Caesars Entertainment (CZR) 1 Aug 232023 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Caesars Entertainment Inc. 2023 Second Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded.

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

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

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

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

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

information concerning differ those could in cause factors actual from statements. results our to forward-looking that discussed additional For

any Caesars refer Commission. as Entertainment the our Securities undertakes company's statements the call. occur should obligation risk reflect forward-looking contained factors after in to circumstances Exchange press that statements no well revise in You to cautionary release, contained the events the update today's or as filings and or to with

now comparable the to release will be the financial financial and the selecting today’s each website company's each on Regulation found may call differences most at financial measure G. reconciliation results. discussed as Anthony regarding XXXX I press today's Carano. investor.caesars.com. financial turn by the directly non-GAAP SEC non-GAAP measures between and measure quarter over measures company the during the by can second non-GAAP GAAP the certain measure financial of call, Also comparable to financial GAAP discuss The defined

strong Brian. despite consolidated our good exceeding on a Vegas billion. everyone our another comparison, $X a quarter with afternoon event, delivered strong, We best delivered have convention segment QX, within second year-over-year large adjusted EBITDA tough you, Thank by EBITDA driven remained trends And single $XXX to Las property portfolio million. the of call. Operating

during Vegas XXX Our Regional portfolio segment adjusted with down Digital Sportsbook of ‘XX. Underlying XX.X%. And our reported we basis adjusted performance demand to Caesars delivered were of EBITDA in Total of exceptional EBITDA, $XX segment. since of year as $XXX down million last to a strong first QX, trends occupancy remained segments result growth million in slightly last in in the of points QX finally, profitability rebranded Group Vegas Las Las segment quarter our revenues year. X%

real Excluding and of guests benefit strong Vegas rent a the group the continued casino EBITDA with of international Las exciting and plus of leisure ‘XX. margin adjusted million generated of continues segment strength XX.X%. guests to from $XXX the payments, convention calendar return in demand, events and and Vegas

Columbus, this for strong $XXX EBITDA declined for open segment segment. customer our In of quarter, slightly temporary up quarter down and the Nebraska. adjusted EBITDA to another in to were convention and Las properties open segment, were demand. revenues facilities group in was second Danville, to year the the EBITDA Both record a While in X% new million. We pays two Vegas Regional points to and year-over-year ‘XX remainder excited Virginia

markets quarter, few during a trends in stable similar competition the new customer face and remain demand to prior we While quarters.

quarters Danville [inaudible] and are Our note early returns delivered to solid in capital Lake exceeding returns. and continue deliver Columbus projects and strong Charles plan.

and Las Danville progress the finish on on continue a this make New target Columbus. and fall ‘XX to to Park to in expansion has and opening. is progressing facilities Construction the Harrah's late HOOK Hoosier in finally, City excited in started work the by a Superfrico Tower on recently well. Work Versailles continue which we completed new nicely by is of in we THE We're Orleans spring Atlantic Atlantic Vegas, permanent as rebrand opened was called opening which expected show be accompanied City the XXXX. of And to

year, remain operational CapEx, second momentum in half have heading drive our excellence on digital strong property project profitability We we and continue solid in into as returns focused the on of deliver to our portfolio. the segment

thank our of ‘XX. members team their half in first to of want all I the for hard work

and their dedication, result of Our have to a success delivering experiences every members commitment our day. team is their direct guest exceptional

on that segment. turn Hession Digital Eric the will second our for call now I insights some in quarter to the With over

Thanks Anthony.

During quarter year. XXXX, another second in our performance improvement last of the significant we digital versus of the delivered segment

quarter profitability EBITDA million represent quarter Our $XXX XXXX. full year. our and first EBITDA Sportsbook business a million reported million of $XX net to since Caesars adjusted in of QX loss last EBITDA of revenue this $XX Results rebranding versus

During hold the increased year, sports iCasino year-over-year. betting quarter, volume and XXX last basis versus points XX% improved

states. quarter to overall as of lower located promotional as effectiveness within level base this the continues and marketing performance customers demonstrate our existing well investment Our targeted of the in customer our new

that well four pieces improvements have received introduced exciting We by and new our expect customers. recently technology we be significant will of

states Caesars others. improved capabilities, significantly product marketing in new Caesars with pending and product is rewards. iCasino benefits of and the offers our in new iCasino The Palace multiple a combined all live enhanced approval online regulatory product compelling now the First,

William a sportsbooks to point later regulatory product Liberty we product, and we Secondly, delivers anticipate customers. approval, some converting app retail year. our in Hill Caesars platform delivery transitioned recently Pending our our product our improved at for our this to Nevada significantly flagship which

adoption higher app Sportsbook and and we've August. state which consistently faster will a to we're in in to net management starting lead track fourth, on later And improve out state account receiving year, Third, The introduce speeds, new player shared anticipate wallet house stability, development and enhance result XXX% out in rolling feedback our this rolling native in our XXXX. ultimately started that we native iOS anticipate is performance reaching will app loading speed. by system

These four amounts excited wagering. the in now have resources introduce to North betting very jurisdictions, to customers. XX year, over offer products them sports American technical significant which We mobile XX of we're and our consumed offer of past

also six We jurisdictions. in products iCasino operate

I'll now to additional for comments. pass the call Bret

Eric. Thanks,

with accelerating Tom. going being declining $XXX in or interest debt expense approximately the acquired tied debt. is XXXX continued reduction As you'll debt us completed spread million, $XXX annual which equity see several to Horseshoe for the most sits this forward is high cost our given in interest for year EBITDA successfully built-in flow million over in hike of projects given its to Forma of remaining the forward. with rate which B, to sets Term Pro allowed cash inside significant growth $XXX well average either of in minority cash fully to in up net expense quarter in repay we from X% our savings loan cost decline alongside to yielding Baltimore, just spend agreements. adjustments Over dynamics positioned XXXX. Loan at CapEx growth earnings Fed, our and continued recent just free subsequent to later million, interest release, repayment end, leverage going interest CapEx the decrease of its Coupling expected and expense with its declining also

ever Thanks, Starting properties we've up everybody, Vegas, that in that last quarter strongest in with had a numbers. group today. that Bret. Las every we Not us. in large quarter to the was Thanks, year's last once that us quarter. year's for in We this mind years were keep strong comes were Caesars numbers. happy missing the Las again Very against joining quarter, Vegas, for in we three telegraphed

I in like looking gambling the should saw business, in So come the that We're property. And we're just but through to hold in year the in and we hold, the was you about this didn't that came quarter. past Nevada miss the they of June last was that volumes did in in as hold prior and the that the like what participated from June, it both We is in in -- group the impact don't we as last hold June diluted [inaudible] was flow with would year. numbers known through the to group accretive notable Obviously, for was overall is what for revenue the well. in accretive hold clearly margins. it's our June, us I is not strong in particularly that week enough talk business then normal to as to Vegas are margin. And

of very I a particularly seems third past, quarter beverage looking July; you've We end very at in us. keep you've basis, said year-over-year for Formula And forward us. we got to fourth think Demand very, for had the the and continues is feel strong then happens that I've to margins as you're revenue ’XX, Not including One has -- food the Bowl. as strong got still really Vegas be So first zip FX revenue the look that on consideration hotel of high about from just in still good increased remainder been tables a Formula right whatever we code for at look X% very at One hotel strong. at in a quarter, quarter. list. the that Super

else of it today years. of we Bowl. booked a and are capacity the feel sit ahead exceedingly anxious we we're plays future as Las this a standpoint, from of everybody good Superbowl is versus we demand see to in how very ‘XX terms Vegas We how to look to as typical in strong Super event like where event positioned

ahead at typically than going come more of this average that Bowl. game the at just We ahead tickets, the And be look at our Super getting with than substantially who's us Bowl. anecdotally are valuable is you customer will of if rates dramatically it to ever Super prior to time the higher and

very, good, discernible Feels recessionary any the remains Vegas consumer. no really any very of impact about us. terms concerns, concerns strong very in for So

out thing As be expect the year. rooms Tower entire of end Anthony expect we online, Valley the call don't to about of next we before the year, Jubilee back being the first at only half at to talked converted Paris, Versailles we'd done the look out, until those to be to project

disruption be some at that that Horseshoe will in tower we're underway. now there But

group testament that Council bit a regional in pressured under Tunica. whole of terms been I the number the is a is what we've both openings. business, regional mess that a are impacted I'd to to If the Tunica in due I'm property Illinois at got and offerings the properties, about impact hold diversification that June. call portfolio, pressured really competitive you Chicago and about out added in in facing got are the -- have a in capacity In online. and come to we of talking that then what pressure, open by the Illinois Indiana, We've group casino come And Memphis properties expanded has hour had casino we missing quarter Vegas closer to is we look Nebraska. an online in have by the that continue and Bluffs competitive

On of. is we're the what reaching, capital other investment whereas side we're our reaching of cycle crossing got said, of fruits end the that and Bret we've that the

in both got property Danville; Indianapolis tracks. new got You've in projects you've

to were You see which that you as comping our going you've we'll through year Again, Atlantic third flat well next regional off and strong start, us. got of others like compare you'll last that That's to a quarter to year-over-year, And comp, for of encouraging a look is July. result, think be beat got in I an to strong over couple against looks strong this EBITDA now third quarter just Charles the Lake year despite as spend. particularly open; City extremely regional weeks. the with super we're a able about

about that Eric positive where forward laid conferences looking lot targets last told days of we call, on to last quarter can our as at to were and terms I EBITDA full a a and confident at year. I days XXX% XX digital laid Every look to be positive in detailed. that through specific above first lot going we've vertical ‘XX that some that where digital you XX we'll And flipping in of out tell so, we talked out, or metric it's and EBITDA went I'm every get digital, out I laid there. there's spectacular or up pretty I I me those them. driving when no was real Now the of to we're ago a see going ago that would loss to way is you, inflecting where targets. hit our I number

I forward. look those targets So tell you, I'm as reiterating we

quarter. what couple us. them approval We a Eric are business. When into segmentation, casino about bonusing, casino William Big, see really we're any terms said, for employee very Hill on lightyears expect in waiting a that don't go digital in the tech of And that first But under technology iGaming to you've dealer a limited you'll one is is been proprietary know that, capabilities and grew William revenue a side, impact -- our old a I we day over it whole the encourage live Hill, XX% We soft emphasized had moves as it's look, in was jurisdictions beyond wins. and working list Caesars of of full Palace the enough. in entry games in put It's we've of to took I'd operating those that number I product. were a launch on two iGaming. you now, on the take weeks ago, then launch, big on

and be We everybody to we've and are don't fully come seen going powerful aware that we're been to expect build in to like over. to that wrapping run and product just rewards business. feel into continue for market we space, competition start But that the significant that Caesars the we will in got has share, we iCasino have

EBITDA had was So had, year. of topped that last that we look quarter quarter, you'll best ever the second second it had, ever in quarter this second best quarter at and year, we the we the

So in Vegas. regional the holding in that and its to own group loss offset digital, return of

great So exactly how more And it's this built one on together. business. come it is we And this to digital. see point

and we the Nevada the enormous the dramatic computer Liberty in all about a were have technology. if is the art operating think Liberty jurisdictions. app state now of in us in We leap we And old of in on you This for an operate of that Commodore to lift. Moving a Nevada, our us the now equivalent is XX Bowl going it's state with the that or all opportunity have be in the for Super our got the whether will happening, us. that's too, with and what home, market customer that's app somebody at to visitors acquisition competitive And they've state. position of we a come giant to the else,

XX% handle of will it of excited Liberty in of I would about season. of by that, virtually on particularly expect So we're that by And kickoff all middle month. Nevada football our this be the

launched So I we the third we how is we feel business, as positioned our really, of really think this season, very, head digital our well terms heading into NFL kickoff, very since I feel we in in. are

talked going So and lower, we now is expect debt. down would around to to leverage continue pay Bret four times go lower. Conventional that about,

‘XX? be with that to generated I beyond us, is transaction an return And the of capital piece? with today, the XX-XX the as here first we interesting are you in be from capital we and external feeling where time days do are Caesars cash we you, where what of you're cycle, after is a I'm to three opportunity ’XX tell Given will where the do we're sitting the standpoint. can years it business, starting opportunity close, where external could an offensive there was performance be that Or in the at look flow free there

interest feel where We sit to continue to about strongly today. merger, accelerate we And a to machine long like that goes cash to really, really forward. been through. digital continue COVID, cash has footing here continues feel it deliver improving get as improve, on So happened we the flow, flow road is Everything with strong head the to we're really down. we as expense going results

for And open with questions up from the audience. that, I'll it

[Operator Instructions]

comes Our from first with question Joe Greff JPMorgan.

digital. for aggressive Good afternoon, not to the said in of it a respect that, aggressive, that booking, what is up answer year-over-year follow I imagine revenue on is about how for everybody. scenario you Las to given would tonight, you Tom, XQ? with today the given experience one I a the Vegas then trends, have XQ and net growth

forward about let's the third feel Joe, next months call quarter. of I'm XX%, good on to the over Yes, the in it we range property. three XX% looking depending occupancy

good enough a you're looking quarter. to third the revenue second producer, EBITDA, remarks the third very Vegas mind is in Rio. to that but in produce thing kind Rio We it anticipated very, I on keep drag about quarter. feel in of the its as doesn't quarter second is didn't touch payment and lease So a results third that's offset One leave will X at to my October it portfolio EBITDA on in

fourth So EBITDA the end as accretive quarter, in margin. that to comes that'll be off,

$XX On gaming to of How iGaming answer for then a Eric, gross digital, it. you OSD question do net think maybe noticed sequentially next Great. did Is growth gross and revenue increased And but think XQ And million this instant conversion EBITDA How revenue, into is iGaming on in whoever of We revenue? the XQ. EBITDA the about more million wants results? year? specifically the about versus include XXX% forward? the in than XQ all you presently that do going segment's for $XX in count Thanks. positive?

I'll grab one, Yes, sure. Joe. Maybe this

number no because fewer football were that perspective, see from has the of quarter that'll on tends you the signups to end, new it up, with depending that. in levels up generally, reinvestment that given slightly, think on many customers below call published and for be reinvestment our today, we a reinvestment customers total, going And of lower where So startup second percentage reinvestment, gaming as existing in see revenues Q no was XX% around percentage how then our from can around you'll volume a sign as simultaneously bring a X%. the of sports. this percentage volume just is was And I a and that's The forward.

a X% that kind X.XX% of range So going on that volume, of forward. will and range think it between percentage I

So, from a would think how about I reinvestment perspective, it. that's kind of

From business finally area with product where we use market the a we existing difficult casino Tom side, to go from know volume each really competitive that to the quite to an the just had general move to and in our side, the with out a optimistic perspective, and as a mentioned, the that's can have going work that to iCasino online have we're program database, Caesars feel from they over customers loyal are was through we the those that betting to to have to the when it sports that customers side, rewards discussion get time to casino. about, app

so they And have won't that.

that the the so use experiences. allow some haven't touched to the have had. The we and far we do tech degree been marketing allow system reinvest, side us to things existing lot of we Tom on like in addition, and In on, that any casino to those really also we able new of will segmentation segmented create do us it'll to a with

standpoint, products we're slowly that laid grow to forward, from some drive Tom look excited the and and that the ability of ultimately out. when very share, about towards you the business So targets iCasino the those profitability

Our next Santarelli from Deutsche Bank. Carlo with question comes

in to little how Tom, you going think, around the foresee some kind comment? that things could forward guys, ability bit behind et it Could obviously kind and bit you enhance good with maybe external of little talk guys for cetera kind a a as do of opportunities. Hey, growth your put afternoon. about that of driver you Obviously, needs maybe to aggressive the you thoughts be a of change of you

million, toward as on markets, of is since have but so had meaningful merger right, we've of off. some not plane, in circle, looking that we're at runs capital outlays. really, the the the don't million projects capital New or key chunky the, there's Orleans going, our any we're, $XXX end Yes, the getting $XXX million you're projects We a particular $XXX

We, cash lot last free you're of through where and have of a perspective, look do lot you flow sheet it. flow team I generating to opportunities. point at the what a balance with a a value and get as decade, going from cash be over stakeholders a do delivered to external to So

confidence in of those look of to So, position opportunities we're to future lack but as going the existing now that that course, for, portfolio. potential of a don't potential in the that tackle read a growth we're for

we're $X.X a EBITDA, on rate trailing As little to there's billion I in run billion $X of over we about said, last digital of the a quarter, us plus think available business.

that of in look that do toward have to I distributing returns, it a are generating, or And you come shareholder when we've and should paying business do be I some in mortar record the the of online cash at in to fashion, us something do I we And got still great you then and value, am But from think track online. brick down leverage push flow putting might flow to or recently returns diminishing putting start what that cash projects $X where get that come of company. billion terms as similar elsewhere. am as with form And a it to to work elsewhere? work

move explore that as we'll forward. So we

have year margins, you being Great, then coming kind the over year, have the through the you negotiations And of six notice if expectation? obviously of about basis ballpark that as the one the could presumably. various the XXX to half Rio you thanks. you ongoing, the of have And in of the back guys points as are follow in adds you you the margins somewhere Las One, out Formula of Vegas, which think parts months to kind flattish last back labor up obviously reasonable see do just of net half moving the up I that

Carlo. agreements surface -- extensions. a labor that's agreements, end at on the touching the expired reasonable on We're operating everybody under labor the contract operating by think May. under I And See, expectation of

talking in expecting takes fall. I'm have the drama But a that As being done stuff whole it's, lot not new you're about a terms agreements I'd around. complex of we'll is by while. think new there And we work of expect speak, a little that I contract,

Politzer from comes question Fargo. Wells next Our Dan with

time? thanks questions. good. Because about think think Hey, touch it taking afternoon, was you XXX as of Good hold wanted on call X.X% flow of the to betting kind everyone. And maybe that you And kind level guideposts year-over-year. up that whole to what do would of How you my growing I high get that you I the for and sports bps is first. through? it kind over where was you do see EBITDA see digital XXXX

it's great Yes, a question.

made we've a lot the of of year, trading just think and a I improvements but over also the the last respect getting year experienced, tech with team to more kind on half side.

So as a wagers. percentage betting we I customers higher to of forward, think go straight not will continue you see

a think do getting hold that That we an think that's and overall, given But that's whether We reasonable drag contribute percentage mix that due or I it of the we're say reasonable in here to wagers or I in to higher straight to increase. business. I the going type the that percentage point, of is down to take a wagers game bit. to parlay play player will our expectation X% X.X% Which Vegas, size the have generally lower expectation. we somewhere, suspect where prop is have X.X% hold to Nevada, at a this Las the to X%. same So going in a state. see in to probably get

know I remaining Baltimore, stake in acquired Horseshoe, pivoting the just then and you that. it Got

for row Virginia. for that one VICI as has Caesars option as well on think I a

ancillary are as you and you get avenue the of portfolio with Can obviously in maybe the you about think relates there's as the direction? to in other possibility deleveraging bunch can, and So where that door. path cash options about things a maybe original that talk an can the VICI, right moving it

on I'm short Dan, Look, not cash.

So being that's There really targeting. wouldn't not on Baltimore are both Virginia. exercised. either I anticipate something and I'm roofers

question Wieczynski Our with Stifel. Steven next from come

afternoon. guys, Hey, good

free and, We Carlos’ put this commentary doing take your elsewhere use have in gotten to would So following investors words, great flow record okay, about cash and from questions excess of Tom, up that now question. track a of and a have bunch on that. it you your

elaborate sure that say but more means, not and there, maybe else also what So, bit you maybe examples little of just a what can some give might us that. you on

Short maybe Stifel, I is buy won't I'll, I'll no. give you -- maybe exact, Steve, answer

Good.

You get know generated that, as find in free move actionable it to But returns, we're not we it's you who's there's not are targets flow b, as that look cash that are there needle to perspective. have past And a, anybody from surprising out we going know and possible, to an that levels be the opportunity at do get terms shouldn't what that there. What's available the we easy there. antitrust to our of zero size, targets in again. the given to for to out

for you, your buy think can come I crap Okay, I in didn't an us, you'd of casino. give me hope do you deal much answer, but then I

or had Tom, what those you on guys. into will But talked you're maybe I play be important backgrounds hold know the you super So about can you seeing? look, across just give Vegas, to us high any have market? around folks back you the in international how question, end the front, is second witnessed super, June coming and you negative Business, color especially and

Yes, strong end, of international bit but and domestic continued had a when interim, the we've those In high on build it effort. from very very come volumes business. players traveling, We've has see that volume been a weren't build. great business unfortunately, domestic strong it's the at continued quite both arrived, to Caesars back. put in to we to a our international standpoint, the

morning, a get there, every day. in might results. hit on And So at it in a ideas, Saturday Steve, to player sheet there you I be give anecdotal one was that XXXX, -- a was looked swing significant and there I anecdotal or if our Sunday

minimum, to players got a at Now, on X several that Saturday, line $XXX,XXX a of credit. I've Sunday, XX typical are

you've a a balanced much more got got So book, volume. you've lot more

end So Super quarter build. And in events. end FX. them out. fantastic, with encouraging the of fourth in for both events continued is said, quarter to second the high half in or really was Bowl And the remarks, it's at I high my first Obviously, months as extremely demand the are several

Stephen Our next from of question comes Morgan Grambling Stanley.

two Hey, ups. follow thanks,

digital on the First, side.

heard in on unplanned step investment should to you into say be term? Palace that think I I that promo mean iGaming in the marketing increase near this spend we app, the up Caesars anticipating and does

expect the to launched in be you visible nothing should sports promoting but app. close to saw us of You the anywhere when what terms we app

should the markers become a you right and a standpoint as in will I've all So quarter of as that's for breakeven we're visible next said last describe as But for which marketing flip but third guideposts so. and iCasino digital business, before, I invisible the of from should in or in now month is this I is would be the the on be side couple the we expecting to close. that of given, coin years

then should a positive quarter fourth be be quarter. then And significantly from we on. Your positive should

or that helpful. my do follow the the side? you one offense physical domestic more more And at comments. on And that going more That's comment directed casino on up generally international? taking or on Thanks. Is view at just crack it digital

domestic we have entirely we are but -- a as So economic manage we we little we We're this obviously property point we not, Canada animal. have are internationally.

make on And acquisition. not digital would get something expect about I if would it US, thinking plane, to a we're there's that would I'm So, be the domestic. outside sense big but willing a

Montour from Brandt Barclays. comes Our with next question

Hey, everybody. question. taking good for evening, my Thanks

at cross low normalization. trends, across of So, any operators, end. obviously the lodging lot broader just calling of confident sort sounded you're there's you been seeing other and sorts on leisure type landscape maybe not broader some or from a of thoughts anything, talk US of lot And wins the there's activity lumpiness of hotel the a recessionary Tom, just it

Just curious Las normalization tier. of of think the the maybe if Vegas. your seeing you're difference sort middle, low the properties it's, you end any any at there's in of database, or And if versus middle if your

already is property the I'd Rio. because that the really only I level that seeing we're to half as for a lot property. at feels anything, next of we're And that's the soft, strong. material of in be and at not be strong Yes, volumes Brandt, rate been out the of softness, we're very property, has have to unique of a now to of they here. here, out out any quarter, continue expect come speak Today, property, terms But really of particular are, that the obviously that you're out looking year as transitioning business a to can and there. It

As XX%. depending I'm to told occupancies XX% forward at on I looking properties you,

tell stance give on you really it's a bearish to So that anything Vegas. you hard would

Curious to here. want City. and just Great, that's of sort how on peak you if that Atlantic summer through comment on super helpful, performed, then maybe

I summer, of think you're sort expectations disruption season. the free of underwriting or your sort into this heading versus

be the I that's Hotel would right strong within disruption turned up have City, XQ -- Caesars, left out as to that are little renovation Caesars to Tower of was it's bit end done pleased yes, not Yes, of terms obviously and opening Superfrico. we in was we're flat say And work but XQ. since regional Atlantic I all of which for it's of business are as is entrance really the hoped expect that the finishing free I'd it would Palace. Nobu kind the HOOK and I in really Yes, it be before would the the is grow expectations, there we at year. should the a July, by way Xth And of out fine. with in THE

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

first my Maybe you for just, questions. Hi. for Thank taking Eric.

line of items you EBITDA? directional level, kind wanted digital want product where do about the ’XX-‘XX start as the about business that in think and kind you to as us it roadmap your continue of beyond? makes percent ask digital of or could side, a flow Just we high or base changes help to be? sort get either help normalized of think could some amount you us improvement your key into expense out just on drive you the to of that What get sense, is of about you a levers How you from you increasingly very could of as revenue in at to and throughs maybe sort think about kind

sure. Yes,

with we'll of that, expenses and we've the prior some back don't think fixed calls, some that you like those rolling the marketing, either other the of the team I the forward to currently deals, reductions going burdened go in be incurring, think about expenses if had from discussions see we're that can we over the you time. off

balance broadly like labor are super those and expenses the the fees, so forth, processing some those taxes, of are and like variable others. true reinvestment going the the aggregate, then XX%. variable, But think card of that of the really around bit I and should speaking, increase we things have, levels, credit and terms then be to, expenses, In a might

going past level, be by expenses fixed for cost see couple you that that we off So forward, we anyway, structure. strong flow currently the should once get. like you the on every the and this incremental then fall breakeven the through of And dollar quite the marketing have in have that it'll quarter, years reduced next break we

possibly variable factor when right. those make So kind sense? of that I'm than some greater fixed XX% and that if Does expenses, on we that summarizing of in

Yes, I you if XXX%. look think look this way a to quarter over at it, is at that's good

would more anticipate because fixed than cutting side. that going forward but So, dramatically that's I we're on

goals a just of ago, the those from had sense. one your was one mentioned kind I specifically, of longer by wanted a you days then Great. term about little of I in and there mean, for something sort like to And bit you Thank standing and XX% on days get picture, mind? we relative specific XX of makes you But it bigger just kind were all was not there just return area sat that cash specific to on digital or directed maybe just where that the across And the something there specifically joke, trying the at XX I'm flow? directed in investments, sort really above? at either that of Was was to of ago? comment the of Tom. Tom, a you sort prepared remarks Was free in kind but ton that. for

in in of generate billion a got you, we loss before above, than cumulative years which ago, cumulative building $X.X EBITDA XX% which at when got some defined, the conviction No, we skepticism even inflected over $XXX and we we meet timeframe. on exceed it's generate business, in to firmer I And tell EBITDA XX that of return later, we all positive, XXXX. the back, million in we or laid annual those about to million, those we better as quarter, I maturity, would of sometime told think markers little my you, annual losses last I'm suggests the days that numbers could $XXX three I I out

Securities. Our with Truist from next question Jonas comes Barry

a comprehensive good you MGM overall deal about had know you just partnership here? positioning Okay, how curious announced a with But I think guys Marriott. with afternoon, your Wyndham.

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comes with question David Jefferies. next from Katz Our

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Our comes next Chad with Beynon Macquarie. question from

thanks taking question. my Afternoon, for

I to a wanted pile but lot that. gotten of You've digital, on

in of we dealer, leading cap of and a player given is the Europe over big demand get how around market questions live So lot there. the the

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the a to part going forward. business Yes, be of sure. major I'd it's going say definitely

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on haven't app, Palace we the it we will into which the new incorporated app. Just Caesars

we're I In don't going through branded bringing customized to in near terms of at the party, third see to some or question about doing want the a definitely it have in point games. But anywhere this house house it future. us in

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comes question next Our from with John CBRE. DeCree

on the Bret, for questions. thanks for taking my everyone, one Hi, Maybe balance sheet.

obviously, the timing made was whether it what remark, the it of partner, But decision of share to kind on sense. and paid contractual, of debt the that prepared you more in for was pull something the just trigger bolt cost of out could mentioned the to on you negotiate the did buy Horseshoe own guys you what minority your parameters with if your interest. that You

we valuation. right on an at Yes, minority are the opportunistic the interest asset holding around always

under little So $XX we took that in for a million.

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of or strong now. looks going that pretty perfect, right of and But of lot as like poker your about one digital, maybe Like on of Are a forward. Eric, for one think thanks Series the poker business covered you've but Series a on you great forward. Obviously, successful suits isn't then World Tom of kind Poker you could there industry for Poker going the with for it's a online a side World opportunities brand you. big brands see iGaming detail ground and your some

an provide perspective, also ability was you're We that it Horseshoe Series from Yes, from money right. it. both the year. perspective, last all-time to moved Poker the absolutely hosted participants the properties prize to record a World to but It of contribution really

branded those year Horseshoe, drives it of a of revenues. and activity the food as first the of kind to it's lot beverage, a lot a So really lot property, hotel and of a

a drives really it's for great to So actual from portfolio that revenues us the, to tournament itself. the perspective, the in addition are from direct

an and in the the on kind go. movement From between it's the brand up customers of to locations But accretive tournaments. is perspective, down this these It states from company, brick so don't mortar and based definitely for and we of how to to it's think customers does incentives provide flat terms perspective, for much a come legalizing, at new business point. kind vacillates going a really online we see that of

back Thank remarks. to Reef you. I'd any now like for it turn Tom to closing

to you and Thanks, in if will we November everybody for we don't your conference And sooner. at support. time, see attention talk

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

now may disconnect. You