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CZR Caesars Entertainment

Participants
Joyce Arpin Assistant Treasurer
Mark Frissora President and Chief Executive Officer
Eric Hession Chief Financial Officer
Chad Beynon Macquarie
David Farber Credit Suisse
Mike Pace JP Morgan
Carlo Santarelli Deutsche Bank
John DeCree Union Gaming
Ian Zaffino Oppenheimer & Co.
Robin Farley UBS Investment Bank
Patrick Scholes SunTrust Robinson
Harry Curtis Nomura Securities
Call transcript
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Operator

Hello and welcome to today's webcast. My name is Jen and I'll be your web event specialist today. All lines have been placed on mute to prevent any background noise. Please note that today's webcast is being recorded.

During the presentation, we will have a question-and-answer session. now Arpin, to Assistant is over today's It Joyce to Treasurer. Instructions] my turn pleasure program [Operator Joyce, the floor is yours.

Joyce Arpin

Thank Third you. Quarter Entertainment’s XXXX Results Welcome Conference Call. to Caesars

Chief are Joining Investor Officer. Financial Relations in this release, and caesars.com. Frissora, me conference Caesars slides, press and Entertainment section presentation replay today President Hession, at from Today’s and the a Executive earnings Chief call Officer; Eric available Mark of are

X-K. the furnished a the SEC copy in to Form also We press a of release

that other and we in results current produce information disclaimers include definitions is [inaudible]. depending The Before we information. our forward-looking statements, conference factors for measures. our This based four, underway, markets, filings two vary actual through on forward-looking the purposes, prices our as get slides manifest non-GAAP operations, and discussed and may on during Safe and expectations comments constitute uncertainties materially call the risks Harbor made certain

CEC release then before to closes. call over [inaudible] our entire to take results questions. same-store. include we Enterprise discuss to was We’ll Same-store discuss and references CEOC August Mark them in financial results do X. more turn to now Caesars I’ll due Resort from to addition, Entertainment CGP Entertainment on In Mark enterprise definitions results referred CEOC the initiative the be review press provide CEOC CEC, Operating in results to Caesars an and Please on consolidated years all will Partners as from figures XXXX. but turn this the CEOC Mark. from provide progress. Company our CEC doing and so. October related and then your consolidation with call Eric with or in reference in and QX bankruptcy Caesars results Properties Caesars seven, of or not Caesars emerged or now slide All enterprise-wide there this Growth will or Corporation slides. CERP, the export update live are just of Entertainment will [inaudible] detail

Mark Frissora

reported you Thank plan Joyce. expand results to and third financial margins. quarter solid on Caesars in our grow Entertainment delivering revenue the

As also full restructuring simplifying of initiatives. to and our allowing X, turn business our on we to CEOC October you us completed attention the know, our growth

anticipated we growth call, As third in communicated on and our revenue last quarter. accelerated the

pricing from increased Enterprise-wide results for XXXX, driven supported The revenue which over our Palace of operating by an strong cost basis improved by revenues and Hollywood, growth $XXX results Planet Our of of in properties. and our which dynamic XX.X%. reductions. which projects gaming grew revenue to hospitality volume one the London our and growth $X.X to X.X% same-store revenues. Baltimore On XX.X% results improvement across million enterprise-wide Horseshoe margins hold, revenues projects. XX.X% revenue operational excludes due consists X.X% Tower CEC a efficiencies. volume results quarter hospitality reported models enterprise-wide years, EBITDA to driven domestic improved by $XXX million and ADR flat adjusted Slot room third our third improved to an renovations improved Same-store Palace The $XX and and by quarter the renovation increase majority at EBITDA XXXX. CERP quarter or points EBITDA third increased improvements, unfavorable year-over-year. growth revenue and driven of room Operation was year-over-year growth adjusted impacted EBITDA operating and initiatives. in XXX gaming million in Recently income basis, Vegas net improved $XXX driven $XX successes increased at billion. by net adjusted negatively net completed grew both was X.X% were a year-over-year operating revenues a increased domestic same-store million. by improvement growth solid business up the volume results adjusted Caesars with Las and On income basis properties improvement the additional cash for CGP million primarily help of of

remain Looking our or believe enough to fourth team the ahead, in to us momentum achieved provide quarter, meet results navigate this we guidance. previous exceed of quarter with the headwinds through track and on

Moving slide eight. to on

X. our has know, been hometown attack all by October you horrific impacted the As on

we heal $X by are entertainers, those resources will supported organizations Vegas assist employees, assistance. attack. of donated with chefs this the our by our to We to operating who a million committed Together helping affected, need affected have Las and and ongoing those

Vegas our overall be enterprise we adjusted to immaterial expect Las our impact to relative Regarding EBITDAR. operations, any

the In Las a will not in on have our believe in do material addition, we or visitation on the growth long-term. Vegas incident the impact opportunities market

completion evaluate or expected exceed continue for quarter, and will of be not EBITDA, Horseshoe our highlight is the is EBITDAR with million. business. focused and On manage to will Continuing XXXX segments to bankruptcy our consistent and from to with us of the of current XX, to planned we which to Adjustments shift figure – CACQ the this the six monitor assets. the expect meet emergence transition structure regional for a modify we will slide $X,XXX projected our simpler to emergency enable structure. months operationally We fourth how the operating slide new deconsolidation CEOCs deteriorate, ownership $X,XXX merger we million. trends Baltimore, business, In reporting will of enterprise segments, if to do nine. we

improved properties much balance a continue resulted also XX the continue line will Slide Caesars agreement The XX with Following sheet. subject manages lease with continue consolidated and long-term services all the a XX. from VICI. and benefit all or operate central a owns remaining part total all controls the Caesars the in to of assets the rewards leverage and restructuring program. All Caesars through properties restructuring, properties to network approach brands, will reduced to will be under services. substantially process and

Following at the debt. result of by an Harrah’s annual outstanding for interest versus $XXX The million savings pending Entertainment approval enterprise-wide taken savings cash. improve Baltimore $X our Philadelphia and emergence, forma $X.X refinancing approximately of amount Caesars refinancing, CEOC billion XXXX. financing and debt, combined to reduced to savings. interest This brings $XXX annual These recent fixed of from savings impact cash also million. $XX CERP, regulatory annual result totaled billion out will plus million with total the opportunistically pro steps We’ve has in annual additional CGPH flow reduction charges approximately in a of

of in approximately we XX, highlight made We in week cornerstone four be On quarter, X.X%. cost debt XX. Our slides. important to progress of expected following slide Slide as each our branded the deep the the highlight Last appointment initiatives we is announced moment I’ll the experiences Chris tech entertainment these spends initiatives. as industries years and experience continue marketing of strategies. him of will XX behind data and Chris making including of company instrumental in driven a at Marketing Chief Chris hospitality well exceptionally several Development platforms. Holdren has rewards marketing while Starwood unravel Loyalty the quantity enhancements by Officer. the timely, Hotels will revolving Disney Chris as our as to increase to qualified offers Content database CMO in most to senior a of Company generate we and our new total returns. served technology allow our marketing in appropriate customers directly quality engagement, our personalized the and These and programs, data leveraging notably deliver recently us ensuring in program years play the overseeing marketing SPG driving the role an Handy. at as Resorts Creative & continued completed Walt roles and variety on

we continue as the quarters, Slide percent previously, to Chris’s improve forward marketing improved past a stated of As and efficiency sales. to marketing of have over one our is going focuses XX. main three objective

We’re technology upgrades also progress making of planned on systems. our

is quarter This cloud successfully processes accounting Oracle’s to a cost we in allows manual gains. and which first eliminate productivity closed many our at lower department, quarter giving in financial significant our solution

with our of that awards excellence Caesars Palace paying of are and the levels off. we across customer our casinos year. last satisfaction. America nearly and for certificate partnership employee of for everything forward At in ADP is our code, focus We the a North across and recently top Office team’s payroll awards. individual relentless ranked look Year XX to by XX. the and report Slide effects of we with company We do the Today, among I’m US the coming pleased on we and highest with introduction efforts to the the TripAdvisor number were of new engagement and double our this are attendance. recognized milestone, we properties, USA the Company employee won achieving won Cromwell by maintaining awards XXX and the quarters also celebrating proud milestones the the of

and excellent Eric continuing I’ll and most awards go loyalty to advocacy, thank MGM the also driver success of over the guests. category any awards financial We’re others. team organizational in to brands includes it key for the detail the turn Resorts like prestigious operational quarterly loyalty I and care to excellence discuss to We commitment. impressive our now. won beyond Dominos a Caesars in want These XXX and three with and Wyndham, were to of for are the results above nominated among take field results company more that participating in of

Eric Hession

earnings through appendix and otherwise reflected earnings August, results results the we as focus in the exclude which results can the of and end equity entity same-store release, included I’ll and the be Baltimore the the back will and CEC deconsolidated indicated. same-store unless investment plus Today the Mark. Thanks, FormXX-Q enterprise-wide of viewed the be CEC the CEOC on commentary level results in an deck. Enterprise-wide Horseshoe at now at metric.

net stability, value exceeding Gulf hold led year-over-year. region London to approximately enterprise dollar show to turn generating highly properties. $XX X.X% Caesars million. in net one by year-over-year improvements slide revenue overall the increase offset Coast of please prior at X.X% The Enterprise-wide same-store in Palace revenue. continues signs Now X% attention year-over-year year a rose unfavorable of XX. your improvement, Slot of volume revenues our

and and gaming increase. to increased discussed operating as In $XX cash revenues and addition reductions between to as offset $XX improvement an Mark and million improved ADR bankrupt revenues also higher growth million. improvements impact reduced fees in The the hold million the year-over-year were in and expenses contributed XX% resort well $XX that EBITDA unfavorable the cash by revenues earlier, or expenses. Adjusted by partially supported

$XX million. XX%. was XX.X% to We $XX our margin quarter the million be XXXX. challenging of face between quarter. during contributed fourth operating will into net of the $XX between approximately quarter hold million $XXX is basis, year-over-year previously, not million fourth adjusted and of between quarter year’s to of $XXX expectations and consolidated hold and In And of adjusted on by of Third headwinds hold fourth look Baltimore million and as unfavorable estimated impact On be EBITDA results Horseshoe the a same-store XXXX, income it’s EBITDA. revenue $XX discussed million, as with we this adjusted

In Ohio exit from last our addition, $XX.X in onetime also the CEOC a revenue fee pickup million year fourth of quarter to of related reported our properties.

count will While pickup fee results, the future for a headwind comparisons. not towards be it our revenue EBITDA did

QX the expectations of range our to the experience we for affected it Las coming and all with our in XXXX, Finally, also hold $XX It’s estimated in tragic likely revenues Las the recent events Vegas. quarter favorable be was from of in Vegas $XX by million region. will million between an of fourth that that

continue temporary some infrastructure. expect we Major implementations We corporate cost of pressures as also IT

year-over-year. exceed EBITDAR spite flat we we focused as impact use and from billion. headwinds these the help meet we $X.XXX and have As remained our always, on increases be initiatives previously offset XXXX that We In underway anticipated of control same-store room earlier, anticipated remain which and will we renovation or cost the continuous Mark guided of to stated will improvement these to on construction projects track headwinds. adjusted

growth September cash approximately Moving and to positioned of as enterprise-wide incremental to slide by XX to have $X XX, in well margins, this positions will cash now invest are we of Post opportunities. our entity outline billion we of year.

at estimate peak with of continue renovation million $XXX its plans. same-store as on progress spending capital in room Our range to our a we high is XXXX

under just for are M&A this Las By trip. the rooms comments. them as we turn Our I’ll to Las X,XXX here X,XXX expending of such end year, well of approximately are Mark Vegas. closing have the renovated the enterprise in unused are Vegas XX% on the acreage estimates include projects Las we been the development since renovating Vegas about capital our do not X,XXX of XXXX. it inorganic his of rooms across the Well year, any back own the now or

Mark Frissora

XX. Please slide Eric. you, Thank to turn

which record quarter we as adjusted enterprise-wide had year-on-year performance to time EBITDA third quarter, and accelerated all included margins. an exceptional anticipated, So recap, third

CEOCs positioned to headway our now while growth also diversified We’re restructuring to continuing business. we make strategy going in a initiatives. invest pursue With to concluded, on cornerstone more our are well core

the for now line Operator? Q&A. open up we’ll So

Operator

[Operator the Beynon. from Instructions] line comes And your of first question Chad

Chad Beynon

of Hi, to mainly the and time talking taking to lot about margins XXXX CEOC. thought for not this investor you that good spent in we the we’re quarter my exceptional really Last the afternoon Wanted thanks third start the the, some but going with week and in a quarter. get lot continuous in of improvement place, question. in event of initiatives a better that you at

or was be thanks. some growth if just really if CEOC was were And was color if margin where a million then a revenues the growth there about, benefit or at you helpful. have any color called a based maybe the of Caesars just could from? mix I any at out good Palace, So You with $XX it time around, there Caesars would talk follow-up, of were it kind or was, Palace, one just there broad coming

Mark Frissora

in I spite quarter we hold things had Eric of that Yeah, point general was a in and to in remarks. that’s one of bad our this. obviously I the both good we and But tried based, broad the answered it that think

million off a or So planning we’re $XX a million, it good $XX plan. wasn’t from hold from standpoint about

good I and hospitality to a I was that We had it volume pretty as growth of see as say drivers finish well. felt we key would about of good, would the yeah, slot so so, that, we And call one continue a growth. really lot

of a So, couple there highlights Eric?

Eric Hession

is really through the operate fixed as Yeah, a to add we’ve quarter. try make the discussed, to a go control relatively effort that, I’d business we costs only and we thing Mark as conscious cost our do we

we see said Investor where we revenues as so referenced on and line noted the Day And performance. offset to and on Mark consistently to side, increased then and conference a we’ll And we able inflationary a drop end was margin also on expect to margins. we continue calls, improved of the week, were that side, for as bottom at revenues quarter in do slot the improve forward had the continue portion that we’ve hotel to increased result and significant the last moving the as pressures our the

Chad Beynon

within respect follow-up that? of number the Okay, bullet the Pennsylvania, and you great. a My is in give with that how legislation. points if to the new different would on your think views if I bill wondering you opportunities legislation piece us could were of within about that was of outlined some pursue you

Mark Frissora

based standpoint, And let a broad I up. think I’m from catch Eric, sorry me

say I is answer mean its to that a have think lot clear things I not don’t positive. there, I – think there we – it’s there mixed any of a is net

it, were added what not we’re of were things neutral things and in that impact are good on infrastructure. given capacity market some good of an things of [inaudible] seen some I kind existing that has terms the we’ve there Eric? there as capacity the think and kind the so

Eric Hession

it other. be did Yeah, side on conclusive rate one that It’s impact make was its hoping passed, we excited or that way I long and entirety much about have the evaluate internet so very was great package but time. the Mark. And think that’s Tax something statement a was before that that. high gaming we’re so the to we’ll we’d right for

Chad Beynon

Okay, the guys. on great. Congrats quarter

Mark Frissora

Thanks.

Eric Hession

Thanks.

Operator

the question David line next of Farber. comes from your And

David Farber

guys, how are Hey you?

Mark Frissora

Hi.

Eric Hession

David. Hey

David Farber

guess… a name for new that’s me. I Hi,

Mark Frissora

smiles. with all it like We

David Farber

I wanted follow-up brand if on all I the use to you I strategy your and at I that M&A guess to upon on disposition and could Thanks. desire base asset perhaps you’ve touch the have, you curious touched grow But about Good. recently. that to bunch a touch you any if was thought might question. had a

Mark Frissora

certainly some time judder lower at several sense yeah, mean had that our that bankruptcy in macros. we to facilities to make point there performing about I have obviously and, good those without and some, think is are may Yeah, so it

if to those perfectly activity try we some Our actually plans of at would type time grow would the is properties. we same activity, of kind through we that a development range exit M&A get

We those make might a that have new buy plans now obviously. we’ve talking board been about and of to sense sense and that to exit to those our facilities them us make for it may

we’d but you like the the on see do revenue a way So, really in to impact it Eric? such line. don’t that

Eric Hession

Yeah [inaudible].

Mark Frissora

Okay.

David Farber

mind just, that. VICI. REIT other curious thanks the think maybe you a And us maybe your you given if in of you REITs universe you’ve Caesars it you how me, the thanks. that’s my just understand the is – experience for bit might help sort things future had And likely that’s branded, My about think you with if think gaming the follow-up with with and partnerships from little have follow-up can and about I’m and

Eric Hession

Sure.

So, yeah, certainly relationship that now REITs VICI. been we’ve VICI a few good the relationship and times. regarding with a have very asked we is the other question the something Right

only their obviously this largest and at We’re tenant point.

they basis contractually development or relationship and a any have opportunity Vegas with anything. where to we between non-Las forward, them, a go will back similar acquisition and ROFO us we if acquire have Going

sense. to able others from if and capital said, to So them own those transaction. not abilities finance and our own cost with work I sheet then balance from perspective, our able to That’s on they’re we’re standpoint, competitive with certainly to rely opportunities that be think make the working or certain

the and themselves. possibilities make the as available we’ll So, look based all best on present going they forward, facts at decision

David Farber

and good, Very thanks.

Operator

the comes from Mike your line of question And Pace. next

Mike Pace

structural One and thanks. a Hi, follow-up.

that redeem CGPH should expect you to ability have amount have point can, you will get when I further need debt at that? legacy wonder try in simplifying and timing but to the what So, Thanks. and if goal and not And carrying your CRC happen we and the Xx silos there the CEOC you that to [inaudible] bonds, you’re some the with and with XXXX Eric, to of is [inaudible] steps the consider decision. to

Eric Hession

Sure.

in of need everybody currently and financing Louisiana. We Jersey, will secure are That bonds point. approval aware we the I believe believe New at this so and phone you’re November Nevada this that needed steps at able variety schedules. can that we the of as we’re that we as schedules transaction states that close waiting the and So, three did the based in for regulatory but point on those final certainly slip beyond CRC, they’re approval the escrow well, in which to is on

So, November of for and the December time to come the escrow likely to we out financing. that to close is think ultimately

we Regarding overall forward, that’s the CEOC, to go cost we’ll as make on comment perspective. to evaluate and have capital something an

sense ultimately simplification we we’ll go overall perspective. to capital I cost to think further would make have forward an as and and make evaluate

further cost I XXXX. could ultimately would the we’ll sense benefit or that have market into entity CRC happen conditions and the to emerging in are, what but and that’s think simplification something evaluate that make financially of

Mike Pace

the bit reporting just follow-up explain will Can you little more? that the you’ve I noted And is, or regionally. what segments press then your a that comment a guess in sent just in to the I shift fourth focused operationally quarter release

Eric Hession

And on manage is that report regions now capital consistent out certain we you’re and we to how more currently which have CEOC, CGPH, business. feel report we’re generally with aware as it’s of appropriate We a based more Sure. different the restructuring etcetera. on structure, based credits that with

of we’ll and going have three region. Las Vegas one so other have international have the we’ll an regions And the forward, the region region, we’ll

comping evaluate more to think that’ll at useful for against business competitors the the different and the you’re performance so and And in looking we when when you’re be areas. trying

Mike Pace

Great, thank you.

Eric Hession

Thanks.

Operator

comes from And next question your Carlo Santarelli.

Carlo Santarelli

think is helpful for mentioned of to headwinds million a kind specifically and trajectory that’s thanks obviously Vegas on guys, question. $XX you quarter on everything a million of within in some of well going that headwind and you growth mentioned initiatives fourth about $XX EBITDA both Eric, color you believe overall XQ? but Las hold some momentum the Mark the to do specifically impact. my and there Vegas Eric, the you taking Hey in in When as given the recent Las the hold provided as you the

Eric Hession

be in the come despite that Yeah. seeing be able borrowing what We we business the that those declines achieve and to the that after that had have able provided from seen think and on in we on no downward deviation that that that, we’re tragedy. based trajectory still further we’ve projections numbers the to the we’ll

Carlo Santarelli

your days that it talked kind And few last Great. with Analyst pace? week now I was improvement I’m you continued bookings guys first has kind at Day of that respect a I less or from there. think steady trend more to of guess about the assuming and

Eric Hession

still, groups Again that’s paces Yeah going again, in different different impact estimate point at declined. be. correct. the and said pace bookings there, the what But has and cancellations continually the we we’re evaluating to it’s Years trying what with ultimate certainly including for is the it various the of New at the segments variance consistent and looking where to we’re the

Carlo Santarelli

lot Eric. a Thanks Great.

Eric Hession

Thanks.

Operator

comes from line John DeCree. And of next the your question

John DeCree

question. the for thanks everyone, Hey

the is if growth. had of Vegas be wondering on any me, it, slot slot what have volume driving we behind you how I be floor, guys the a your this your big a of commentary kind And you to for now might wanted specifically be revenues slot on what would you’re was to one to might being saw that consecutive product a provide good I what, little back mean months as go business and on color marking a view of the quarter. you couple it in could driver wondering Just Las pretty or helpful. more if that And of color, volumes bit was

Eric Hession

add Yeah, up seen to as of that well would of X% I slots our first now. anything months well, overall and the which very some I’ll that’s strongest the a in number else. sure, Las had saw consistent you growth for certainly as on we’ve properties add through a stronger if in also long take side have the see Vegas wants that volumes been the time. regional is them as we’ve slot were Yeah, Mark up

certain a Certainly that, spend, of efforts what’s our into come improved be units customers and terms think on things. slot In refine But volumes. believe with the I’d ability marketing terms we the well ultimately we that into as that in in have also to better and driving very translating we of target combination resulting the to to play put back we product say of floor new that in the marketing that’s resonating the customers. on pull seem

think had third hotel Las from I in some you’ve rooms quarter customers generally at seen result, a LVCVA us be well. get might And to contribute as Vegas it a as the higher rates for and status. charge as complementary gaming very to so we for rooms, And strong our our the were and is market. of have a then order to able to the statistics, in that the And higher quarter

VVIP basis, our into so up that additional spend. on the the slots trips So X% VIP and translates directly year-over-year were quarter in

Mark Frissora

know things thing board. if like of it’s wrong I across and done impacts equal the XX% add think something or those kind roughly we’ve can were one year, know this don’t it me to say I would XX% it’s that other. that All we slot I do Eric, Yeah, the that. on I correct our product of product. if that slot I’m refresh and the mentioned,

that’s sure understand for have product So it’s really, it’s it, really for is perform of for to them to we our driving want – product make it’s it I like not all you replacing us the what’s and slot well.

John DeCree

guys you Understood, kind Eric you if helpful. would XXXX as XXXX item, kind emerged and And from you, you I you some appropriate And you maybe when just commented both of for that’s had me, thanks. time the projections guys Mark projections. whether a from the was or that update on that’s bankruptcy. contemplated on given all of housekeeping is had follow-up of wondering

Eric Hession

not at that to CapEx projections. spend evaluate a that Yeah, future time XXXX and we’re We’ll time. at time we provide our projections an this update we’ll also do at likely providing for whether

John DeCree

Eric. Thanks,

Eric Hession

Thanks.

Operator

from next your question comes the of line Zaffino. And Ian

Ian Zaffino

XXXX Okay, little Mark, know the should beat, much. the just you but to I that have would I bit, XXXX quarter you��re more it pull have I have great. or of I at Thank at wanted to mentioned beating led there, least have follow-up. you XXXX. the And some some sense, Thanks. color I’m give a the kind you spending of now planned forward maybe should that a is of you very then XXXX? just you us figured shock bit in that have the meet doing in Maybe build would on maybe rejections. with and

Mark Frissora

can time businesses are give and every we what up we obviously mean the you we come doing. estimate single talk best I about, the Yeah,

of that. in think weren’t So forward pulled I about was even forward thinking that pulling nothing we there at all, terms so anything,

plan to even we’ll solid obviously have we hadn’t doesn’t about feel we get a talked the tragedy, provide that the our I our primary to of the much not year, this making know business that sure So, we’ve will ready as once we think improvement this plan year, for guidance next board for drivers on kind what impact we board, of be long-term come business Vegas can. And set at our a kind next we have point, in we but as of have obviously, of plan. approval more

Ian Zaffino

Okay.

Eric Hession

Ian, to able that exceed. we meet the a And to we’re thing make that sure always only and as team set add, our try feel we I’d confident expectations that we the expectations that

And quarter, projections so, at that as provide have missing. we fourth to we we head didn’t into would the risk want

Ian Zaffino

little available then how there you’ve still building the some are Eric, to you’re you. No, deployment we timing that as that size, as opportunities it, what because that that think some a far the but this, are and you on or how to about a out sitting were real really the of talked I about bankruptcy think bit, that you’re well? with cash thinking I in what mentioned it. also, do flow. cash, as you’re good maybe while I do do you know sort how to get does about that before M&A monetizing you trying And I of wanted and And have foot mean estate But capital lot

Eric Hession

on it’s been for But it. yeah, we’re Yes, to have month, a yet. working deal of bankruptcy out less Sure. – actively no we than we’ve announce so,

As those we for of strategic attempts in the And be particular return it it and more. investment. a mentioned, from a would would could a but that also from domestically the be acquisitions it’s strategy is look certainly to distribute on getting on of core a be to acquisition [inaudible] opportunities to great tuck total variety our particular size

looking opportunities, of sure So and make takes say with ramp complete the disciplined [inaudible]. team do. I really variety they getting centre that also on we up we’re land, that intends something very management it’s but to certainly to land of terms out the that something would approvals out the side to like subject I’d active, that’s be actively of a And mentioned to that would that work working permits, fit our in we’ve getting on east a that expect the in time corporate say also have previously the the to approvals, a we’re strategy, number for we’ll transactions. XXXX to would

also a a things we’re right, in available. amount be cash, vacant be the And we’re cash we’ll of on a were be and you’re growing generating right those have that Vegas our significant we business, capital of and that lot then from footprint, building pursuing have the reinvesting we and now. in perspective, here the we’ll allocation and land Las we’ll So expanding

Ian Zaffino

helpful, That’s All good answers, thank great. you. and for color. again so really right, you Thank the

Eric Hession

Thanks.

Operator

next Robin your And question comes from Farley.

Robin Farley

thanks. last to mix ask how that I is this Great, your rooms convention Vegas, year your of wanted year, Thanks. what wondering trending? about just is versus

Eric Hession

and slightly convention at last mix, We’re about than right maybe about that’s now higher XX% year. same the

Robin Farley

have on how for that? may And do a you view look XXXX

Eric Hession

prior year good and of banks we’re and hotel revenue But one growth includes think within side versus strong. market that it is pace, pace mid-single solid that our we on We relatively more look look Yeah, reasonably the in so generally component. because we the segment. both consistent the two a from at up at and pacing, that’s digits year when year both the indicator the

Robin Farley

Okay, earlier great, were overall just thanks. of have things there, will come expectation the other few guess quarter there up I in, shaping weeks. clarification, Is the maybe occupancy one questions couple where in know in I And fourth is maybe last for your Vegas? what how in about been

Eric Hession

they they don’t our more very the Vegas year. where hundred solid Generally, that in much. prior What and occupancies a occupancies is would points I vary of Las of couple here were be varies expect rate. our are basis within will

if the side. you’re I that’ll be think on rate see going to variance of a much

And change I of expect in so basis points. a huge wouldn’t a than our hundred anything couple more occupancy of

Robin Farley

you. Thank great. Okay,

Eric Hession

Sure.

Operator

your And line from comes of question Patrick the next Scholes.

Patrick Scholes

your of database various Yeah, the a you. I’m tiers you on quarter. in good Thank evening. can during the wondering bit performance discuss if

Eric Hession

the meaning groups? tiers The work

Patrick Scholes

expectations, No, whether also I middle, to note do end. your drive to customer in segments various they anything fly or perform there? versus How high-end, mean lower

Eric Hession

up spend I down. I’ll solidly I a trip the Yeah, guess make quarterly, trips however for that for comments the that, VVIP VVIP mentioned of year-over-year basis. a and The were up couple segment X.X% VIP on on was our

occurred for our play entire at of company, isolated segment. VVIP that as perspective, was we level. overall up during it few the had the quarter at as well the some though particular as customers an As those international we’ve was really from the that look down so obviously From when effect trip to we X.X%, you spend had, hold the that mentioned that

don’t versus and here drive-in strong that it the we quarter segment the it we and the for at through that really and quarter. lot a mentioned, of RevPAR we a up X% was traffic, very look drive-in for Las fly And a of way was kind of end, was just terms fly coming usually so both flow end it the Vegas. contributed it that that into in the the felt Las good as the saw on in we approximately quarter In based Vegas demand

Patrick Scholes

thank you. Okay,

Eric Hession

Thanks.

Operator

from comes [inaudible]. question next the of your And line

Unidentified Participant

for question. everybody, thanks my Hey taking

just of environment. in about sort and just seeing ask how then to Just progressed revenue revenue Can the what about quarter regional then you talk throughout international? markets you and and the you’re wanted Vegas

Eric Hession

Sure.

certainly it do don’t which between is we months. we months yeah, generally really break is usually down that. by the So, There why the why, volatility

been mentioned properties of have you said, peers, case, we’ve experiencing international quarter this If we probably years. a hold at that had and to weekend quarter, the our for could on big very volume the the gaming quarter. we overall, in did regional in strong not slot component played core shift of particularly that an But side five as or negative have unlucky some it some did The quarter. know, our second the but impacted Vegas the fight holiday perspective strong a as the last From and we Las that a kind or the with our could business the that trends probably and of seeing That’s both also are like as it’s the good the of very growth, to London shift you markets something relative we the for hotel of beginning have side. for quarter. was particularly we just on that end is

Unidentified Participant

Okay. And I switching then just gears here. guess

when than see gotten to of so your obviously promotional bit that with thinking curious you’re you some just can competitors, a drive do has you see of some to product the As I about how opportunity down? happen? renovation, and think better we comp more that your the start allowances

Eric Hession

move make market. into in also Vegas that Las in about XXXX. And we generally future database, we’ll our our think will competitors, marketing valuable really reduce the believe a was forward. that’s $XXX in to feed Yeah, have million, in down as we’ve Las enterprise total the to we that higher customers They does the we and our before, be marketing of the lot significantly throughout were press here even reduced on expenses a of as efforts right relative it that properties. continue regional that marketing taken did But to we’ve because I promotional fact the we and allowance but our indicated it awards Vegas, to since we and decision big our continue reduction years, that’s the and

and customers – deserving customers there see rates will of because out gaming or pay otherwise it the to thing, the effectively that customers And rise, investment want received to that for our large which would is of Vegas. portion as still in is a of Our free gaming of do return result, result, allowance a in require higher to but free is we that promotional customers. room start to room those going be here as mix are a a I us you’ll stay think have for a certainly paying you portion higher we’ll rooms cash. room of casinos that a entire a selling us Las than comp higher continue as And give the our out we a see amount with

Unidentified Participant

Okay, thank you.

Operator

Curtis. line And of your comes from Harry the next question

Harry Curtis

mentioned net-net. comment led $XX the clarify primarily just I in – to million on impact. that or think to around $XX the impacted Was you million I that Good afternoon, the wanted guys. to hold London

Mark Frissora

primary had of better drivers hold. London. actually I of but against at the one Well primary no, than our the And were to we we plan, last then several I one one on guess, do primary, I there drivers, said was what year definitely planned the was did mean

most get a get of we and [inaudible] our and during a where high quite high bit the that that’s of quarter. lot facility we [inaudible] of So there

Harry Curtis

cadence Okay. then million down expense was question, reduction growth which first roughly get pretty primary drivers your quarter. in were the I’m what occurred expenses And your third behind third half the were sense the Through up that second to nearly then and $XX of trying the my million of What change? a the – and in the $XX then they nice came quarter.

Eric Hession

answer are our our talking know you just corporate like don’t the I expenses aggregate… to expenses that in Harry, or

Harry Curtis

I I’m aggregate quarter the just there from aggregate, there of and there your timing were I’m fourth kicked off just EBITDA a wondering I revenues, issue. really backing that impact, so really – did in any It’s had expenses. wondering your What just that are was a that programs was the and pretty and nice simple did it if if math was

Mark Frissora

marketing. offset first tightly actually expense, in productivity, right, with that, part we think But third to getting would and run. labor we on that, were we much the anything if April, good was force sales look was at labor do that marketing at say starting plan we our no, in the started things the incremental productivity half, quarter in was of marketing expenses by started better expense than much and it I And I initiatives. plan. which marketing pretty pretty pretty And was look we again flat had

not areas it felt the total was say third good but was, and pretty the that $X.X in good first two if the the in we third have company. quarter I the months. as represent in six good anything – So quarter, as in to, we would from were They the half close those of as which billion in spend first the maybe

something, we this to related bankruptcy, it. even we’ll the expense to with something So and had know, be I this investigate look must at maybe don’t

Eric Hession

seasonality. to also be is there Yeah, going

that versus over something the Atlantic in the disproportion so into could City their quarter trickles a the quarter, periods So, and with so third it that’s there other have you’ve do the our well. quarter second of of spend that shift it got up as would to year,

Harry Curtis

potential in of helpful. the quarter essentially is back wanted right that third sounds at about being to that implication year be the above commentary given performance of fourth like characterizing the outperformance the way the Vegas, guidance fourth with because of bit could in little terror upside? event that’s and quarter your in a quarter the it clarify that of It And third versus maybe Okay, or I the just implies the the try quarter.

Eric Hession

projection not the or the end characterize we or the it’s attack, the There it. deliver and quarter terrorist exceeds headwinds definitely to sure that feel with some quarter stick year made twice that guidance our before up needs giving had and at prudent and second can it with that in indications we’re and associated but point the We necessarily beat up did like this I’m sticking fourth at just guidance a kind were I’d that to then. that quarter with a we it. point, projection of we at at We, the full way. of that we

Harry Curtis

much. good. Thanks very very Okay,

Operator

we for any questions. to us run put other And out have of Would you like time remarks?

Mark Frissora

bye. thank giving We – Well, our next report you the the interest call. earnings forward for in call. our a you appreciate Good look company the good to attending and on

Operator

us for today. thanks This does joining And broadcast. conclude our

You now day. your disconnect. may rest of Have great a