Caesars Entertainment (CZR) 21 Feb 232022 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Caesars Entertainment, Inc. 2022 Fourth Quarter and Full Year Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Brian Agnew, Senior Vice President of Corporate Finance Treasury and Investor Relations.

afternoon on good call. and Josh, to the everyone Thanks, our call and Welcome conference discuss fourth to our earnings. to quarter XXXX full year afternoon, December press for This a our issued results financial release the XXXX. XX, announcing ended period we A the Relations copy investor.caesars.com. section on at Investor website of release our available press that is of

Hession, Anthony Caesars the Yunker, and President Chief & Officer; Bret me As are Reeg, our usual, on joining of our Carano, Tom CFO; our and Online Gaming. Eric our today Sports call Chief President Executive Officer; Operating

I like them. one turn are statements make company's during not should call, the I Before the call over reliance therefore, forward-looking may to today's not place Anthony, undue to guarantees we certain would about Such that forward-looking of statements remind future on you performance. and conference performance,

statements subject also could actual results and the those differ risks cause inherent expressed. are Forward-looking from materially to uncertainties that to

that from refer our actual as information cause results risk concerning additional well the as cautionary differ to statements, factors forward-looking our statements contained the to press For in in releases could you discussed those factors no contained or to filings in that circumstances any and the our events today. occur update reflect statements or obligation forward-looking to revise Entertainment Caesars after the Exchange Commission. Securities call company's undertakes with should

discuss the and quarter press release found between clicking today's most the discussed directly investor.caesars.com measures financial non-GAAP the today's at the GAAP fourth Also, each company's by by differences comparable financial the measure financial the non-GAAP on financial financial can G. of may be financial each measure and measure during on results. regarding website GAAP the SEC certain comparable company call, measures Regulation as defined reconciliation non-GAAP to

Anthony. call I'd over to like the turn to

Digital Vegas in during remained delivering both everyone you, best improvement Las our growth show XX% year both Thank to quarter the strong our and continue EBITDA records Trends and revenue EBITDA impressive leading QX, good generated in fourth quarter, Vegas all QX. year. Regional to and our Las performance quarterly and to results during sequential on the segments last We afternoon call. during versus Brian,

payments, versus million of margin points generated rent adjusted XXXX. basis of real EBITDA a up XX%, Las X,XXX Excluding with $XXX Vegas

was pandemic. XX.X%, time during results. during Group occupancy led for to in Occupancy levels beverage in strengthened the XX% revenues and room during first to nights and since up and pre-COVID QX quarter. of occupied Strong QX records represented cash hotel the food demand the ADRs

convention Vegas the EBITDA a segment group QX Our Las and full year generated XXXX. in new and in both record

year, revenues EBITDA. billion full XX% generated For $X to billion in in $X.X and in Vegas Las the growth leading revenue both annual adjusted over of segment and records EBITDA, approximately

Las While we had we remain optimistic year Vegas, a clearly beyond. and strong 'XX for in

Group up market rates ahead and banquet paid is new and XXXX XXXX, 'XX. occupancy for ADRs, strengthen revenues. trending driven remains of calendar events to in event strong Forward to high-profile several Las and with Vegas room nights higher in 'XX. The continues strong by entering the are convention higher

X% up December. XX% segment XXXX, in delivered during versus with weather expanding despite excluding we In basis $XXX EBITDA, last quarter, of impact versus grew margins in Charles, negative of XXX our the Regional Lake QX, EBITDA approximately year million the points. Adjusted

segment delivering XX.X% Regional billion our and EBITDA, year, $X margins. revenues full the billion adjusted For in delivered $X.X in

growth points. Lake basis expanded Charles, our same-store and XX% XXX segment a On basis excluding EBITDA margins Regional delivered versus XXXX,

we we projects in prior As calls, capital have benefit earnings on to several XXXX. from stated investment expect

this year. to Atlantic Nebraska the should completion remain in complete Renovations on to season late and QX opened essentially and property nearing by Charles XXXX City exceeding Virginia of both demand midyear. Danville, initial Lake Horseshoe with open ahead strong Temporary in casinos land-based results be track expectations. new Our peak in are summer Columbus,

from We Pompano Harrah's casino Park expect Hoosier in to also expanded year. benefit and this offerings

our to in of thank their team hard XXXX. want work all for members I

reflection of delivering service. results to are Our their exceptional record dedication a guest

insights And fourth the and with Eric that, in quarter Digital year full I will performance our now some Hession call segment. over turn on the to for

I'm Thanks, with progress pleased in Digital made XXXX. we our during very Anthony. the that business

investment If our recall, a matures solid return objective to drive you is our and over our time. business shareholders as on for grows

a estimate reasonable TAM of costs. and fixed of grounded very was the thesis business benefits high harvesting our Our to effort on brand scalable and a and awareness early with a build portion

EBITDA The advantage cost are volume, offset in up revenues Sportsbook pleased revenue results mostly a to sports date business online of loss cost points in Net the The XXXX. was year-over-year in that primarily of of smallest to is XXX% promotions. QX revenue. year-over-year, rebranding promotional up drive and XX%. determined a and metrics by XXX and adjusted and our X%, reporting taking over net expense hold August key the fixed these scale basis for three us resulted combination of I'm net Caesars combination the volume since highest by down to in of by to quarterly in improvements hold growing

to live enhancements, sports product favorably improvements, the streaming experience the parlay in-game scores. responded on focus introduction in-game overall They On improved and our for betting technology the to improvements the of very technology product the side, our and customers. we continued wagering

results for to the to also us campaigns of During and see the loyalty allow quarter, their marketing segmented play. that more our started customers reward we directly

of efforts the improve growth were to As as this our area allowed efficiency. towards XXXX. continued they contributors these We net us direct in promotional revenue spending anticipate enhancements our over earlier, course referenced critical

side, Casino will toward second that out rolled On half of XXXX. improved customers is be our significantly for in the product a experience the creating well underway Isle work

beyond. XXXX also iGaming to include Rico marketing cycle From content, the we enhanced remains meantime, for life we have product iGaming. an betting as in such in Kansas has offers, experience been for expansion sports of received. new not Maryland. and online continue new component will and opened and our do launched Puerto we and currently QX, The segmented strategy capabilities, well add which standpoint, digital a which triggered in retail In locations critical growth

X, we and sports Ohio XX sports wagers In deposits. and to now pending regulatory launched our jurisdictions, betting Massachusetts in which We anticipate American final to mobile we starting addition, on betting in launch online offer offer sports this accepting plan in retail. registrations in of accept mobile XX We North app January wagering. later week And mid-March. approvals,

some now call on for additional and QX year. the to pass I'll comments full the Bret

full quarter to $X.X with million bringing Consistent to continued paying debt billion. down Eric. aggressively the debt we historical from year $XXX our reduction Thanks, in record, cash flow, fourth our by over track reduce free

down on Our now came a during and debt-to-EBITDA mid rent just significantly basis at leverage XXXX stands adjusted. also under Xx traditional X.Xx or

in rate our upgrade from debt highly short-term hikes notes, January, billion attractive we decreasing refinanced rating form at rate Alongside of $X.X roughly further the half rates, X% the of in a one-notch exposure came fixed of Moody's from which to Fed.

away. Our next debt is over years maturity X.X

came XXXX just spend, which million, for excluding CapEx $XXX expectation XXXX. remains at under AC, our in

includes plan million of $XXX Our capital. million $XXX maintenance and of CapEx growth

achieve $X the operating continue reduction billion, XXXX. we well carryforwards years, We target will and XX, which of had two past $X.X which December for of debt net again yet just operating over in beyond. billion nice income XXXX in sets over shield averaged Federal to us loss annual to a of As

Tom. I'll over it to turn

that up billion allowed to maturities. and have every end skewing to as through markets to expectations; the our In start you the investors. I for believing a in by markets, $X of gone on these thank we really And we Bret. we appreciate financing been not do for step piece, and I our taken know us, numbers debt the know up up each beyond and to that, credit dealing time equity public step with nine calls entity And come We've well this a in this for advance series a now upsize when financings. you banks ask of Thanks, that's acquisitions, us about want time case, expected, and of to us series market. strengthen 'XX we at granted years

back deal the calls down that with remaining after You at -- of we'll be step this some maturities expect should the the point middle to the steps call year. 'XX in

results we nearly on last I'll -- and but on so February a quarter, I'll what's In comments in in you focus breakeven. pre-released, of far. already few In going operating as make we Digital, since terms quarter were saw the January results, what's for going on our

Our $XX well-publicized was MLB about Series exposure around the million a World swing.

positive the in are a quarter. hold-adjusted fourth basis, on into well So the we

launched Ohio. quarter, we First

overall and And the cost for EBITDA betting be be But basis us quarter. we're verticals, this in expect and positive should an that, I modest year when that a iGaming Given loss say launch you on will for the year. expect about full year anticipating talking first I'm this I Digital contributor a sports EBITDA both there, us. to

launch ago, billion. like over over you that something of about little $X.X north cumulative they're would $X When be losses X.X to a we a billion. little started going this at Looks years we Digital somewhere finish EBITDA told

our quarter those expect 'XX in XX% maturity when at be of launch we'll year has generating or generate full a rating the all in that out expect sites. We're of in not at We in from that at remains we’ll two of levels. EBITDA We'd 'XX. EBITDA of of Digital we be changed least to hopeful level run that at excess That annual business.

in getting of year. brand building, and at we last the terms to importantly, of didn't dramatically. advertising noticed of us This but Bowl, see Louisiana out out in granular more you is changes commercial, switch getting have the big New Super you as So slowed of quarter expense launched when the York marketing individual the

on over million Digital trailing over quarter. disappear So the in you're to month. a for this improved losses of consolidated see billion $XXX January basis EBITDA $X.X alone, going EBITDA

there's for. significant excited credit we're going a in to So statistics obviously, change trailing that be

to business strong. but about do of The the spend. Midwest, the the I thing really Regionals continue $XX is December, business. weather to million remains kind in peg in fourth the lost arena, In weakness Regional well. of point Consumers terms throughout quarter. to brick-and-mortar primarily related I only can of continues in the in EBITDA exceedingly

First has with It's been the snow. you've in years. quarter, Northern got inundated Nevada winter about XX worse

to bit -- of quarter. impact that, So a But Regional fourth in in our the the got you've grew little continues despite there. business first quarter. It grow the

to way that Lake coming pieces have out. we that are December. Really the was said, pleased with Anthony product Charles add opening online will in I that that. as And turned at the

opening, at it's original doing since property. on But expect look is XX% from spend of that the we be proceeds going a you EBITDA basis. excess If the in that how gross our insurance there incremental recall been I'd had of the to disruption on

a net should on our there basis, So ROI XX%. approaching be

Nebraska. Danville, project in the Charles. So extraordinarily Lake done, Atlantic we we've the of in year. half should got We're be online temporary coming got back prime in done the the season. largely that We've Indiana strong hit by spend excited casinos The time City coming

the way So really regional 'XX sets excited us up for from for basis. a

for how the first points basis Vegas. Vegas, X,XXX over in the back express But quarter. the consolidated be it's had and forward recall an is be that hard of as a half that versus Omicron stronger. in to they're one and at We're up Occupancy strong sets than Las Vegas, particular, But tends right front the exceedingly ever us off to more of the strong best quarter, in on we've was up first now. strong basis 'XX. to bookings Vegas, in months to to we in the Vegas January impacted in March important getting look quarter start half.

numbers Forward time it the that looks bookings is group group forward so for are business and seeing now attrition of for look are excess declining in very our that indicators forward first going booking way XXXX strong. of we strong, all

business sit feels feels So today, it as we the -- here fantastic.

it I'll up questions. And with to open that,

[Operator first from comes Joe JPMorgan. question Greff Instructions] with Our

more room presently, convention to this group Tom, quarter second XXXX, this you Las just in really the nights first dig half about compares commentary. and for on how what a of is on quarter of Strip deeper strength? could understand quarter wanted talk Vegas can and/or booked by year the Based into of your little focusing so to it kind I each and quarters the and pace year, second the

we in Obviously, of So right 'XX. levels. quarter-by-quarter, terms we now, to don't XXXX get that that levels the that from half points into never want of single-digit level strong. percentage above you basis, high back tell are granularity calendar know I up citywide that reached XXXX Recall year sets the of I'd very a I in

about business good very 'XX. feel we So in group

could about XQ? bit of you in just place, seems little be maybe can terms can quarter incremental all later in the and the the say, talk Las is incremental you the contribute all that and can of EBITDA reported to expectations equal? over And that Great. fourth much other generate in -- Vegas, November FX relative things to all how this something but X% it a in an what what you it year be EBITDA, in There think being

Yes, possible. Joe, I think certainly that's

thing is happens. when it important The

softest be I -- So expecting But incremental weekend. But the lost our talking when still period of level from obviously strong the not would activity, about Bowl lift I'm in the a Bowl. you're February, year. going Super you There's Super stronger. in if to Bowl that's if have you're November, Super

basis. the more So is lift year-over-year on a far dramatic

the better X% at that's terms by driven of for for that something weekend. be lift along lines, or those I'd in EBITDA yes, So quarter us looking

Santarelli comes Bank. Our Deutsche Carlo next question with from

you right static about bit a how kind looks of you're -- leverage when achieve going the or to less until you where basis could be now? about on forward? time like of believe talk kind could you more line want a And what thinking little Bret, you

again, got We are upgraded by Moody's. the out. coming Digital Yes. And losses

positive, rent down. but With we're So collecting mid-Xx adjusted. will and Digital that come

So we of end be gross the rent the adjusted below target expect 'XX. Xx by to

where run you of that is will And going comfortably the forward? guys kind business

expect be free -- flow we're significant that generator a Yes. to I'd going will still. cash

we that's Caesars want deleveraging. closed transaction. consistent So But we levered think sub-Xx I the that be since don't been ends the yes, to

then, Tom, XXX share, to imagine Digital the growth in up between of you're with think To estimate about and the of this on if less obviously, assumes follow the iCasino of can do And kind rollouts the more target the kind the OSB extent 'XX side, you that business. beyond? healthy and EBITDA on side from Great. split that I year the doing that or And lot second provides iCasino the of the side? the I willing a you're a business half pretty how

basis, Yes, I lean per number prefer that XXX-plus granular the is towards that's a sports betting, state I'd obviously, get on true, Carlo. say, will mix iGaming but overrepresented. super in not to is

Barry from comes Truist. with question next Our Jonas

Tom, a could recession do you about you how just see players, are follow-up, as at think consumer you think it? the has been? more versus Anything resistance? or then digital surprised to as explain resilient where land-based you macro And expect

I mean, I'm I economist. don't Yes. -- no

don't I happening. I'm surprised know So that what's by

for And periods I people country. think period we lock up the because in their throughout are of we're comparing before. never happened of that to some apples-to-apples that's then homes time time not

of remotely. was know I in as how about there's There's So time reordered example. less if these as working viewed have always don't an working from more lives you think terms We've been factor limiting office, an the businesses cash.

can to Obviously, business If is based customer that's your customer your if has. your cash going well, I customer they're not to could don't they know limiting not -- and now that the have than they that. time going that money they're commuting a before much spend significant time how doing do people have because was factor on fluctuate to your enjoy spending things city didn't a to correlation. as longer center,

comps strong is can still you you we're where all we tell know we're a few continued up see and for But going is in business now, the strength against quarters and I what growing. back

do but destination regional anything business a business the suggests where in today a we So out of effect happen, cycle, don't certainly see will the the horizon. you expect over that, cycle turn recession get that's that with when substitution properties in I'm destination, on our normal handing expecting two all a I what we get

resistant? And a digital be overlap. some then the think That's some recession would you think follow-up a player land-based versus more you to hits curious as great. your which player. the or was just I'm get thoughts macro But do there's on Obviously, about

mean more digital more more the is suspect at just you're territory. know, that suspect the digital leans constrained, enough is toward don't know say a that I player and as a I The will they player -- uncharted that's time another money versus answer -- money you're is money if don't we how behave that's see they there's significant going a between the difference to constraint brick-and-mortar downturn? But mix. divergence. to two is in achieve looking I

Our next question comes from Steven Wieczynski with Stifel.

think any of to you've know point I you maybe seen don't in weakness. your us you said you -- recently? any no, rated material database around meaning there? probably Tom, can can across unrated mentioned nothing softness remarks And comments prepared in -- fared there in that the spend have besides any weather, But terms I the what that's peers, been how changes player? patterns consumer play from tier there's answer really been there your and maybe provide though. you low is I assume and your would Has

Yes.

-- question, last Your is there no.

of behind we unrated terms the quarter unrated, seen saw results, step And us anniversaried in as In the stimulus, saw down first that's now. the into we a but material you and -- fourth quarter. you've including

of initial checks is rated on still in kind when up. were strongly stimulus and peaked to going rate unrated So out. behave that stepped after holding continues

you. Okay. Got

Nevada around to done look, and Bowl? from there's a help point? over impact Super any question at is but couple gotten is of not we us to understand Or the malfunctioned Hill sure relevant, we've this of the is investors. question, if in William and times need kind I'm think around there about that this with this even And even any Second way

PAM the approval. done and old that provider running Liberty. technology not technology, Nevada actually on It's That's needs That's issue. over approval. with. We're Liberty a needs

relatively next football season. we soon, be for Nevada so Liberty We to expect expect and that on

was enjoyed but that that mirror while certainly it on, not at in the this it's that's going something were we point. So rearview we --

Our comes David next Riley. Bain from with question B.

Great.

bit back was ramp I the get can a potential on First, hoping half. granular we iCasino more little in the

a of get that needle improvements to idea tech for of in share that for there major you Maybe it terms seem big the slot because cash EBITDA certainly churn an major move way, when and catalysts any like other doesn't content how push. trying the of doesn't the Just -- thank includes is? that like by important like that kicks look sufficient with in, promotional that guidance lot

this I'll jump David. in one, Maybe Yes. and take

a to going have we're that standalone app. change big the make is to So casino

So to the have app download click sports betting the casino. on if go play want then and and right casino, it icon, the through you on to now, the you find casino go

We'll offering who's that a you go ability betting just for be looking be We'll We'll same also triggered the be the then introducing various also side, a customer live do to app use more the back be much thing perspective sports casino creating games have side. table we but it the will can from right do to to some easier and branded casino segmented so now. states in than marketing. and also the

a So the on betting able we unable the to to the that year We're betting segmentation side. sports do now were sports do much not casino on recall, if side. ago, like but on you we're side,

on the and unable And side. use have years' the brick-and-mortar side experience learnings we years' so the to on we're the iCasino from

well. be having we'll come along so And that as

perspective, From address a we can that's content games now. something

as particularly side iOS you'll two have we steady making so as to over side. is games, And months, the be on Android more on next what adding where three see releases, the we'll many the say don't

marketing changes app the stand-alone game journeys content the triggered ability the life you'll adding are big half. second as be that the cycle then the but Caesars, see be games that custom will and the along. do branded segmented coming table be will to So in We'll

think around contributions comments more there now? update will how terms just Awesome. ramp time, are online, Tom, of year I some it given this of in to the that we valuable kind plans high-margin your then And $XXX specific I Eric, in last from that's trending Okay. -- on land-based just an and bleed can the marketing believe, but now, points for acquisition revenue. past, was you've data million us of into of And share customer you on omnichannel Could sometime approach, loyalty? sort get this

Yes, Dave.

So updating number. I want to get that out of

grow. cross-market goes grabs assume leaning we're is there. more should our up doing what every as that customers states in us database database into time and and and we're that rewards as It's those our But in bringing on. mature, into States new and of rewards it to You a play. business this open seeing see you database more customer we're for continues our on leaning is lot

losers -- every anecdotally, particularly iCasino. this of show a both -- will ago, brick-and-mortar true get the and sports was and report And and iGaming get in history, day. their winners report I a big year in I there is

between players big have You brick-and-mortar iGaming didn't significant lot every you're on see now if XX a brick-and-mortar and -- the XX them people seeing of players. history. correlation day, it's And sheet of

So you system, were reward happen. can see would it continuing which to build hoping we what through exactly is the

from comes Wells question Politzer next Our Daniel with Fargo.

the the about of Las I is what's on that bit little about this coming relative -- it more room kind the year? think profitability you group mix mix. we of as kind convention should lead XXXX have versus cohort mentioned guess year in learn casino the was XXXX. last a shifts versus I versus record But of hoping customer out I Vegas. know of? group how to And the that and night versus you'd First,

Yes.

business. of You're seeing increase in the come group at FIT and expense OTA over lower-end 'XX

in a skew lift getting customer you're That dramatic going to non-gaming is toward So rate. offerings. more

impact in overall, have particularly some in quarter, your this that filling year. But room last a early you're was you'll -- So on unfilled -- revenue. in some cases, casino

to higher And replacing. than a may they're of their mix valuable different, little a spend be up you what profitability significantly while their basically As year, more through the you're move trading customer. is

ramp out modestly larger little then new tiered jump more that you just Got is of us pieces these deals us moving XXXX bridge understanding coming significant it there it. positive, XXXX better help into Or a And big XXXX. going or We're Digital, kind of kind way jump of longer an a a business? and Or help states? for Is any way then even could bit. the in any of is to some there? from

Sure. of the all it's above. Yes,

what here. So it's doing from we're continued momentum

business -- back appear than significant has partnerships be others. into half added some You've to And growing we to have of that that, doesn't all state We're off expected we've were they a states, got original on. that's ones the there rolling of that do flow a got be huge EBITDA you the a recently in 'XX. bunch get and and of as starting ramp then organically 'XX more of stuck pipeline coming should Obviously, on a in some iGaming that 'XX, directly run chunkier in off. new as

question with America. next of comes from Bank Our Shaun Kelley

some style start given up to in-house you of some to relative capabilities? to 'XX would your Would been do help kind out that the the think us takes of of around want have even just Can 'XX? about as goals and to put who formal on and number laid that follow of targets I that into the out margin better there? some given Just margin, get it by that? underlying targets puts others? out a you own would there that about be how you question of Could any you have A the XX% what thoughts underlying on kind give last just us people structure you online. margin contribution overall be talked kind of

Yes.

both as than acquisition we that degree, got on think Digital sports we margin would a margin, advantage we've terms brick long all, iGaming, been there. it's to mortar. to licenses, basis, have against a some So into and We expect some target, advantage our others our same be significant the relative that customer we an all without that we of against own will cost and database advantage a but a think giving but of a will we've got be the in of some material in on tying history basis, margin lower well be and performing in

number just side, side, a Got it. sort hotel inflation cumulative on We're And just hear too, last bit a four the talk the land-based wanted the to environment a then about which of maybe and sort different years. Caesars of might animal pivot a to bit. over little three union has on more operators cost of starting bit little labor discuss the little in A negotiation drill might and provides operating know on contracts some upcoming Vegas. about as the how how a there you in specifically expense? probably can amount hiring But and any just decent the impact that of visibility. well, any I of contract -- then union maybe environment overall and

Yes.

I'd the we're and well. to been say contracts We've inflation cost well. with since union or put doing -- we doing discussions got it in labor We've plainly, been unions Nevada So dealing the are the with have this up the reopening. the middle of begun year. We've

do Our well. should employees

analysis. into So our we've built

the this got starting that to fine. We union back able we've with just what we'll expect in And in through going the of think half the be contract labor navigate 'XX. we business, inflation new half, in cost back on

Brandt from comes Barclays. question Montour next Our with

Tom, versus to said enough wondering Just what break Vegas was year in seeing that out of you hotel the Las the booked. that be still rates kind getting for year I gave, a rate? at U.S. pace lot with you were on starting in the you the broader is I'm out being up. volumes And is world I into if volume know the

do there front on Vegas that so much you upside think how And year? this in is curious I'm

Yes.

we've Brandt, last weeks. the forward lift bookings a as demand of few in in seen So in significant we measure it terms

certainly occupancy months from said, had strongest for As setting is I we've standpoint. of March rate up the one and a

It's of lift. where As to you're year filling you we half against the benefited primarily in get midweek. the rate that see of of so the more occupancy year, a were the in full, really toward half you're going there has first comping back quarters 'XX, wasn't in that

overall company's And you and curious, your for Or aspirations that there about other market I'm and that about do mind? the from by Do question market, can think -- share operators in your going come growing that there? That's can is about things your your you think iGaming. that your And do gaining you half. you the second a -- you in to with a Tom, by amount engaging there when from in of that business database then your great. growing think lift significant

market I into our it share mix both that be network, be of as there also will that will will think a own some tap but gain well.

aggressive where all go been we've share seen perspective. Illinois I'd look happened this a not us. You've at back in from promotional at market in environment even for what's and

You see nothing we write share. are we've And a about. and continuing the experience. to that doing We're give we're we'd think towards shortly, going But business of expect got home if customers we've product, a you us that when with lot lean better to got us that right be to there certainly similar the class customers still product.

Our next Macquarie. Chad with question comes from Beynon

where positive for the kind where of think like. think guessing game hold your deeper against Can get peers, withhold, with but will believe, year? with outcome you fourth Eric, I'm is you I you maybe be more was importantly, points single to maybe and parlays outcomes, into you basis quarter. parlay a combination as the single And was this of probably in-play XXX of about that particularly and mix have structurally help XXXX, your if us in the product game mentioned want up, kind game happening we what's and game a and

sure. Yes,

key favorable right. say, made, events. of multi I was, that tickets. outcome one some sporting changes structural wager is You're we things It we definitely But the measure there mostly a was would on

like customer you So or game be bet. the -- could or parlays parlays wants however it multi-game same to that

of percentage This higher. function And the rising. -- as see those we're a And our data bets year we the to have And those overall hold good you know, on those third products much is as in it. continuing that the kind of improvements. steadily of is are

better done We've it. also a job merchandising

think future, same we'll that. to you pre-canned really to be But our everybody. app -- effectively so be able parlays, be have we now, customers you'll segmented marketing if the different use prebuilt. to pre-canned will go So which on some they're parlays, the see I Right will really in display for now, they're receptive

improve tiles We by for customers. also And and top are also the help received on we across that those hold boosts the product. the the the the have overall well offer boosts

addition, we made in-house. on separated now we've a being We done fully the We organized now team, the for and sport. trading changes most number modeling also team. Hill have William the of part from team In our the by trading have

the use lot So trading, which for also just our for position help over customization whole but built our in-play more models of analytics we have will book, team our that has percentages. helps the with a time, also it

the us in just the for a scope, terms on out that and you of timing in And York New spend can separately, land-based we'll then find casino steps? next update size the for guess, I and the opportunity maybe when

Yes.

looking you the to boards that see say spend has of I'd properties suggests in So that's a documents by there's they're upcoming end or see the potential various next that year, same the the so. the something quarter but award cut the of to through location date We modest. been

the is believe We paying New the start continue need project will We'll quickest. got that tax approval. the in It's an open doesn't zoning area to the York, quickest. we've that

to well and get we open most an won't to into the we spend can to but If biggest of we that assure Obviously, the casino. wins one is not be of this development going the merits the win fits We're who housing property is on because you, race our the already are becomes tourist-focused of win. built going money, can it outside how environment. and I the it arm's we local going quickly how

question with Our CBRE John comes Securities. DeCree next from

could Maybe easy Las you deferred, us your Obviously, and been but maybe Tom, ones. quarters. from give insight trips being you bit if about XQ should think we of some year. pretty couple noisy. think of this benefit XQ can two in XQ XXXX on has this some the last if have in curious were give largest for year? seasonality a years XQ Vegas little how the insight Obviously, I

that of and I this gets early ramp in should soft kind of the Yes. the Vegas here. the quarter, about up in in seasonality more year, normal it hot right a year expect would year goes your first now you in where until say really

quarter, is the when slowest FX year. got November you've that's hit your is year, of point. Fourth Third this typically seasonal month but quarter the slowest will

bump think you that that question. Joe's get in I So we about talked earlier

for which it. you remarks, Got room XX% I forward? think that maybe That's right or guys. Is high be Or group Anthony's basis XX%, on annualized in that there the an think you'll right you relatively what's you helpful. And I customer you mentioned of then think your segments? is more nights the Vegas, XQ forget, prepared level at Or as kind is going upside? mix about Las guys

with percentage room FORUM expect creep I full-on next I'd think year. of should operating, teens into expect overall you with higher us the business high of continue to terms to group Yes. in

David from next Jefferies. Our Katz question comes with

perhaps the both where terms for to go the wanted and you ROFRs, or within subject of cetera? calls markets put back I asset credit of and in to any think that, et support outside prospective sales pre-existing are

active January ones are markets speak credit in did to we a knowledge. by day gaming number we metrics the while. I'd can't largest were a you so that to of of happened with one certainly -- deal and that's was a generally quite something. the in in the in market, not do But I tough have would today We first-hand try been that tell in

you they your dicey credit pick to where environment wouldn't have where an it's At are I spots. environment been open. the is this but in Fed got So still point, getting it describe still wide as markets a better, raising,

Understood.

factored a for of sub I if those that think correctly? into to was leverage your know just Bret potential and I getting can about suggested, was obligations. thinking next we sort contractual that if heard of on X year focus by So year next? talked this end are Are opportunities I the the level

would off used pay be adjusted that that to lease those debt, they'd -- -- materially. wouldn't Yes, be result that net proceeds the change they would that add -- presuming we're we're presuming conventional debt that so

from next Stephen Our with comes Grambling Stanley. Morgan question

$X.X versus year As be could investment how about rough XXXX? a mention this maintenance I math Is I heard believe to ahead? billion the think free And year year. next the repeated debt flow Bret in clarification, generally CapEx be for cash ROI thinking should about reduction in we that the

free That's cash Yes. flow.

So ROI? no asset sales for 'XX. maintenance And what was about the second CapEx question

how as just any can Yes. XXXX you basically maintenance in there CapEx maintenance Is investments you're about split well? versus ROI thinking --

and XXX. XXX said, I

Yes.

So XXX, XXX growth; maintenance.

thinking follow-up then legalizing capturing about states are a how as Digital, the XX% ROI new on And it. in in you rate Got run XXXX?

don't today. We what's anything known beyond assume markets to the

anticipating we're So not big state a to there's going shoe that's drop.

to of you We'll end talk the the everyone. Thanks, at right. quarter. All

you. concludes conference call. participating. for today's Thank you Thank This

disconnect. now may You