspect. We're investing across the board, and what we've been seeing in March and April has been very, very positive indications in terms of what it means for our business after we've made those investments. I'm going to let Kevin comment on Studio City. Okay.
Speaker Change: It's probably too early for us to declare a victory on any of the initiatives, but I would tell you that we're looking at every little aspect we're in.
Speaker Change: Investing across the board and what we've been seeing in March and April has been very very positive indications in terms of what it means for our business after which made those investments.
Speaker Change: What Kevin comment on studio city.
Kevin: You know, I think Evan's comment on becoming customer-centric and getting the properties refocused on the service experience summarizes the journey Studio City has been on and continuing to lean into the DNA of Studio City, which is it's a fun-for-all-ages cinema-themed property, and we're creating a lot of fun activities for our guests when they come through there, both on the casino and non-gaming side. On the casino floor, we've really reviewed everything.
Kevin: I think.
Kevin: Kevin comment on becoming customer centric and getting the property to refocus on the service experience.
Kevin: The journey is studio city has been on.
Kevin: And continuing to lean into the DNA of studio City, which is it's a fun for all ages cinema themed property.
Kevin: We're creating a lot of fun activity for our guests when they come through there both on the casino and.
Kevin: Non gaming side.
Kevin: On the casino, we really reviewed everything we have we have a nice master plan around kind of how we're going to approach our casino floor or lay out.
Kevin: We have a nice master plan around kind of how we're going to approach our casino floor, our layout, you know, similar to COD where they've rearranged their floor, we're in the process of doing the same with Studio City. And we're seeing traction, particularly with our revamped F&B offerings. We've become extremely popular. We've actually seen the highest property visitation numbers in the area since Studio City opened on the last day of March, which has been fantastic.
Kevin: Similar to <unk>, where they rearrange their floor. We're in the process of doing the same with studio city and were seeing the traction, particularly with our revamped F&B offerings.
Kevin: We have become extremely popular we've actually seen the highest proper.
Kevin: Property visitation numbers in the sense of studio city opened.
Kevin: The last day of March which has been fantastic and we're seeing that start to go into the casino. So before there was always the concern on how much of our non gaming traffic converts and we're starting to create the environment, where people want to hang around studio city in and continue to go inside.
Kevin: And we're seeing that start to go into the casino. So before, there was always the concern about how much of our non-gaming traffic converts. And we're starting to create an environment where people want to hang around Studio City and continue to go inside. And it's been really nice as the property gets activated. I think you're seeing all the hard work over the last couple of years come together with phase two opening, with our retail continuing to be fine-tuned, particularly with the opening of Don Don Donkey. We saw a 10% increase in visitation alone just from that. So a variety of things, but I think the customer-centric approach is where our main focus is. Sponsored American Deposit Receipt Repr 3
Kevin: It's been a really nice as the property is activated I think youre seeing all the hard work over the last couple of years come together with phase two opening with our retail continuing to be fine tuned, particularly with the opening of Don Don Donkey, We saw a 10% increase in visitation alone just from that so a variety of things, but I think the customer centric approach.
Kevin: As were our main focuses.
Kevin: Sure.
Geoffrey Stuart Davis: That's all really helpful, especially for those who don't get the property as much as we'd like. Maybe to wrap it up, a question for Geoff, I think last quarter we talked about a little bit of an OPEX increase, maybe $200,000 a day or so, some of that later in the year with the show reopening, but is that still the right number for us to think about, or might that be a little bit of a moving target given all the investment in the operations that you guys are thinking about.
Speaker Change: That's all really helpful color, especially sir.
Speaker Change: So if you don't get the property as much as we'd like.
Speaker Change: Wrap it up a question for Jeff I think last quarter, we talked about a little bit of an opex increase.
Jeff: Maybe 200000, a day or so some of that later in the year with the.
Jeff: The show reopening.
Jeff: But is that still the right given given the changes youre, making is that still the right number for us to think about or might that be a little bit of a moving target.
Jeff: Given all of the the.
Jeff: The investment in the operations that you guys are thinking about.
Geoffrey Stuart Davis: Yeah, I think a moving target is probably a good way to describe it. So for the first quarter, we were at approximately 2.7 million per day. The guidance that House of Dancing Water will add towards the end of the year, point one is still valid. Although with the assessments that we're making in the business and revenue-generating enhancements to the business, I think they're, directionally, we might see some increase in that for the remainder of the year. But why don't I hand it over to Evan for some additional color? Sponsored American Deposit Receipt Rep 3
Speaker Change: Yes, I think moving target is probably a good way to describe it so for the first quarter.
Speaker Change: We're at approximately $2 7 million per day.
Speaker Change: Guidance that has the dancing water will add towards the end of the year. Another one is still valid.
Speaker Change: Although with the assessments that were making in the business and revenue generating enhancements to the business.
Speaker Change: I think they're directionally, we might see some increase in that for the remainder of the year, but wanted to hand, it over to Evan for some additional color.
Evan Andrew Winkler: And look I want to contextualize this from an operating perspective, because as we've gone through this shift.
Evan Andrew Winkler: And, and look, I want to contextualize this from an operating perspective, because as we've gone through this shift, and the direction from Lawrence is, again, how do we regain our leadership position and our market-leading position and do it in a way where we continue to improve the profitability or EBITDA of the business? And so as we're going through that, I think what we have realized looking at the business is that we were not saving our way to EBITDA.
Evan Andrew Winkler: And the direction from Lawrence is again.
Evan Andrew Winkler: How do we regain our leadership position and our market leading position and do it in a way where we continue to improve the profitability or EBITDA of the business and so as we're going through that I think what we have realized looking at the businesses, we were not saving our way to EBITDA. So in some of these areas.
Evan Andrew Winkler: We felt good about during COVID-19, especially pulling back on the operating expenses in the recovered environment, we have opportunities where we can deploy.
Evan Andrew Winkler: So in some of these areas where we felt good about during COVID, especially pulling back on operating expenses, in the recovered environment, we have opportunities where we can deploy against our guest and spend against our guest and have an EBITDA positive outcome by doing that. And that applies in a lot of different areas across food and beverage, across all aspects in terms of service where we're able to drive the business through that spend.
Evan Andrew Winkler: <unk>, our guest and spend against our guest and have an EBITDA positive outcome by doing that.
Evan Andrew Winkler: And that applies in a lot of different areas across food and beverage across all aspects in terms of service, where we're able to drive the business through that spending.
Evan Andrew Winkler: If you look back historically 2019 before we did studio city phase.
Evan Andrew Winkler: Phase two we were in the range of about $3 million in Opex before that occurred.
Evan Andrew Winkler: If you look back historically to 2019, before we did Studio City Phase 2, we were in the range of about $3 million in OPEX before that happened. I would not be terrifically surprised if we determined that between now and the end of the year, we got back into that zip code and felt that we could reinvest in the business in a profitable way where expenses would creep back up to that level.
Evan Andrew Winkler: I would not be terrifically surprised if we determined that between now and the end of the year, we got back into that ZIP code and felt that we could reinvest in the business.
Evan Andrew Winkler: Profitable way, where expenses would creep back up to that level.
Evan Andrew Winkler: We are doing right now is we're deploying we're evaluating the results and if we believe we're generating positive EBITDA. We're continuing on if we don't we're cutting off that and looking at different ways to invest in our guests. So again, we're going to be prudent in how we do it but we definitely believe the expenses are going to creep up from where they were.
Evan Andrew Winkler: What we're doing right now is deploying, we're evaluating the results, and if we believe we're generating positive EBITDA, we're continuing on. If we don't, we're cutting that off and looking at different ways to invest in our guests. So, again, we're going to be prudent in how we do it, but we definitely believe the expenses are going to creep up from where they were. The positive news is that we believe that in doing so, we're going to be driving EBITDA by reinvesting.
Evan Andrew Winkler: The positive news is I think that we believe that in doing so we're going to be driving EBITDA.
Evan Andrew Winkler: By reinvesting.
Speaker Change: That's great. Thanks. Thanks, so much that all makes sense I really appreciate the additional color. Thanks, everyone.
Speaker Change: Thank you.
Speaker Change: Now I'm going to take over next question.
Speaker Change: Please give us much.
Speaker Change: And the next question comes from the line of provincial dairy from Morgan Stanley. Your line is open. Please ask your question.
John G. DeCree: That's great. Thanks so much. That all makes sense. I really appreciate the additional color. Thanks, everyone.
Provincial Dairy: Thank you.
Provincial Dairy: Thank you very much for the presentation couple of questions from me.
Provincial Dairy: First of all once your lung.
Operator: Now we're going to take our next question. Just give us a moment. And the next question comes from Praveen Choudhary from Morgan Stanley. Your line is open. Please ask your question.
Provincial Dairy: It's obviously a great idea to go asset light. So that's great. Jon can you also obviously is a great player on the market could you tell us a little bit about the market size. How many players can license et cetera, and if you can give some sense of the return that youre expecting out of $125 million investment that would be great. That's the first.
Praveen Kumar Choudhary: Thank you. Thank you very much for the presentation. A couple of questions from me. First of all, on Sri Lanka, it's obviously a great idea to go as it lights up, so that's great.
Provincial Dairy: The second housekeeping question was you mentioned $32 million of whole hold benefit.
Lawrence Ho: John Keels obviously is a great player, and they know the market. Could you tell us a little bit about the market size, how many players and licenses, etc., and if you can give some sense of the return that you're expecting out of the $125 million investment, that'll be great. So that's the first question. The second housekeeping question was you mentioned $33 million of hold benefit, not benefit, but negative for COD and City of Dream Manila.
Jon: Not benefit, but negative for CODI and city of Dreams Manila could you split that for me please and.
Jon: The third question was would you be able to give any.
Jon: Rough idea about.
Provincial Dairy: March and April either.
Provincial Dairy: Our market share our EBITDA share or anything that you can talk about March and April okay. Thank you so much.
Provincial Dairy: Yes.
Provincial Dairy: Yes.
Provincial Dairy: Hey, Praveen as Laurence So let me talk about flanker for us so.
Laurence: We've been looking at that region lots of much of the country.
Laurence: For over a decade and.
Laurence: My view is that.
Lawrence Ho: Could you split that for me, please? And the third question was, would you be able to give any rough idea about March and April, either market share or EBITDA share or anything that you can talk about specifically for March and April? Thank you so much.
Laurence: <unk>.
Laurence: Can be to India.
Laurence: How is to China.
Laurence: And.
Laurence: I think having looked at the Indiana gaming market. We just don't think I don't think.
Laurence: Anything is really going to come a bit for the next decade, or so and with the rising, Indiana and call on EMEA that wealth creation.
Laurence: Sri Lanka is by far and away the closest.
Lawrence Ho: Hey Praveen, it's Lawrence. So, let me talk about Sri Lanka for a second. You know, we've been looking at the region, not so much the country, for over a decade, and my view is that, you know, Sri Lanka can be to India what Macau is to China. And you know, having looked at the Indian gaming market, we just don't think, I don't think, you know, anything is really going to come of it for the next decade or so.
Laurence: Gaming jurisdiction to India.
Laurence: And John can use is one of the one of the it is the biggest listed conglomerates and <unk> with over 150 years of history and the building that they built is truly magnificent.
Laurence: I think when I first visited for lag.
Laurence: Over 10 years ago, and I heard about them trying to build that building I thought it wasn't going to happen, but they've actually done it as a $1 billion building so.
Laurence: I think for us.
Laurence: $125 million as a as a small bet.
Laurence: For a.
Laurence: <unk> huge opportunity.
Laurence: In terms of I don't think Theres any published data on the size of the gaming market, we've done a lot of.
Lawrence Ho: And with the rising Indian economy and wealth creation, Sri Lanka is by far and away the closest. Shs Sponsored American Deposit Receipt Rep 3 I think four casinos, but those are all very, very local and casinos only, not an integrated resort and not even attached to hotels. So I think, I don't know, maybe Geoff can... Sure.
Laurence: Bottom up work.
Laurence: I think so far there is <unk>.
Laurence: Two operators in the market.
Laurence: With with I think four casinos, but those are all very well.
Laurence: All very local.
Laurence: Very low co in.
Laurence: Casinos, only nadal integrator resort and not even attached to hotels, but.
Laurence: I think I don't know, maybe Jeff Kevin Kevin.
Geoffrey Stuart Davis: Sure. So yeah, we're very, we're very excited about about the market. I think it's been currently sort of Untapped essentially with a few local establishments, but we are, along with John Keels, raising the bar significantly to world-class standard with the integrated resort, world-class standard with the casino that we're fitting out, and while I think it's a little too early to provide specific returns, we're anticipating returns that are very attractive, very shareholder friendly, will drive shareholder value, and probably returns that will be difficult to attain in most mature markets.
Speaker Change: Sure. So we're very.
Speaker Change: We're very excited about about the market I think it's been currently sort of.
Speaker Change: Untapped essentially with a few local establishment.
Speaker Change: But we are on with John channels.
Speaker Change: Raising the bar significantly two world class standard with the integrated resort World class standards with the casino that we're fitting out.
Speaker Change: And while I think it's a little too early to provide specific returns.
Speaker Change: We're anticipating returns that are.
Speaker Change: Very attractive very shareholder friendly, we will drive shareholder value.
Speaker Change: And probably returns that will be difficult to.
Speaker Change: To attain.
Geoffrey Stuart Davis: So we're very pleased with the opportunity there. I think it's a great way to tap into a market with tremendous potential in a capital-light way, and we're very happy to be going into business with the John Keels company. They're a great partner.
Speaker Change: And most mature market so.
Speaker Change: We're very pleased with the with the opportunity there I think it's a great way to tap into a market with tremendous potential on a capital light way.
Speaker Change: And we're very happy to be going into business with the John Keels company.
Geoffrey Stuart Davis: Sponsored American Deposit Receipt Repr 3
Speaker Change: They're a great partner.
Speaker Change: Thank you. Thank you I have a couple more questions sorry.
Geoffrey Stuart Davis: So I think the hold adjusted numbers, I guess the easiest way is just to direct you to the investor relations deck that's out there that gives very specific numbers for all the different adjustments there. And I think there was a question about sort of the March, April Shs Sponsored American Deposit Receipt Rep 3, And April, which started off, not surprisingly, a little bit soft, has finished fairly strong and looks like it will probably be the third best month for mass drops at COD and FC in the history of the company.
Speaker Change: Numbers.
Speaker Change: So I think the hold adjusted numbers I guess, probably the easiest way is just too.
Speaker Change: Direct you to the.
Speaker Change: Investor Relations deck Thats out there that gives various specific numbers for all of the different adjustments there.
Speaker Change: There was a question on sort of the.
Speaker Change: March April.
Speaker Change: Trajectory of I'm not sure if it was market share or.
Speaker Change: Maybe just to give you some context for us.
Speaker Change: If we look at our mass business at CODI NFC.
Speaker Change: March was the highest drop of any months historically for the company on the mass side.
Speaker Change: And April which started off not surprisingly a little bit soft has finished fairly strong.
Geoffrey Stuart Davis: And so, again, I don't specifically have our market share versus everybody else, but in March, we obviously had a recovery. In April, my suspicion is that we did fairly well, but we won't know how we came out on a market share basis for a little bit here yet. But both have been very strong months. We're very pleased with what we're seeing right now. Sponsored American Deposit Receipt Repr
Speaker Change: And it looks like it will be probably the third best month for mass drop at CRT NFC.
Speaker Change: And the history of the company and so again.
Speaker Change: I don't specifically have our market share versus everybody else, but March we obviously had.
Speaker Change: Our recovery.
Speaker Change: In April.
Speaker Change: My suspicion is that we did fairly well, but we won't know how we came out on a market share basis for for a little bit here yet.
Speaker Change: Both have been very strong months, we're very pleased with what we're seeing right now.
Praveen Kumar Choudhary: Thank you so much, and congratulations.
Speaker Change: Thank you so much and congratulations.
Vitaly Umansky: Now we're going to take our next question, and the next question comes from the line of Vitaly Umansky from Seaport Research Partners. Your line is open. Please ask your question.
Speaker Change: Thank you.
Speaker Change: Now we're going to take over next question.
Speaker Change: And the next question comes from the line of Vitaly Umansky from Seaport Research Partners. Your line is open. Please ask your question.
Vitaly Umansky: Good evening, gentlemen. Um, I had two questions. The first is related to the player reinvestment comment that I think Evan might have made earlier in the call, kind of seeing p player reinvestment levels in premium mass and potentially coming down. I guess the question related to that is, what gives you guys confidence that this is actually going to happen?
Speaker Change: Yes.
Vitaly Umansky: Hi, good evening gentlemen.
Vitaly Umansky: I had two questions. The first is it's really related to the.
Vitaly Umansky: The player reinvestment comment that I think I've been might've made earlier in the call.
Speaker Change: Seeing peak.
Speaker Change: Player reinvestment levels, and premium mass and potentially coming down.
Speaker Change: I guess the question related to that is what gives you guys confidence that this is actually going to happen.
Vitaly Umansky: I think we all often see fits and starts about operators trying to be rational when it comes to player reinvestment and then often reverting back to a more competitive environment. And the highlight in Macau has always been the junket commission awards in 2009 and 2010 that led to very elevated junket commissions in the market that never really came down. And then the second question is related to
Speaker Change: I think we often see fits and starts about operators trying to be rational when it comes to play a reinvestment and then often reverting back to.
Speaker Change: A more competitive environment.
Speaker Change: Highlighting the Cal can always been the Junket Commission awards in 2009 2010 that led to.
Speaker Change: Very elevated junket commissions in the market that never really came down.
Speaker Change: And then the.
Speaker Change: Second question is related to.
Vitaly Umansky: I guess the smart digital tables. Obviously, they've been heavily talked about over the past couple of months, and these tables have been around for quite some time. And the development of these tables has improved over the last couple of years, and MGM has kind of shown their worth. If you think about how you are implementing these tables, can you talk a little bit about where you see more of the near-term benefit arising from these tables?
Speaker Change: I guess, the smart digital tables.
Speaker Change: Obviously, they've been probably talked about over the past couple of months and these tables have been around for quite some time and the development of these payables have improved over the last couple of years and MGM.
Speaker Change: That's kind of showing their work.
Speaker Change: If you think about kind of you implementing these tables.
Speaker Change: Can you talk a little bit about where.
Speaker Change: Or you see more of the near term benefit arising from these tables and then how does that evolve over the next year. When you get the full implementation and if everyone has these tables in let's say a year, which it looks like they will.
Vitaly Umansky: And then how does that evolve over the next year when you get the full implementation? And if everyone has these tables in, let's say, a year, which it looks like they will, does that just really level the playing field across the board? Or do you think there are ways to kind of optimize these tables that other operators may not be doing?
Speaker Change: Was that just really leveled the playing field across the board or do you think theres ways to kind of optimize these tables that other operators.
Speaker Change: It may not be doing.
Evan Andrew Winkler: So why don't I take first on the on the peaking of player reinvestment and and you're right which is none of us have a crystal ball. We obviously have a view on the market, we have general discussions with peers at other places, I think there's a general feeling among the group and competitors in terms of what it's rational and irrational behavior and so based on where we are, what we're seeing, what we ourselves are doing, I think we feel that's where we are but there's not a money-back guarantee that that's what's going to actually occur.
Speaker Change: So why don't I take first on the on the picking a player reinvestment and Youre right, which is none of us have a crystal ball, we obviously have a view on the market we have.
Speaker Change: General discussions with peers at other places so I think there's a general feeling among the Griffin competitors in terms of what it's rational and irrational behavior.
Speaker Change: So based on where we are what we're seeing what we ourselves are doing.
Speaker Change: We feel that's where we are.
Speaker Change: There is not a money back guarantee that that's what's going to actually occur people can act irrationally, but I think the tone right now is that people understand where we are and so I do think that we have.
Evan Andrew Winkler: People can act irrationally, but I think that the tone right now is that people understand where we are, and so I do think that we have a cautiously optimistic view here that this is where we are and this is where it's going.
Speaker Change: Cautiously optimistic.
Speaker Change: View here that that's where we are and that's where it's going.
Evan Andrew Winkler: Sponsored American Deposit Receipt Repr 3, Right now, from a near-term benefit standpoint, what it does is it's going to give early adopters insight into the actual player work, where you are able to more fully value a player, not just based on betting volumes, but betting by type and betting behavior, so that you can decide where you're going to invest your dollars and which players to go after. So there is a near-term competitive advantage.
Speaker Change: In terms of the tables.
Speaker Change: Right now from a near term benefit standpoint, what it does is thats going to give early adopters insight into the actual player were where you are able to more fully.
Speaker Change: Value of player not just based on better volumes, but finding by type embedding behavior.
Speaker Change: So that you can decide where youre going to investor dollars and which players to go. After so there is a near term competitive advantage.
Evan Andrew Winkler: Longer term, what I think you get is everyone has better insight into your players, so we can actually fine-tune across the board our player reinvestment and processes, so it should be an overall benefit to the industry within technology, even when the playing field is leveled. And there are some efficiencies just in terms of how we will run table operations, how we supervise operations, how we free up labor to have better guest interaction and better guest involvement because a lot of the actions that are being done right now by supervisors get monitored by the table, which will free them up to do better player interaction, better player interface, and hopefully serve as more player ambassadors, improving conditions for us and the experience for us on the floor.
Speaker Change: Longer term, what I think you get as everyone has better insight into your players. So that we can actually find tuned across the board our player reinvestment and processes. So it should be an overall benefit to the the industry within technology, even when the playing field level and there are some efficiencies just in terms of how we will run.
Speaker Change: On table operations, how we supervise operations, how we free up labor to have better guest interaction and better guest involvement because a lot of the actions that are being done right now.
Speaker Change: Our supervisors get monitored by the table that will frees them up to do better player interaction better player interface.
Speaker Change: And hopefully service more.
Speaker Change: <unk> improving conditions for us and experience for us on the floor and so I think that there will be across the board long term benefits for the industry, even after you sort of level.
Vitaly Umansky: Thanks, that's helpful. Can I just ask one follow-up question?
Speaker Change: Arms race, so to speak by everyone having adopted potatoes.
Speaker Change: Okay. Thanks, that's helpful can I just ask one follow up.
Evan Andrew Winkler: It's kind of related to player reinvestment, but I think it's more on the cost side of Salesforce. I think we've seen, for certain operators, an escalation of Salesforce expenditure. I know operators are trying to maintain costs, but is there a risk that we start getting into a kind of a competitive bidding war for Salesforce in the premium over the next year, as everyone continues to try to gain market share advantages in that market? Or do you think we're kind of stabilized with the back and forth and posts and compensations being?
Speaker Change: On a related to clearly investment, but I think it's more on the cost side.
Speaker Change: Salesforce.
Speaker Change: I think we've seen.
Speaker Change: So certain operators and escalation.
Speaker Change: Salesforce expenditure.
Speaker Change: Well, what we saw before Covid.
Speaker Change: And I know operators are trying to maintain cost.
Speaker Change: Is there a risk that we start getting into a kind of a competitive bidding war for our salesforce in premium.
Speaker Change: Over the next year as everyone continues to try to gain market share advantage in that market or do you think we're kind of stabilized with the <unk>.
Speaker Change: And fourth and posts and compensation schemes.
Evan Andrew Winkler: Again, I would say that, you know, my own view on where I sit is that I am, again, optimistic that I think we've sort of hit a stasis point. Look, within our industry. If you're a salesperson who has a high-quality book of premium mass players, you're valuable everywhere. And so there'll always be some movement of hosts back and forth across systems, which we've seen in the past and will see in the future. In terms of sort of mass movement where, you know, we go through that, you know, merry-go-round where everyone's getting another deal from somewhere else. Shs Sponsored American Deposit Receipt Repr 3 Shs Sponsored American Deposit Receipt Repr 3, and Vitaly Lawrence, you know, I think you, you know,
Speaker Change: Yes.
Speaker Change: Again, I would say that my.
Speaker Change: My own view on where I would say this I am.
Speaker Change: Again optimistic that I think we've sort of hit the state at this point.
Speaker Change: Look within our industry.
Speaker Change: If you're a salesperson who has a high quality book of premium mass players you're valuable everywhere.
Speaker Change: And so there'll always be some movement of hosts back and forth across <unk>.
Speaker Change: Systems, which we've seen in the past we will see in the future.
Speaker Change: In terms of sort of mass movement, where we go through that Merry go round, where everyone's getting another deal from somewhere else.
Speaker Change: And we have rapidly escalating salesforce cost.
Speaker Change: We're not seeing that right now we're not participating in that to that degree so to speak.
Speaker Change: So I don't see that on the horizon.
Speaker Change: But again, if you ever got to a hyper competitive hyper promotional environment. It would obviously be a negative and so I think us and everyone else are watching that to make sure that we don't do something irrational from an overall business perspective.
Speaker Change: And vitale as Lawrence.
Lawrence Ho: And Vitaly, Lawrence, you know, I think once everybody has the smart tables, the so-called competitive advantage in terms of, you know, what some of the players with smart tables are doing in terms of giving out, you know, rebates and turning pretty much any taxi driver, prostitute, and domestic helper into unlicensed junkets. I think those days are not healthy for the market. And so once everybody has the smart tables, I'm hoping that everybody will start being more rational and realize that the whole industry can do it, and it's not healthy for the whole industry. So I do think when smart tables are adopted, they will neutralize some of this crazy behavior. Sponsored American Deposit Receipt Repr 3, Sponsored American Deposit Receipt Repr 3 Now we're going to take our next question.
Speaker Change: Thank you.
Speaker Change: Sure.
Speaker Change: Once everybody have the slot table is the so called competitive advantage in terms of.
Speaker Change: What some of the players with smart tables that doing in terms of giving out.
Speaker Change: Rebates and hurting pretty much any taxi driver across the tuna and domestic help her into unlicensed junkets.
Speaker Change: Those days are not healthy for the market and so once everybody have the slot tables.
Speaker Change: I'm, hoping that everybody will start being more rational and realize that the whole industry can do it and it's not healthy for the whole industry. So I do think when smart tables adopted.
Speaker Change: It will neutralize some of this crazy behavior.
Speaker Change: Thanks, gentlemen is helpful.
Speaker Change: Thank you.
Speaker Change: Now we will go and take our next question.
Speaker Change: Just give us your amendment.
Speaker Change: And the next question comes from the line of Ronald Leung from Bank of America. Your line is open. Please ask your question.
Ronald Leung: Thank you good evening team. So most of my questions have been asked I just.
Ronald Leung: One follow up questions could.
Ronald Leung: Could you please tell us a bit more how you structure. Your sales force and also how does that help you to gain market share in March and April.
Ronald Leung: Look so I think in the last call Laurence.
Ronald Leung: Had articulated we're restructuring everything around the customer so.
Ronald Leung: Prior to our latest management reshuffle, we had had a sales team really.
Ronald Leung: <unk> <unk> and our sales team.
Ronald Leung: Focused on studio city, and what we Werent doing was delivering the entire system.
Ronald Leung: And everything that we have to all of our players.
Ronald Leung: So by centralizing it under Scott <unk>, and having one person who is looking at the entire sales picture, we're doing a better job, making sure we get the right experience for the right guest irrespective of which property, it's going to or if there's something that we can offer to a guest who is coming for a different type of trip. So for example, if youre.
Operator: Please give us a moment. Shs Sponsored American Deposit Receipt Repr 3, Uh, thank you. Uh, good evening.
Operator: Look, I think in the last call Lawrence Sponsored American Deposit Receipt Repr 3 [inaudible] and we're doing that in a way where we're trying to make sure it's seamless for the guest. So the early indications are that we're getting a little bit of crossover. It's early days.
Ronald Leung: Ah.
Ronald Leung: Player and you typically common stay at Morpheus, but at this time.
Ronald Leung: It's a switch because youre going to come with <unk>.
Ronald Leung: Your children and you'd like to go to the water parks, we're flipping you over to epic and providing you a premium experience and we're doing it in a way where we're trying to make sure it seamless for the guest.
Evan Andrew Winkler: People still tend to be where they started out from a property standpoint, but by getting the sales team oriented in this direction, we're sort of having everyone push together and push at once, and we are seeing them work more effectively. I think as we roll forward, we're going to get more and more properties where guests take advantage of both properties, which we're starting to see a little bit of. And I think that's going to continue to drive results.
Ronald Leung: So the early indications are that we're getting a little bit of crossover its early days people still tend to be.
Ronald Leung: Where they had started off from a property standpoint, but by getting the sales team oriented in this direction were sort of having everyone pushed together and push it once and we are seeing them work more effectively.
Ronald Leung: I think as we roll forward, we're going to get more and more where guests take advantage of both properties.
Ronald Leung: Which we're starting to see a little bit up and I think thats going to continue to drive results. So it's held from sort of a centralization point getting them whenever you have been focused in the right direction, Gary when everyone focused around the customer with the same mindset thats been dictated.
Evan Andrew Winkler: So it's helped from sort of a centralization point, getting everyone focused on the right direction, getting everyone focused around the customer with the same mindset that's been dictated, will just change the way we push. And I think more substantially, by being able to deliver the whole system, we're starting to see some benefits that I think will continue on as we move forward.
Ronald Leung: I will just change in pushing and I think more substantially by being able to deliver the whole system. We're starting to see some benefits that I think will continue on as we move forward.
Joseph Richard Greff: Now we're going to take our next question, and the next question comes from the line of Joe Greff from JP Morgan. Your line is open, please ask your question.
Speaker Change: Got it thank you very much.
Speaker Change: Thank you.
Speaker Change: Now we're going to take our next question.
Speaker Change: And the next question comes from the line of.
Speaker Change: Joe Greff from JP Morgan. Your line is open please ask your question.
Joseph Richard Greff: Hello guys, I just have two quick questions here.
Joseph Richard Greff: Hello, guys I just have two quick questions here.
Geoffrey Stuart Davis: With respect to your commentary on the performance of TOD and Studio City in April, you framed it nicely in terms of mass revenue performance. I was hoping you could maybe express that a little bit in terms of EBITDA performance, maybe on an EBITDA per day basis. How does April's EBITDA per day at those two properties compare to April 2019 levels? Are you at 100% of 19 or what level are you at presently?
Joseph Richard Greff: With respect to your commentary on performance and.
Joseph Richard Greff: And studio city in April.
Joseph Richard Greff: Framed it nicely in terms of mass revenue performance I was hoping you could maybe expressed that a little bit in terms of EBITDA performance, maybe on an EBITDA per day performance.
Joseph Richard Greff: April EBITDA per day at those two properties compare to April 19 levels.
Joseph Richard Greff: Are you at 100% of 19 or what level are you at presently.
Geoffrey Stuart Davis: I would say that EBITDA has improved or will continue to improve. We're not at 2019 levels, but I don't think in this forum we'd comment on an EBITDA per day basis for those months at this point.
Joseph Richard Greff: I would say that EBITDA has improved or continue to improve we're not a 2019 levels, but I don't think in this forum. We commented on an EBITDA per day basis for those months at this point.
Geoffrey Stuart Davis: But whatever that was so far in April per day is in excess of what March EBITDA per day was. Is that a fair commentary to interpret the totality of your comments on this call?
Joseph Richard Greff: But that whatever that was so far in April.
Joseph Richard Greff: Per day is in excess of what March EBITDA per day was is that a fair commentary to interpret the totality of your comments on this call.
Geoffrey Stuart Davis: Well, we There's a little bit. Remember, you've got a little bit of a mix and match there between the two because you have some holiday periods where you're going through, and you have some softness. But I would say, as a general trend, the trends in April, as we're heading out of April, are stronger than they were in March.
Joseph Richard Greff: Well we.
Speaker Change: There is a little bit remember, you've got a little bit of a mix and match there.
Speaker Change: Between the two because you have some holiday period.
Speaker Change: Where you are going through and you have some softness.
Speaker Change: But I would say as a general trend the trends in April as we're heading out of April are stronger than they were in March.
Geoffrey Stuart Davis: Sponsored American Deposit Receipt Repr 3
Lawrence Ho: Shs Sponsored American Deposit Receipt Repr 3 Shs Sponsored American Deposit Receipt Repr 3 is after Golden Week, unfortunately, so you're not getting the benefit of the holiday. Are you seeing increased levels of group or individual bookings in May? Or maybe put another way, is there less of a post-Golden Week lull than normal because of these easing travel measures?
Joseph Richard Greff: Great.
Joseph Richard Greff: And then with respect to China's new recent travel easing measures and if they go into effect may six.
Joseph Richard Greff: Is after Golden week, Unfortunately, so you're not getting the benefit for the holiday.
Joseph Richard Greff: Are you seeing increased levels of group or individual bookings.
Joseph Richard Greff: It may or maybe put another way is there less of a post golden week lull than normal because of these.
Lawrence Ho: Hey Joe, actually our so far May bookings is you know I know we've read the Southside and people talked about how weak they are but actually when we looked at our bookings they're all up from last year and you know I think SC has you know more rooms and more bookings compared to 2019 and 2023 so and also the quality of the players that we are seeing for Golden Week is going to be better than Chinese New Year across the board so I think all in all we're quite pleased with you know the May Golden Week and you know in terms of the long term Support from from China, you know, whether it starts May 1st or May 6th It doesn't really matter because again, you know, I think it's a long-term direction that that's what we care about
Joseph Richard Greff: <unk> travel measures.
Speaker Change: Hey, Joe actually are so far may bookings.
Speaker Change: I know we've read the sell side people talked about how weak they are all but actually when we looked at our bookings.
Joseph Richard Greff: All up from last year and.
Joseph Richard Greff: I think SCE has.
Joseph Richard Greff: More rooms and more broker.
Joseph Richard Greff: Compared to 2019 and 2023, so and also the quality of the players that we are seeing.
Joseph Richard Greff: Golden week is going to be better than Chinese new year across the board. So I think all in all we're quite pleased with.
Joseph Richard Greff: <unk>.
Joseph Richard Greff: The may Golden week and.
Joseph Richard Greff: Terms of the long term.
Joseph Richard Greff: <unk>.
Joseph Richard Greff: Support from from China, whether.
Joseph Richard Greff: There is thoughts may 1st from Asics, It doesn't really matter because again I think it's a.
Joseph Richard Greff: Long term direction.
Joseph Richard Greff: That's what we care about.
Operator: Now we're going to take our next question, and the next question comes from Colleen Mansfield from CBAR-BRE Institutional Research. Your line is open, please ask your question.
Speaker Change: Thank you.
Joseph Richard Greff: Thank you.
Speaker Change: Now I will then take over next question.
Speaker Change: And the next question comes from the line of clothing months from <unk> B R. E. Institutional research. Your line is open. Please ask your question.
Colleen Mansfield: Hi everybody. Thanks for taking my question. Just one follow-up from me on Studio City. You know, the entity is, you know, delivering quite nicely, and you guys have been proactively paying down debt there, which has been great to see. You know, maybe just thinking a little bit more medium term, how do you guys see the capital structure there evolving further? There's a little bit left to go, I think, on the 25s, and the secured notes, I think, are callable right now. So just how are you guys thinking about, you know, sort of the medium-term trajectory on that balance sheet composition? Thanks.
Clothing Months: Hi, everybody. Thanks for taking my question just one follow up for me on studio City.
Clothing Months: The two entities delevering quite nicely and you guys have been rapidly paying down debt, there, which has been great to see.
Clothing Months: Maybe just thinking a little bit more medium term, how do you guys see the capital structure. There evolving further there's a little bit left to go I think on the 25.
Speaker Change: The secured notes.
Speaker Change: Callable right now so just how are you guys thinking about sort of the medium term trajectory on that balance sheet composition.
Geoffrey Stuart Davis: Yeah, thanks for the question. I think we've put ourselves in good shape to address the 25 maturities down to 300. I think that's, you know, very manageable. And as we said in the prepared remarks, we are looking at a variety of different alternatives, secured, unsecured, you know, potentially having a bank facility in place. I think we have, you know, a number of good alternatives and an ability to drive some incremental cash flow into maturity.
Speaker Change: Yes. Thanks for the question I think we've put ourselves in good shape to address the 'twenty five maturities.
Speaker Change: Down to 300, I think thats very manageable as we said in the prepared remarks, we are looking at a variety of different alternatives secured unsecured potentially.
Speaker Change: Potentially.
Speaker Change: <unk> a bank facility in place I think we have a number of good alternatives and an ability to drive some incremental cash flow into the maturity so feeling very comfortable about that.
Geoffrey Stuart Davis: So, I feel very comfortable about that and think that, you know, we are moving towards more of a normalized capital structure that, you know, eventually will include some sort of lending facility on the property in addition to our secured and unsecured notes. So, everything's on the table. I think you've seen us address the capital markets in a very opportunistic way. And we will continue to do that on both sides, both at Melco and over at Studio City.
Speaker Change: And think that we are moving towards more of a normalized capital structure that eventually will include some sort of.
Speaker Change: Lending facility into the property in addition to our secured and unsecured notes. So everything's on the table I think you've seen us.
Speaker Change: Address the capital markets in a very opportunistic way and we will continue to do that on both sides, both melco and.
Geoffrey Stuart Davis: But we're feeling very good about the balance sheet holistically, particularly after the three transactions that we recently completed with the extension of the bank loan, the tender offer at Studio City, and the recently completed high yield issue.
Speaker Change: Over at studio city, but we're feeling.
Speaker Change: Very good about the balance sheet holistically, particularly after the three transactions that we recently completed with the extension of the bank loan the tender offer at studio city.
Speaker Change: The recently completed high yield issuance.
Geoffrey Stuart Davis: Great, thanks. And actually, one quick follow-up, if I may, just going back to Sri Lanka, I understand the rationale, you know, given the proximity to India, but I guess, what other source markets or feeder markets, I think, are important in your guys' thesis there, whether it's locals or other jurisdictions that, you know, are seeing a decent amount of inbound tourism? I guess, how do you guys think about other feeder markets and their importance relative to just, you know, the proximity to India? Thanks.
Speaker Change: Great. Thanks actually one.
Speaker Change: One quick follow up if I may just going back to Sri Lanka.
Speaker Change: I understand the rationale.
Speaker Change: Given the proximity to India, but I guess, what other source markets or feeder markets I think R. R.
Speaker Change: Our important in your Guy's thesis there, whether it's locals or other jurisdictions that are seeing a decent amount of inbound tourism I guess, how do you guys think about other feeder markets in the important those relative to just.
Speaker Change: The proximity to India.
Geoffrey Stuart Davis: Well, I think, you know, India is definitely the most interesting feeder market. I think, you know, there's very significant potential there. Of course, there is some level of domestic spending, as well.
Speaker Change: Well I think India is definitely the most.
Speaker Change: Most interesting feeder market and I think.
There is very significant potential there of course, there is some level of domestic spending.
Geoffrey Stuart Davis: But of course, our goal will be to, you know, address those feeder markets in India and, more broadly, in the region. But we think the market potential there significantly exceeds where we are today with the existing operators in the market. So, a combination of local and domestic, but, you know, very heavily skewed towards international when we think about where the growth can come from going forward. So, in our view, the international market could probably be something like two-thirds to one-third in that ballpark of international to domestic.
Speaker Change: As well, but of course, our goal will be to.
Lawrence Ho: Addressed those feeder markets in India and more broadly.
Speaker Change: And in the region.
Speaker Change: But we think the market potential there significantly exceeds where we are today with the existing.
Speaker Change: Operators in the market.
Speaker Change: So combination of local and domestic but very heavily skewed towards towards international.
Speaker Change: When we think about where the growth can come and go.
Lawrence Ho: Going forward so.
Geoffrey Stuart Davis: Sure.
Geoffrey Stuart Davis: In our view the international market could probably be.
Geoffrey Stuart Davis: Something like Q2 thirds to one third in that ballpark of international to domestic.
Geoffrey Stuart Davis: And that, you know, we think that City of Dreams, Sri Lanka, from a GGR perspective, can be, you know, comfortably in the, you know, 200 to 250 million GGR on a run rate basis with phase one of our casino development there. And phase one ties to the 125 million of anticipated CapEx for the casino fit out.
Geoffrey Stuart Davis: And that we think that city of dreams Schlock, Sri Lanka from a <unk> perspective can be.
Geoffrey Stuart Davis: Comfortably in the 200 to 200.
Geoffrey Stuart Davis: $50 million of GTR on a.
Geoffrey Stuart Davis: A run rate basis with phase one of our casino development, there and the phase one ties to the $125 million.
Geoffrey Stuart Davis: Anticipated capex for the casino fit out.
Colleen Mansfield: Great. Really helpful, Karl. Thanks, everybody.
Colleen Mansfield: Great really helpful color. Thanks, everybody.
Operator: Now we're going to take our next question, and it comes from the line of George Choi from Citi.
Speaker Change: Thank you.
Karl Choi: Now we're going to take our next question.
Operator: And it comes from the line of George Choi from <unk>. Your line is open. Please ask your question.
Karl Choi: Your line is open. Please ask your question. Excuse me George, your line is open. Please ask your question.
Karl Choi: Excuse me George Your line is open please ask your question.
Lawrence Ho: Thank you. So now that you have set your foot in Sri Lanka, does that change your view or your interest level in the opportunity in Thailand?
Karl Choi: Thank you. So now that you have to set foot in Montana.
Lawrence Ho: Does it change your view.
Lawrence Ho: Hey, George, it's Lawrence. So, you know, I think we're always on the lookout for these opportunities once in a lifetime. So, you know, we're, we're looking at it. I think, together with the rest of the industry, you know, I've always said, for the past 20 years, the two greatest opportunities are Thailand and Japan. So we're looking at it, and we'll see what happens. Maybe to supplement, though, obviously the way we...
Lawrence Ho: Interest level in the Oxford, maybe in Thailand.
George: Hey, George.
Lawrence Ho: And so I think we're always on the logo for these opportunities once in a lifetime so where.
Lawrence Ho: We're looking at it I think.
Lawrence Ho: Together with like the rest of the industry I've always said.
Lawrence Ho: For the past 20 years to two greatest opportunities.
Lawrence Ho: Land in Japan so.
Lawrence Ho: We're looking at it and we'll see what happens.
Geoffrey Stuart Davis: Maybe just to supplement, though, obviously, the way we address the Thailand market would track to, you know, where we are in terms of balance sheet repair. So, you know, still a focus on the balance sheet, but we do think we can address the balance sheet while still having a healthy development outlook as well, but just in a capital-light manner for at least the near term.
Lawrence Ho: David is to supplement, though obviously the way we address the Thailand market.
Geoffrey Stuart Davis: Track to where we are in terms of balance sheet repair.
Geoffrey Stuart Davis: <unk> still a focus on the balance sheet, but we do think we can do.
Geoffrey Stuart Davis: Dress the balance sheet, while still having a.
Geoffrey Stuart Davis: A healthy development outlook as well, but just in a.
Geoffrey Stuart Davis: And our capital.
Geoffrey Stuart Davis: And then, over time, as we make progress towards balance sheet repair, we can think about, you know, more robust involvement in a market like Thailand. But we're very interested. We think it's a fantastic market, and we will be pursuing that opportunity aggressively.
Geoffrey Stuart Davis: Light manner for at least the near term and then over time as we make progress towards balance sheet repair we can think about.
Geoffrey Stuart Davis: More more more robust.
Geoffrey Stuart Davis: Involvement in a market like Tyler, but we're we're very interested and we think it's a fantastic market and we will be.
Geoffrey Stuart Davis: Pursuing that opportunity aggressively.
Geoffrey Stuart Davis: Okay.
Jeanny Kim: There are no further questions for today. I would now like to hand the conference over to Jeanny Kim for any closing remarks.
Speaker Change: Thank you.
Jeanny Kim: There are no further questions for today I would now like to turn the conference over to Jeannie Kim for any closing remarks.
Jeanny Kim: Thank you, operator, and thank you everybody for participating in the call today. We look forward to speaking with you again next quarter.
Jeanny Kim: Thank you operator, and thank you everybody for participating in our call today, we look forward to speaking with you again next quarter. Thank you.
Operator: That does conclude our conference for today. Thank you for your participation. You may now all disconnect. Have a nice day.
Jeanny Kim: That does conclude our conference for today. Thank you for participation you may now all disconnect have a nice day.
Operator: Okay.
Operator: Okay.
Operator: Okay.
Operator: [music].
Operator: Okay.
Operator: [music].
Operator: Okay.
Operator: [music].