Q3 2024 Las Vegas Sands Corp Earnings Call
Speaker Change: And we'll be right back with you.
Speaker Change: [music].
Good day, ladies and gentlemen, and welcome to the <unk> third quarter 2024 earnings call. At this time, all participants have been placed on a listen only mode and the floor will be opened for questions and comments. After the presentation. It is now my pleasure to turn the floor over to Mr. Daniel Briggs Senior Vice President of Investor Relations.
Speaker Change: Sir the floor is yours.
Thanks, so much joining the call today are Rob Goldstein, our chairman and CEO, Patrick Dumont, our president and CEO After Wilfred Wong Executive Vice Chairman of Sands, China in Grand Chairman, CEO, and President SaaS, China, and Edp of Las Vegas Sands Asia Operation Today's conference.
Speaker Change: Call will contain forward looking statements, we will be making those statements under the safe Harbor provision of federal Securities laws.
Speaker Change: Company's actual results may differ materially from the results reflected in these forward looking statements. In addition, we will discuss non-GAAP measures reconciliations to the most comparable GAAP financial measure are included in our press release, we have posted an earnings presentation on our website, we will refer to that presentation. During the call finally for the Q&A session.
Speaker Change: Those with interest to bleed because one question and one follow up so we might allow everyone with interest the opportunity to participate the presentation is being recorded I will now turn the call over to Rob Thanks, Dan and thanks for joining US today. The Macao market continues to grow total gaming revenue from the market grew 13% in the third quarter of 2024, when compared to the third quarter.
Speaker Change: In 2023 masking revenue grew 14% in the quarter compared to one year ago, We believe the Chinese economy will grow and flourish in the future. We remain steadfast on Macau market will grow along with it.
Speaker Change: We did the Macau market gross gaming revenues will exceed $30 billion in 2025 and growth amid the scale and quality of the assets. We are built for a second to none.
Speaker Change: Our assets positioned us to grow faster than the market as growth expand beyond the premium customer segment.
Speaker Change: Our business strategy is predicated on investing in high quality assets that also have scale. We've designed our capital investment programs to ensure that we will continue to be the market leader in the years ahead. We believe our approach will enable us to grow faster in the long term growth our share of EBITDA in the Macau market and generate industry, leading returns on invested.
Speaker Change: Capital.
Speaker Change: Turning to our results in Macau, we delivered solid EBITDA for the quarter despite material disruption at the Londoner, which peaked during the third quarter. We opened the London Grand Casino in the last week of September will also opened 300. The first 300 lender Grand suites, we will introduce more lenses sweep swept mixed three quarters totaled 1300, londoner suites and rooms.
Speaker Change: In service by lunar new year of 2025 with a full Kaufman 1500 suites at 905.
Speaker Change: Rooms in service by 2020.
Speaker Change: <unk> continues to lead the market in gaming and non gaming revenue and market share EBITDA out of it.
Speaker Change: <unk> is to capture the high value high margin tourism.
Speaker Change: Long term, we have a unique competitive advantage in terms of the scale quality and diversity of product offerings.
Speaker Change: On completion of the second phase of London in 2025, our product management more pronounced so that we.
Speaker Change: We delivered another strong quarter in Singapore, despite poor hold percentage resulted in rate base and reflect the positive impact of our capital investment program and the growth of high value CT.
Speaker Change: Along with Singapore as a destination is enhanced by the robust entertainment and lifestyle events calendar.
Speaker Change: As we complete the balance of our investment programs in the first half of 2025, there will be considerable runway for growth. Thank you for joining us, let me turnover, Patrick but what Youre Q&A. Thanks, Rob.
Speaker Change: Macau EBITDA was $585 million, if we had held as expected in our rolling program, our EBITDA would have been higher by $2 million.
Speaker Change: When adjusted for lower than expected hold in the Rolling segment, our EBITA margin from Macau portfolio of properties.
Speaker Change: The lender would have been 35, 1% or down 110 basis points compared to the third quarter of 2023.
Speaker Change: Our margin at the London were directly impacted by the disruption of the London Grand renovation.
Speaker Change: We closed the casino and had around 2500 keys out of inventory during the quarter.
Speaker Change: March activation was 38, 6% and we expect margin improvement as the Venetian Cotai Arena comes back online in November and as visitation to the market and growth in unrated play both increase in the future.
Speaker Change: March at the Plaza four seasons was 39, 7% for them.
Speaker Change: As Rob mentioned, we continue to progress our budget our Grand renovation program.
Speaker Change: As these products come online our competitive position will be stronger than ever.
Speaker Change: We expect meaningful EBITDA growth and margin expansion in the future.
Speaker Change: Turning to Singapore, Mbs's EBITA came in at $406 million.
Speaker Change: Excuse me expected hold our rolling play our EBITDA would've been approximately $78 million higher.
Speaker Change: The strong financial results reflect the impact of high quality, tourism investment and market, leading product and growth in high value tourism overall.
Had we held as expected our rolling place segment MBS EBITA margin would have been 47, 5%.
Speaker Change: Percent 40 basis points higher than that of the third quarter of 2023.
Speaker Change: While we have made substantial progress on our 175 billion refurbishment program in Mds, we are still in the initial stages of realizing the benefits of these products, including.
Speaker Change: Including from our tower gaming offering which opened in September.
Speaker Change: The next phase of our capital investment program at Marina Bay Sands is scheduled to be completed during the second quarter of 2025. This will support further growth in 2025 and beyond.
Speaker Change: Also please note on page 44 of our earnings presentation. We have provided estimated cost problem renovate SaaS Iot projects.
Speaker Change: We couldnt be more enthusiastic about investing in the long term growth of high value leisure and business tourism in Singapore.
Speaker Change: The original concept was in effect, an expansion of Marina Bay Sands, including an arena.
Speaker Change: Our new program creates a full scale integrated resort development with a full suite of amenities, including gaming capacity.
Speaker Change: We look forward to discussing that long term growth driver for the Q&A session.
Speaker Change: Turning to our program to return capital to shareholders, we repurchased $450 million of Lvs stock during the quarter and our board increased our repurchase authorization to $2 billion for future repurchases.
Speaker Change: We paid our recurring quarterly dividend of <unk> 20 per share in the quarter.
Speaker Change: In addition, our board increased our annual dividend to $1 per share or 25 cents per quarter for the 2025 calendar year.
Speaker Change: We really look forward to continuing to utilize the company's capital return program to increase returns to shareholders in the future. Thank.
Speaker Change: Thanks again for joining the call today now, let's take some questions.
Speaker Change: Thank you the floor is now open for questions if you'd like to enter the queue to ask a question. Please press star one on your phone at this time, we ask that while posing your question. Please pickup your handset if loosening on speaker phone to provide optimal sound quality.
Speaker Change: So we ask each participant to limit yourself to one question and one follow up please hold while we poll for questions.
Speaker Change: Our first question comes from Joe Greff with Jpmorgan. Please proceed.
Joe Greff: Good afternoon, guys and congratulations on the results.
Joe Greff: One question two part related to Macao.
Joe Greff: In the three Q, if we look at Contra gaming revenues as a percentage of gross gaming revenues.
Joe Greff: That percentage went down almost 200 basis points.
Joe Greff: How much of that is you're managing the business differently.
Joe Greff: <unk>.
Joe Greff: Offering promotions differently than before how much of that is just the market level of promotional activity is down how much of that relates to mixed between base mass and premium mass and then I have a follow up.
Speaker Change: So Joe it's a great question and I think it's something we've been focused on for a long time. If you if you realize what happened in the quarter and the quarter before that actually in the first quarter, we've been impacted by disruption.
And so we haven't really been able to manage our business.
Speaker Change: With all of our <unk>.
Speaker Change: All of our capabilities and so what we've been doing now that things have been coming online we've been focusing on manage the business for the future. We can look to become more efficient.
Speaker Change: So we'll look to improve our margins from managing the business more closely and what Youre seeing is a direct result of that.
Speaker Change: One thing that did impact our margins this quarter. They would have looked better was the fact that we took so many rooms out of inventory.
We already have our let's call it our margin change.
Speaker Change: And decline was related to the fact that that's a very high margin business and we said we didn't have it because the room's worth there. So I think what youre seeing at the beginning of the cost discipline and the pricing power because of the assets we've invested in slowly coming into place.
Speaker Change: It's a good signal for the future and the way that we're going to manage the business with discipline I would like to turn it over to Brad for any additional comments.
Brad: Yeah, Thanks, Patrick I think Joe.
Speaker Change: It's more of that.
Brad: Last quarter, I think we mentioned that as we.
Speaker Change: We're preparing for the full closure.
Speaker Change: The old Pacifica casino.
Speaker Change: We did we did deploy some tactical measures to manage the transition of customers.
To the other properties.
Speaker Change: And we did that very carefully.
During the second quarter.
Speaker Change: But for the third quarter, where we're really back to our core strategy, which is we compete on the basis.
Speaker Change: Alex.
Speaker Change: And the content that we bring.
Speaker Change: Despite the fact that obviously third quarter disruption actually increase.
Speaker Change: Patrick referenced with many more rooms out of inventory.
Speaker Change: We stick to our core strategy and we had a very strong quarter in how we managed customer reinvestments.
Speaker Change: And still maintain market share relative to the second quarter.
Speaker Change: Rising disruption during the quarter and.
Speaker Change: Despite the fact that the base mass did not recover as strongly as the <unk>.
Speaker Change: Seven months normally within.
Speaker Change: Would indicate.
Overall, it was a very strong margin performance.
Speaker Change: Obviously, we're very pleased that we managed to actually grow EBIT down sequentially.
Speaker Change: Despite the fact that the market is down marginally.
Speaker Change: Again second quarter.
Speaker Change: Thank you.
Speaker Change: My follow up question related to Macao.
Speaker Change: Obviously Golden week was pretty strong October.
Speaker Change: For the most part has been better than expected.
Speaker Change: Can you talk about what you think the drivers of that that better than expected performance I'm, assuming that probably better than expected.
Speaker Change: Are you guys as well, but how much of that is driven by the increases in equity prices locally how much of that is.
Speaker Change: Seasonally strong events like Golden week, or new year's typically see a step change it a little bit stronger than maybe typical seasonality or any kind of comments about.
Speaker Change: The typical Macau consumers behaving since.
Speaker Change: Since the quarter ended given all these generally more encouraging but not trends thus far in October. Thank you.
Speaker Change: Okay.
Speaker Change: Yes, Joe I think we're not going to talk too much about the current quarter, just because we have a policy of not doing that.
Speaker Change: But I think Directionally, we're very pleased about the quality of people, we are coming into our buildings, both the Macau added Singapore.
Speaker Change: I think that there is some there's some real opportunity going forward as our new product comes online and people continue to spend on our buildings and I think even with the disruption that youre seeing.
Speaker Change: Youre finding that to consumer high frequent high value tourist is coming to our properties and recognizing that there is a great experience to be had there entertainment definitely plays a big part of that entertainment has been super important for us in both markets and we continue to look to schedule entertainment and take advantage of entertainment as a person to markets, even if its not scheduled biopsy.
Thank you.
Speaker Change: Okay. The next question comes from Stephen Grambling with Morgan Stanley. Please proceed.
Hey, Thank you maybe turning to Marina Bay Sands, it's been hovering from an EBITDA standpoint around 450 to 500 million for the past couple of quarters can you just remind us of the cadence of disruption to some of the work going on that suites and how that might.
Speaker Change: Beside them and build into next year.
Speaker Change: Sure. So just to give you a sense during the quarter, we had about 600 rooms available.
Speaker Change: Versus about 2100 rooms available last year, so there is pretty substantial.
Speaker Change: Disruption going on just from a room count standpoint, we also have some some casino floor work going on which is disruptive.
Speaker Change: We did just open up.
Speaker Change: Some initial salon capacity there.
Speaker Change: So I think by the end of September we should have about 27 newly renovated salons. So there's just there's a lot of stuff happening I think we did tower one tower too we did what we call. Our <unk> area. We interest introduced Sky gaming, which is something that we've ever had before which was actually granted us as part of the development agreement for IL two.
Readout, some dining and updated some retail I think the biggest disruption is really tower three that's ongoing and hopefully by the end of the quarter will add another 150 rooms, we'll see how that goes.
Speaker Change: But our biggest disruption right now is we have a.
Speaker Change: One of our casino floor areas is kind of mid flight and so that's that's just dropped a little bit of a casino operation.
Speaker Change: But I would say that by middle of next year, hopefully, we're going to stop talking about disruption I think my dream not talking about disruption at this point.
Speaker Change: I think.
Speaker Change: Sports play many of 25, both lender and Singapore pretty much clear ceiling re is not telling you meld rooms during the day or disruption of difficulty when it comes to the.
Speaker Change: No more excuses will so it seems I think stellar results do reflect the end of June.
Speaker Change: Assumptions at the beginning.
Speaker Change: Our money both in Singapore, and Macao I think Singapore is it's going to it's amazing that was done in spite of this London return that please I can't wait to see it as simply.
Speaker Change: As you look who is very very exciting.
Speaker Change: I would like to just point out if you look at our earnings deck, you can see some of the results of our innovation on page 40 page 41, you can kind of see the quality of work there I'd like to give a big shout out to our design team. We've never really produced anything like this in our company's history. Our customers are taking notice you can see that by the high quality of customer we have coming in the ADR that we have the demand we have.
Speaker Change: The reviews, we have for these rooms and customer feedback very proud of what we got in Marina Bay Sands and if this is what we're able to do with this level of disruption. We're very excited about the future of the trajectory of the business.
Speaker Change: It's really amazing how strong the market is how quality of our party about tourists coming into Singapore, and the fact that they are really interested in coming to Marina Bay Sands.
Speaker Change: I think the investment has been very positive and we're very happy about it but unfortunately, we're still talking about disruption.
Speaker Change: Okay.
Speaker Change: And maybe as a follow up just on Marina Bay Sands.
Speaker Change: Realizing that you put out the number the updated numbers in terms of capital spend on IR too I guess, that's the scope changed at all are there any updated thoughts on how you think about the returns on that project potentially versus other projects realizing that youll youll probably get into this.
Later this year and next.
Speaker Change: Well, obviously the biggest change.
Speaker Change: Is it full casino amenities is built no longer just the hotel supporting higher one.
Speaker Change: So thats obviously the biggest change is that and I think youll see from the designing this laser focus on the premium mass segment.
Speaker Change: Read that as a market that has grown to about $6 $1 billion of GTR, probably in 'twenty. We believe we can easily get to one.
Speaker Change: At quarter end. So this project reflects a lot of capital being directed at a very very strong customer segment and the <unk>.
Speaker Change: Unique asset.
Speaker Change: Weak market is stellar.
Speaker Change: <unk> unique to us.
Barriers to entry there is a proven market yes. The customer is we've been there for 14 years.
Speaker Change: We feel very very confident that these results are going to be terrific.
Speaker Change: I told you before we expect higher one to get to $2 5 billion and we have this new building can make in excess of $1 billion on top of that so we're very confident that we've built the right thing the market and it's unique.
Speaker Change: The location best these our business do you have a.
Speaker Change: Tested market you know the competition until the government infrastructure.
Speaker Change: So the biggest single change obviously as a full blown casino as opposed to just the hotel.
Speaker Change: Makes sense that's it for me look forward to seeing it.
Speaker Change: November.
Speaker Change: Up next we have Robin Farley with UBS. Please proceed.
Robin Farley: Great. Thanks.
Robin Farley: Last week and investors have been about pressure on luxury spend from the Chinese consumer I Wonder if you could talk about what you might be seeing there and how much do you think.
Robin Farley: How much overlap is not with your premium.
Robin Farley: Humor.
Robin Farley: Robin.
Robin Farley: Talking about debt perspective, I think we're I think everyone should be impressed the resilience of Macao, we all know what's happening in China and remain very confident.
Robin Farley: Let's turn to a stronger place in the near future, but the fact is macallister bluntly showing growth.
Robin Farley: Strong growth I think despite the economic environment, there hopefully we will see more.
Robin Farley: Insight and governance perspective on the economy in the near future, but unlike retail you're right has struggled and restocking as well as our top end retail retail in general and leases. There's no disputing the LP base numbers. These smart numbers carrying numbers, but it has not been a similar path for gaming in Macau Macau is showing growth.
Robin Farley: Double digit growth in the quarter.
Robin Farley: It's very very exciting. If this continues I think it will I think will exceed 30 plus billion dollars next year.
Robin Farley: During the day when the base mass returns and so our current assets speak very well to the I mean, the London or completion and depletion will be talking to each other and I think it creates to post impressive assets in the market by far making billions of dollars in future for us, but the real kicker comes when the basement as does return because as you know our assets.
Robin Farley: <unk> are built for scale.
Robin Farley: Huge throughput I think when that happens the world turns very very Sunday for us, but in the interim unlike retail unlike other consumer spending.
Robin Farley: Businesses Macau is proving very resilient very powerful and we're grateful for it and you saw the numbers coming out of the market numbers for October.
Robin Farley: Good for the industry, but we saw the first two weeks of October itself.
Robin Farley: It's a very positive story relative to other businesses operating in Brazil and China.
Speaker Change: Great. That's really helpful. Thank you and maybe just one quick follow up is with some of the stimulus that was announced a few weeks ago does that change your.
Speaker Change: Expectation for timing of recovery in the base mass or in other words.
Speaker Change: Should investors, maybe look to see that show up if you in fact, if you think that's Sean thanks.
Speaker Change: I think as.
Speaker Change: I was in Beijing, two weeks ago, and I think at first was very well received by everyone to see.
Speaker Change: Stepping into these wonderful and hopefully continues but I think it's too early to predict where and when and how and how quickly again I think it was great to see that.
Before the stimulus Macau continues to show strong growth.
Speaker Change: Our product offerings.
Speaker Change: That when this English shows up how it impacts the customer hopefully will be soon later until the deal all segments, but I think time will tell we have I don't think we have the insights grant that will produce feel differently about that.
Speaker Change: Yeah, Rob I think.
Speaker Change: But the main point here.
Speaker Change: Wish you referenced just now is that.
Speaker Change: Macau GTR remains very resilient.
Speaker Change: For any of.
Speaker Change: The stimulus measures.
Speaker Change: Have the chance to take impact.
Speaker Change: And I think that's that's very clear in the premium segment.
Speaker Change: I think any economic tailwind.
Speaker Change: We get at the market.
Speaker Change: From the stimulus measures over time.
Speaker Change: Obviously will help the other segments in particular, I think base mass in retail.
Speaker Change: Which are two very important segments for us. So overall, we should acknowledge.
Speaker Change: Macau GTR Macau gaming is a very big outperformer.
Speaker Change: In the whole consumer universe in the region right now.
Speaker Change: And that is powered by the premium segment, where we are.
Speaker Change: Well price.
Speaker Change: With the great products that we're bringing online.
But of course as is.
Speaker Change: As the economy gets better.
Speaker Change: Some of these measures have positive impact over time.
Speaker Change: We obviously expect the other segments, which are most important to us.
Speaker Change: We'll follow through.
Speaker Change: And give us give us a further boost to.
Speaker Change: What these assets can actually.
Speaker Change: Into 2025 and beyond.
Speaker Change: Okay, great. Thank you very much.
Speaker Change: Okay.
Speaker Change: Couple of points. The first thing is that the.
Speaker Change: Economic stimulus measures.
Speaker Change: Introduced by China are still unfolding.
Speaker Change: But the directional development is welcoming.
Speaker Change: We have confidence in the Chinese mainland economic future and would continue to investigate the cause future set.
Speaker Change: <unk> point is that in 2020 full Macau has been rated by the Chinese tourists as the most desired destination.
Speaker Change: The Chinese.
Speaker Change: Market so.
Speaker Change: We see that Mackay will stand to benefit once economic activities.
Speaker Change: Returned to normal.
Speaker Change: Well thank you.
Okay.
Speaker Change: Yes.
Speaker Change: The next question comes from Shaun Kelly with Bank of America. Your line is live.
Shaun Kelly: Hi, good afternoon, everyone. Thanks for taking my questions I.
Shaun Kelly: Wanted to go back to <unk> to start thank you for the additional just numbers and disclosure there.
Speaker Change: Robert or whoever is right obviously the increase in the casino scope and capacity and what's always been a supply constrained market is pretty interesting any.
Speaker Change: Any details you can provide there in terms of how much.
Speaker Change: Any positions or what form some of the gaming expansion may take or imagine if its too early when might we look forward to hearing some additional details like that.
Speaker Change: We're going to publish the final details over the next coming months, but the idea is that it has casino gaming in the podium and Sky gating Scott gaming in the tower look our goal with this tower to make it something very different this is going to be the most important gaming and hospitality building in the world.
Speaker Change: It's going to be the best hotel in the World Thats, our goal to best service. The best experience. The best F&B. Our goal is to create something that is really extraordinary and helps address the Singapore market, which we know quite well now and has been consuming some of our highest end products.
Over the last 14 years and so we're very aware of the market segments that we're addressing.
Speaker Change: So we feel like this is a project that will be very accretive to our overall portfolio and create substantial.
Speaker Change: Value to us in the long term.
Speaker Change: What I can tell you is that it's a very robust program. So it will have.
Speaker Change: Great food and beverage grade other amenities.
Speaker Change: Our public access component that will have a sky park as you can see its own version of the Sky Park.
Speaker Change: My space, so theres going to be a very important.
Speaker Change: Globally significant asset for tourism, but it's going to be very specific to <unk>.
Speaker Change: High end segment that we're dealing with today and so hence the hence the investment.
Speaker Change: Great. Thanks, Patrick and then as my follow up if I could just turn to Macao, obviously, it was encouraging to see a bit of the market wide recovery and visitation and I was just wondering if somebody could provide a little bit more color on how sort of visitation played out through the quarter I think as we look back second quarter things were.
Speaker Change: And it kind of a little soft relative to kind of where we sit in 2019 clearly sequentially that improves. So just what was behavior like things improved and what were you seeing from sort of the customer patterns on the litigation front. Thank you.
Speaker Change: Ranjan.
Speaker Change: I'll take that yeah. Thanks for the question Sean.
Speaker Change: As you rightly pointed out visitation improved.
Speaker Change: In terms of the recovery rate in third quarter.
Speaker Change: Relative to the second quarter, So we're up to about 93% recovery versus 2019 third quarter.
Speaker Change: And actually August Dennis.
Speaker Change: Patients exceeded.
Speaker Change: 2019 levels.
Speaker Change: This quarter it was primarily especially when you look at it year on year basis, primarily driven by a day trip visitor increase.
Speaker Change: And partly as a result that partly I think as a general macro conditions.
Didn't translate as much as you would've expected.
Speaker Change: So the actual spending.
The base mass retail.
Speaker Change: So what we saw in the third quarter is actually a continuation of the strength in the premium segments.
Speaker Change: <unk> had better visitations, yes, but that didn't necessarily translate.
Speaker Change: And to the into the base mass business healthy.
Speaker Change: The retail business to any great extent.
Speaker Change: But it's encouraging to see the interests.
Speaker Change: Desirability.
Speaker Change: Consumers come to Macau.
Speaker Change: Clearly the Sheraton Ts being 2400 fewer rooms available buses to price some of them didn't help hospitals. So frankly, it didn't help the market as a whole because thats a very large amount of inventory to be out of the market. So over nice as it is.
Speaker Change: That obviously.
That segment and overnight visitors typically spend multiple times, a day trip and spend.
Speaker Change: But like I think Wilfred mentioned Macau remains very desirable.
Speaker Change: Tourist destination for the region.
Speaker Change: And I think it's encouraging to see that come through.
Speaker Change: Shifting to volume of visitations for the quarter.
Speaker Change: Thank you everyone.
Speaker Change: Thank you Shannon and thanks, Sean.
Speaker Change: The next question comes from Carlos Santarelli with Deutsche Bank. Please proceed.
Carlos Santarelli: Hey, guys basically just one question, but maybe two parts to it.
Carlos Santarelli: Don't know if Greg wants to take this but just thinking about the cadence of rooms coming back online in Macau relative from where we are today.
What the the total room count will be acknowledging some regular room's got compressed suites come Golden week of next year, and then kind of buckets.
The rooms out of service and thinking about the impact they've had on a good slide that you guys have in your deck that kind of shows EBITDA share in 2019 of about 34% and that trending at roughly 30% kind of this year, how much of that 400 basis point Delta do you think returns with the with <unk>.
Carlos Santarelli: Our rooms coming back online.
Speaker Change: Sure go ahead.
Speaker Change: Yes, please yes.
Speaker Change: Yes, I think on the construction.
Speaker Change: The delivery of the new rooms, I mean first of all I think that the team has done a fantastic job.
Speaker Change: Delivering the assets back.
Speaker Change: The way they have by the end of September.
Speaker Change: We opened a new casino Londoner Grand casino as well as to get licensed for 300, the first 300 suites.
Speaker Change: In the Grand.
Speaker Change: It's important to understand that in the fourth quarter, we actually go down.
Speaker Change: Total number of keys available during the quarter.
Speaker Change: This third quarter, because we will be losing the rest of the Sheraton rooms, and we will be staying in terms of licensed new suites. At this 300 gummed up for pretty much the whole quota so real Ashley.
Speaker Change: But in terms of key count by about 6% to 700 rooms in the fourth quarter relative to the third quarter.
So it's really only until January.
Speaker Change: That we start to get.
Speaker Change: Significant uplift in the critical mass of new suites.
Speaker Change: And we hope to be above 1000 suites by by January behind these by Chinese new year in January.
Speaker Change: And then it just ramps up from there until May.
Speaker Change: Middle of the second quarter to the full inventory of 2004 hundred keys.
Speaker Change: Dan will be back up to.
Speaker Change: To open 10000.
Speaker Change: 600 keys.
Speaker Change: Or just under 11000 pounds.
Speaker Change: By the second quarter.
Speaker Change: Obviously the room.
Inventory being out by so much does impact.
Speaker Change: EBITDA and EBITDA sure.
And to your question on the.
Speaker Change: On the prospect for the.
Speaker Change: EBITDA share recovery.
Speaker Change: I think we're very confident that in London, the Grand and the whole Londoner Macao will deliver.
Speaker Change: As as we rollout the.
Speaker Change: What is really I think Paul.
Speaker Change: No.
Speaker Change: At unprecedented scale.
Speaker Change: In Macau will be 4400 <unk>.
Speaker Change: Suites hotel.
About 60%.
Speaker Change: The key is being suites.
Speaker Change: There's really no building like it in our industry in terms of.
Speaker Change: That scale of quality.
Speaker Change: And the offerings that has between the F&B.
Speaker Change: Inside the actual building.
Speaker Change: So we're very positive about how.
How this will help to drive.
Speaker Change: All EBITDA and ultimately.
Speaker Change: That's EBITDA.
Speaker Change: As as it ramps up.
Speaker Change: 25 unfolds and hopefully with some of these towers that we just referenced.
Speaker Change: Cool.
Speaker Change: Yeah, we are very excited about how this asset will deliver for us.
Speaker Change: <unk> point between the nation in London in Macao, I think you've got two amazing.
Speaker Change: Assets.
Speaker Change: That's really going to deliver for us, but also deliver for our customers.
I appreciate that thank you.
Speaker Change: The next question comes from a rent mature with Barclays. Please proceed.
Speaker Change: Hey, good evening afternoon, everybody.
Speaker Change: First question on Singapore.
Speaker Change: ADR reported revpar, but ADR, specifically of $900 was staggering.
Speaker Change: Curious I know there was a lot of rooms out with sort of the trough. It seems like in terms of rooms out of service.
Speaker Change: Look at that ADR.
Speaker Change: Got to figure out.
Is there compression happening in that ADR, because their rooms out or is that number sort of illustrative of the quality and the sort of higher level product that that youre coming out with.
Speaker Change: For that asset.
Speaker Change: The answer is yes. So the first thing is you can see the pictures hopefully you had a chance to actually see the rooms diverse in the rooms are extraordinary the design is fantastic. The service levels are incredible and we get that feedback from our customers and so the ADR is a direct result.
Speaker Change: The market's view of the quality of the rooms after the renovation and hopefully the entire building will be like that by the middle of next year. We're very proud about it we've made a lot of strides we've.
We've done a lot of work the team there has been phenomenal.
Speaker Change: And our goal to make that the number one hotel in Asia in the World and so we're working towards that they're doing a lot of benchmarking work and trying to figure out how to get there which is unusual for a property of this size I think actually one of the things that will help grow that ADR. Further is when <unk> is open and we have an arena.
Speaker Change: That arena is going to be an incredibly powerful tourism driver for the overall complex, having a 15000 seat live performance venue with great technology, great viewing lines and a great experience is going to be very unique things and so the ability to schedule that asset to program. It will drive a lot of visitation not only to Singapore bus Marina Bay Sands that will help us drive ADR further.
Speaker Change: So we feel very strongly that ADR is a reflection of some compression very fair, we took rooms out of out of our keys out of the building, but more importantly, it's really something that points to the quality and the service levels of this newly renovated building and we think it will grow over time as more amenities, we're putting around it.
Speaker Change: Seems to be fair there was I don't think crushers that big a deal in every market. There is extraordinary product people have spent gamers and <unk>. This.
Speaker Change: This is that product what's happening with <unk> just compression sure a few more or less rooms out to you, but I believe demand is going to continue to soar once they experience the product. There's just nothing like it anywhere in terms of the room quality food and beverage products I think about this hotel the architecture public spaces is the place people on it.
Speaker Change: Day two.
Speaker Change: <unk> 3000, 5000 keys, you could sell more easily prices will tend to grow I think its worth.
Speaker Change: A testament to the quality of product and.
Speaker Change: Strong leisure demand in gaming Dominion in the market and you're just going to get better and better because Singapore is that desirable infrastructure government accessibility. It's a very special place. So we built the building is going to be for many years ahead, most desirable place for headwinds that.
Speaker Change: So ratio does go up and up and gaming capacity.
Speaker Change: Obviously grow more gaming demand, but it's a very different place than anything else in Singapore.
Speaker Change: Okay. Thank you for that that's helpful. And then a question on Macau.
Speaker Change: On the arena.
Speaker Change: We don't talk about the arena as much as we hear about the casino floor and the Londoner suites and I wanted to hear.
Speaker Change: Your level of excitement about about that.
Speaker Change: Arena renovation and specifically when we think about 25 is there.
Our calendar associated with that where we would expect periods, where you can look out now and say, okay. Well this quarter this quarter has.
Speaker Change: A great slate of events, where it'll be a needle mover or if theres, a lag associated with sort of getting at.
Speaker Change: Up to the place that you would want it to be.
Speaker Change: So the great thing about entertainment in Macau is that it's a very important part of our premium mass business.
Speaker Change: And we use it and we have used successfully to drive premium mass visitation and we have programs that help sort of leverage that asset it is.
Speaker Change: <unk> been very successful for us all over Asia in terms of scheduling live entertainment.
Speaker Change: But.
Speaker Change: The venue there is really incredible one.
Speaker Change: Great visionary removed by Sheldon early on to build out arena and the updating is going to make it more powerful and so I think we're very excited about the types of programs that we can run using it and there will be a schedule and it will be within our control and it will allow us to.
Speaker Change: To create more visitation.
Speaker Change: Better spend at the Venetian and the rest of the property portfolio.
Speaker Change: Grant well for I don't know if you have any additional comments you'd like to add.
Speaker Change: Yeah, I think we we have referenced that in the deck, but we are progressing very well on the construction the upgrade for the Phoenician Arena and it will re launch.
Speaker Change: Actually towards the end of November into December and we already have.
Speaker Change: Events lined up.
Speaker Change: In terms of entertainment or sports.
Speaker Change: So that would that would get start getting.
Speaker Change: Having some traction actually even at the end of this year.
Speaker Change: But we also should note that Patrick referenced on the entertainment offer in general.
Speaker Change: With the Londoner arena with the 6000 seat London Arena, we have been programming very actively.
Speaker Change: Even sharing.
Speaker Change: The downtime off definition arena, especially I should say.
Speaker Change: And we did around 17 shows the London Arena during third quarter.
Many of these shows actually.
Speaker Change: Help us.
Speaker Change: And driving the traffic.
Speaker Change: Spend so.
Speaker Change: We're very excited to have the Venetian arena.
Speaker Change: For the upgraded I think it's gonna be grateful entertainment sports mice events.
Speaker Change: So it's really.
Speaker Change: Having multiple segments.
Speaker Change: And boosting the diversification.
Speaker Change: I'll try.
Speaker Change: Tao.
Speaker Change: I think with a great setup that VIP boxes.
Speaker Change: The backstage the locker rooms.
Speaker Change: And obviously the state of the art technology.
Speaker Change: It's going to be basically like a new arena.
Speaker Change: So we are very excited about that.
Speaker Change: But another point to note is we will be programming both arenas.
Speaker Change: And sometimes it will be shows concurrently in both venues on both sides of the strip.
Speaker Change: So we're excited to see how that could help our business too so.
Speaker Change: Yes.
Speaker Change: You will continuously see us.
Hum.
Speaker Change: Okay, So a new events in the calendar.
Speaker Change: I D.
Speaker Change: Three three events selling selling tickets now towards the end of.
Speaker Change: Oh for the quarter.
Speaker Change: And we are looking for what to do some announcements on.
Speaker Change: On that some more major events.
Speaker Change: Before before the end of the year as well.
Great. Thanks, everyone.
Speaker Change: Yeah.
Speaker Change: The next question comes from Dan Pulitzer with Wells Fargo. Please proceed.
Dan Pulitzer: Hey, Good afternoon, everyone first question on Singapore on IR to can.
Dan Pulitzer: Can you talk a bit about the regulatory landscape and outlook.
Dan Pulitzer: Remind us maybe in terms of when the licensing goes through as it currently stands and I assume you expect this to remain a duopoly market or maybe even better but is there any expectation for how you think about gaming tax rates as you underwrite the returns on this building.
Speaker Change: Yeah, So I think for us already modeled this is that we have.
Speaker Change: We basically have a moratorium on the changes in gaming tax.
Until the early 2000, <unk> and I think for US I think we view this investment with a very long term thing and we'd like to believe that we will continue to add value to Singapore and that will continue to be a good partner to the government.
And accomplish the goals and tourism that are necessary. So I think from that standpoint, we feel like it's a very stable operating environment.
Speaker Change: It's a wonderful place to deploy capital that has been a wonderful place quite capital we feel as Rob referenced earlier is that there is a stability there and a very strong trajectory forward for us. So I think as we look at underwriting. This is a very long dated investment it doesn't open for six years, I, hopefully sooner, but we'll see.
Speaker Change: Obviously pending government approval.
Speaker Change: Along with the final approvals that we need to begin with.
By the summer of next year, but we think about this as a very long term thing and we feel very excited about what we can build their gaming.
Speaker Change: Gaming is a nice add but theres also a lot of things are going to drive tourism. There it would be very very beneficial to us as well.
Speaker Change: Arena like the hospitality like the food and beverage to enhance the overall appeal of the entire complex. So I think for US look at this in a very long term way, we feel like it was a very high barriers to entry there.
Speaker Change: I think right now it seems like the.
The feeling is that we're it's a duopoly market for the foreseeable future, we certainly hope it stays that way.
Speaker Change: But from our standpoint afford us the opportunity to invest in scale and that's what we're doing.
Speaker Change: Got it and then just turning to Macau.
<unk>, obviously came down quarter over quarter, I mean, as we think about getting back to those mid to high 30% type margins in Macau.
Speaker Change: Is this really a function of recapturing share seeing more of the visit visitation come back or at least kind of gaming gaming oriented visitation or is this really kind of you need the market to grow to get back to those levels.
Speaker Change: Well I think the first thing is.
Speaker Change: For us to get to.
Speaker Change: To get to the high thirties forties margin, we need revenue growth.
Speaker Change: Need all of the segments to return right now some of our segments have not returned particularly the base mass segment to where they were pre pandemic and we're built for that our investment is one for scale, but we have the ability to service the premium mass segment very well the londoner is an incredible product.
Speaker Change: The rest of our portfolio is incredible products as well.
Speaker Change: If you look at the scale and the amenities that we have everything from food and beverage to the bus terminals to the Grand the Grand entry ways to the CMA were very much able to accommodate leisure tourists and so for us.
Speaker Change: That that.
Missing visitation, if you will from 2019 and also <unk>.
Speaker Change: The base mass play is impactful to us so the way the way, we would get to the higher margins as the revenue growth that being said I have to add it to the team. There that has been wonderful in terms of cost discipline and being disciplined in the way that they they spend money to ensure that we maintain our margins up against the current revenue that we have.
Speaker Change: But I think as we look forward our investments will ultimately drive higher value visitation.
Speaker Change: In the long run and we firmly believe that we see that historically and we've experienced in other markets and in this market, particularly when we do high value renovations, so I think for us.
Speaker Change: As visitation continues to improve.
Speaker Change: Hopefully at.
At the base mass market continues to improve and as we continue to get our premium mass segment assets back online youll start to see a normalization of revenue and then a normalization of margins.
Speaker Change: Grant do you have any additional comments.
Grant: I think you covered it great. Thanks.
Speaker Change: Got it thanks, so much.
Speaker Change: Yeah.
Speaker Change: Okay.
Speaker Change: Hello.
Speaker Change: Operator, do we have any additional questions.
Speaker Change: Yes. The next question is from Chad Beynon with Macquarie. Please proceed.
Chad Beynon: Afternoon, Thanks for taking my question.
<unk> been asked a lot about Macau, but I'm going to add one more to the stack here. So.
Speaker Change: Honestly, you and the other Concessionaires went through the whole re tendering process two years ago.
Speaker Change: <unk> gone through the checklist of items, including your industry, leading employment and other other items, but with the new chief executive coming into his position in Macau.
Speaker Change: And I believe a month or so is there anything that we should expect in terms of market focus concessionaire focus or is it kind of business as usual as they transition.
Speaker Change: Through that thanks.
Speaker Change: Let me say everybody is very focused on making sure we're doing our job with government and adhering to the things we have to do.
<unk>, new Chief Exec will change that but we will stay focused to listen very carefully to make sure that our part we always do that historically in Macau.
Speaker Change: And we've always the leading company as far as investing account during the accounting principle I don't expect to see radical change at all I think it's been business as usual for most part.
Speaker Change: Opinion on that.
Yes, I think.
Speaker Change: <unk> concession commitment.
Speaker Change: Max out our long term development focus.
Speaker Change: No.
Speaker Change: All six of us have talked.
Speaker Change: Very carefully and comprehensively, what we want to do.
Under the guidance of the Macau government and I think the change of that.
Speaker Change: At the at the top.
Speaker Change: We will not.
Speaker Change: Material changes to the direction of change.
Because.
Speaker Change: What has been emphasized so far is that Macau really aims to diversify we should invest in non gaming I think these directions will remain.
Speaker Change: We just view that as Rob pointed out.
Speaker Change: As long as we.
Speaker Change: Conduct our business as usual.
Speaker Change: Listen very carefully to what the government has to say.
Speaker Change: Depending on what happens in the next few years.
Speaker Change: We should be able to continue to operate favorably in Macau.
Speaker Change: Okay. That's helpful. Thank you for that and then separately one of your global competitors was recently granted a license in the middle East They presented some pretty favorable investment returns to investors in the past couple of weeks.
Speaker Change: Also mentioned that they expect competition in that region from others. So is this a region that you continue to study or are there reasons why this would be a pencils down.
Speaker Change: <unk> opportunity as you think about it thanks.
Speaker Change: I think we're always looking at new investment opportunities for Las Vegas Sands, I think it's a market that will continue to study and look at and we'll see how it goes.
Okay. Thanks, Patrick.
Speaker Change: The next question comes from Vitaly <unk> with Seaport. Please proceed.
Speaker Change: Yes.
Speaker Change: Hey, guys talking about.
Speaker Change: Okay.
Speaker Change: The first one first one for Patrick.
Speaker Change: When we look at Sands, China, and kind of cash flows coming in.
Speaker Change: How are you guys thinking about distribution of that cash going forward. Obviously, there's this future capex requirements under under the.
Speaker Change: The tendering process Theres nothing.
Speaker Change: I'm interested if you could take place, but theres also.
Speaker Change: Nope, that's still outstanding between Lvs and Sands China.
Speaker Change: Also I think investors looking at Sands, China, I'm thinking about China trying to get back to being a higher dividend paying stock.
Speaker Change: What used to be in the past.
Speaker Change: So maybe for Sands, China, how are you thinking about capital outflows and then.
I think four lbs as a whole.
Speaker Change: With the announcement in kind of the Capex lay out now for Marina Bay Sands, how are you thinking about number one financing for MBS, all things too and also what does that mean for return of capital to invest.
Speaker Change: Investors of RBS and then maybe the second question is around.
Speaker Change: Thank you Wayne.
Speaker Change: Oh.
Speaker Change: Sorry, guys.
Speaker Change: Keep going.
Speaker Change: Youre going to keep going.
Speaker Change: Yeah, just that questions around New York, what your current thinking and thought processes around.
Speaker Change: The New York license to process.
Yeah.
Speaker Change: So.
Speaker Change: Really appreciate the questions a couple of thoughts so first off in terms of CLO.
Speaker Change: I think <unk> is performing incredibly well given the disruptions there and I think we'd like to believe that EBITDA will grow meaningfully over time.
As well as what our cash flow and so.
Speaker Change: In years past part of the pandemic SCO was very shareholder friendly in terms of dividends and as you can see that lvs is actually buying <unk> stock.
Speaker Change: We Canada market, because we have a lot of conviction about the value of SCL equity as well as Lvs equity as you can see by the buybacks that the lvs level as well.
Speaker Change: As we think about SCO were very hopeful that it will be a dividend payer in the upcoming year.
Speaker Change: Think that Thats, a possibility and we'd like to believe that it's going to occur, but again, it's up to the board there.
Speaker Change: And I think the in terms of the note I'd like to believe that's also something that could be repaid to the parent level at some point and I'll provide some additional capital allocation flexibility for the Perenco.
Speaker Change: And we'll see how that goes will be able to hopefully maybe buy some stock with it if thats possible. So we will say.
Speaker Change: But I think in the long term, we'd like to believe that C.
Speaker Change: <unk> becomes a dividend payer again, we think that makes sense for the shareholders there at.
Speaker Change: At the Lvs level, we'd like to own more of it and Youll, probably see us to a little bit more of that.
Speaker Change: But in the long run, we think theres going to be very high quality return of capital program coming out of SCL, assuming the trajectory of the business given the investment we've made in our belief long term in the market.
Speaker Change: I think it's the obs level, there's a couple of things that you've raised there I think first and foremost I think when we think about capital allocation, we think about growth.
Speaker Change: Our highest and best use of capital is new ground up developments. So you see us doing that both in Macau as part of some of our concession renewal work as well as in Singapore, along with its Iot development that has just a panoply of great amenities, including which is going to be able we believe the best hotel in the world and an unbelievable arena. So we think this.
Speaker Change: They're great investments helped create a lot of growth and growth in cash flow for our company. So that leads to your next question, which is how do we finance this.
Speaker Change: And our goal is actually to follow what we've always said, which is raising cost efficient debt capital. It's one of the reasons why we like being investment grade name. It makes our cost of financing efficient for new growth developments and we'll look to do that.
And if you think about the proportion of debt to equity I think it's pretty consistent what we've talked about let's call. It in the 35% context of equity.
Speaker Change: And the rest will be financed given the debt capacity that we have it here at.
Speaker Change: The MBS balance sheet and the Great news is that we run on the leverage of level low leverage level, there with the anticipation of finding an IRR to development and so now that's that's coming to be so we're prepared for it and we look forward to the opportunity to work with our lenders to create that that financing facility.
Speaker Change: Look forward to be built so I think as we move forward Youll see.
Speaker Change: A delay draw term loan at the MBS level to fund the construction with equity checks go in as well over time over the construction schedule, we actually have.
Speaker Change: Trucks and schedule will be provided again, it's kind of illustrative, it's something that is a rough estimate today, but designed to give people a sense of timing of cash flows and thats actually on page 46 of the deck. If you want to get a sense of kind of what we're thinking it may not exactly be this but this is the context.
Speaker Change: From what we understand and see today and so our goal is to have an effect.
Speaker Change: Create the flexibility to continue to invest in high growth opportunities continue to pay a dividend and continue to repurchase shares at both levels and hopefully we'll be able to do that but that's our plan.
Speaker Change: And then I will turn it over to Rob for New York.
Speaker Change: I'm sorry. It is a long question was on New York.
Speaker Change: The issue itself.
Speaker Change: Yes, Rob just kind of want the newer just refresh my memory.
Speaker Change: Yeah.
On the capital allocation was the question on New York.
Speaker Change: I didn't hear the whole question.
Speaker Change: Okay.
Speaker Change: Rob.
Speaker Change: And from your end in terms of what the new processes and where do you expect that to go from here.
Speaker Change: Been delays and congestion.
Speaker Change: Got it.
Yes.
Speaker Change: Yes. Thank you.
Right now.
Speaker Change: This will be submitted sometime in <unk>.
Speaker Change: Applications for licensure sometime in spring of 'twenty, five where the decision. This morning, I was still probably in the first quarter of 2006.
Speaker Change: Decision.
Speaker Change: We remain.
Speaker Change: The process one five I've always been the base get through New York and other jurisdictions. The only considering these days is the ongoing strength of online gambling, which you can't ignore what's happening in New Jersey.
Speaker Change: Pennsylvania and Michigan.
Speaker Change: As for the markets, but we built capital intense business building.
Speaker Change: We acquired long term perspective.
Speaker Change: Admit that there's got to be some kind of.
Speaker Change: Our way of thinking about how the online impact would be.
Speaker Change: U S. It's just a concern and something I've been looking at closely.
Speaker Change: Love to be in New York with the rate.
Speaker Change:
Speaker Change: Our capital structure and rate licensure process, but that's the newest wrinkle.
Speaker Change: Part of the process, New York itself Hasnt changed they are still talking late 'twenty early.
Speaker Change: <unk> 26 for decision.
Speaker Change: I just my personal thinking has been influenced somewhat by the last six months as I see the growth of online video and so there is something to think about as we move forward in any market with online gambling as is possible I think sometime next year or two you're going to see online exceed land based revenues in new Jersey, which is pretty exceptional.
Speaker Change: So does that mean does that mean, if new York for instance, where the legalized online gaming would have to be evaluated what youll proposal would be from New York.
It goes beyond that my concern is we don't know.
Speaker Change: Although these take a long time as you think about Singapore.
Speaker Change: The finished I need some understanding of how the market any market things that online gambling anywhere you go.
Speaker Change: Then if Singapore legalize online gambling.
Speaker Change: Think about <unk> to any market does legalize it to think what does it mean to me my capital investment and I think New York, or Michigan or floor, I think places us online.
Speaker Change: It makes you stop as scratch you guys just going to be some resolution of the issue.
Speaker Change: Saying they will tell you.
Speaker Change: But you can't ignore that possibility do you see the impact of online in New Jersey, Pennsylvania, Michigan and probably the other four states are coming online you can't ignore the impact on land based revenue.
Speaker Change: Yes that makes sense. Thanks, thanks for the for decade.
Speaker Change: Thank you.
Speaker Change: Okay. The next question comes from George Troy with Citigroup George Your line is live.
Thank you very much so we werent at the Londoner Grant a few weeks ago and noticed that the min that's at the Baccarat tables, there were noticeably lower versus the Londoner casino.
Speaker Change: Wondering if that is temporary or does that signal any difference in marketing market positioning between the two pieces.
Speaker Change: I think it signals more rooms above I was there I guess 10 days ago, or so I think we're going to see Georgia overtime as the London like Denise will become the most dominant player and players in the market no questions asked about no change in marketing does need to complete the product get the rooms done.
Speaker Change: There is a lot of people in the building, but you need to get the right premium mass customer that achieve the.
Speaker Change: <unk> you want to achieve.
Hi, Stan we've done this now through we saw in London, I think 567 years, we began with Sheldon Wonder process is fine completes in the spring of 'twenty five.
Complete steadfast in my belief is going to dominate that lender and east will dominate the market no concern whatsoever.
Speaker Change: That's when you count them, we'd be very happy with them.
Speaker Change: Above the building above seasonal.
Speaker Change: And any building in the world, but as nimbly as long as they complete I mean, having the rooms connected to the casino having easier access has always inc.
Speaker Change: An essential element of success in London, while it's open it's not going to see the singles as niche Theyre under one of the rooms opened.
Speaker Change: That's very good color and as a follow up would be London is fully open next year, how should we think about the EBITDA trajectory going forward and delivering at a neighboring properties the Parisian Macao.
Speaker Change: It was supposed to.
Speaker Change: <unk> other businesses.
Yes, that's right.
Speaker Change: Yes from my perspective, and the team again, maybe it didn't take on I've always said I think London and niche will be the one or two players with tier one players each making 1 billion my goal of $1 billion plus reach those buildings and the rest of the portfolio will be.
Speaker Change: On the 1 billion plus dollar that's my goal for our company long term over the next few years and but again as Patrick referenced in Brandon everybody. In this call we need to see return to more base mass gaming you saw the differential between visitation and gaming pass visitation was a complete predictor of gaming.
Speaker Change: Revenue that ranked recently, we're seeing lots of disease, but not the game into a company and Thats a negative.
Hi.
Speaker Change: As disappointing as do you have a bigger base mass tail.
Speaker Change: Full faith in China, we'll figure out some economy, so important the world not to and as China recovers base mass recovers our.
Speaker Change: Our company SCL Lvs will be the biggest recipient revenue margin and growth in Macao is going to happen for sure Shelby state data.
Speaker Change: I apology, China will get back to a better place you will recover the confidence will recover Macau will can you grow into <unk> and beyond and someday, we will get back to $3 billion EBITDA and those two buildings will stay in very very tall does it negatively impact the four seasons not really stellar small.
Speaker Change: The Parisian as well I think youre going to counter it.
Speaker Change: And in aggregate that portfolio is unique and they all speak to each other.
Speaker Change: The market within the portfolio. So again, it's laundry gets stronger it doesn't mean, others get weaker it just means there's more strength in the market, but I would tell you that the real upside of this company will be the day, one yes, we'll do very well in premium mass, but Matt based mass recovers.
Speaker Change: We will drive us to a whole new level of opportunity and that day is coming.
Speaker Change: That's very clear thank you very much.
Speaker Change: Thank you enjoy your reports George.
Speaker Change: The next question comes from David Katz with Jefferies. Please proceed.
David Katz: Hi, good evening, Thanks for taking my question.
David Katz: Wanted to go back to Golden week for a moment if I may.
Speaker Change: I would say that we the street collectively had a set of expectations going into Golden week.
Speaker Change: The results turned it turned out to be quite a bit stronger than that and for better or worse to where we get our information how those expectations have Seth I'm curious where yours were.
Speaker Change: Whether golden we've turned out to be materially better.
Speaker Change: What you were looking for and exactly what the drivers of that please.
Speaker Change: Yeah.
Speaker Change: So as typical.
Speaker Change: We will talk about this in 92 days and we don't talk about current quarter.
On the earnings call.
Speaker Change: But I appreciate the question.
Speaker Change: Okay.
Speaker Change: Okay. Thanks very much.
Speaker Change: Thank you.
Speaker Change: This does conclude today's conference call you may disconnect. Your phone lines at this time and have a wonderful day.
Speaker Change: For your participation.
Speaker Change: Yeah.