Las Vegas Sands (LVS) 23 Jan 192018 Q4 Earnings call transcript

Company Profile

Participants

Daniel Briggs	Senior Vice President, Investor Relations
Rob Goldstein	President & Chief Operating Officer
Patrick Dumont	Executive Vice President & Chief Financial Officer.
David Katz	Jefferies
Thomas Allen	Morgan Stanley
Stephen Grambling	Goldman Sachs
Anil Daswani	Citi
Joe Greff	JPMorgan
Chad Beynon	Macquarie
Shaun Kelley	Bank of America Merrill Lynch
Felicia Hendrix	Barclays
Robin Farley	UBS
Carlo Santarelli	Deutsche Bank
Operator
Good afternoon. My name is Angelica	and I will be your conference operator today. At this time - I would like to welcome everyone to the Las Vegas Sands Fourth Quarter 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.
I will now turn the call over to Mr. Daniel Briggs. Mr. Briggs	you may begin the conference.

Call transcript

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Daniel Briggs

Thank you.

Joining me on the call today are Rob Goldstein, our President and Chief Operating Officer; and Patrick Dumont, Executive Vice President and Chief Financial Officer.

Before I turn the call over to Rob, please let me remind you that today's conference call will contain forward-looking statements that we are making under the Safe Harbor provision of federal securities laws. The company's actual results could differ materially from the anticipated results in those forward-looking statements.

In addition, we may discuss non-GAAP measures. reconciliation GAAP of in financial release. a the measures the and comparable most measures definition of these each to press A is included note slides supplementary website. Please have Investor our Relations earnings we that on posted may the of We Q&A call. to during those the refer portion slides

ask to limit question, those we opportunity yourself call everyone Please question one would follow-up to we this being question-and-answer who respect might presentation an please for to over let recorded. to participate one you Finally, the note that With our so Rob. allow the in me participate. like session, that request to is turn please and that,

Rob Goldstein

He's a Macao, Good is him under on this all rain the was record a to everyone. our and good million. He us everyone, for have revenue message afternoon, important yay a quarter, him morning you thank revenues. weather. We today. We with Dan. great mass met a this not In for EBITDA speaking He's making forward in increased We That's in one. dividends. Sheldon most calls. of us results. we medications had with taking some financial joining share so We decided Well, quarter. of let's yay to upcoming our take our did, go today. market He adjusted however, you on looks little Thanks, achieved very joining $XXX buybacks our yesterday. a bit and call drowsy, bit check the market.

line strength EBITDA growing our negatively premium of in in of XX.X% segment. our non-gaming year-on-year. delivered bottom Macao coming billion, direct with In over the rolling top segment. as property of segment by Macao exception an in rolling growth XXXX. increase impact The every normalized in Macao XXXX, showed business over operations during is our Margins quarter, and growth XXXX, gaming will Our our positive strong EBITDA. to hold where Overall, the an every line growing are XX% our the contribute in adjusted low over stable or quarter GGR our market in business hold that US$X Macao XX% from

XX% the hotel a creates entertainment We airport, hubs from billion in couldn't be that between mass, critical participating the generated It mass retail, investment of market's Sheldon's that our vision evolving of to direct properties over critical forward than hotel, same to ago the Macao Asia transportation visitation period. in and room, and is in more our growth to and GGR tourism connection will entertainment of important Macao plan largest in Our more in a decade look Macao. offerings the Hong Macao. clear, growing create our in MICE will benefit milestone increase all Kong an of the in in us and years about Kong-Zhuhai-Macao infrastructure Macao grow future most in $XX We and business major unprecedented retail, the excited business leisure China. feat perfectly one continue offerings, MICE positions a the The Hong Engineering ahead, for help opening scale that the growth. is of Macao bridge the towards

Macao as leading Asia's to making with Looking we forward investments world we there's and market into believe evolution Look leisure deployment capital. Macao tourism business and diversification the better of Macao's that contribute ahead, in to to no than our regard additional destination. continued in

the by strong Singapore Las in led gaming business. strong runs were volumes Vegas also to and good cash flow, a capacity that's we investments year. market, and as hold however, remain simply enjoyed in very a constrained very Bay additional VIP there. and opportunity Let's quarter turn a make Sands which capacity We that this our lower convention still strong to future Marina exhibition in Singapore, the rooms hope

MSG incremental and positive the additional in adding the construction impact of the Vegas entertainment in to to niche Las at as which steer XXXX. opposed Before open offerings is under

to raised joining turn calendar value capital the during take of increase for see the $XXX questions meaningful the quarter. let's the of XXXX We shareholders. dividend We to the on call you equity. thank annual repurchased now million and LVS the We we year. Finally, the in and stock long-term We for SCL Operator? us

Operator

sir. Yes

Daniel Briggs

begin Let's Q&A so session. Thanks the much.

Operator

Katz question a have Jefferies. do We Instructions] [Operator David of from you. Thank Mr.

Rob Goldstein

Okay. David.

David Katz

it afternoon. just we in to bit touch what And came may, were on candidly if below forecasting. nice wanted is I Hi, a which quarter. Singapore a I

minus just talk on capacity just about what's different talk If commentary the and your heard you bit about side, forces challenging about opportunities? the what's little what a constrained. went core you maybe and But and could I being the or well plus -- creating it

Rob Goldstein

Sure.

proud every an in ETGs, a exemplary recognizing let's a is an destination. is don't definition perspective. This We slot company. David, just a from First this It's for company this enough way. capacity biggest by challenge, by really rooms. IR far, from iconic begin lodging, lot gaming its off of both We're machines, of Its constrained made have

demand. a entertainment have have to We don't more the premium supply. to We look in play. more the also in drive region We'd Singapore see mass

very continue there's Singapore is past to a and reference the alluded and in have money frustration difficult. movement We into to the

market number Our remains there premium mass again business now years a And foreign can. and just we the been more can't into growth segment. primarily rooms limited when in has for The for more of right gaming now. the tourism create that rolling we

of market unlucky in constrained. strong. played We proud Very asset. So, the The -- difficult remain margins there the is that's in primary here the capacity bit quarter every but frustration. little a

but in grow, Singapore right could to. you it's grow the -- able it the the I it, and can't in of invest I and lodging but for frustrating now such short tell asset more chance perhaps and Looking long to gaming is margin wonderful how that's not is future, could a that that

David Katz

I a Thank you. follow-up Macao-related if And my one may. is

likely trying the we about those what that certainly rest that year there we positive. the the would the be a as long-term inputs or et we're think are just ask of macroeconomic of agree a market the call the quarter, process of thinking year we -- quite for lot and all recall remainder the say like we cetera. in don't but But There medium-term. what year of whether ask for or we contemplating Macao outlook the company-specific model about what to specifically? inputs rest the we is are LVS can about For should would sure Help us through for that of looks

Rob Goldstein

think best way look $X.X – XXXX to of we forward I let's back – $X.X look is look or billion in to XXXX, actually Macao hovering you billion the think around I go backward. EBITDA. just were

will starting seen market grow I Wynn be just for every all extraordinary this its people its forward; driver. We've but EBITDA last in be about A highest to we bridge opening billion this drove an for or Parisian almost has a forth we We a driven week would to a think was and thought think Macao grown the ever believe. competition. and lot if was MGM an will $X virtually a best share in the to issue, I segment The in decline mass premium The me it's mass its To market Kong. It's as takers very we've month big market floors, – a to days to back the mass probably simple It's Studio in the challenging level think the later. – that horizon. week the drive opened back now It's fact We to will market. continue by and scale. gaming understand. premium potential. fast about VIP of picture, opening. EBITDA segment, will issue few since It's been every segment. I be the years share and or in just City and XXXX. dissolve there for it were probably mass into was place Hong it’s walked VIP despite up, extraordinary the huge touch you givers our crazy,

is today. think retail market We're done that believe continue everything building I today. grow. were we've that rooms We'll will which today. to more build there, building more scale. more We're I building

best to look the at and activities. think our our I way is enthusiasm our focus

Regis, at We It's We're the still We're get about. Yes, there's the is And Four the done, of the strong bridge what worry look a Hong accesses last Macao game just But the boat land in of size more extreme magnificent can all a not the Macao, rim, is that. the of and rest necessary. a a magnificent in Kong now to by what's today, in a to Seasons. done. three look market the grown. in underway something or and today tomorrow. the capacity St. terms in years and Londoner, car. blinded are at kinds but has achievement for China investing all in China. get this always with strong, bullish bridge smoking important a it's market All we changer. absorbed very There's issue The the believers It's always We’re that and in blip long-term. of we're -- Macao look the economy. airports

bridge to car almost to as to new Kong boat a take a The it's you It new can. the from up opens incredible is chilling. also the you want Even bridge. If Central just Hong quick take rim.

fervent whatever we're there's don't capital. place market We're is anywhere XXXX, in a as like it believers to believers. XXXX, We're it think thinkers. So license XXXX. on in better long-term world We long-term deploy the

demands to best mass So your that's there look rooms. growing Mass scale I will very dependent. special It's place. share. this without be room today. their and have time Non-Guangdong investing This perspective, very a is difficult think a visitation Those rooms market we delighted are the from rooms. and unique at demand my

you. the And I answer so best can give that's

sleepless If this next Friday, some Tuesday you you'll about or probably nights. have worry

If you you're rewarded. very and think well about well very to long-term, sleep be going

Patrick Dumont

Macao notice of look we the upcoming thing area growth access lot on XX any Mainland and Page the this growing to Rob's going And deck it actually only There's and accelerating. you allows of that in the one of for it is into bridge I display look into that's that a to commentary access into rate of allows to China visitation for shows the China the from you'll time infrastructure the tourism effective, at growing we as of and that infrastructure Macao. improving the slide earnings different that investment point should And year. the there is ways, amount And about tourists have in is deeper -- to from spend think be trying of been lot the the a you

years look several to to upcoming so, you'll that of business And system the will this non-gaming this about the non-gaming really that what that the where a about very think turbine use year if Macao that allow tourism the the plan he upcoming directly high-margin improvements ago. take growth tourists a mass is laid for right? as infrastructure drive really see amenities they think mass you business, mass And advantage solid grow out is vision and amazing the press you And are business. to and decade designed creates speaks amenity that and

others there's years infrastructure through business if for catalyst we to for strong those improvement, the the of earnings company you because in And this because that assets it's and very of desirability Macao. of again that the the growth the we of go future the mass the a the view come. past that a for indications see at So deck in nature the because for bright year have look as segment the been and for of slide infrastructure of tourism and the very in built we business and

Rob Goldstein

ago it market too ironies couple more today me concerned growing. many and Demand built is And keep fact the there. rooms is Demand years rooms One of that, being will runs the for incredible is desperately. of everybody was wants of the I occupancy.

David Katz

for answer. you your Thank it. Got

Rob Goldstein

Thank you.

Operator

of from comes Our question Stanley. Allen from the Thomas Morgan line next Mr.

Thomas Allen

So going? it quick Good question. after. Hi, is numbers just how

Macao in impacted and that? had that rolling You EBITDA, could to hold quantify your direct said low business you

Patrick Dumont

No. business We're We don't I going not think address the out throw we've -- there. the quarter. I a add put to number to out information just about specifically. to it enough

address and I further. think from will standpoint Rob our this

chunk have and a the structure of margin We direct businesses. different premium within

businesses, of on a And of an couple this the in actually those the hold our and an happen, happen two need We hold doesn't active needs but quarters ago. nature sometimes the it to to happen based individual difference on normalization basis. between on had basis

the of the mass of said, at because strong from our That margins place, of so the I business, business the to margin business, a the look some you business. continue. control we as of right? are of so And margins And impacts that nature aggregate that basis structure as put in leverage ever, when the think structure the being it of structure cost operating that ability will cost get the our

I overall mix. margin of rolling think instance see methodology you because change in because particular had vine adjustment of that the the some this of amount that aggregate and we

Rob Goldstein

as Tom across within in the the in the for favor. we for held but range quarter our company segment normal not rolling mix portfolio, was the

conversely range segment of we for have know business in that direct very margin margin And a you have junket we lower favorable us. did business, the range. the but much which in rolling to We As much expected the under hold terms this strong segment. held rolling above a is more

story some quarter, share. keep sad this a taking hold have the quarter business. it on keep we -- has focus because dollars table had it We the it's for appoint the be had growth just that and it didn't. summary that's held for quite within wasn't. extraordinary. to premium in where to the a there, and It's quarter point and of A shame, ill-equipped -- a to is luck side, to been It's the mass significant So compete there. share. grow really a a People is we it an side luck mass quarter in It's flip assets definitely us. we are the it's in where volumes can't right it we resides that's quarter and it was the on direct rolling we here, years our point a range But for amazing you business. I money sell insolence. segment, it growing and in think had we of about luck long-term, to there rolling would We it the because keep mass up, but the be are our The growing the left

Thomas Allen

perfect that's into segue my question. So, a next

Which about XX looking the mass those the be mass mass at premium That's base the Obviously page looks base mass. the then some premium outperforming performance. year-over-year, mass, on you is saw in weakness quarter-over-quarter So for and you but quarter premium to like just think then Thank the forth. one is that in you do bounced third stronger in going Can trends back future? talk underlining two markets? you. in

Rob Goldstein

be Macao a you pretty We're product. lot despite We QX way in world-class reported. until outgrew be the months the to answer XXXX. market in tell a I hotel. good good. special. product, Seasons the first it's but looking we to very Q-on-Q of are was both non-rolling last have I what New achieved drop that, nine back know our XXXX. market Well, go Morpheus in which can question. had gets property, in impressive we We wish We all outgrew mass Four the XX% premium fourth market which is exactly in a in non-rolling at grew new forward impressive of tables you quarter. we'll is quite operators the going But record week, and the in by say, new more you competition year if don’t the full to the knew to Wynn, showing growth strong I awfully to just We more

our about in mass is one premium not mass So quarter. outperformance and

Londoner, good but because the very base on opportunity market, we don't our good achieved damn consistently, Regis, achieved and the we've the be of couldn't competition intend intense been completing quality despite executing big the look the of better We quarters for eight to too stand a seven, there still. we We the that's the and damn very in has is business St. get to in past the too outperformance is market and despite forward Four happy Cotai. position just competition just biggest Seasons. about cumulatively this and Our having and why

the decade. for simple believe a mass. been has over and position premium We Our in mass

about to $X who and our Our grow versus it talk premium are We'll building believe it is rooms a rooms mass assets, is going don't of have top of those we who assets arena, take all positioned base. billion. the lodging, at like us billion, to We not especially to our I put heap think rooms, you have our capable those and $X Those we're grow. take billion $XX billion, telling And is retail, who the going rooms, great all. building business. to gaming struggle. are $X the what breakout the I'm to the have

have heading. think but aggregate points are our delighted I so we maybe, pretty exemplary numbers growth the quarter, and a the And this we're in few below we're where

Thomas Allen

Thank Helpful. you.

Rob Goldstein

Thank you.

Operator

The Stephen next Sachs. Mr. of line question comes from Goldman Grambling the from

now Your open sir. line is

Stephen Grambling

Thanks. in Good as position? afternoon. about grow additional you thinking on longer do as highlighted the slide how Macao. investment you that a guess, XX segment want just And follow-up you I XXXX about in in there guess, I to math how think questions the seek component, but first and On of market. couple drivers the to term? get fast I VIP to you

Rob Goldstein

information kinds confident and of Macao. times, of – penetration going VIP. in couple of complete wrong. I out the rule market airport, just premium the proven bounce it's wouldn't having back. challenged VIP. a It's growth over very to There's me the but more driven to issues obvious isn't more years. is counting This for you We've There's I sustainable bridge mass of recently. airport, resilient the the market out and change but think mistake mass, But This Mainland to been short the the read last on mean the crackdowns I really of week has and the made yet. can to there. going I’ve all we're – going it's That term, a Again out been all I've game

of high nothing it. just There's So this And nothing like place from the the not of it. good, end Macao too throughout Pacific competition. fiscal ahead more will there. too world-class the is – honestly there was asset drive there's just to into Asia. no facility just Macao but far Rim be It's like China,

whatever VIP to think I so will And is Macao. go continue to Asia mostly business in

better better as better our better suites, income will on operations, dedicated you're participate. to would comes VIP. VIP ourselves from I rooms, We've however, be dedicated gaming numbers. if you We solely -- or if relationships evidence comfortable, not

the diversification takers than need advantage mass-mass near We I keep in in growing quarter. We'll again share and of business, non-Guangdong and strength proven Rim. there. it's That's the in challenging and future you It's take the count more there's mass-mass. the VIP We'll where be think China the I very VIPs. wouldn't short-term to short-term this Pacific premium probably there great Again, a market. again, premium potential the numbers indicate, this lot out penetration resides market out both in the to be of think long-term. the I but resilient

you've impact pretty the it haven't do all do. of -- If its can It's up been work. a been unrealized full let and it very there open potential once bridge, bridge that thing impressive they piece totally the recently, of the you is the functionally to full if to

Stephen Grambling

part in to the follow-up guess Macao do an about maybe think unrelated enough. markets? expansion I framework how of allocation your in the consolidation versus M&A Fair there's talk new I U.S. noise guess, of reinvestment you then capital the as versus space, lots in turning And

Rob Goldstein

about of acquisition. there's speculation, So, for in particularly, lot interesting our opportunity industry it's always the a

the if up, designed at from have we assets that you us, ground years. we value for think think a it's portfolio the business. our over I and the Sheldon believe been returns. are And we the vision, best for it those Chairman in has the When investing create best look we've that demonstrated tremendous long-term proven assets creates built shareholder shareholders. And that the way to in

to grow. would and set enhance best our dollars and of fresh, as keep that to unbelievably them our we we've really for that's them additional question. strategy is Chairman to And simply augment that something mind relevant CapEx and that junket the we was including grow order felt would for of the properties flows it unless prior our us, our in so opportunity compelling us cash business the we've return vision not in billions And of invested capital have way on. we the the of look And M&A keep out in

were look of strengths very returns, the the the we repurchase. our if our from our future quarter our share in at bought way return got our liquidity $XX cash geared towards handle return is sheet handle look policy, billion so you dividend really standpoint, which much million what very in grow cornerstone there, we've capital, Macao. we $XXX much towards have shareholder to this because balance of And confident at we our And We way to the are capital we flows. and geared ability program our we're

and So, opportunities where clear the and exist. an how we strategy, things about want anybody we've we've and pretty you M&A really we transaction our about look we're feel when way changing that's statement so has been may never execute. a a the to from Chairman how I and intend standpoint, bought we don't opportunities we business about capital, different the I about at look the his about But those see unless We've allocating about strategy that to view pretty provide. think our made that clear at

Stephen Grambling

buyback. dividends, Yay Awesome. yay

Rob Goldstein

you. Thank

Next?

Operator

from your next comes is now from line Mr. Sir, Your Anil of question the line Daswani Citi. open.

Anil Daswani

guys. morning good Hi,

Rob Goldstein

Anil. morning Good

Anil Daswani

you. Thank

the that premium driven Is on by that? bridge? fourth had new you that driven both extension improvement you attribute the that rail? by of would is? you well Parisian? the you as significant as in guys Are do spending? in in How the by how performance infrastructure the base opening with do high-speed that bridge that touch LRT drivers product higher driven quarter. the opened to of guys the as mass mentioned think the Is think pension wanted you standout that Just And you have the those as the further the suite consequently, Is

Rob Goldstein

A there. things of couple

It's it's not of unfortunately the a licenses we There's that point, private what's future, First don't at driver product. vast driven more potential. be in is today. will – this be a a the underutilized. It's about of all, think driving having to daytrip, car week, bridge going last mass driver. to impactful. out It still it’s the What's the our busting premium not tables a taking maximize more better business is

it to? suite-driven terrific of results. Those rooms run is mantra real of now product premium Venetian design have market. better suites, product, a under about Seasons just that just of of new have XXX. knows goes and just yielded construction. last a at our Regis, new It's quantity. investment, a had walked where do to rate there. reconfigured, are this getting the here company, think We on I about delivering, what St. returns And them. to Four suites, Parisian our our it's not can't mass week around being terrific. the Londoner Parisian property, Our reconstructed we more Look which it's that just quality Who many we it's aesthetic better. our appeal quality all happened new We suites, core we're The

enough. get So it's hotel just have great to small can't a

to we're everyone There's suites a and and would top-tier over more not operator them building add one an there, wants not them. that more. need You like

see I success the wins well. evidence think – of wins quality that the Wynn you'll in evidence as scale is and more the

We have and the both quality quantity.

time about XXXX with everyone in, Macao Cotai mass it know built funny week Venetian, thought back the in hotel. The our the our had the but hidden We pretty a drivers business also of city, arena, biggest don’t was in – entertainer market. knows at is great have a secret, packed one our hidden packed Last probably people there, Asian a I we which premium Arena

stars, be Saturday. Sunday a stars fact top-tier a a that Saturday, numbers Friday, is we And star incredible the year Asian events with asset tell kinds on those on if an as stars. top-tier see acts whole want or see a whole whole tickets. that is to And you Our Saturday It U.S. are different you, numbers weekend, popped. to that's a That bring agenda. our talk XX-week what entertainers people was of makes happens that that numbers town for acts. people the have operators tremendous will it other different we in can And you cover a these

both the life. stores. knocked over So quality product, got trying suite week entertainment, asset retail Seasons, suite to the quantity what's suite today the Four big walk product. Tomorrow a I people in product, By bridge of there It's our that to experiential. last that having away. in the business. want is a thing and stay driver way That their quantity. terms buy quality driving over want hell And it. but things young have driving an entertainment. amazing by entire we advantage for it to and we of the excellent a want clothes fancy market, They have that's They further that from come These people be better in longer. want provide they're will watch. It's time we They stay in They experience. fancy to rooms. and is to get They and

Anil Daswani

losing the Thanks. market you're guys touch follow-up quick a market feel that is Singapore. you that or touch weaker? a on Do it seeing of And getting that's you're just one share,

Rob Goldstein

MICE that. be more money I do our we're trying and to there and out profitability, than share I'd it is at Four or couple credit importantly to I – figure making like properties, profitably focus Regis of we things outsized can Singapore, I over share very our foreign there. or and had with to more couple speak Again market If performance more everything demand. how think market get more extend more and maintaining the a market we of I feel take margin more here. profitability. Seasons need of We capacity our favor around demand wish it. slots the can't to rooms in more of to over Macao, – have our we're St. more create advantage because and don't markets in fix more don't an know. built comfortable a outsized of look demand – and it have just I just share will

Anil Daswani

Thank you.

Rob Goldstein

Thank you.

Operator

question of Joe Mr. from next JPMorgan. Greff line from Our comes the

Joe Greff

on in of And the the where kind difference question this more confidence much good afternoon, Macao. the player any average maybe a I'm to am fourth also the then Hey, behavior being the My of Was follow-up at guys. And related customer there quarter. visited behavior maybe your with versus have I say mass overly or first mass throughout quarter to end within a relates the of quarter. – Macao the is, of that quarter? going optimistic I beginning

Rob Goldstein

see in elevation a Joe, give don't color I you there. or can't see decline. numbers. I don't that our I

I to you wish of than pretty don't from December. a give think a consistent. differentiation good lot that. not whole October it's can I sure see I I'm I – answer We

Joe Greff

first first you're of sort so Macao. side, about Since earlier sticking ban of talk can Thanks. you guys the about VIP it. sort on smoking You this you're are the Okay. month seeing? guy report, to the then And talk to impact with the what

Rob Goldstein

market. We walked at is to My issue gamble. Right, spent We because predictor that smoking over week. is, and this suffer, productive a of properties may now become the belief smoking very previously bump the last there the walked we will hours new everything. the bump disappear. a It's and small long and looked right. to a going smoking rooms to where you're properties that had week the speed all speed Areas

if didn't, around but the had but The future. we It will about demand the smoking you're what B see all about rooms, if us I -- smoking, without this very resolve being A's always be. buildings, me. the dissolve some open January, you attached the well worried B performance gamble. in really we it good larger But a to if for to will example, seeing be table having had looks as space impact. market, it the space, but and than table now, most worry, of then smoking, to has already acted most last smoking, the and in This a which So pretty between outdoor for A Macao and already don't issue disappear. reason of I short-term outdoor walked it, are Smoking everyone's plus know issue. you're is material will that’s – week shouldn't worried smoking

to something think I take it about. not worry should those who on find and else It's a long-term move going seriously impediment. be to

Joe Greff

Thanks lot. a Great.

Rob Goldstein

Thanks, Joe.

Operator

your Sir, Mr. comes from now question line open. next from Macquarie. line Our Beynon is the of Chad

Chad Beynon

Hi. for my Thanks questions. taking

rate. you this about that some from what and in And slide than luxury as turnover Asia Macao, in Macao your highlighted speaking on, well. talk is the have Hong evidenced it the and weakness reported different Southeast some of retail and increased guess in and also That's sales of your the fourth square Macao, in the segment, I on one Singapore, foot First retailers we quarter. heard that Kong with then both appears that per slides

if maybe strong color could you this? or elaborate XXXX potentially some more on rents performance. And just the Thanks. affect can base So just turnovers, on this

Rob Goldstein

Seasons if sales slide, into these more had want don't walked but I'm through see kind looking last booming. the not week didn't – And know did Asia. sure I a we're the is I decline I people what declines. Four Seasons you across want on a hearing, extraordinary. afternoon, amount foot. I we X,XXX. My it's more sale or going Tuesday tenants miscalled again, that Extraordinary Well, is don't We this to but The retail our happy numbers. bringing awfully just business of XX it's heading there. of incredible now I though know back on that, and at more XX.XX truly Honestly, Four you're understand numbers people a space. something, went to for the Wednesday, The Venetian I

with our retailers are Our numbers. extremely happy

no team decline. a done it's clear over -- our think retail has Our hell showing we see team and of I job a ahead there

hands you shopping of any and of land to strength, tendencies through the faces assortment strength amazing most Four have give goes buying you about of I the and to a fashionable Venetian this the our maybe experience. people performance. that team incredible indoor and the made any I looks frankly, so fact Chinese pleased be see members, so with our one more In we and of And fluent it's retail walk sophisticated, and again both -- there, the with and they're affluent slowdown. young, comment couldn't consumer so The you cumulatively scale they're Seasons, buying if don't

it see this us; and keep very of of it's going our here in booming. stay. that's four positive go our the were entertainment keep for days, to ground I us, with it Chinese shopping, when ahead, exciting looks facility. That last to one reasons the in very five my And our eating, success it's watch stay We've opinion. better. and got they going portfolio to gambling, it's to retail all And we with retail in across they you Year's there not exciting it pretty gets or tandem. on is think eat week, mind ecosystem to they New it's change entertainment,

Chad Beynon

pulling of could back when you be junket fourth a on my when the And with speaking think credit then with partners coming China maybe about do credit slowdown And credit the resolved, junket see handling into some them more maybe that -- trade pronounced you. the your your and positive Thank follow-up anything Great. in you to war did situation, partners during talking just some you're quarter is this market? war trade extension? they're how more and with

Rob Goldstein

we work over the of connection say of extension the been segment. partners been way we for add I activities in would versus pretty I to tough you on us very It's What the to consistent extended that our What to with in of and junket them. comment last we've sort our make -- year is partners have really any terms there. junket the commentary is week-to-week. macro global prioritize that with will hard tell we've that investing It's

our reestablishing we I We've over investing in years. them. and have think with and help that partners members spaces, relationships and investing the service that those spaces service been many strengthening team amenities the we've been their in investing in

something always like of think the that it's to and been global It's have the look lot last dialogue continue not the and them of with macroeconomic a something it's a the has segment quarters We've to we to. the we'll an powerful and I of been make couple I a business think opportunity. sort think connection a So, dialogue is that very any effect we flows, one. on and we very from measured We in a and dealt feel as and can active forces. I credit And good but we've it's ebbs grown standpoint, really get ground dealing our prudent segment to we think with with operate do. competitive

Chad Beynon

Okay, appreciate very much. you Thank it.

Rob Goldstein

you. Thank

Patrick Dumont

Thanks Chad.

Operator

question line of Mr. Kelley Merrill Bank the America Lynch. Shaun from Next comes from of

Shaun Kelley

Hi, good afternoon.

kind guys outlook big modest give daytrip per of Can in of go or visitation. pretty one of is mass segmentation for very change of us Is -- of seeing kind in balance seeing do into there? to are to some us or the of what's uptick you Sort in to over what wanted by of the guys In expect there. this see, guys Just customer infrastructure of showed customer time? are and slides I visitation obviously, the think what back just and spend normal? healthy you mass new You sort you Is normal, numbers of visit decline and guys it? you driven market? a the the the sort very continue a the being and to changes out noted you new kind kind you the this as of sort sort the driving your of market

Daniel Briggs

Dan. its Shaun, So

province and At it million province and All also visitors has have about without taken up at effectively of earlier. million The you've the by of visitors find – not wealthier easier look that line, if runs bottom great bridge time. makes got XX, it plus It going wealthier rooms more people is room over. worry boat. Guangdong. but from which XX.X coming market from for the all mass, you've squeeze this If can't referenced just over page Kong. to causes Guangdong is issue hotel over the get adjacent Hong for a people, the to from Rob first a you night, chart that it I be hotel people to they're visitors will is a think XX.X where inventory. got and The back the premium

of inventory market mass. It Macao, the in the must great a base that And built. makes get mass the the premium billion future hotel revenue for in be market to $XX great more So a in mass makes

to what's will will cell So there that is crystal the enough market continue The but come. customer’s evolve, without hotel who to be more won't capacity evolve. inventory, for clear everyone wants

way happy chart to creates mass XX. have the opportunity better we're us is and continue are previous to to The the on page the over that both going to for on time. happy the great and both very So places very premium the market ever long inventory chart both – sides wealthier. better as get hotel the added we in growth hotel previous of on happen. it have of to visitation. to get chart visitation. They any We're There's continue daytrip people and gets If build, inventory would no that be We're won't market. Chinese But that more happy would as expect of which don't new no top-heavy, when more this unfortunate limit the to becomes gets growth.

inventory hotel more expect We in. come to

Rob Goldstein

to if made the grow We government. with investing to that we We clear more be would hotel We've could in more love non-gaming rooms money in room. love today Macao.

is gaming, market. you where in the room, so sleeping there such can't sleeping what atrium rooms in Dan’s it's that sleeping it's more in needs a and January believers you're MICE, get evident are clear pointing for leisure, rooms staunch when segment, everybody every We

Shaun Kelley

to. saw volatility color – a out used Just can or just XXXX on just in mix? And are expecting much. seeing on It quite the guys of what of broadly strong balance Vegas. you're the how and very the we're like you than what you bigger is Any of you Thank looks we're follow-up, convention switching as a provide play quick seeing in year? to market sort the RevPAR through to convention but XQ side we cadence

and sort expecting see to maybe what kind you're health of, again just cadence So there? of the of

Patrick Dumont

side. very with we there. We're result great So a our pleased quarter. the revenue room It had tremendous was a operations from

per incredibly we that continuing. revenue Our strong. occupied room see group night's And

things good. been have very far So

of the growing Vegas, we it's the team don't we the be group including from pleased you but can our we're which But segments we're guidance, and volatile But highly made very business, the to different progress again I RevPAR boat tailwinds market. operations great probably night As very room believe the the pleased with it's we've pleased They're we're that a been with the quarter job, will up. very with practical well night, think grow. talk future a and will room and know of of us rock but think a the non-gaming standpoint bit pleased we're here. of with. in some it's some coming business, we drop, growing expectations, which helpful give very a for invest matter we the Vegas Las about Rob the little in doing

Rob Goldstein

bullish volumes XXXX batting group strong for feel the very No is market group market. in and and fears be very XXXX, win how We'd progressing. to cage to about going like strong is here Team in and which our and it's this that in lodging January, shot is Vegas, in the the you place happening casino. the pretty -- Las especially impressive around our town Other CES walk January. if than a show

as very as in Las prospects we XXXX feel Vegas So good the at our entire well marketplace.

Patrick Dumont

property, here. In terms a lot done Venetian our of we've of Palazzo reinvestments

offer. the make us other the significant growth got it property investment in that and We've of floor new made space happy been spaces of will restaurants that's position getting future some in results. We've the feel renovated. continue market. you've for rooms you've If lot very to well We're we to on seen a that competitive to

Shaun Kelley

than Thanks warmer too. York lot a New probably a lot And guys.

Rob Goldstein

yes. rumor, a That’s

Operator

next Our from line Hendrix of from Ms. question comes Felicia Barclays. the

Felicia Hendrix

there. Hi

Some you of everyone also is I sick, tuned. so well hope sound

Rob Goldstein

way. We that anyway sound

Felicia Hendrix

you this about so a Yes, to on just you to -- wanted VIP. you've lot But just and significantly, in look talked what you mass bit. continue seeing that on Rob this VIP outperformed call dissect so been side, a I

you, side, And for so outperformance also they driver the in those or VIP in wondering given that unplanned there decline wondering Just the margins is surprise EBITDA on strength I'm well? the as the were you that for do quarter? the

Rob Goldstein

I rolling we business the Well, strong. on alluded think the -- direct both and junket our mix to very earlier was

is As you very business rolling direct our strong know there.

junket much played are real us lucky of side The the of strong that margins dollars. higher the And in played wrong in played piece cost Our and the business. we very the it have equation. rolling and weak direct

a growth we've The our and amazing always the that better is job we But it's and of. as driver, not plenty the suites and rooms. junket the competitive which direct a we keep advantage. far amounts profitability. of drives good a As creating small It done commitment is we've component that been important rolling portion believer rolling built have roll believe important a enjoy business junket. an obviously we the that in very these We've rooms it's unfair entertainment and aesthetic to

just I continue think course. we the

the and We market that. challenges all flow will downs face. it and the as We can't be around market's relates subject to to money work the ups

very, competitive good the base our And team it's mass, the more happy now money -- business, very mass So -- on get our strong we're growth. paying focused the part And it to just the part. profitability. to of the premium to participate But entertainment, EBITDA remains and the trying not we our planned in it's junket is frankly, further all have, deploy the add into segment the arrangements the advantages our junket off. why and with stuff have spaces, that we with right anyway suites the right of

of ahead mass part -- quarter It won't for business was EBITDA business. it our XXXX billion, to bounce solely good this future But I you'll luck and back very comes But And our so think premium strategy, that's ecosystem, entire unlucky. wasn't as news it's of it will our helpful. X the some in. it a see was drive planned the where mass in rolling and

Felicia Hendrix

looks of that, And Okay. share on it's about points. staying on just know XXX year-over-year, lot but it quarter-over-quarter VIP a I gained the basis like down you then

way -- you in might tell put this guest, number that a the overall game again, who who the -- deck So to market you any is but… know there some early in I the taken is share? And is that VIP have

Rob Goldstein

The there, we performance little problem, and, blip sat the at are We of Yes. can't years. EBITDA yes, I got grow $X don't you trees what would by we me two of look years, think and last last sky. There loose be some people who world but downs staggers to share under straight overall billion and we'll the my fall, the the XXXX. growth, of to be there more couldn't be keep in with are in just a portfolio rooms ups would couple we'll I in And told are be – imagination. – I term, the here performance. are, rewarded and you focus. those sitting who the very, proud direction. our the end. on for our $X to all down we And falling XX% world billion year, well of of apart we And I material comes like of an right impact our very this growing team and the a I long you'll And segments. road think in just be for

segmentation, junkets right on of rolling the right in terms assets take comers place, included, time, right we'll in are We and direct. all

by blip Not too very A basis wouldn't points, I So bullish. XXX material. about. get excited

Felicia Hendrix

you. Thank

Rob Goldstein

Yes.

Operator

line from of Robin Our Mr. comes next Farley UBS. the question from

Robin Farley

you. Thank in the you Great. mentioned call. Rob, earlier

bit you you of… if about talking specifics give underway. You've Londoner just a and the been could timing I growth said more wonder is the about little

Rob Goldstein

Sure.

Robin Farley

And expectations Thanks. about could just potential have to it. so and manage disruption? not hard to It be seems like it it,

Rob Goldstein

Sure, sure. question. No, fair a very

First the We all feet about between over of years, all, I at sure different properties. everybody developed million XX want square understands. our make to LVS

be rooms So Robin. Londoner. I an And It's a some are will that we'd Londoner. some already. underway challenge. in XXX Don't big XXXX. wouldn't concerned. a disruption, hotel and hotel be be. going magnificent the I truth think approvals. It's continuing story happening is there. to concerned But success a going There a And it's labor. say we making while in our The we're on about umbrella, X,XXX-room late – process to people silly probably notes, be We're opening to open under have to what's time. It's into developing The think interesting here I read that weird we'll be it taking casino – we're we're all-suite running a be there SCC whereby progress Dragon’s still the support entire process making We're government running we're have Palace design the still We're and making progress Londoner, in major is, a we're quotas.

can't. The open It XX disruption. will opens a next before for the will the just not St. in I prepared Londoner progress quantify, be be And to there up. We I'm work months. XX Regis to will

lose a We portfolio. will game or not table slot machine the in a

as on the to need other floors if ability have well the We in gaming transfer as assets be. SCC to

we're investors a confident astute. pretty comments pretty perhaps way people conclusion than of it are not going kind our making gee, more other I makes in there anticipate. we will a transformation disruption sure And that team I Well, that capital can property better whole the be lot when Londoner. I'm as about, the take is long-term these our think is people around of think our some move people make maximize also at recognize, bad no the who to more the invest how are million, $XXX to able assets I'm making confident SCC $XXX to you them. than away million? in to as

capital M&A. which that return Some should referenced return have are look be no now Venetian at Patrick those billion is who steamrolling the The capital. XX% this transaction. that this earlier to There M&A invested think to $X.X back billion. breathtaking. now And $X.X I at Parisian on has invested on about compares towards questioning Look will past The

the long-term Perhaps I Yes, that along us portfolio this little EBITDA those credit game other limit a give to our in think want there'll some transfer Londoner. that. But someone's fully-authentic on We're think that to take property make a the got time and a many that there the you and properties will have to attention I We're make see rooms end, sleeping The changer result Venetian-style it be gets. past for some and the if us. recognize property and disruption. and going And except to it disruption. been equivalent a as going a pretty you're that's and is is confident bad We justify effort. twice the for to is fully-themed how money disruption long-term, pay to investment and astute. and to assets pretty the our London-style. gaming we'll the for in subpar successes wait a thinker, to team

take that's on So, Londoner. our

Robin Farley

of some see think No, just this expectations coming to trying rooms will appreciate And of out investment; clarification, what we'd for about like question year. return percent be, And think it's when that's I kind what that. a it's maybe to just be on not When impact? do get you'll whether just rooms a literally service? should one start about of that

Rob Goldstein

happening to remains of XX, St. post-Chinese the transformation current So, open to down intact. will to intact. to the post-Chinese The Year, sort have St. the the that Londoner New will of that seeing. of up The Hotel in The transformation casino but open out the the again, open New -- public [indiscernible] XXXX. XX to be most and is to to Seasons going comes -- take building up way months this it Conrad for transform going the it. Londoner the Regis property, way, it's full But start from start and you support Regis where of in will March -- April, Year's remains up and the fall Four the share holiday by access

construction. that are intact St. end. We St. Palace Dragon's the Regis current remains Regis new a the is behind building until under

close that's in different We X,XXX late down, Year. there's biggest in keys thing the come complete probably before open one So, dates, again, New the XXXX, does the them holiday thing. if we post-Chinese single

Patrick Dumont

much rooms that mind too the portfolio. like entire in -- have Rob the hotel great great families. who Inn and rooms taking more are come productive, that going is larger suite. They for are were people product even rooms for the The same we that hotel way over. saw be out at in we They're X,XXX creating at the they those Keep smaller to that Parisian least Holiday productive creating

see same of kind We the expect to accretion.

the hotels and side, out in you're big we a there we so gaming that take is you benefit outsized losing much small service a of big not particular, on a completed. and once we're kind those of benefit So, when that degradation, get get but

Rob Goldstein

start what's What have that's things the accessing alternative ways we going I on the to strip going tearing disruptive the the don't that. properties know But and Rob around to as all is of there building. happen be we down, facade

we we move run So, this to. demand properties lot we're have the but wanting going to again, can there wait of a team thing, skilled and is how confidence we people. the see lot at really the to transfer of And,

the as build future. this So, we disruption we can thing for hopefully, limit

Robin Farley

much. Thank Okay, you very great.

Rob Goldstein

you. Thank

Operator

question comes of last Our Carlo Santarelli from from Bank. line Mr. the Deutsche

Carlo Santarelli

you. on Thank now. better the guys. Hey strategy quickly just of understanding kind right Rob VIP

of where channels? seeing terms both period. up and basis, coming growth majority junket is mix closer several ago. through the that be years maybe I XX% If more provide I'm is obviously, absolute significantly color recall this the recall, Are you your direct if not I channels to or and -- this, growth an it the you're roughly on revenue same used sure but from? In direct you're on the going to to of seeing through where more your the And

Rob Goldstein

and The and question. I I'm going getting the play not first premium is You're strong, both; and time, direct also direct the breakout, provide the strong we're but we're getting appreciate rolling, premium, junket. to right answer

type junket of better. they And in when have you been ways. rooms entertainment where these high have that these And the growing. getting best The quality than the story equation the just are direct customers is very junket we're premium magnificent Our the I And is want has rooms being a enough well There's you roller town, is business market in there. dictate that It's to in to terrific. over. partners this through important, command shows And junket and point you a When old there's again where have understand customers truth evolved people you because junket. be coming want have old number both simple sleeping now. or anybody, think junkets as where not one the better more problem they the that's these or over assets. know see, the it you stay that's gamble same the days in of back and of direct

So the better the facilities, retail better places the products, the customers. the better entertainment properties, attract better

And there, well. anybody the with product each going our getting that than as ecosystem a business off many from we're of mean, as just and retail, partners. And too a to junket we're non-rolling we and else, lot else. you much they business that same else. as again entertainment, we downturn the from And frustration, I outside keep healthy other customers more economy assuming result, have the the of piece up, that. it complement as they segment suites of direct anybody know are share for macro feed So as the both share we're gaining going in we're you But to and is growing outsized getting that is showing The everything is know the The that the segment. market overcome. the keep frustrations can relates and to only

a billion. going a I with think long And of and to road scale the quality short-term continue has that along force views by I we think strong very by always that holds fueled as team, and market our be this the in by been a mistake, Macao to in up to space. Macao stellar as we're product, had management is on $X

Carlo Santarelli

went you. terms quarter, to the little about Great, to into, you thank in strong hey, the pace kind a XQ And buyback to in talk but mindful to in what bit your in buyback different of your could time, spend? want then with We find I the quarters just thinking balance the or of your a valuation very was the be relative attractive? the respect Is year? that obviously, of that obviously, that, accelerating we just activity of sheet, prior approach have,

Patrick Dumont

first in well Rob strongly raised we a I felt think to investing as I yes, projects in $X.X as of capital. as that but of potential has two that Macao been of. and billion purposes a advantage out growth we St. a the in company, see value it plain the for of the long have of want way, lot equity Chairman laying to Regis. value in in your continue It's we year We very have we meaningful the think, on Four liquidity return statements We're here. we returning and potential. to earlier long-term other will have and high capital and lot sees simple, believe And the Londoner in the take Seasons the and liquidity

very again potential saw our last And of the you so look the that and in repurchase nature investments feel we'll about the this be aggressive that the strongly that's in we quarter of the returns because and to future, making. we're

that's So result of that the

Rob Goldstein

it put To simple, gave to buybacks.

Patrick Dumont

Gave buybacks.

Carlo Santarelli

guys. you, Thank Understood.

Rob Goldstein

you time, Thank Appreciate Carlo. your much. very

Daniel Briggs

everyone. Thanks very much,

Operator

all Thank call. ends conference today's That for participating. you

now You hang up. may

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