Q1 2024 Wynn Resorts Ltd Earnings Call

Okay.

[music].

Yeah.

Uh huh.

[music].

Operator: Welcome to Wynn Resorts' first quarter earnings call. All participants are in a listen-only mode until the question and answer session of today's conference. To ask a question, press star 1 on your touchtone phone. Record your name, and I will introduce you. Please limit yourself to one question and one follow-up question.

Welcome to the Wynn resorts first quarter earnings call. All participants are in a listen only mode until the question and answer session of today's conference to ask a question Press Star one on your Touchtone phone recorded Damon I will introduce you. Please limit yourself to one question and one follow up question.

Operator: This call is being recorded. If you have any objections, you may disconnect at this time. I will now turn the line over to Julie Cameron Doe, Chief Financial Officer. Please go ahead.

Speaker Change: This call is being recorded if you have any objections you may disconnect. At this time I will now turn the line over to Julie Cameron Doe Chief Financial Officer. Please go ahead.

Julie Cameron: Thank you, Operator, and good afternoon everyone. On the call with me today are Craig Billings and Brian Gullbrants in Las Vegas. Also on the line are Linda Chen, Frederick Lubezuto, and Jenny Holliday. I want to remind you that we may make forward-looking statements under Safe Harbor Federal Securities Laws, and those statements may or may not come true. I will now turn the call over to Craig Billings.

Speaker Change: Thank you operator, and good afternoon, everyone on the call with me today are Craig Billings and Brian Gilbertson in Las Vegas also on the line of Linda Chen Frederic.

Julie Cameron: Jenny holiday I want to remind you that we may make forward looking statements under safe Harbor Federal Securities laws and those statements may or may not come shape I will now turn the call over to Craig billings.

Craig Scott Billings: Thanks Julie and afternoon everyone, as always. Thanks for joining us today.

Craig Scott Billings: Thanks, Julie good afternoon, everyone as always thanks for joining us today.

Craig Scott Billings: The momentum that we generated in the business throughout 2023 continued into 2024 as we delivered an all-time record property EBITDA of $647 million during the first quarter. I'm incredibly proud of all of our team members who remain so focused on delivering five-star service and one-of-a-kind experiences to our customers. A heartfelt thank you to each of you.

Craig Scott Billings: The momentum that we generated in the business throughout 2023 and continued into 2024 as we delivered all time record property EBITDA of $647 million during the first quarter of 2020.

Craig Scott Billings: I'm incredibly proud of all of our team members, who remain so focused on delivering five star service and one of a kind experiences to our guests.

Speaker Change: Heartfelt thank you to Egypt.

Craig Scott Billings: Turning to the quarter and starting here in Vegas, Wynn Las Vegas delivered $246 million of adjusted property EBITDA, a first quarter record and up 6% year on year on a very difficult comp. As we noted on our last call, most of the action in the quarter was concentrated in February as the combination of the Super Bowl and Chinese New Year drove all-time record EBITDA during the quarter. This quarter was characterized by strong performance across our non-gaming businesses, with web revenue growing 16% year-on-year, led by 21% growth in hotel revenue, along with healthy volumes in the casino.

Craig Scott Billings: Turning to the quarter and starting here in Vegas, Wynn Las Vegas delivered $246 million of adjusted property EBITDA.

Craig Scott Billings: First quarter record and up 6% year on year on a very difficult comp.

Craig Scott Billings: As we noted on our last call most of the action in the quarter was concentrated in February as the combination of Super Bowl and Chinese new year drove all time record EBITDA during the month.

Craig Scott Billings: Quarter was characterized by strong performance across our non gaming businesses with revenue growing 16% year on year led by 21% growth in hotel revenue along with healthy volumes in the casino.

Craig Scott Billings: Through our unique combination of the best service levels in the market, continuous reinvestment in our properties, and our only-at Wynn programming, we continue to fire on all cylinders here in Lush. More recently, our top line trends remained healthy in April with drop, candle, and rev par all up year over year on yet another difficult comp. Turning to Boston, Encore generated 63 million Ibadar during the quarter. The team in Boston successfully navigated a confluence of poor weather in January and inflationary pressures during the quarter, as Ibadar and revenue at the property were largely stable year on year.

Craig Scott Billings: Through our unique combination of the best service levels in the market continuous reinvestment in our properties and our only when programming we continue to fire on all cylinders here in Las Vegas.

Craig Scott Billings: More recently, our topline trends remained healthy in April with drop handle at Revpar, all up year over year on yet another difficult comp.

Craig Scott Billings: Turning to Boston Encore generated $63 million of EBITDAR during the quarter.

Craig Scott Billings: Team in Boston successfully navigated a confluence of poor weather in January and inflationary pressures during the quarter as EBITDAR and revenue at the properties were largely stable year on year.

Craig Scott Billings: There were encouraging pockets of strength in the quarter, with record slot handle and strong year-on-year growth in hotel revenue. More recently, demand has remained healthy through April, with particular strength in squat handle and reps. On the development across from Encore Boston Harbor, we have put this development on hold for the time being as we have been unable to reach an agreement with local authorities on certain financial terms. Though it's disappointing, we have numerous other development projects globally where we can redirect the capital we intended to deploy in Boston.

Craig Scott Billings: There were encouraging pockets of strength in the quarter with record slot handle and strong year on year growth in hotel revenues.

Craig Scott Billings: More recently demand has remained healthy through April with particularly particular strength in slot handle and revpar.

Craig Scott Billings: On the development across from Encore Boston Harbor, we have put this development on hold for the time being as we have been unable to reach an agreement with local authorities on certain financial targets.

Craig Scott Billings: So it's disappointing we have numerous other development projects globally, where we can redirect the capital we intend to deploy in Boston.

Craig Scott Billings: Turning to Macau, we generated $340 million of EBITDA in the quarter on a GGR market share that was above both the prior quarter and above our 2019 exit. We held above our expected range, so on a fully normalized basis, EBIDTA would have been approximately $320,000.

Craig Scott Billings: Turning to Macau, we generated $340 million of EBITDA in the quarter on <unk> market share that was above both the prior quarter and above our 2019 exit.

Craig Scott Billings: We held above our expected range. So on a fully normalized basis EBITDA would have been approximately $320 million.

Craig Scott Billings: The strength in our business has continued into Q2. In the casino, our mass drop per day in April increased 30% versus April 2019. And on the non-gaming side, our hotel occupancy was 99%. Overall, strong top-line performance combined with disciplined OpEx control drove healthy margins during April. We were also pleased with the results during May's Golden Week, particularly in light of unfavorable weather in the region.

Craig Scott Billings: Strengthen our business has continued into Q2 in.

Craig Scott Billings: In the casino our mass drop per day in April increased 30% versus April 2019, and on the non gaming side, our hotel occupancy was 99%.

Craig Scott Billings: Overall strong topline performance combined with disciplined Opex control drove healthy margins during April.

Craig Scott Billings: We're also pleased with the results during May Golden week, particularly in light of unfavorable weather in the region.

Craig Scott Billings: In the casino, mass drop per day increased 30% versus the comparable 2019 holiday period and approach levels seen during the last Chinese year. On the development front in Macau, we began initial demolition and construction work on our second concession-related project, our destination food home. We are well into design and planning for our other major concession-related CapEx commitments, including our new event and entertainment center and a unique theater and show, turning to Wynn Al-Marshaan in the UAE.

Craig Scott Billings: In the casino mass drop per day increased 30% versus the comparable 2019 holiday period and approach levels seen during last Chinese new year.

Craig Scott Billings: On the development front in Macau, we began initial demolition and construction work on our second concession related projects, our destination food Hall.

Craig Scott Billings: We are well into the design and planning for our other major concession related capex commitments, including our new event and Entertainment Center and a unique theater in shell.

Craig Scott Billings: Construction is rapidly advancing on the project, and as of this week, we are currently constructing the fourth floor of the hotel tower. You can find recent renderings and images of Wynn Al Marjan in a press release we issued yesterday ahead of a major travel convention taking place this week in Dubai, and I expect we will further update you on the progress we have made on the project later this year. Finally, we are actively considering greenfield development opportunities in New York City and, potentially, Thailand.

Craig Scott Billings: Turning to win Elmar, Sean and the UAE.

Craig Scott Billings: Construction is rapidly advancing on the project and as of this week. We are currently constructing the fourth floor of the hotel tower.

Craig Scott Billings: You can find recent renderings and images if went out Mark John and our press release, we issued yesterday ahead of a major travel convention taking place this week in Dubai and I expect we will further update you on the advances we have made on the project later this year.

Craig Scott Billings: Finally, we are actively considering greenfield development opportunities in New York City, and potentially Thailand, and New York, We believe a full scale when integrated resort in Hudson yards will drive meaningful incremental tax revenue tourism and employment in the state.

Craig Scott Billings: In New York, we believe a full-scale Wynn Integrated Resort in Hudson Yards will drive meaningful incremental tax revenue, tourism, and employment in the state. Despite the elongation of the RFA submission process in New York, we remain intrigued by the prospect of a Wynn Resort in Manhattan. In Thailand, it's early days, and we have yet to see the regulatory and licensing structures.

Craig Scott Billings: Despite the elongation of the RF RFA submission process in New York, we remain intrigued by the prospect of a Wynn resort in Manhattan.

Craig Scott Billings: In Thailand, it's early days and we have yet to see the regulatory and licensing structures, Thailand, Thailand is already a major tourism destination with significant tourism infrastructure and a world class service culture. So we will continue to closely monitor advancement of the legalization process.

Craig Scott Billings: Thailand is already a major tourism destination with significant tourism infrastructure and a world-class service culture. So we will continue to closely monitor the progress of the legalization process. I remain incredibly bullish about the future of our country. In Las Vegas, we remain at the pinnacle of the market with tremendous demand for what we offer. And in an inflationary environment like this, we have the luxury of being able to reprice our hotel rooms every day in order to take advantage of it.

Craig Scott Billings: I remain incredibly bullish about the future of our company in Las Vegas, we remain at the pinnacle of the market with tremendous demand for what we offer.

Craig Scott Billings: And inflation and in an inflationary environment like this we have the luxury of being able to reprice. Our hotel rooms every day in order to take advantage of that demand in.

Craig Scott Billings: In Macau, we continue to punch above our weight on a revenue per hotel room basis, generating meaningful market share and substantial discretionary free cash flow. We also have a meaningful high ROI project underway in the UAE, along with potential greenfield developments in other attractive gateways. Meanwhile, our leverage profile continues to improve, as does our outlook on future free cash flows. Our best days lie ahead. With that, I will now turn it over to Julie to run through some additional details on the quarter. Thank you, Craig.

Craig Scott Billings: In Macau, we continue to punch above our weight on a revenue per hotel room basis, generating meaningful market share and substantial discretionary free cash flow.

Julie Cameron: Also have a meaningful high ROI project underway in the UAV, along with potential Greenfield developments in other attractive gateway cities. Meanwhile, our leverage profile continues to improve as does our outlook on future free cash flow our best days lie ahead.

Craig Scott Billings: With that I will now turn it over to Julie to run through some additional details on the quarter Julie. Thank you Craig at Wynn Las Vegas, we generated $246 3 million and adjusted property EBITDA on $636 $5 million of operating revenue during the quarter delivering an EBITDA margin of $38 seven.

Julie Cameron: Thank you Craig. At Wynn Las Vegas, we generated $246.3 million in adjusted property EBITDA on $636.5 million of operating revenue during the quarter, delivering an EBITDA margin of 38.7%. Hold was a bit of a mixed bag, given results in the Sportsbook, and we estimate a net $5 million benefit from higher than normal hold in the quarter. OPEX excluding gaming tax per day was $4.1m in Q1 2024, up 9% year-over-year, and in line with the increase in operating revenue, as we successfully absorbed incremental OPEX related to Super Bowl programming, union-related payroll increases, and other inflationary pressure

Julie Cameron: Hold was a bit of a mixed bag given the results in the sports book and we estimate a net $5 million benefit from higher than normal hold in the quarter.

Julie Cameron: Opex, excluding gaming tax per day with $4 $1 million in Q1, 2024 up 9% year over year.

Julie Cameron: With the increase in operating revenues as we successfully absorbed incremental opex related to Super Bowl programming Union related payroll increases and other inflationary pressures.

Julie Cameron: Turning to Boston, we generated a Justice Property EBITDA of $63 million on revenue of $217.8 million, with an EBITDA margin of 29%. We've stayed very disciplined on the cost side, and excluding a $2 million benefit from a one-time item, OPEX per day was $1.19 million in Q1 2024, up around 2% year-over-year. The team has done a great job mitigating union-related payroll increases with cost efficiencies in areas of the business that do not impact the guest experience.

Julie Cameron: Turning to Boston, we generated adjusted property EBITDA of 63 million on revenue of $217 $8 million with an EBITDA margin of 29%. We stayed very disciplined on the cost side and excluding a $2 million benefit from a one time item opex per day with $1 one.

Julie Cameron: $9 million in Q1, 'twenty to ensure offer a 2% year over year.

Julie Cameron: Team has done a great job mitigating union related payroll increases with cost efficiencies in areas of the business.

Julie Cameron: All impact the guest experience.

Julie Cameron: Our Macau operations delivered adjusted property EBITDA of $339.6 million in the quarter on $998.6 million of operating revenue. As Craig alluded to, we estimate higher-than-normal hold positively impacted EBITDA by around $19 million during the quarter. VIP hold was largely in the normal range, with the hold impact primarily related to higher-than-normal hold on Wynn Palace's mass table game.

Julie Cameron: On Macau operations delivered adjusted property EBITDA of $339 6 million in the quarter on $998 6 million of operating revenue.

Julie Cameron: As Craig alluded to we estimate higher than normal hold positively impacted EBITDA by around $19 million during the quarter VIP hold was largely in the normal range with the hold impact primarily related to higher than normal hold on Wynn palace's mass table games.

Julie Cameron: EBITDA margin was 34% in the quarter, an increase of 140 basis points relative to Q4 2023 and 310 basis points relative to Q1 2019. Overall, our strong margin expansion relative to 2019 has been driven by a combination of a favorable mix shift to higher-margin mass gaming and operating leverage on cost efficiencies. Our OPEX excluding gaming tax was approximately $2.6 million per day in Q1, a decrease of 17% compared to $3.2 million in Q1 2019. OPEX increased 3% on a sequential basis, well below the 10% increase in operating revenue.

Julie Cameron: EBITDA margin was 34% in the quarter, an increase of 140 basis points relative to Q4, 2023, and 310 basis points relative to Q1 2019 overall, our strong margin expansion relative to 2019, that's been driven by a combination of the favorable mix shift to higher margin.

Julie Cameron: Mass gaming and operating leverage on cost efficiencies.

Julie Cameron: Our opex, excluding gaming tax was approximately $2 6 million per day in Q1, a decrease of 17% compared to $3 2 million in.

Julie Cameron: In Q1 2019.

Julie Cameron: Opex increased 3% on a sequential basis, well below the 10% increase in operating revenue.

Julie Cameron: The team has done a great job staying disciplined on costs, and we remain well positioned to drive strong operating leverage as the market continues to recover. In terms of CapEx in Macau, we're currently advancing through the design and planning stages on several of our concession commitments. And as we noted in the past few quarters, these projects require a number of government approvals, creating a wide range of potential CapEx outcomes in the near term.

Julie Cameron: <unk> has done a great job staying disciplined on cost and we remain well positioned to drive strong operating leverage as the market continues to recover.

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

Julie Cameron: As such, we continue to expect CapEx related to our concession commitments. Moving on to the balance sheet, our liquidity position remains very strong, with global cash and revolver availability of nearly $4.2 billion as of March 31st. This was comprised of $2.2 billion of total cash and available liquidity in Macau and approximately $2 billion in the US. On the capital markets front, in February, we issued a $400 million add-on to the Wynn Resorts Finance 2031 unsecured notes, with net proceeds, along with cash on hand, used to fund the tender and repurchase of $800 million of Wynn Las Vegas notes maturing in March 2025.

Julie Cameron: Our concession commitments to range between $350 million and $500 million in total between 2024 and the end of 2020.

Julie Cameron: Moving onto the balance sheet, our liquidity position remains very strong with global cash and revolver availability of nearly $4 2 billion as of March 31st.

Julie Cameron: This was comprised of $2 $2 billion of total cash and available liquidity in Macau and approximately $2 billion.

Julie Cameron: In the U S.

Julie Cameron: On the capital markets front in February we issued $400 million Adam to the Wynn resorts Finance 2031 unsecured notes with net proceeds along with cash on hand to fund the tender and repurchase of $800 million of Wynn Las Vegas notes maturing in March 2025.

Julie Cameron: Over the past four quarters, we've reduced company-wide growth debt by approximately $1 billion. Bringing it all together, the combination of strong performance in each of our markets globally, with our properties generating over $2.3 billion of trailing 12-month property EBITDA, together with our robust cash positions, creates a very healthy consolidated net leverage ratio of just over four times. Our strong free cash flow and liquidity profile allows us to reduce leverage while returning capital to shareholders.

Julie Cameron: Over the past four quarters, we've reduced companywide gross debt by approximately $1 billion.

Julie Cameron: Bringing it altogether the combination of strong performance in each of our markets globally with our properties generating over $2 3 billion.

Julie Cameron: Trailing 12 month property EBITDA together with a robust cash position creates a very healthy consolidated net leverage ratio of just over four times.

Julie Cameron: Strong free cash flow and liquidity profile allows us to reduce leverage while returning capital to shareholders to that end. The board approved a cash dividend of <unk> 25 per share payable on May 31, 2024 to stockholders of record as of May 22024. Additionally in late March the Wynn Macau Board.

Julie Cameron: To that end, the Board approved a cash dividend of $0.25 per share, payable on May 31, 2024, to stockholders of record as of May 20, 2024. Additionally, in late March, the Wynn Macau Board recommended the reinstatement of a dividend at $0.75 per share, or US$50 million, highlighting our commitment to prudently returning capital to shareholders in both the US and Macau. Finally, our CapEx in the quarter was $97.7 million, primarily related to the villa renovations and food and beverage enhancements at Wynn Las Vegas, concession-related CapEx in Macau, and normal course maintenance across the business.

Julie Cameron: Recommended the reinstatement of the dividend at seven five per share or $50 million U S dollars, highlighting our commitment to prudently returning capital to shareholders in both the U S and Macau.

Julie Cameron: Finally, our capex in the quarter with $97 $7 million.

Julie Cameron: Primarily related to the Villa renovations at food and beverage enhancements at Wynn Las Vegas.

Julie Cameron: Session related Capex in Macau are normal course maintenance across the business. Additionally, we contributed $17 million of equity to the win Almazan Island JV projects during the quarter, bringing our total equity contribution to date to approximately $160 million with that we will now.

Julie Cameron: Additionally, we contributed $70 million of equity to the Wynn-Almarjon Island JV project during the quarter, bringing our total equity contribution to date to approximately $160 million. With that, we will now open up the call to questions and answers.

Julie Cameron: Open up the call to Q&A.

Operator: Thank you. To ask a question, please press star 1 on your touchtone phone. Unmute your phone, record your name clearly after the prompt, and I will introduce you for your question. Please limit yourself to one question and one follow-up question. To withdraw your question, you may press star 2. One moment, please, for our first question. Carlo Santarelli from Deutsche Bank. You may go ahead, sir.

Julie Cameron: Thank you to ask a question. Please press star one on your Touchtone phone Amit your phone record your name clearly after the prompt and I will introduce you for your questions. Please limit yourself to one question and one follow up question to withdraw. Your question you May Press Star two one moment please for <unk>.

Operator: First question Carlo Santarelli from Deutsche Bank, You May go ahead Sir.

Carlo Santarelli: Craig, just in terms of what you're seeing in Macau, obviously you guys had a strong quarter, everything seemed to flow through very nicely. In terms of the competitive landscape that you're seeing into May now relative to perhaps what you saw in the last quarter or fourth quarter more specifically, could you kind of characterize what the market is at this point?

Carlo Santarelli: Thank you thanks, Craig Thanks, Julie.

Carlo Santarelli: Just in terms of what Youre seeing in Macao, Obviously, you guys had a strong quarter everything seem to flow through very nicely in terms of the competitive landscape that you're seeing into may now relative to perhaps what you're seeing.

Carlo Santarelli: Last quarter or the fourth quarter more specifically could you kind of characterize whats.

Carlo Santarelli: And Mark it up.

Craig Scott Billings: Yes, sure Carlo, you cut out a little bit there at the end, but I got the gist of your question. Macau has always been and is currently a competitive market. And, you know, as you know, we focus on product and service, and we focus on attracting the best guests in the market. So I've seen a lot of questions and the commentary around promotional activity. I don't really want to speak to promotional activity by others in the market, but I can tell you that our reinvestment can move, you know, 50, 75 basis points in any given quarter, depending upon what we are trying to achieve, but the core of our competitive strength remains product and service. And I think you can see that in Q1 with both our results and our margin.

Craig: Yes, sure Carlo you cut out a little bit there at the end, but I got to adjust with your question.

Craig Scott Billings: Macau has always been.

Craig Scott Billings: He is currently a competitive market.

Craig Scott Billings: And as you know, we focus on products and service and we focus on attracting the best guests in the market.

Craig Scott Billings: Seen a lot of the questions and the commentary around promotional activity I don't really want to speak to promotional activity by others in the market, but I can tell you that our reinvestment can move 50 75 basis points in any given quarter, depending upon what we are trying to achieve but the core of our competitive.

Craig Scott Billings: Strength remains product in surface and I think you can see that in Q1 with both our results.

Craig Scott Billings: And our margin.

Craig Scott Billings: Craig, just going back to your remarks on Las Vegas, you made a point of kind of calling February the primary driver of the quarter. You then followed that up with drop, handle, rev bar kind of all up in April and mentioned kind of tougher comparisons along the way. How do you kind of foresee what is a very obviously tough comp stack as you move through the balance of this year in the market?

Speaker Change: Helpful. Thank you and then Greg just going back to your remarks on Las Vegas.

Craig Scott Billings: You made a point of kind of calling out February being the primary driver of the quarter.

Craig Scott Billings: You then followed that up with drop handle revpar kind of all up in April.

Craig Scott Billings: You mentioned kind of tougher comparisons along the way how do you kind of foresee what is a very obviously tough comps back as you move through the balance of this year in the market.

Craig Scott Billings: Sure. Thanks.

Operator: Thank you. Thank you. Thank you.

Craig Scott Billings: Sure.

Craig Scott Billings: Well, first, it specifically relates to drop and handle. You know, we've almost doubled handle from 2019 to 2023, and a lot of that was share take. We have table drought that's up almost 50% in the same period, so not too shabby. And as I've said on several calls, trees don't grow to the sky.

Craig: Well first as it specifically relates to drop and handle.

Craig Scott Billings: We almost doubled handle from 2019 to 2023 and a lot of that with share taking.

Craig Scott Billings: We have table drop it's up almost 50% in the same period, so not too shabby and as you know I've said on several calls trees don't grow to the sky, but all that being said.

Craig Scott Billings: But all that being said, the competition is getting tough. And, you know, if you go to a CPI calculator online, you will find that the purchasing power of a dollar today is the same as about 80 cents in March of 2019. So for a casino and a hotel operator like us, who can reprice rooms every day and whose customers' gaming bankrolls reflect the current value of a dollar, we shouldn't be surprised that results today, when compared to the past, look pretty good.

Craig Scott Billings: The comps are getting tougher.

Craig Scott Billings: And if you go to a CPI calculator online you will find that the purchasing power of a dollar today. As this is the same that's about 80 in March of 2019.

Craig Scott Billings: So for a casino in a hotel operator.

Craig Scott Billings: Like us who can reprice rooms, everyday and whose customers gaming bankrolls reflect the current value of the dollar we shouldn't be surprised that results today when compared to the past look pretty good.

Craig Scott Billings: Of course, that pricing power is exacerbated by the strength of what we offer here in Las Vegas, with the best service quality, the best physical experience, and top-notch programs. You can layer on top of that our target customer base, who can now earn five points on their money just by putting it in the bank, and that has seen pretty strong wealth creation over the past several quarters. It's a pretty powerful EBITAS setup.

Craig Scott Billings: Of course that pricing power is exacerbated by the strength of what we offer here in Las Vegas with the best service quality, the best physical experience and top notch program.

Craig Scott Billings: You can layer on top of that that our target customer base, who can now earn five points on their money just by putting it in the bank and that has seen pretty strong wealth creation over the past several quarters.

Craig Scott Billings: It's a pretty powerful EBITDA setup of.

Craig Scott Billings: Of course, by the way, the vast majority of our deployed capital here and our debt is in yesterday's dollars, so that EBITDA setup also works wonders for returns and discretionary free cash flow. I digress slightly, but you know, when do things go from absolutely unbelievable to just really great? I don't know the answer to that. The best I can do is give you a clear picture of what we're seeing right now, as I did in my prepared remarks with respect to April, and it's good.

Craig Scott Billings: Of course by the way the vast majority of our deployed capital here and our debt is in yesterday's dollars. So that EBITDA setup also works wonders for returns and discretionary free cash flow.

Craig Scott Billings: I digress slightly but <unk>.

Craig Scott Billings: When do things go from absolutely unbelievable to just really great.

Craig Scott Billings: No the answer that the best I can do is give you a clear picture of what we're seeing right now as I did in my prepared remarks with respect to April and it's good.

Speaker Change: Thank you.

Craig Scott Billings: Yes.

Operator: Thank you. And our next caller is Joe Greff with JP Morgan. You may go ahead, sir.

Craig Scott Billings: Thank you and our next caller is Joe Greff with Jpmorgan you May go ahead Sir.

Joseph Richard Greff: Good afternoon, everybody. My first question is on Macau and follows up on Carlos's Macau-related promotional question. If we look at the 1Q, the conversion of gross gaming revenues in Macau to casino revenues, was that at a better clip than it was in the fourth quarter and all of last year by quarter? How much of that sequential improvement over the last couple of quarters is just a function of maybe a high hold versus maybe you're operating the business differently than maybe some of your peers who are seeing that relationship? T-Quint works less favorably for them than it has for you. Yeah, thanks, Joe.

Joseph Richard Greff: Good afternoon everybody.

Speaker Change: My first question is on Macau and follows up on Carlos.

Joseph Richard Greff: Macau related promotional question, if we look at the <unk> the conversion.

Joseph Richard Greff: Gross gaming revenues in Macao to casino revenues.

Joseph Richard Greff: Was that a better clip than it was in the fourth quarter and all of last year by quarter.

Joseph Richard Greff: How much of that sequential improvement over the last couple of quarters is just a function of maybe of high hold.

Joseph Richard Greff: Versus maybe you're operating the business differently than maybe some of your peers are seeing that relationship.

Joseph Richard Greff: Yeah.

Joseph Richard Greff: Sequence less favorably for them than it has for you.

Craig Scott Billings: Yeah, thanks Joe. It has a lot to do with the revamp of our loyalty program and the fact that we have given our customers choice in terms of how they want their reinvestment. And so in any given quarter, those choices change, and some of those choices flow to contra revenue, and some of those choices flow to op-eds. So that's really the primary driver. It's not a... It's not indicative of a systemic change in aggregate reinvestment.

Speaker Change: Yes, Thanks, Joe.

Speaker Change: It has a lot to do with the revamp of our loyalty program and the fact that we have given our customers choice in terms of how they want their reinvestment.

Craig Scott Billings: And so in any given quarter those choices change and some of those choices slowed a contra revenue and some of those choices Hello to Opex. So that's really the primary driver as it is not a.

Craig Scott Billings: It is not indicative of a systemic change in the aggregate reinvestment.

Craig Scott Billings: Sure.

Speaker Change: That's all for me thank you.

Operator: Thank you. Our next caller is Shaun Kelley with Bank of America. You may go ahead, sir.

Craig Scott Billings: Thank you. Our next caller is Shaun Kelley with Bank of America. You May go ahead Sir.

Shaun Clisby Kelley: Hi, good afternoon everyone. Thank you for taking my questions.

Shaun Clisby Kelley: Hi, good afternoon, everyone. Thank you for taking my questions.

Julie Cameron: Craig or Julie, I just wanted to ask about the Macau OPEX trajectory. Obviously, you've driven and sound like you expect to continue to see some pretty great operating leverage there, but we're still normalizing in that market, so it's probably a little bit tougher for us to get a sense of just sort of underlying core expense growth or inflation. So kind of any comments as things start to annualize and normalize a little bit, how much, kind of, on a year-on-year basis would you expect that to level off to maybe in the back half of the year?

Shaun Clisby Kelley: Craig Julie I, just wanted to ask about maybe the Macau Opex trajectory, obviously, you've driven and sounds like you expect to continue to see some pretty great operating leverage there, but it is as we are still normalizing in that market, it's probably a little bit tougher for us to get a sense of just sort of underlying core expense growth or inflation. So.

Julie Cameron: Comment as things start to annualize and normalize a little bit.

Julie Cameron: How much kind of on a year on year basis, you would expect that to level off to maybe in the back half of the year.

Julie Cameron: We've talked quite a bit about OPEX and how we've been very disciplined in managing it and how we've been able to accommodate the non-gaming OPEX that we have to send to meet our concession commitments. We've been really disciplined.

Craig: Sure, Hey, Sheila I'll take that one.

Julie Cameron: Yes, we've talked quite a bit about opex.

Julie Cameron: How we have been very disciplined in managing it and how we've been able to accommodate the non gaming opex that we have to send to meet all concession commitments. So we've been really disciplined we had opex per day to six 3 million in Q1.

Julie Cameron: We had OPEX per day of $2.63 million in Q1, so it's still well below Q1-19 levels, and it's only up 3% sequentially. We had a big queue in terms of what we call 10th hole events, and obviously, the OPEX increase is well below the 10th event we've had sequentially in operating revenue, so we were really pleased with the flow through there. Going forward, we're going to continue to be really disciplined around OPEX.

Julie Cameron: Still well below Q1, 19 levels and it's only up 3% sequentially.

Julie Cameron: It was a big Q in terms of.

Julie Cameron: What we call.

Julie Cameron: Tentpole event.

Julie Cameron: And it's you know obviously the Opex increase is well below the 10% we've had sequentially in operating revenues that we have we're really pleased with the flow through that.

Julie Cameron: Going forward.

Julie Cameron: We're going to continue to be really disciplined around opex. We have good line of sight to the events calendar and how we'll continue to incorporate not so so as we as we.

Julie Cameron: We have a good line of sight to the events calendar and how we'll continue to incorporate that. As we have our EBITDA margin for both properties above Q1-19 levels and our OPEX well controlled, we really expect revenue mix to be the key driver of margins going forward. We're going to have some quarter-to-quarter variation as we see different events on the calendar and we continue to roll out programming, but we feel pretty good about where we've managed to land with OPEX and we see potential for some quarters to be slightly inside of that 2.63, and maybe in a bigger quarter, it might be slightly outside of that, but overall, we're in a good place.

Julie Cameron: How about EBITDA margin at both properties, both Q1, 19 levels and our Opex will well controls.

Julie Cameron: We really expect.

Julie Cameron: We really expect revenue mix today, the key driver of margins going forward, we're going to have some quarter to quarter variation as we see different events on the calendar and we continued to rollout programming.

Julie Cameron: We feel that.

Julie Cameron: Pretty good about where we finished two two to land with Opex and we see potential for some quarters to be slightly inside of that $2 63, and maybe even a bigger quarter it might be slightly outside of that but overall, we're in a good place.

Shaun Clisby Kelley: Super. Thank you.

Speaker Change: Super Thank you and just as my follow up Craig to go back to sort of the Las Vegas macro commentary I mean, I think what many of US are struggling with it I'm sure you're familiar with us in conversations with industry executives is just.

Shaun Clisby Kelley: And just as my follow-up, you know, Craig, to go back to sort of the Las Vegas, you know, macro commentary, I mean, I think what many of us are struggling with, and I'm sure you're familiar with this in conversations with industry executives, is just, you know, there have been some comments out there about, you know, some leisure, you know, even at the high end, you know, some leisure pushback when maybe the product And I think in some cases, it looks like Wynn is kind of perfect in many of these metrics.

Shaun Clisby Kelley: There have been some comments out there about.

Shaun Clisby Kelley: Some leisure even at the high end some leisure pushback when maybe the product mix isn't perfect and I think Tim case, it looks like when is kind of perfect on many of these metrics, but I'm just curious as you look through all the kpis across your business did you see any area of Skittishness I mean any area that you would consider normalized.

Shaun Clisby Kelley: But I'm just curious, as you looked through all the KPIs across your business, did you see any areas of skittishness? I mean, any area that you would consider, you know, normalization or, you know, movement around? The truth is, you know, the dynamics are alive and well there. And again, we may just be needing to look somewhere else across the strip or, you know, outside of Las Vegas to see that, you know, change in consumers right now.

Shaun Clisby Kelley: Asian or movement around or the truth is.

Shaun Clisby Kelley: The dynamics are alive, and well there and again, we may just be perhaps maybe need to be looking somewhere else across the strip or outside of Las Vegas.

Shaun Clisby Kelley: I guess to see that.

Shaun Clisby Kelley: You see that changes the consumer right now.

Craig Scott Billings: Yeah, sure, Shaun. Not really. So.

Speaker Change: Yes sure Sean.

Speaker Change: Not really so.

Craig Scott Billings: If you think about what's happening in Vegas... Those who have deployed capital in Vegas over the course of the past five years, it actually hasn't been so much, at least innovative capital; it actually hasn't been so much the industry. It's been the sphere. It's been the Raiders.

Craig Scott Billings: If you think about what's happening in Vegas.

Craig Scott Billings: Those who have deployed capital in Vegas over the course of the past five years, it actually hasn't been so much at least innovative capital it actually hasnt been so much the industry.

Brian Gullbrants: It's been, you know, a smaller but still impactful capital deployment that has driven all kinds of demand into the market. You've heard our competitors talk about this as well. And we have a unique position in the market. So again, I'll say it, trees don't grow to the sky, and comps get tougher and tougher over time, but from a pricing power perspective, we feel great, certainly relative to the rest of this trip. Brian, do you have any comments on what we're seeing in the booking window at this point? Yeah, I mean, everything.

Craig Scott Billings: It's been the sphere, it's been the raters, it's Ben.

Brian Gullbrants: Smaller, but still impactful capital deployment here that has driven all kinds of demand to the market and you've heard our competitors talk about this as well and we have a unique position in the market.

Brian Gullbrants: So again I'll say it.

Brian Gullbrants: Trees don't grow to the sky and comps get tougher and tougher over time, but from a a.

Brian Gullbrants: Our pricing power perspective when.

Brian Gullbrants: We feel great certainly relative to the rest of the strip Brian do you have any comments on what we're seeing in the booking window at this point.

Brian Gullbrants: Yeah, I mean everything's pretty much Retreated back to what it was 2019 with respect to bookings and when you look at the pace of group we continue to pace to have our best year ever over 23, which was our best year ever and 25 and 26 are pacing nicely Not just in group, but we're seeing that across the board So I think continuing to focus on our people our assets our experiential Events that we put together really allow us to just drive price and continue to balance all our channels And what he means by 2019 is that it's reverted to a normal a very normal process The booking windows are back to normal. Yeah, and it's quite nice

Brian Gullbrants: Yes, I mean everything is pretty much resolved.

Brian Gullbrants: Retreated back to what it was 2019 with respect to bookings and when you look at the pace of group.

Brian Gullbrants: We continue to pace to have our best year ever over 23%, which was our best year ever and 25% and 26 are pacing nicely.

Brian Gullbrants: Not just in group, but we're seeing that across the board. So I think continuing to focus on our people our assets our experiential events that we put together really allow us to just drive price and continue to balance all of our channels and what he means by 2019 is that it's reverted to a normal very normal.

Brian Gullbrants: The booking windows are back to normal.

Brian Gullbrants: Quite nice.

Speaker Change: Very clear thank you so much.

Brian Gullbrants: Thank you. Our next caller is Dan <unk> with Wells Fargo. You May go ahead.

Shaun Clisby Kelley: Very clear. Thank you so much.

Speaker Change: Good afternoon, everyone.

Operator: Hey, good afternoon, everyone. Just one quick one on Las Vegas, just in terms of your occupancy of that property, I mean, you typically run in the high 80s there. I mean, you're getting as much rate as it looks like you won. I mean, fundamentally, it is that.

Speaker Change: Quick one on Las Vegas, just in terms of your occupancy at that property.

Operator: You've typically run in the high eighties, there I mean, you're getting as much rate as it looks like you won.

Operator: Fundamentally that property structurally different than that.

Operator: The Macao properties, where you run occupancy close to 99%. It just seems like I know, there's a balance there, but any reason occupancy in Vegas couldn't go higher as you keep pushing rates up modestly.

Craig Scott Billings: Sure. So first and foremost, and this is true company-wide, we never want to be in a position where we have to walk someone because we don't have their room type, or we don't have their room available. Second, at some point, the experience on the property actually degrades if you get to use an extreme 99% occupancy rate. So we're always balancing occupancy and rate in order to drive strong revenue results but also maintain a great experience on the property.

Speaker Change: Sure. So first and foremost and this is true companywide, we never want to be in a position where we have to walk someone because we don't have their room types, where we don't have their room available for that.

Craig Scott Billings: Second at some point the experience on the property actually dig rates.

Craig Scott Billings: If you get to two.

Craig Scott Billings: To use an extreme 99% occupancy so we're always balancing occupancy and rate in order to drive to.

Craig Scott Billings: To drive strong revenue results, but also maintain a great experience on the property.

Craig Scott Billings: Macau is very different. In Macau, there is a decent amount of occupancy that occurs during the day. So, you know, you have people that are in the market, and we will offer them a room while they're in the market, so you have the ability to drive up that occupancy, very, very close to 100%. So it's really just a difference in the market. And can we run higher in Vegas? Sure, we could. We could do that, and at times, we do run higher, and then it washes out later in the quarter when we run lower. It's really just a question of the on-premises experience and maximizing revenue.

Craig Scott Billings: Macao is very different in Macau, there is a decent amount of occupancy that occurs on the day.

Craig Scott Billings: So you have people that are in market and and we will offer them a room water end market. So you have the ability to drive up that occupancy very very close to a 100%. So it's really just a difference in market dynamics and can we run higher in Vegas sugarcane.

Craig Scott Billings: We can do that and at times, we do we do run higher than that.

Craig Scott Billings: It washes out later in the quarter, where we run lower.

Craig Scott Billings: It's really just a question of the on premises experienced and maximizing revenue.

Operator: And then just switching to Thailand, maybe could you talk a little bit about that opportunity potentially? I know it's quite early days, but just a high level in terms of timing, project size, you know, how competitive you think this process would be, any incremental color would be great.

Speaker Change: Got it and then just switching to Thailand, maybe.

Operator: Could you talk a little bit about that that opportunity potentially I know, it's quite early days, but just high level in terms of timing project side, how it compares.

Operator: And if you think this process would be any incremental color would be would be great. Thanks.

Craig Scott Billings: Sure, yeah, it is very, very early. I mean, first things first, we need to understand that the regulatory structure, the licensing structure, the bidding structure, etc., are all going to be consistent with other jurisdictions that are considered best in class. I personally think they will be based on the information that we have to date, but that's really a condition precedent to our further involvement. It's an interesting market for the reasons that I described in my prepared remarks, lots of great infrastructure, and a very strong tourism sector today.

Craig Scott Billings: Thank you. Sure. Yeah, it is very.

Speaker Change: Sure Yeah. It is very very early I mean first things first we need to understand.

Craig Scott Billings: That the regulatory structure of the licensing structure of the bidding structure et cetera.

Craig Scott Billings: All going to be.

Craig Scott Billings: Consistent with a.

Craig Scott Billings: With other jurisdictions that are considered best in class I personally think they will be based on the information that we have to date, but thats really a condition precedent to our further involvement.

Craig Scott Billings: It's a it's an interesting market for the reasons that I described in my prepared remarks lots of great infrastructure, a very strong.

Craig Scott Billings: Tourism sector today.

Craig Scott Billings: And I think it will be a competitive process. I think in any market like that, that has those dynamics, you're going to find a lot of folks that are interested in... We are confident in our capabilities given the strength of the portfolio as it exists today and the talent we have in this business.

Craig Scott Billings: And I think it will be a competitive process I think in any market like that because it has those dynamics I think you're going to find a lot of folks that are interested in.

Craig Scott Billings: Yes.

Craig Scott Billings: And being there and we are very confident in our capabilities.

Craig Scott Billings: Given the strength of the.

Craig Scott Billings: The portfolio as it exists today and the talent that we have in this business.

Speaker Change: Got it thanks, so much.

Craig Scott Billings: Sure.

Operator: Thank you. Our next caller is John DeCree with CBRE. You may go ahead.

Craig Scott Billings: Thank you. Our next caller is John decree with CBRE you May go ahead.

John G. DeCree: Hi. Good morning. Good afternoon, everyone. Thank you for taking my questions. First one may be, Craig, you've introduced some new renderings and photos of Al Marjan in front of the ATM conference here in Dubai. Curious if you could remind us the total capital contribution and budget or construction costs, and if that's changed at all since you've kind of updated the renderings for that project.

John G. DeCree: Hi, Good morning, good afternoon, everyone. Thank you for taking my questions.

John G. DeCree: First one maybe Craig.

John G. DeCree: Introducing new renderings and photos of our John in front of that.

John G. DeCree: Tim Conference here in Dubai.

Speaker Change: Chris if you could remind us.

John G. DeCree: Capital total capital contribution in budget or construction costs and if that's changed at all since you've kind of updated the renderings for that project.

Craig Scott Billings: Sure. The total budget is around four billion dollars. Budgets move here and there, but there's no substantial movement. Our capital contribution will be, round numbers call it, 900 million dollars. That heavily depends on the construction leverage, so we're in the midst of figuring that out now, but you can figure something like 50-50 debt to equity, and then we would be 40% of the

John G. DeCree: Sure.

Craig Scott Billings: The total budget is around $4 billion budget.

Craig Scott Billings: Budgets move here and there.

Craig Scott Billings: But no substantial movement, our capital contribution will be.

Craig Scott Billings: Numbers call it $900 million.

Craig Scott Billings: Heavily depends on on the construction leverage so we're in the midst of figuring that out now, but you can figure.

Craig Scott Billings: Something like 50, 50 debt to equity and then we would be 40% of the equity.

Craig Scott Billings: Got it. I understand. That's helpful. Thank you.

Speaker Change: Got it understood that's helpful. Thank you.

Craig Scott Billings: And then maybe one back domestically to get a little granular, perhaps in Las Vegas on the quarter you called out. February, we knew that was going to be an event-driven month, but I was wondering if you could kind of parse out what January and March look like. I know you gave some color on April, coming out of the quarter quite strong, but as you kind of sized up the one queue, any comments about January and March specifically, relative to year-over-year in terms of performance?

Speaker Change: And maybe one back domestically to get a little granular, perhaps in Las Vegas on the quarter you called out.

Craig Scott Billings: February we knew that was going to be an event driven month, but I was wondering if you could kind of parse out what January and March looked like can you give some color on April coming out of the quarter quite strong, but as you kind of size up the <unk>.

Craig Scott Billings: And any comments about January March specifically relative to year over year.

Craig Scott Billings: In terms of performance.

Craig Scott Billings: Sure. What I would say is this, February, as we called it, was, of course, the strongest month of the quarter, and then, in rank order, it would be March and January.

Craig Scott Billings: Sure what I would say is this February as we called out it would be.

Craig Scott Billings: Of course, the strongest months of the quarter and then in rank order it would be March and January.

Craig Scott Billings: Got it. Understood.

Speaker Change: Got it understood. Thanks, so much.

Operator: Thank you. Our next caller is Robin Farley from UBS.

Craig Scott Billings: Thank you our next caller is Robin Farley with UBS.

Robin Margaret Farley: Great, thanks. I wonder if you could just touch on anything for El Marjan that has to happen from a regulatory perspective, approval, you know, at any level, you know, if the construction were done tomorrow before it could actually start operating the casino, just to clarify that. Thank you.

Robin Margaret Farley: Great. Thanks, I Wonder if you could just.

Robin Margaret Farley: To touch on anything for Al Marshawn that has to happen from a regulatory perspective approval at any level.

Robin Margaret Farley: If the construction were done tomorrow before it could actually start operating the casino just to just to clarify that thank you.

Speaker Change: Sure Robin.

Craig Scott Billings: Sure, Robin. Just like other jurisdictions, there are regulatory requirements that are required before we can open the doors. And so we expect that we will meet those regulatory requirements and receive the necessary approvals in due course.

Robin Margaret Farley: Just like other jurisdictions there are regulatory requirements that are required before before we can open the doors.

Speaker Change: And so we expect that we will.

Speaker Change: Meet those regulatory requirements and received the necessary approvals in due course.

Craig Scott Billings: But is there anything from a framework perspective in terms of... Anything that has to be legalized at any level or, you know, separate from just what we have to do to meet licensing? We're not building on spec.

Craig Scott Billings: But is there anything from a fragrance.

Craig Scott Billings: Your perspective in terms of.

Craig Scott Billings: Anything that has to be legalized novel or.

Craig Scott Billings: Separate from this.

Craig Scott Billings: It has today.

Craig Scott Billings: Okay.

Craig Scott Billings: We're not building on spec. Put it that way. So I think you've seen, hopefully you've seen, that they have created a federal regulatory body called the GCGRA in order to license and issue licenses to operators and issue regulations associated with gaming. The GCGRA's activities are ongoing, and we are aware of what they are, and we'll get all the necessary approvals in due course.

Craig Scott Billings: We're not building on spec.

Craig Scott Billings: Put it that way.

Craig Scott Billings: So I think you've seen hopefully you've seen that they have created a federal regulatory body the <unk>.

Craig Scott Billings: <unk> in order to.

Craig Scott Billings: In order to license and issue license operators and issue regulations associated with gaming.

Craig Scott Billings: The <unk> activities are ongoing and we are aware of what they are and we'll get all the necessary approvals in due course.

Robin Margaret Farley: Okay, thank you.

Speaker Change: Okay. Thank you.

Craig Scott Billings: Sure.

Operator: Thank you. Our next caller is Ben Shakin with Mizzou. You may go ahead.

Robin Margaret Farley: Thank you. Our next caller is Ben Chaiken with Mizuho you May go ahead.

Ben Shakin: Hey, just one quick one in Macau. At the Wynn Macau property, your mass hold was around 19% for the second quarter in a row after holding, you know, below normal for a long period of time. Do you think the current gaming volumes at this property are enough to have more normalized variability in hold, such as what we've seen in the last few quarters? Any color there would be great. Thanks. Sure, and then we held high subsequently.

Benjamin Nicolas Chaiken: Hey, just one quick one in Macau.

Ben Shakin: The Wynn Macau property your mass hold.

Ben Shakin: Was around 19% for the second quarter row after holding.

Ben Shakin: Below normal for a long period of time do you think the current gaming volumes at this property are enough to have more normalized variability and hold such as what we've seen the last few few quarters any color there would be great. Thanks sure and then we held high subsequent two subsequent to the end of the quarter. It really is just a function of the normal ebb and flow of the game a lot of that has.

Craig Scott Billings: Sure, and then we held high subsequent to the end of the quarter. It really is just a function of the normal ebb and flow of the game. A lot of that has to do with the volume of high-end play. And so there's really nothing; there's really not a lot to see there, and over time, all will normalize.

Craig Scott Billings: To do with the.

Craig Scott Billings: The volume of high end play.

Craig Scott Billings: And so there is really nothing theres really not a lot to see there and over time.

Craig Scott Billings: Well normalized.

Speaker Change: Thank you I appreciate it.

Speaker Change: Sure Operator, we'll take one last question on this one.

Operator: Sure. Operator, we'll take one last question up on this one.

Speaker Change: Thank you.

Operator: And that last caller comes from David Katz with Jefferies. You may go ahead, sir.

Operator: And that last caller comes from David Katz with Jefferies. You May go ahead Sir.

David Brian Katz: Thank you for taking my question.

David Brian Katz: Thank you for taking my question. Afternoon, everyone. I wanted to just touch on Las Vegas, given the commentary on what's going on in the market and given, you know, the available resources that you have. I just wonder under what circumstances you might look at, you know, developing some of the

David Brian Katz: Good afternoon, everyone.

David Brian Katz: I wanted to just touch on.

David Brian Katz: Las Vegas.

David Brian Katz: Sure.

David Brian Katz: Margaret.

David Brian Katz: Available resources.

David Brian Katz: Wonder under what circumstances.

David Brian Katz: You might look at.

David Brian Katz: Some of the.

David Brian Katz: Excess volumes.

David Brian Katz: Las Vegas.

David Brian Katz: That happens.

Speaker Change: Thank you Paul.

Craig Scott Billings: Thanks David, you were mixing and matching there a bit, but I think I got the gist of your question. I think you were addressing the development opportunities in the land that we have here. Yeah, we do. We have a very substantial land bank in Las Vegas, as you know. And, you know, the reality is that we are replete with choices now from a development perspective. We've got...

Speaker Change: Thanks, David you were chopping up there a bit but I think I got the gist of your question I think you were addressing the development opportunities in the land that we have here, yes, we do we have a very substantial land bank in Las Vegas as you know.

Craig Scott Billings: And the reality is that we are replacement choices now from a development perspective, we've got.

Craig Scott Billings: The project is going on in the UAE. By the way, we will have a land bank there as well. We're obviously looking at New York. We are considering Thailand as that process evolves. And so we have a lot of things in the pipeline at the moment that are going to meaningfully increase our impact.

Craig Scott Billings: The projects going on.

Craig Scott Billings: In the UAE by the way we will have a.

Craig Scott Billings: The land bank there as well.

Craig Scott Billings: We're obviously looking at New York, we are considering in Thailand as that process evolves and so we have a lot of things in the hopper at the moment that are going to meaningfully increase our EBITDA and our free cash flow base.

Craig Scott Billings: We are always considering particularly the adjacent land on the stress as a potential development opportunity, but we really want to see how some of these other things play out.

Craig Scott Billings: And that was the nature of my question, sort of what would have to happen for you to want to move forward with Las Vegas? Would some of these have to fall out, or just move forward in this time's ad ranks after that? I think that was just a nuance to what I was trying to get at. Thank you.

Speaker Change: Alright, and that was that was the nature of my question or sort of what would have to happen for you to want to move forward.

Craig Scott Billings: Las Vegas with some of these have to fall out.

Craig Scott Billings: Or just right after that.

Speaker Change: I think that was just a nuance to what I was trying to get out. Thank you sure yeah, yeah. So.

Craig Scott Billings: Sure. Yeah, yeah.

Craig Scott Billings: So the reality is... many things. So what happens in the macro economy? What happens to borrowing costs? What happens to the cost of bills?

Craig Scott Billings: The reality is it's.

Craig Scott Billings:

Craig Scott Billings: Many things so what happens in the macro economy, what happens to borrowing costs, what happens to the cost to build.

Craig Scott Billings: And then what are our other opportunities? How many of those opportunities can we push through our design and development team at any given point in time? So it's a, I don't know, 5D question, I guess. I don't know if you can get into the fifth dimension.

Craig Scott Billings: And then what are other opportunities how many of those opportunities can be pushed through our design and development team at any given point in time so.

Speaker Change: It's a I don't know.

Craig Scott Billings: A question I guess, if you can get into the fifth dimension, but theres a lot of.

Craig Scott Billings: There's a lot of questions there and right now we're focused on New York, We're observing Thailand and we're in the midst.

Craig Scott Billings: But there are a lot of questions there, and right now, we're focused on New York. We're observing Thailand, and we're in the midst of building in the UAE. So we like our development pipeline at the moment, and we like our future EBITDA and free cash flow profile at the moment.

Craig Scott Billings: Constructing in in the UAE, So we like our our development pipeline at the moment, we like our future EBITDA and free cash flow profile at the moment.

Speaker Change: So stay tuned.

Speaker Change: Well thank you.

Craig Scott Billings: Sure.

Craig Scott Billings: And thank you, operator. With that, we'll bring this call to a close. We thank you for your interest in the company and look forward to talking to you again next quarter. Thanks, everybody.

Speaker Change: Thank you and thank you operator with that we will bring this call to a close we thank you for your interest in the company and look forward to talking to you again next quarter. Thanks, everybody.

Operator: And thank you for participating in today's conference call. You may now disconnect.

Speaker Change: And thank you for participating on today's conference call you may now disconnect.

Operator: D.

Operator: Yeah.