Caesars Entertainment (CZR) 31 Oct 232023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Caesars Entertainment Inc. 2023 Third Quarter 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.

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

me our call today joining and Hession, Caesars CFO; CEO; and Reeg, are Operating Chief online the President Sports our Eric Carano, and on gaming. Officer; usual, Tom our As Anthony Bret Yunker, President,

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

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

quarter the the by third factors financial cause concerning and the to the and our today, you today's company's on could measures call, For events should company directly company's discussed in discussed, to to Commission. investors.caesars.com, of obligation the most reconciliation Entertainment with the any each XXXX additional financial press comparable Caesars our Regulation comparable from that contained certain during occur measure selecting filings Securities no in Exchange to actual may information those financial or The that non-GAAP after discuss G. the statements found measures circumstances be statements regarding and non-GAAP to the undertakes today's GAAP the risk the release our website or update forward-looking comments results non-GAAP SEC refer GAAP factors results. differ as financial measure also reflect call. Also revise cautionary defined differences by in each release contained between financial measure and can press at company's

to With the turn the the over now way, disclaimer will call Anthony. of out I

Las We quarterly X new call. markets, our the which segment in consolidated Demand All EBITDA on the trends Vegas in good a beverage and to revenues remained regional record X%, increasing adjusted revenues. digital revenues history and record EBITDA EBITDA afternoon gaming Brian, to up our quarter delivered you, grew higher the quarter versus year. in year-over-year. Starting drove and with Vegas all-time hotel the in were adjusted cash third with Total occupancy food during record revenues, everyone Las segment. adjusted in segment. XX.X% Vegas Las the healthy our driven higher segment by segments record XX.X% continued prior strength ADRs, and Thank of by led and profitability our the strongest company, occupancy

Excluding Vegas with segment real EBITDA payments, margin Las adjusted $XXX XX%. million of a generated our of

adjusted QX for EBITDA. the an During segment delivered also our all-time record group quarter,

As order year, to excited the February, we are FX significant event. Heading robust Vegas a the the the convention in improvements the a to continues we in to demand, Super Vegas pressures guest markets. helped deliver the to leisure quarter of offset Stable regional opened to million, the a adjusted one to benefit States. In infrastructure by the culmination continued Vegas of Las Las exciting the last look record. inaugural and of X% also executed regional performance November, city, events newly remainder addition projects of forward demand, and and in the segment, to strong strength group few to and We're looking year, and segment. to casino from were with up of United strongest $XXX and the on calendar great combined Las and race continues host in 'XX, into in other year. Bowl guest calendars planning many our in versus throughout planned our our event events completed new revenues EBITDA the from excellent competitive from best grew benefit capital for facilities

diversified benefiting portfolio United segment from States. is regional across Our the a

to projects. Turning our capital

have We and are XXXX Versailles of anticipating to expansion, Vegas, new by rooms Tower a QX a in end is as project. online New we complete opening for the as Hoosier the completely Park facilities our the expect the hotel Harrah's and year, we new the year. busy and in Virginia remodeled Columbus, expect Caesars Danville, permanent and Nebraska, to Orleans well tower property

our winding forward strong to finish a down. remains capital are XXXX. and looking are demand to Consumer We strong, projects

our their want continue of project focused to returns and operating on thank members EBITDA efficiencies, remain will on to work. I for hard cost harvesting We long-term growth. team all capital driving

dedication is a exceptional second their success that, commitment call the some guest Our experiences Eric quarter insights and turn the now members digital day. With of direct every delivering to the team result on I'll our our over for segment. of in to

Thanks, Anthony.

and generated delivered adjusted result versus basis loss During year. and last Digital million continued our consecutive positive significant the positive improvements. Caesars third profitability as a EBITDA $XX quarter the flow-through $X well. versus Digital year, represented us in a now second makes adjusted segment EBITDA another of a EBITDA on last million year-over-year we of quarter, EBITDA significant Caesars demonstrating and same trailing quarter a improvement XX-month

lower and segments, by the and negatively online our were handle XX%. hold handle to During impacted iCasino be both sports improved believe iCasino online XX% we quarter, year-over-year betting temporary. betting in which sports increased Revenues

continue in during lowest among in overall being We with resulting remain to an spend industry. a customers, the our the in quarter our focus best the promotional investing balanced on spend with promotional

the game drove monthly operation to segmented facilitating product During the to functionality its full first results and of stand-alone We month we positive results record. realizing the iCasino addition in The months of quarter, anticipate our which enhanced marketing. Palace GGR new in and NGR delivered in ahead. a increasingly content Caesars app, features Online,

reward options. a feature launched online to product NCAA, NFL several credits with product We improved broadcast football, for SGPs bet for streaming payment Turning a features new nationally including betting. sports and live for games,

in As periods both we our prior are significantly head believe betting iCasino and from that quite improved competitive. into sports XXXX, and product we

We these the technology with we preview to a enhancements. have to and TAM, enable over I and proprietary application coming out North shared ease plan, robust initially, will wallet will improve speed. jurisdictions, an have customer XX We now calls. which plan But enhanced you which continue American roll focus exciting app XX retention mobile will our use and of to sports stability, in through the which offer experience a offer of wagering. betting on

in iCasino now X comments. the call Bret back for We pass also operate additional to jurisdictions. I'll

reduction applied equity asset. remaining of acquisition Thanks, we've over Eric. and $XXX interest of Year-to-date, the cash our the Baltimore debt flow to million in

spreads we debt and EBITDA, reduction bank our as our revolver September with is reduce project forward loan to bps facility We're X.Xx as A a expected into Our million $XXX excluding City net fourth XXX SOFR. Cash leverage bps in to our grow land to a looking over Tom. heading spend, of credit at over just for total resulting our to XX joint posting repay CapEx, leverage XXXX. and in Atlantic Over continues to venture to and under XXXX. term declining quarter XX, strong

we back extremely familiar has for you quarter been us, was calls, of time. for you. a Thanks, going quite company. story in come I union expenses all-time for be with the an a that strong it headwinds for quite more should are detailed, bit which the momentarily. accruing of who've some This Those will for contract, Bret. will in Know on record on in remains The Vegas group strong new the that terms anticipated quarter. little Vegas touch the

the We October X. left had on -- system Rio

in of in door, of -- significant disruption in out terms performing We went kind how quarter. the So the the third it had more was

Versailles rooms, dated of Tower We as We you is year-over-year. sorts October than I walls all headwinds, we if to labor The margin that margin surprises. We find thought a union you anticipated. it a were labor cost comes expect reaction a you the building contract. should not X, of the offline that of still there Rio more so But particular know as building, -- beat questions as slight margin related be service, of tower to took fair percentage, going see to whole the the forward. we recover keep going as Rio drag. out will is amount us that on costs, active. fewer you open as

unions. We the with in I'm discussions. the active I'm in with personally I'm involved solution. optimistic involved union. are dialogue reach a the will we

we done well in that. say have company our as employees quite before, You've post-pandemic, will heard and a post-merger, me participate should

that So employees our contract, the to interacting you in culinary increase the seen agreement we should have on reach we the started expect that X since be largest decades it's with Union. a when going

that's in deserved. business our So It's well model. anticipated

delivering. participating said, And the in be everybody as results I that we've been should

seeing happening what's many, point. if properties in lot a seeing. by fairly regional, been competitive terms In expecting of being with Tunica, have not of in stability quarters, you We're weakness that terms that many we're before, market dramatic We're seeing them. are the we've of have chief That's Chicago moves openings named for this what I among that not months, customer. the know in customer.

projects like soft, to from point. and Virginia, stable. we for Porsche, that quarterly competitively want online on have are weakness City the set come hang Charles, And you this saw, something If been but our all-time in and Annapolis an as EBITDA the quite news have not you offset have that feels was strong that's impacted. returns properties your record hat The Atlantic feels that margin soft, particularly at

to of ago, the feel expansion terms is in topped the that. At basically regional, And as any casino play credit the or X%, the expecting market, of the week So Orleans also as particularly we that off the moving we given got of the Super change of about quarter the obviously, neighborhood a we'd in told good Bowl do that for very you heavy quarter we level, to that there. that Year's deliver -- I the in we're we X, next in going end, that of completely, in the is coming in construction high open forward lift we would amount exceed we on the to Vegas, we've on FX advance at which target X/X good Eve. what midst in have feel to what New 'XX. up now day hotel tore and work It's of is very, New the floor, very disruptive no and on We're project floor I -- point have, year tower. will significant of expect well run

a is high-end it's So from same high well. as the way, strong Bowl end extraordinary and Vegas event perspective, an Super in extremely filling

feel hold in Digital, Eric our XX%. very good we So of continues those on, to excess grow touched about events.

positive a You we've hold particularly growth. way in we'll delivered promotional-driven. Online in dinged we've That's actual EBITDA now able that's digital. fourth Excited been quarter quarter pleased We're not Caesars know that, that's in quarter. on operating, has based the momentum and with got about the way but the the that be the handle online on to We we've what deliver the casino begun in Palace that quarters. still coming got launched

nearing of we capital end are a As the discussed, significant have we cycle.

you budget So Orleans New project as come down, should to CapEx expect down. our winds

and EBITDA both Our brick-and-mortar growing digital. is in

cash free is our flow So growing.

down continue or pay area. expect and in to to We Xx leverage you below use the should what leverage. we flow reduce until That's our cash see free lease-adjusted debt

value the us. the with of looking going see feel in market subsides. to you on about in So prices volatility we reflective see, good course, equity. And just in how keep the up it's we to good numbers our volatility the is feel of expect business. share for coming And going business together, that, see just us. very, And in of in very It's how the front we're that I'll the it open We space, performing we about that until not what's what recognize not delivering questions. we forward, very

Instructions] first Deutsche comes Santarelli Bank. question from Carlo with Our [Operator

kind of Anthony, pertain could as talking calendar -- about year you group about relative believe in were guys on you for wondering XXXX experienced you I next and of perhaps thinking this could terms you kind update an to was for the to provide if the event where of in -- the year. year how Las -- the what are it perhaps of some I see pace you're Vegas. year,

in an positive better Carlo. we the as by a quarter, going Yes. getting calendar record Thanks, set we Group day. see pace, extremely into said, this

next is I to should up high XX% to year. year, teens this XX% think around mix pace about

of Perfect. benefited was favorable some the materially And noticing baccarat? results the are from here in market -- guys baccarat seem higher seen out folks a Nevada anything of pretty baccarat then, seeing obviously, at in just I XQ. in you stretch pertains mean, to dynamics that there be the wondering, the we've as least I healthy Is holds. we it changing just that terms your published data of coming the to of

will baccarat a of And return had us. and of for strong grow with FX QX anticipating quarter really QX. a diversified and we of we return continue No, We're Year's then Year's Bowl. FX. good both a seeing to lot for that this normalized Super a last interest the the international in think for great customer, for quarter next the customer, international in year, really A international. quarter, and Chinese New New international

impact have a hold us. quarter, on consolidated one or Carlo, a didn't material way for basis another for the

you the think was market guys referring Yes. no. that No, baccarat I more -- no, just said. you specifically to the I Yes. data of piece No, and

with next Joe comes Our Greff from JPMorgan. question

I increase could in path about you a talk What drive you for handle XX% brands from other for apps off accelerating great. to continue Eric. lead growth the how think and question and with here. significant up some that that's to growth reskinned momentum, want that of or drivers when about a particularly there, here? iGaming, year-over-year, Obviously, Eric Can the are

like Yes, app And have months putting for up the during first sure. we quarter, we for from both quarter, exception of the volume the in XX%. month Thanks, X keep of didn't our quarter. the mind, very feel we were basically Joe. solid X in we and it sports perspective, had iCasino, as with a Yes, a

again, So app next the upside accrue fourth of quarter is to in and year. from most new the going into the

where that more insight that game give what see the of feel We and opportunity are customers there's of will the to a are. vendors workings integration various spins of lot into playing improve us game actual and the the the

have an CRM. to opportunity We also improve our

months up calls about a prior marketing. during to couple mentioned segmented we we able As do weren't of ago, to

possibilities then and with the the with new we heading there And year. And skin technology, that benefit now app your we really feel licenses have states we point, to our as us roll would to that another are to XXXX. going and exploring we've number of so like that's later new portfolio, some of out additional are next reserved where adding of a plan to the into in potentially

the is app I of script. to improvement, iCasino the the the is higher a that but following all those of contributing So things We're overall seeing exactly what slot recall then for if we're app, table that would and our much say it of thesis new hold percentage which players, prior will improved a you heavily app, on whole time more result, create us. over think a ultimately seeing focused, lot value we as in was which particular

that there to Beverage that third specific Anthony, to and or to you anything call Great. Las up degrees food the varying was flat And it to some Was on Las game for the going drop, all then reference year-over-year. beverage question would out, road back construction there, X%. was that had the driver? revenue Vegas didn't do the Obviously, a in challenges Food nicely related Vegas quarter, year-over-year. disruption and a what you, hotel and you work down faced and casino and segment Table other, Tom, hotel impact Q extent in Strip. to

has things that floor of or business. name that the mix placing. group could of a customers they're your casino of impact you big a tour lot outside mean shifted spend but impact than on money travel I those database more revenue casino Those into that, out

really are drop is obviously, today see Palace, and games table your some dependent visit. when particularly come that, So customers big you we Caesars to and you're where on -- in wouldn't of going

there's seasonality, I so to on up. don't And -- number say that there's when based want those but volatility show in customers

hurt or just then do that Tom, their competitor's outsized from And hurt have issue, an you at on benefit have Did based which Las which would Great. Vegas, you all you them benefited you out? definitely may to a related disclosures. call cybersecurity think them

know No, after One quarter benefits benefit, a certain cybersecurity would from incident. I a I is I wouldn't this call thing for you. tell out nobody

with may question Our Wells Dan you Politzer next from proceed. Fargo, comes

is First, maybe Anthony. this for Tom or

kind segment new next then obviously, about you we're little relates Tom, it you're but Vegas, properties the growth year have about rounding ramping and in segment, Tower, you out you maybe mentioned Las think to the the you in do think the anticipated. than regional as and here, seeing this And how competition. Versailles a later -- also bit some new shifted of segments Las Vegas As in year between regional, the

think next we here So any thoughts preliminarily as the path about high-level growth year?

Yes.

the on timing up we rooms changed. in say the hasn't And out budgeting regional growth as in What with you're take walls. would year. to really Tower, started I'd still budgeting that's think Anthony we're We'll of opening consistent right you're we than So end middle service Las both of said, driver be the we changed rooms would the before in We in Vegas had more say significant if before getting anticipated -- -- growth of modest Versailles is, I we're digital, far be Vegas. what back and now. and a thinking. I

an business to think mean, reached it. perspective, you've I this scale a operating it digital expense like a And just then is where like looks Got bit, it pivoting there. really I from seems

like corner structure? ways the just of about about Are high-level as to As cost looks terms of you the there forward think the flow rules any the you've it in think through, here. path thumb or turned

Yes. a to thoughts. I'm few give you happy

our that is we've even One the think spending been few proud we're able I things that particularly over and quarters hold to constant of promotional last the down. of

year. down was versus points prior basis This XX quarter, it

we've to X% kind the you range given for of of And so guidance, X.XX% that staying it's of in that volume.

think to one I so models. the help And that's build thing

If we or variable using is processing in you that the XX% along and our to a other at look have, use. with incremental fees thereabouts of few tax payments flow-through rate, costs good a number terms

essentially I marketing we're quarter year-over-year other We But all of quarter we've $XX think year. to kind covered kind fixed about take down. of versus flow million where probably thinking now of I is lot out, point this down with will last stabilize about over were coming start of of that where incremental the you perspective, as right a variable at from spend still the some you're same that exception year. at this costs out would And our and we've think and next point. a it pulled commitments of league coming the the dollar every longer-term XX% could and through

question with from comes next Our Stifel. Steven Wieczynski

market, as XXXX as next heading obviously from about depending we have pressure end Tom, think wage up. XXXX cost anything negotiations on to flow-through some on that some be year, we So But side the labor in that could the maybe potentially a inflation? Vegas, in we going should for about positive about offset into think perspective, that thinking of you're how labor

Yes. business, group into which us. for is shift margin higher I got mean continued you've

next more has if that's was at points a So running above $XXX room XX%, revenue that, we've got minimum a expect very million high points couple We've flow-through. We'd a -- should Versailles XX% Tower be ROI a rate, you We project. discussed. look comes up which couple on at or online more Caesars, brings of year. XX% That that as it up brings we're banquet at historically that. so, higher

cost number our on in which particularly that's And not So posted group seen what side. still a headwinds, addition -- from even than a more wind we you've third a -- that and strong have of in growth in quarter have at to offsetting the you're we had perspective. noting quarter, we sales

kind is And actually sit you. XXXX. that just just target? seeing laid there a in that you around Okay. that to you've as path out mean, $X about of that as guys Tom, back feeling the Got of you're as going past, I'm check then, there wanted but in and to getting wondering, a And would see guessing quarter, anything how early I here me by today. impede no, to from target one-word give last EBITDA billion somewhere you're you answer today, out I'm you're

of told of still of Yes, that in you us. brick-and-mortar, there's I Steve, billion $X.X opportunity we opportunity in think in $X.X see billion and digital, I that front

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

one the rolled like themes has feel of from broader I the kind out is just Tom, inflation. quarter expense so operating of far

what you're You that. But the a counteract we could it to obviously -- like broadly, kind offset expense you to of able least ability hold little And close kind able find able that regional to segments? margins outline of across at saw do you pressures margins business? regional and going think I mean, got you've offsets to in just based seemed the kind alone, be holding seeing of you're just out bit the more to forward of the or what maybe get on to -- be

mean, quite you've seen Yes, think it I Shaun. for some I time.

time. squeeze pandemic. pressures been of of and labor cash hearing blocking This that out business. The since shouldn't the we the and You you you're new. as haven't merger. cost it seen all very are those of been for those to new degradation flow we've we expect it's got kind it's from dealing others find tackling. along of our was we still, inflation-related to terms date. could significant X have and the And and with been margins built margin said out long at as constantly saw being think the And a costs, that in -- at you We've us been of how that aren't forever, we kind we we we're good seems closed since -- but to quarter. that continuing opportunity business years is be We're like this good recall this

forward. expect I'd going what that's So

the comments Vegas, And make, especially the and side. then, around the Las to you given I appreciate maybe pivoting that sensitivity union

Formula of taking are accruals closer you just about to yield? -- in could with that contract us already do that And in are line further timing, you're kind the as the get comment that quarter, provide expect kind X? those believe costs -- Just your we the of step anything in kind -- to then of function you ever around I to ultimately

Yes.

You is where will think should a at shake accruing the consistent expect that we level contract we're with out. that

it's what here, we going to they're So with get deserve to our and consistent intend view our provide. employees that

In timing, active terms a don't a to of we're in want I is contract. X-year This play-by-play. dialogue. delivering be

So just that while it right to are make week. sure month it for have weeks now. complex and can't cover like, all done going of do you you a that seems work further it next week. don't gee, meetings why we means get from long period to These a contracts going the do with happen next union of the time, with and we I tell And a that union couple constantly are dialogue in parties. But if the this now or it's week, to from we're

Our question Brandt comes with Montour from Barclays. next

nervous sort on what kind maybe can of put this consumer, regional results. on stable. of and clear, across the if talk segment. people finer or spend comment are your of on just Anything little that it's and that visit deeper month-to-month system? bit the Congratulations that? you're Tom, the utilization Obviously, wondering throughout could go you strong particular about loyalty on your cut point -- a a on loud rewards the trends, was quarter per seeing maybe a -- I I

Yes.

Indiana case business expansion and And is grew for for EBITDA that not now up. seeing What the save margin to that going an into averages is, the got kind Chicago minus and about out let's anything whether about well, like that new from a where seeing it, the around year that right for looking the we're see are were in got revenue seeing you're unrated plus quarter, new stimulus competition, of And result us. something you not like bit back a pressure. assets There's to portfolio, X%, that to across is have properties and don't for our perspective. demand very competitively corner, it's to, net unrated a Atlantic then you're call flat. just impacted say unrated revenue by impacted play us. Every different And or month years assets are Tunica, that. Virginia, the of either checks in surge to you've couple we kind intelligent under for I'd particular able the little volatility, saw stimulus year ago, now that's new be and like in we strong month-to-month. not a equal a are say, our markets well-documented EBITDA from from to EBITDA supply, enough market Brandt, in stood the we that with if or play saw last We you of to a really play or EBITDA across the City, pandemic I those that the what They're and was run is the quarter, where a but withstand are to like or that growth revenue you been of, the whole Charles database project have decline of the is it's standpoint. Then that So day.

strength this tough good we where M&A So And we in about business. And the as a a sit feel our of in to be is is behind Vegas, Vegas pursuing was, that's company. very diversification regional versus the target as regionals the stimulus the carried broad plane, had and regionals what on comp you perspective, to get we've regionals. didn't seen pandemic ended, remember, people and going logic Caesars from -- want carried a then saw a

had know across Reno regional, of as what's in. And bumping heard don't kicking off quarter we hear within by along them both growers, because of and have we because have others. modest competitors Now Reno. that digital portfolio. you an got [indiscernible], our competitor. our kind Reno And one we said we've best of is in our there's I who we say, international ever in is diversification

to just going asset thought we itself prove company we a be you huge and you. tell that continues to the diversification for would that to was us, hope, I So to the

the digital, hitting great. perspective. And wondering that's That's from And levels seeing season, your just overall promotional if us super could of That then the into confidence then you by anything at several over update in that EBITDA digital all, you in advertising target be if surprising would if you 'XX? weeks now competitive landscape on were helpful. NFL could separate related, from

Yes.

So the changed. not target has

us We promo visible once talk continue that their to see at about end. while anything more in other We got that. But of say, at of and promotionally path in we've our requiring huddle executing I'll again others business strategies. a each look XX% We're own that on we And grow be to each confident. that's which seeing on not a a down to quarter, allowed and respond. look the business invest model $XXX cumulative driving million EBITDA to shareholders this, us return our a our the head today. would losses -- about kind let EBITDA,

confident very where very, are feel about we business. we this So in

Our next question with comes from Securities. Truist Barry Jonas

thoughts New York well. it, if on is about we're the expectations I New talk was that casino process. maybe at any maybe bidder steps, for process. I general the you believe exiting next for York land-based while as iGaming in any updated wondering could potential one And

Yes.

round questions. awarded license. an approved the get boards answer out where old. got then so They've for your cheek, before I'd to and you've tongue you've yet, for got that all just you years by by the board they'll the grandkid to first going second I'll will are RFP, have community is I the the but -- grandkids application community have community it's deadline approved of their Then The passed process Those hoping put opportunity slowly. submit Board. final the I'm to be into don't say XX questions. that, So my It's

the As on I expectation based issue sit is my I here be XXXX. the could they between say, before then, and is a a today, is XXXX it's end I think on. that of license would now needs quickest accomplished personal license what to

gap expectations guess on for with it. talked I the the in Got low a digital. on I And for holds past follow-up hold quarter, the then competitors. reversing. appreciate the about -- just you've comments in bridging maybe

if gap? So and curious there timing of thoughts narrow updated just the to that any sort

sure. jump this in one. I'll Yes, on

where the range. end see to the we're continue X.X% -- have going X% in hold to to an We point

we look we X you X in actually. higher continue than It's sequential years. have for last XXX just hold -- last in quarter the the we sports basis on in side did really an at quarter other had of particular, betting this quarters, points QX year, to almost where anomaly the any If improvement held

year. And that the steadily it's a year of that that improving September that to blended primarily reversed if important around which our by this we're at last you just X.X%. then reversal is was was period. results, football path. It note last But on hold driven really So look year's,

that XXX in hundred points, that couple we're of incremental you're the the by a we at it heading volumes direction. rates on increase more million mentioned, of basis you GGR, should if be which towards contributor So as we're steadily flow-through that a talking, I producing, big talked those EBITDA. And about,

the in changing the are competitors to consumer million, or it's need that dependent behavior the our areas doing something we on just it, those either of on that. not it's $XXX execute one to model get that's to but differently. So particularly have We on to execute

Our next with from Stephen Stanley. Grambling comes Morgan question

volatility. then past, look environment, been makes the about this obviously, Is of of broader as the you've increase toolkit. M&A the there's to say, in the know lot buying and popping back at most hear love own I hitting stock likelihood turns you you keeping of point, at leverage a X any market Would sense? up? look, your Or in that the do -- the talked

Yes.

for thanks question. the So

uses conviction available it's $XX closed conversation to growth an flow in XX-plus we free that stock. had flow capital free to or When M&A external as level be an perspective I'd right perspective, in my are terms something flow for deleveraging and a of internal going find we difficult cash At today, from here cash are, have around percent of buying have very that buying a at something free up $XX cash I opportunity to the that last stock stock yield. the sit from us around my me today. the going yield, same returns driving external our of So quarter was

target. our I our drive get returns toward If with the -- a using So stock the our than to it. acquisition likely project end could New of kind where the I'd can when be the of gets our and stock we to an at effectively leverage cash much we Orleans flow free in $XX, buyer drive selling more of it I'm

toolkit, clearly where best level at the going stock the is are alternative. sit. in but very Those this to it's tools the So on we the depend available

a impacting helpful. a but more you iGaming, think a play. are I in topic, Is seeing iGaming slot about coming And a still is all brick-and-mortar at that think different properties, slots as pivot perhaps That's and customers question on the bit from on the customer effectively versus we of you referenced always to that digital? customer incremental change of, -- is tables and/or

Yes.

sports -- our answer before iGaming be male betting to the showed is younger player. and customer the in business games and sports So better, our that yes. through tab a It's up table tended which skews

the to in skewing app. look they seen and business older businesses, arena, Caesars of brick-and-mortar female. that's you what iGaming look at we Palace If exactly we've launched our in we've since to that like want emulate slots And terms in Online, and the

So very encouraging.

early of results. terms In days

of up in In terms reactivated showing nothing we terms pass. in have quarters or as digital, in continues cannibalization, in business. the brick-and-mortar brick-and-mortar It's cannibalizing that digital brick-and-mortar date customers to increase through found accretive we -- of seen been to to the that

I it's is encouraged So with that extremely launched early by Palace know but developing. how very pleased Online, stage results. since that business Caesars we've

from CBRE. John comes with question DeCree next Our

in or color back of active demographics, those Or But of they'll are know prior seeing in around you've on are could -- sounds user like you information. Any of really users iGaming. come a trends shift peers, customers? kind more provide the stand-alone -- active response And customers from most play since app, increase I your you from mix a both? seeing your or competitors questions, in launched with Maybe helpful. provide frequency meaningful to your higher-paying one of it would be a don't you

Yes.

You're the seeing buff. all

more seeing You're play. active

coming in our into increase customers seeing customers you're seeing You're network. better and

So I an been, said, encouraging as it's start.

given the for or yield I valuing at bigger the is guess potential question. picture, mean, realized, pivot team of synergies maybe you improvements against efficiencies you that post-pandemic, can today? targets? I growth some your the answer but and potential when industry the from? to free could your there accretive the are And I look an that and an M&A back you target additional see opportunities meaningful some margin possible opportunity find, imagine still particularly that still when to harvest specific, it Do might you cash stock that M&A target, make think you EBITDA

the say M&A opportunities of we a low risk why my out more of of think would squeeze very, we on assets EBITDA I where very . Yes. out can happen. than of not target list reasons might running is

with question next comes Our David Jefferies. from Katz

about quantify the with margins the little for side Tom, the lot Vegas wanted your I and to a to just go to more margin expected. you -- what Vegas to Are question Rio noise trying about back going on. leaving, And find just is to normal laid items, accruals always about some of you in earlier out that the able is in going the Vegas be disrupting a particular of nature than because us? remarks

Yes.

EBITDA, over revenue it. less it So than was is even runs, with say I through lease maybe what I'd you $XX run Rio million since of little payment the had can X, to a X the it way quantify is,

we you're don't out, out touch in with -- in the again, rooms that service really the by want the we're increase dialogue. And online a don't back come that coming -- in end significant reduction of the that's details system. of revenue So contracts, move were it EBITDA of in I new will any of terms with that on had out to seeing in year. of Versailles,

be can year, rate margins third back higher margin that was coming you that versus a going presume headwind. a So should online forward. quarter at to average last And accretive

follow on I it. Got digital Eric with just And the side. if up can

of your is One the and things in-game How would that? presuming and up the being that of such doing Or of you is caught I other accomplish arc parlays am you -- that product kinds leaders with that as do characterize in sort to of have your today winning, to goals? observations features terms and in functionality. order that and do in misreading

Yes.

great a question. it's think I

that out play still it's retention the functionality I like the or and the having are still not quite play NBA need offer the line that because, we've years manifests to out that we to say right. then do. From then Product lot to into I were quite the a us The a can we think I action parlays, they out our hockey you're same same feel think the X big Caesars things I I away. that forth But those if we are we in some going competitors a app, of on. But were people came there that X.X same-game to our that other that broadly been for of may product the NCAA, comparable get having on. with thing then steps, steps and parlays, to a is how is trial, have years, that our of to stay top a the made having become are coming allow Whereas and last you some same-game in or for app once much close of is with It's if case. developed and customer. a the you feel focused so important. of yet going ago, our gap SGPs level. things live alternative continue think are to lot products the up, how can haven't rolling some about the them that to with that pieces can't. there, There like think not year Rewards question benefits just -- it loyal of they speaking, And have to I customer right and much itself mostly getting perspective,

Chad with Macquarie. question comes Our Beynon from next

on Sam Chad. is for This

about engagement other ask any this adding feature to this that streaming behavior the and customer changes for for far, seen launched And Eric. around betting this thoughts bet or implementing you NFL for from Wanted have is one feature and you any sports? feature watch First season? so in

watching very our are NFL this for Yes. terms to customers forth. The step development, under able this trial. we're are have see measure next the so be of -- and basically, and that's in consider opportunities people while That on yet. customers still We wagering to excited the it be watching able do to operators we to of few a how to uptick going partners. why kind We're viewing app, our and one don't many we overlay of it. is trial It's to big be it we

benefit of terms how in the able providers feed change, able the we being it. the be -- point, are integrate and a being data getting side, with the forward. out coming, benefits Those on going lot for then to this to behavior the data to working to customer still of that. will using tech it, be measure real able we're feel this determine that of more So at we're is waiting the But customers

doing doing policies plan In are we're interested sports, on depends what to other that service. definitely for in and the really leagues' utilize they it of how It that. terms

growth recent has then October. double And Okay. the well digits data perhaps trended Las RevPAR Vegas in market for that Tom, into showed

in of what view, events behavior, Where growth given do RevPAR first Just to overall seeing get return of Strip wanted can of bookings, consumer think at the half least calendar conferences and your 'XX. you're terms or the 'XX get the in to you 'XX? today in in

occupancy the would about and just almost the I much generally, room for we us. of ahead optimistic occupancy XX% We've We're really quarter. don't reported the anymore. have calendar group Strip --

in late. So come it will

mix shift 'XX we as good about that and more very into perspective. feel that group see You'll from

from next Daniel One Our with question comes Guglielmo Capital Securities.

guide out the than higher Q up coming the gave project been changes expected? that $XX spend, to there maintenance for construction and looks have year? last it to in a -- that labor went you the close quarter. just Or just around in one, versus first the Is the spend So plans midpoint of million like

Yes. last year We year. just this caught into up on some from spend deferred

accelerated slightly above year spend on So within the maintenance. pace calendar

diverged portfolio. Is from in to be demographics but seems back table game also we it and slots and have a not brick-and-mortar? or in to piece there for differently, of I players going game just the table the do regional cable slowed then on volumes players year-to-date talked traffic And the it's anything earlier, than both like Vegas certain playing drop about side, brick-and-mortar know tend around game the database showing a segments. there or up younger slot Okay.

to of a last casino changes regional no. in across the terms in answer The enterprise, in tables at, at... don't looking is what question So point across that's players specific have to we're any differences the I the ages, can't particularly differences, number behavior --

slot was in drop volumes and down games Vegas up. versus regionally, Table

a anything about of most driven revenue properties, games, small so intelligent say than Yes. that, by table have really I much more slot business Vegas. piece business. our Regional is regional of don't fairly the to

Our with comes Joe from next question SIG. Stauff

think app, OSB just I'm is Nevada forward? And new X, not see you in probably sort new And of reduction it's on product? new quarter, know that customer We to about acquisition in your I wondering Or it's reduction that say, likely launched going some retention then that about ramping, about see to is maybe did maybe the still just wondering, permanent [indiscernible], Nevada. as -- a your just your can references is assume, iCasino you'll app a to just talking product. third reallocate to think your how how had so OSB you strategy fair had just spend. first in it I but X:X, digital. spend? And it of that

Just that wondering if, year-over-year up. was

Yes.

of that prior generation So generation user. hold, versus terms see in of the a average volume, call functionality was to Nevada, to a expect product you else, per -- Liberty moved CBS What would it, saw we in in as Joe, terms what increase we this of in bets app yes, from increase everywhere in an you and increase our see product.

expect we've talked there's the But OSB iCasino doing in iCasino. there's amount the In in should you of some in promo, the be see that going way given of in that terms nothing launching spend of in -- states, of what terms we're you states. in to that intensity works about the terms

spend but So pretty there, us. OSB you should for you'll see launch stable expect be will some

Eric As to kind time. is over been of Permanent a we've of a X.XX% quite long while case. that expect remain said, and year, now the handles we'd for a

tell can't you will we're change, feel good but where never So at. we it about I

follow-up. one just maybe And

of your large are database that? in far let's iCasino, For type say, you seeing cross-promotional for, largely just customer? What loyalty are thus mining you

more speaking, the experience. the it, app our I similar you more to Yes. from you'd continue majority said, broadly as to of is and we it customers get much be to we hope a would traditional other expect. the the casino responsive to trialing designed database built as new When sources. was would that say, That app are

and from So it people that comes from advertising the paid search, paid social and affiliates, app. then just trial brand recognition

a right it's good mix So now.

think the bricks is and between to online our I though, ability time, cross-sell over and real differentiator, mortar.

the And so and provide games we're that and digital. forward both working brick-and-mortar with span jackpots soft promos looking eagerly providers and to to

closing now turn over to any Thank for call remarks. you. Reeg I'd back Tom to the like

All Thanks, right. everybody.

see will after holidays. some happy We you, between now I'm and sure, see We'll first at conferences then, but quarter.

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

may You now disconnect.