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CZR Caesars Entertainment

Participants
Steven Rubis Vice President, Investor Relations
Tony Rodio Chief Executive Officer
Eric Hession Chief Financial Officer
Carlo Santarelli Deutsche Bank
Shaun Kelley Bank of America
Thomas Allen Morgan Stanley
Barry Jonas SunTrust
David Katz Jefferies
Jared Shojaian Wolfe Research
Daniel Adam Instinet
Call transcript
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Operator

Hello and welcome to today's Caesars Entertainment Corporation 2019 Second Quarter Earnings Call. My name is Ian, and I'll be your event specialist today. [Operator Instructions]

It is now my pleasure to turn the webcast over to Steve Rubis, Vice President of Investor Relations. Steve, the floor is yours.

Steven Rubis

Ian. you, Thank Good afternoon. Entertainment Caesars quarter earnings the XXXX second call. to conference welcome And

copy Corporation from Hession, Rodio, A this release, conference today SEC the replay X-K me available and are presentation Chief the slides earnings Investor Relations prior Caesars Officer. site the call Eric Joining of and this will Entertainment Tony a we press Officer; call, Chief Financial in Web release are to Form of copy earnings Also, XX-Q. of Form caesars.com. section at of in to our file the furnished and our that Executive please a a note

we Before of measures. these I XX, slides remind to include forward-looking certain you non-GAAP Harbor like definitions to get statements, slides and through underway, reference XX Safe would disclaimers

defined will Private today include the Reform as statements forward-looking by Act. comments Litigation Securities Our

of statements unanticipated those due results weather are uncertainties, results. may them. date today's and not our and expectations do we differ certain revise filings in risks may forward-looking our circumstances control. including unforeseen hold impact materially projected Forward-looking that or no or Actual in to those the any reflect update SEC There our with as that obligation have to from fluctuations, disclosed we statements other

Caesars unless of third Centaur closed versus hold-adjusted otherwise the therefore, Holdings quarter hold to Centaur of quarter In prior Centaur Centaur and note performance. reflects GAAP third our of all of expectations. stated. addition, of do acquisition results The the the same-store Entertainment XXXX include to properties term not refers to on that prior portfolio performance acquisition excludes our of in U.S. Holdings Also acquisition the results XXXX. Therefore, the in

XX. non-GAAP of figures reconciliations GAAP slide find can You on starting and

will now over turn Tony. I to call the

Tony Rodio

Steve. Thanks

greater the merger to in proposed a our discuss provide performance turning results overview before second Eldorado our and quick of review detail. over high-level call to of I'll our with quarter a Eric

merge to create announced and On U.S. largest an owner of June with agreement operator the to Eldorado XX, we Resorts assets. gaming

stock and combined will opportunity value future to well For as as the growth. in transaction cash immediate provide company's Caesars cash shareholders the this participate

Our position the for evaluation They this the company we of long-term a and unanimously value objectives. most can which transaction Directors of enhance the concluded Board success. path those conducted accomplishes thorough that by

I'm confident that reward is Caesars of domestic Vegas for with program, assets creation best-in-class leading a platform poised combining and the iconic Las Eldorado portfolio regional gaming regional gaming attractive attractive result platform long-term success. our in of a will properties

Eldorado half is with in this and expected subject applicable along the which approvals gaming of to shareholder close together complete working to transaction, customary closing and are conditions. regulatory other to first We of with XXXX receipt

the along through regional and company's revenue quality Vegas well in Las I've rest and as opportunities Until well portfolio. Caesars been May, impressed performance with as operating as as improving team enhancing focused financial of remain the of on asset operations professionalism the the of Caesars team Since expertise then, and our I the management efficiencies. both Caesars with joining

have investments hotel assets highly renovated have we a of performance years. of major complete providing recent Vegas in attractive are Las XX% been our our Room rooms. Vegas our These year, with since will portfolio renovations the a by Las across the of and Strip us XXXX driver end almost strong products of

Palace Journey, Shania at Stefani. including N' beverage others. Christina with Aguilera, reopen Guns Las will set and club. Urban. properties high-profile Twain Roses, Jimmy in and a Madonna Keith and with Zappos food and to Vegas new Between the training feature several Coliseum we September and Theater, Gwen entertainers Cocktail our Coliseum in making among Caesar's across concepts The Kimmel's Garden like Vanderpump also is improvement comedy We're entertainment

net revenues revenues up and net Moving City increased a $X.X and and strengthen strong unfortunately of X.X% Southern the to in same-store and of driven food the by Indiana in Las Atlantic year-over-year hotel the results billion totaled On Vegas. results declined acquisition and beverage second our during year-over-year quarter, Las Vegas Centaur X.X%, basis, hold. by in was competition offset impact the

XX% reflecting of Adjusted while EBITDAR labor X.X% a basis XX-basis driven XXXX. trailing declined up or point Adjusted million was basis a same-store marketing improvement to improved of domestic XX.X% On the X.X% on represented by basis, of down to costs mostly XX revenue competition. second XX-month EBITDA in unfavorable hold quarter margins revenue. XX.X% our high-hold year-over-year gross points due year-over-year costs to year-over-year, gross the $XXX XXX the in points basis

believe We over pursue growth the sports year next decisions seen the catalyst expansion betting this allowing continue to company be several This years. a favorable for to area. us few legislative that we've will in

We Illinois, in Indiana intend sports We across the additional September to books develop be have are are and currently to books designing Iowa are hope which to nine operational and once operational in sports constructing regulations which XXXX. place. expected of we in all

opened with Place Turning the Bridgeport, New in in and us United Casino Nation Indian Stone sports New Resort Point at Additionally, York Casino books recently partnership in York. Verona,

We are Nation and Carolina possible. roll as our quickly to has product also sports pleased we Cherokee working legalized partners are with as North that betting out our

operational books source four footprint year-end. to expect states states we be Our by seven totals in across now and XX

our states Indiana, in gaming starting will several offer be In legislation to games are that quarter, excited allowed we the that directly impacts XXXX. table During Centaur operations. very properties passed our

at on our table games expanding Day. first Year's a.m. to incorporate are footprint dealers of anticipation training and New in card our We dealing XX:XX

Louisiana, Harrah's property order hotel. extension great believe outcome will million $XXX In the Louisiana obtain operate to invest add New our of finalizing improve to In by to in and business. the and Orleans, XX-year for the New state a extension, restaurants add facility, new a new the is this XXXX. city We towards through the we a are Orleans XXXX we working of

high saturated state Finally, expansion significant of tax allowing gaming legislation enacted the a Illinois jurisdiction. in and largely

existing years. expect result, and Illinois feel our the gaming Indiana we properties effects in the the to of Northern next a expansion over As several

in to over our review more to financial results I'll the Eric now call detail. turn

Eric Hession

Thank you, Tony.

quarter I'll otherwise discuss that unless stated. results results our consolidated our note more in Please detail. include second Centaur

second with $X.X Las the and up Las our delivered XX.X% in cash year-over-year. performance. hotel our hotel were grew Vegas strength increased products. year-over-year, year-over-year Vegas points X% business food billion beverage basis revenues solid X.X% quarter, X.X% XXX Net For RevPAR and to revenue occupancy increased and

the we was demand, year. performance second which revenue saw Overall group positive the XXXX, strong demand of quarter both of cash the in increased result room occupancy In of growth breaking double-digit and established for and established quarter records first this previously performance a night hotel leisure performance hotel remain caesars.com. from growth in Las Vegas the year. in of to and bookings provided in demand at We is food direct remainder increase and well. our a as beverage hotel indicative of consumer performance lift expect in in strong believe the occupancy a environment The healthy throughout record

X.X% $XX Vegas year-over-year due hold. to Las year-over-year in decreased unfavorable gaming million revenues

pleased increased and we're with X% that volume slightly total than games X% However, year-over-year gaming table more X%. up slot volumes volume up

few made Garden Hell's as well with levels to X.X% year-over-year offerings revenues and the years. drove the and banquets. from increases last as our newly Caesars improvements strength in the higher occupancy hotel due of to up Palace most were Vanderpump coming Beverage Cocktail Kitchen, the in we've primarily Food opened

revenue adjusted as prior basis across X.X% year-over-year hold headwind a the expectations. but growth up million or year, basis up EBITDA $XXX by on different totaled X.X% EBITDA unfavorable Vegas XX.X% year-over-year not than driven and was margin beverage points expanded XX Las and significantly food to hold hotel verticals. our versus up

revenues net including totaled X.X% other Centaur on Turning basis. a $X.X segment, to same-store billion down the X.X% are U.S. up

Second by City competitive to promotional and by quarter a Southern Indiana in extent and Atlantic results activity the but inclusion of partially are positively offset lesser Iowa and impacted Pennsylvania. continued Centaur, and

totaled same-store other down excluding U.S. Other Centaur all million I the basis was net X.X% decline down declines or up EBITDA excluding totaled table betting when points $XX other our points was earlier. to high-end segment, million to City partnerships. In Centaur. our loss revenue a EBITDA X.X% $XX volumes primarily All net in basis to $XXX at $XXX increase excluding year-over-year. noted margin associated Atlantic XX.X% the partially due to declined managed XXX sports up properties XX.X% due X.X% million primarily game net revenue of down and loss international year-over-year or properties. The increased offset attributable at in decreases EBITDA with XX million EBITDA revenues year-over-year an by both costs Centaur.

growth shifts In the to Las in by second in holidays. increased attendance positioned deplane in overall as calendar the and over Looking continue increased event despite volumes stable on be the the citywide X.X%, environment increased volatility long-term. view and X.X% believe X.X%. Vegas we're we Vegas to Las quarter-to-quarter benefit quarter driven convention We Las Vegas to ahead, city visitor from the and demand well bullish passengers

for full and labor the we modest Las the year last to continue basis in in despite XXXX, headwinds EBITDA previous With quarters. on year-over-year year respect of to to growth with margin expect revenue expect expansion line a be Vegas we noted

see in and double-digit expect and total We nights. group customer in this continue strong revenue room low both in to business growth segment convention generate to

$XX opening we our continue from million over in as currently Atlantic cumulative Caesars, for the Total the expect for ahead bookings opportunity $XXX pressure Caesars expectations. half Caesars well our in to experienced has will but in Forum a Centaur, major in segment, competitive positive of partially XXXX. the Forum million other In are Vegas a only first which already of contribution U.S. not represents XXXX, over Las be of offset well. by bookings. growth incremental XXXX In City

impacts rest of remain the expected we expect the portfolio year. on as the performance the a stable basis. subside to year-over-year second The City across the impact to half in is the We of Atlantic competitive of annualize

technology, for and all Regarding to a due to XXXX we year the the 'XX, generate to sports operating sponsorships. investments full in loss segment, other our infrastructure larger compared expect

qualitative We from with Vegas, continued to will segment. demand factors provide few the to a consider the expect third modeling in healthy for benefit In Las in FIP now consumer we a strength quarter. your

and revenues slightly low on increase to EBITDA basis. digits We grow to a expect year-over-year single net

trends on segment, expect the to we macro weakness consumer. As to continue international weigh continued in this see

single-digit typical our seasonal weakness quarter We to the group be in expected as room to business group is exhibit low third in revenue nights. flat with growth expect

negatively tower weakness, the seasonal third Las will room Palace traditional and of the Harrah's to Mardi addition renovation. Coliseum at be quarter by Caesar's Vegas performance impacted In closure Gras

the We strong low In expect double in the which renovation Mardi we quarter, digits and Coliseum a allow the us to group and in December. in business see to rebound room for for tower group the year. expect revenue the grow Gras will the fourth to in September complete nights the full

regions Indiana, certain competition as offset we In the segment, at benefits continued environment the in Annualizing City effects Centaur across expect will others. our portfolio more competitive impacts U.S. Iowa help affected Atlantic in to growth mixed southern remain competition. due by other negative Illinois to strong and a regional and the from than

Centaur, basis. Excluding be of segment the adjusted EBITDA we the flat year-over-year impact other to a expect on U.S.

to overall in Centaur upside remain the from quarter despite in to and as synergies acquisition expect sports strong betting we additional We the a third the driver Indiana. growth extract annualizing continue of legalization

transformation investments In improvement XXXX. will other terms projects The quarter by the a from of that digits realization our we sequential revenue EBITDA of mid-single and improvement corporate from sequential wind IT segment, investments in growth sports the generate in savings the partnerships. to from our adjusted expect of to second down EBITDA partially and all in offset generate come certain loss adjusted the the of represents

a cash. billion liquidity ended with From $X.X quarter perspective, the approximately in we

capitalizing lease drawn full and available. we capacity in stands development in XX, million $X.X the our we payments Xx, $XXX had at nothing net June in 'XX, billion of spent In REIT CapEx, notes the same-store convertible and on CapEx and million excluding our had As the X.Xx. XQ leverage $XX revolver at our

range Las room XXXX, in Harrah's Vegas CapEx expect we Paris. for maintenance renovations includes to continue and which $XXX million million a of For at capital, to $XXX

related mostly We approximately across million expect CapEx the sports project books development $XXX spend forum million to the in for and Caesars to investment our to $XXX related U.S.

performance, the while refer Before to for purpose is with information the you the open we filings to please Caesars, for look Eldorado to have the merger questions, regarding of proposed today's second forward quarter more answering SEC. please our with discuss any call about that we note call our questions

the we that, questions. open With will call for

Operator

is question Deutsche first [Operator Bank. Instructions] Your Santarelli from from Carlo

is line Your now open.

Carlo Santarelli

that several comments the for couple observations last under it and Tony some think thus you as far had opportunities importantly, you've a I months present? you've wondering the is and your of back surprised of what and on do the [Technical Difficulty] company. kind just months has What learnings that how you your think the your you maybe now learned and belt, more of about, was

Tony Rodio

surprised much question. very and a is for standpoint room in say I more would you from Vegas. the me Vegas performance Thank in in specifically our Las what's overall our general pleasantly performance Las

his quarter, that in mentioned Las in record which record had a revenue second hotel Eric comments, As quarter. at had a in the we Vegas the in our cash first exceeded we

the think outlook rooms I last really years in as dollars well. have future of capital paid-off and vertical excited over number that spent really on the about we're the

Flamingo I of opportunities here our from Palace, to strip and In think think think very East terms a with available provide their and I I if I of properties, at And on like east per from where properties supply, lack side longer don't across Las mid places well term beverage Side Valleys there think Caesars the of food room I the some large it's of you room because opportunities, do that amenities. look compelling there. think revenue are the in Vegas we the

to we non-gaming some things I add do and an amenities there traffic. drive think have So, to opportunity some

dollars certain to little vacant Longer more add also a our also quickly I term of I ton that land for amenities customers profitable opportunity back. deployment those at compelling share marketing some in from we regional could probably think standpoint market could a of be larger we onto have great market properties And strategic, our non-gaming us. Eastside the win But that then, some provide a hold think a we bit and strategic properties. behind

Carlo Santarelli

at maybe guys bit mind Great. how you of That's project point kind a just you're this [Korea] would of [ph] the helpful. And update about in time. then, thinking an of on little kind

about or in think guys stands? of in CapEx guys kind your CapEx you where I million $XXX have or the talk in you so Could maybe general. that

Tony Rodio

month a Eric the certainly to-date. merger the million got going be a up U.S. it's over for got or our on, it on business were then We've and of additional. weigh in here and to to Board into let he's focus a in anything the properties a we've that's focused focus and $XX half and I'll of our with first if come our month recommendation we next two the the ours. Well, attention put and focused that been we Certainly,

Eric Hession

Yes. referenced add that The only that thing because CapEx is the Carlo entity. I'd is consolidating number the you in terms that of we're

maximum of $XX and our of from Our the is contribution the future would that to project. contemplate would the sheet balance the we million be the cash in entirety that out project amount

Carlo Santarelli

guys. Understood. All you, right. Thank

Tony Rodio

Thanks.

Operator

question from America. from is Your Shaun next of Kelley Bank

Your line is open. now

Shaun Kelley

I basis bit bit a I could half environment you first think both excluding I on everyone. correctly/ just a if if appreciate a the And seeing Eric that of core out and more terms clarification us Centaur. second color sure on Good give about Eric you're I and if of could talk a helpful. upfront along But, flat the regional there little what wasn't you maybe the could be the morning, the broadly would caught trends being then, performance in little you lines -- all Tony. something performance, more was core just you the color said

Tony Rodio

Yes. you What summarized is correct.

anticipate there starting the in broadly up. we during flat. then, City some our quarter a We're markets the But some new that's worse. locations better, are third change such overall, performing regional the as markets to be And trend. competition the the the portfolio say area Illinois been tribe wouldn't some of Atlantic with VLTs that Centaur, seeing Excluding there's in would continuing Indiana. I But are excluding say that certainly Iowa affect in with I and some unanticipated portfolio opened Hammond in real

for for the For flat. this it to couple those, about a anticipating quarter, happened be but we EBITDA in adjusting of terms down be year to we're percent

Eric Hession

Atlantic the it you quicker would if in to resolution some us for that think think of the long-term think and the that going in us I improve things those and I games the turn and underperformed mean, we longer-term southern than but of with the there, mean in ton we term. there's games But, at headwinds I have Indiana little I results City thought we that look me with And properties Orleans upside in across a in also we've view, river. around. lease crazy, opportunity Yes. provides New Centaur a instant an Indiana here I of are bit a competitive great a agree can get addition to opportunity a I from table think the racing with longer I call the with lot

Shaun Kelley

a Maybe as follow-up Thanks last point to little that just a for elaborate both. on bit.

bit be of of thoughts targeting a that's a there's Just the table expectations be of on sure number maybe any helpful? the a bit timing an then, maybe there. underwriting New and just scope on for I'm in rooms going investment on the potential upside Orleans done, be little there little to but like overview hotel decent you'd on. amount for And would planning

Tony Rodio

done the… be the that the in got in of to begin would anyway. half, stage XXXX. part planning and four now of I it's XXX apologize terms believe the it's there's was for And it rooms I limit of next we New capital the capital we're But What [XXXX] has deployment And add I investment five range. will knowing in again, that happen, and not also room some was probably Orleans, In can to to that years latter in second the [ph] but forget and of and the number to exact a the the think the number that I again,

Eric Hession

we I from be be to expect just add returns will able below secure in that range Shaun addition that in capital above extension. of XX%, to XX% to that, pure license kind do so the

So the it's also a the great overall, company. but for both a us deal, for think like city state, we said we as

Tony Rodio

tens mean significantly. reduce of us year. buying costs allow Orleans we're every thousands will Yes. I in rooms of to And that pretty this New each and

as So, a positive. we this view big real

Shaun Kelley

color for -- just color you the you there. some on underwrote little prior That's And bit a But it Centaur when think given of Thank any Great. comments any it. I deal me. there.

Eric Hession

Any color on the property? Centaur

Shaun Kelley

No.

On the upside. game table

Sorry.

Eric Hession

games. they've introduced seeing experience also The from games but Based where table from competitor when other Yes. us Sure. in on did markets from Pennsylvania. our table a perspective it we

expect to at million We about two of $XX see the games EBITDA the incremental introduction from properties. table

continuing right progress As we're not case bought that on we business the above tracking performance when games properties. well slightly to of a put together and from now, very our our even absent right perspective table the if we

betting sports the games In to being we're own beyond that that those as the of Tony addition with the acquired open we positive well. And we opportunity. to anticipating table purchase five mentioned And OTBs able Centaur.

all So, sports seven shortly. state in of the Indiana very we have running books

Shaun Kelley

very Thank much. you

Operator

from question Stanley. is Thomas from Morgan next Your Allen

line now open. is Your

Thomas Allen

down just Just a but clarification volumes on X%, is Slide performance. are there? contribution the disconnect how that Vegas I on X, the revenue gaming about when then $X Thank you million, talk gaming you. could did talk Las about mean up

Eric Hession

this and from went and Is year to table in this to Good. overall had XX% it. XX% we year. back that Well, XXXX year XX% know held back year-over-year? we XX% hold I last

were but last our was volumes year. significantly and a luck pretty function bad So, just of up, great down it's or win luck our

Thomas Allen

hold. excludes That

environment, is games like going is potentially? else promotional it the anything So, of it mix the on,

Tony Rodio

we're thing mix talking a It's about. Yes. that

games [ph] And lower a had had we other So, volumes. table then, volumes. we strong [background] very

on the lower to so expected that be side than up win game slightly be the slightly, to table but volume theoretical that. caused And the

On had really the side, mix there's variability the approximately we slot much a up volumes on side And slot from X%. not slot standpoint.

Thomas Allen

and you That for calendar strong Yes. having helpful. And year convention general just about there. some Vegas talking highlighted a then, half sense. really the makes That’s of second seasonality in

year on for guys it you calendar, of versus last the bank the how up back half year? the is Just shaping for

Eric Hession

we good to mean then, number is in feel a booking pace think a and of the that of go that I trends seeing. we positives longer-term are our Really And that increase going on about there well. into demand I we we're mean XXXX. as more view,

over In forum addition next years. the to the of couple

coming pretty plugged demand. And town, get as to the well You've Las the sphere. then, metropolitan Caesars to also four is obviously, significant that'll Center Convention will as as rewards also add areas Vegas the of that got the well we've expansion complete the Raiders into merger ultimately the MSE once got

prospects look very the think strong. we So,

Thomas Allen

Perfect. Thank you.

Operator

from next Your of Barry from line the question SunTrust. comes Jonas

Your is question. line now open

Barry Jonas

Question.

we costs just see partnerships noted Just some and quarter might maybe your next quarter this on that? betting of and expected the about sports you ROI talk timing when

Tony Rodio

Yes. with the until see that The year that Bleacher ESPN when the the NFL. costs NFL back deal expecting are associated Report in in improvement start some channel this We're investing up share our along and now. with will half coming really because in of we've been to season comes

at We the with we'll of on at Vegas events next right the our will later year And in the have that here also finally ESPN preponderance the Las then open a opening Las the facilities. the well. Strip of year in booth as draft Vegas link broadcasting have

excited that. And about very so we're

Eric Hession

team certainly But, in we Vegas up big to sports expand returns the and get as to here betting the dividends they're those front. the popularity Las investments not NFL view going and down longer-term more We going we having on think we're in the that road. certainly a leverage that jurisdictions of as right pay

Barry Jonas

but a this, you million to Got it. the impact million but for $XX million I missed if And $XX to noted EBITDA. in $XX a presentation, had then, that hit hold million to revenue, $XX apologies,

was flow high? so through what the So,

Eric Hession

associated and rate Yes. depends jurisdiction with the on It the tax it.

London the have tax that the London Caesars lot low here but here is clubs in our also very Obviously, tax a you know, high. of Las in properties Vegas, is two have rate and rate Palace very volatility. we club's as operation. So, And

XXX% can the on So, of hold shift through flow based mix happened. that have where more you than

Barry Jonas

so you Thank right. All Understood. much. Okay.

Eric Hession

Thanks.

Operator

question next from Your David Katz from is Jefferies.

is Your line open. now

David Katz

I Hi. Las seeing Good and growth generate There's what you're up been just what strategies much follow finding beyond your and of everyone. about other Can regarding you issues charges just so a about to rates. the those discussion Vegas on are parking just afternoon room moment. resort and in to fees issues ways today. wanted talk Vegas for Las

Tony Rodio

we're continue Well, escalate. seeing them certainly to

to think I of that But, as we're high. competitors as we're us -- that think camel's an hard I it's we is that look taking from a been revenue certainly I getting don't just the think a this getting further. over escalate one pretty and our mean increase those back. any some announced to going well. be as there breaks I very need something I as continuing I and because about we're at to point. time that's to I little to point at those cautious straw about bit the want there's cautious stream that I to yet. said walk think be But, away rates judicious it's that accepted be

Eric Hession

add is than as the We RevPAR States. much X.X% RevPAR of we well the growth very of thing growth The Yes. had only last quarter rest that this had strong faster quarter. United I'd

and for a my whole. us both For as city

fees fees to hit that We up are the And so, don't parking resort inhibiting rates. grow points. XXX think the ability the XX.X% basis our and I occupancy

problem point to respect of Las a demand at Vegas. to have coming don't with So, people this we really interest

Tony Rodio

Yes.

be today of any I that is strong. is New of there economic in that point that, if kind top more thing, will York think other on consumer at where add that demand and I felt things is a downturn that those would lot so The by the than the when

David Katz

follow-up I. Got just think and Atlantic a what there bit you that are My question is, Tony made strategic room you City. Could levers that that for think elaborate remark talk available? you on improvement the it. about And you in is

Tony Rodio

before seven mean and our just hard City, that performance I opened. at them Atlantic of same-store operate ocean the you rock if of in look properties the

think X Part I in the have that have underperformed other properties underperformed we totality. four

in certainly a other to to properties able I it. Entertainment think it onto Caesars to out hold do be basis, market share some So, if way those can figure degree profitable and to do a should

lower we things be suggesting that the very are. But, basis behavior reinvest win back than to I'm of strategic would change about to significantly customer can market out need more and We And share some XXX number market and that I spend think average. there points be that and that testing than we some not one. go we lost

come I we that be think City incentives Atlantic to capital bit two, in would a non-gaming at that much that we give a Number properties. have people particularly to some Harrah's, I so create not deploying some but at could say visit little Caesars and more reason our dollars amenities

reinvested I it failed the over that around we last If It's to are you years. do look and experience at think properties have of turning a little have the [indiscernible] that bit. in the properties that successful and think couple I that

David Katz

Thank Got very it. you much.

Eric Hession

Dave. Thanks

Operator

Your next question Jared from Research. Shojaian is Wolfe from

open. is now line Your

Jared Shojaian

question. the my good help on modeling afternoon Hey, the half. appreciate taking everybody. Eric, Thanks all back for I

expectation in feeling for margins margin show year you here the after Are getting I the full that the expansion. grow indicated would and for the would about quarter think quarter you business. through entire target that second which you call and quarter third the fourth expect last both better

Eric Hession

back last quarter year the of the as we mention slightly would we higher company feel that. half head with did have a into the We that whole thought we margins confident then do Yes. as

The in call as We gaming expect good standpoint very confident talking call, did margins this hotel that. felt are also to And standpoint about that verticals the very notice Las verticals. quarter, margin like high momentum. you we the we If we Vegas weren't out be that and we we're have last from modestly higher.

terms Las in for confidence year. see But, expect Vegas. more us to the the of company a as And a rest we so, as here yes, margin margin in those lot to growth to of a see grow the gave whole, continue

Tony Rodio

corporate at some months. recognize million worth there. the about where about departure our have $XX the $XX very being million scaling Also, attrition annualized through last also evaluating We're of in those some judicious there. at we're three to savings we're back and tune we review almost the games each replacing here We particularly and looking of every as bodies of participation

few initiatives out with to a cost that of going cost there's allow it's So, some the engaged us that take we're to business. other

Jared Shojaian

And the or the if to would over you. months, portfolio right any monetizing then, disposition current opportunity leave is your activity asset next assets you Great. is your was for Thank as now? with consider the of to respect thought several

Tony Rodio

we're inquiries as and into are would Well, we'll that on those to have we if sense others there's and follow-up it makes merger periodically reviewing Board. few a things or continue think our not. present than to we something we're interesting heading Well, and whether inbound then some more we'll we a

Jared Shojaian

very much. you Thank Great.

Tony Rodio

Thank you.

Operator

question Your next is Harry Instinet. from Curtis from

now Your open. is line

Daniel Adam

Daniel on of is This Adam Harry Curtis. behalf Hi.

Just six question or And of the closing on expectation can of one reduction to is Tony, currently acquisition, it. I remarked just in do XX ahead the but comment stand Eldorado think your to on you cost of you what the months? next over Thanks. the the extent effort before, you where it anticipation and

Tony Rodio

that quarter well. $XX it, -- already to north as look amount outside to and here something something And by the initiatives that anticipate that I that we've will hate in going on at $XX million, standpoint. range. to initiatives in a I forward. number as we've to of gotten XX of we reduce would first some put us some knowing Right now, savings that have continue but particularly dollar that already fees contract terms consulting other grow replacements We'll to in year the next review million the we're of corporate move to undertaken there's

Daniel Adam

thanks. great Okay,

Tony Rodio

you. Thank

Operator

There continue. are may question queue. you Presenters, no in

Tony Rodio

Okay. Thanks everybody. Appreciate it.

Operator

for informative. We this presentation joining Thanks all our you hope us webcast. today. found podcast concludes This

You may a Have now day. disconnect. good