Earnings call: Caesars Entertainment faces Q1 challenges, remains optimistic

Caesars Entertainment Inc. (NASDAQ:CZR) faced a tough first quarter of 2024, with consolidated cash flow declining slightly to $2. 7 billion and adjusted EBITDAR down 10% year over year to $853 million.

Despite these challenges, including lower table capacity in Las Vegas and unfavorable weather affecting regional operations, the company highlighted a number of positive factors, including record occupancy in Las Vegas, the rise of digital gaming, and improved performance in regional units.

CEO What Rig expressed confidence in the company's future, citing upcoming construction plans and the expansion of its digital division as the main reasons.

Key Takeaways

• Caesars Entertainment's net income was down 1% to $2. 7 billion, and adjusted EBITDAR was down 10% year over year.
• Challenges included poor table play in Las Vegas, bad weather in regional sections, and losses from the launch of sports betting in North Carolina.
• The positive factors included record occupancy in Las Vegas in the first quarter and increased pure gaming revenue from online sports betting and iCasino.
• The company is optimistic about the future and is planning new properties in Columbus, Nebraska and New Orleans, which it expects to generate significant profits.
• Caesars is keen to reduce its debt and is raising new debt by extending repayment periods.
• The digital division is the best performing company, and it is on track to launch two brands and achieve over $500 million in EBITDA from the digital division.

Company Outlook

• Caesars will finalize a number of plans that are expected to boost profits in the future.
• The company is optimistic about the performance of the Las Vegas market and region in the second half of the year.
• The digital division is expected to recover, and it is focusing on customer acquisition and revenue growth for online sports betting and iCasino.

Bearish Highlights

• In Las Vegas, table games are down 10% year-over-year, and slot machines are down 7% year-over-year.
• Las Vegas net profits fell 4. 5% due to table retention issues.
• The company's retail sports betting business was affected by major sporting events.

Bullish Highlights

• Digital growth is in full swing: motivation retention is 8. 5%, and parlay energy is also up.
• Las Vegas non-gambling revenues showed a disappointing increase, especially in the hotel and food and beverage sectors.
• Caesers hopes that a foldable partnership with a possibility of $ 500 million by 2025 or early 2026 will have a major impact on the rise of digital technology.

Misses

• The loss was pointed out in connection with the launch of sports tariffs in North Carololin.
• Faced the operating task due to bad weather in winter.

Q&A Highlights

• The Rig Director has searched for initiatives for cost reduction and increased profits, and aimed to improve financial characteristics.
• The Space Development R & D Organization (JAXA), "Utilizes the reduction of operating deficit when the market has fallen and the advantage of ascending acceleration.
• Caesers is not closed to the possibility of M & Amp; A in the domestic market, and is also motivated to develop real estate in Cytotdownload, Columbus.
• For example, digital companies are expected to expand the way to become a skin to start ICASINO in each state, and have a chance to start two brands.

InvestingPro Insights

In light of the first quarter of the Caesters Entertainment Ink (CZR), a certain number of InvestingPro's main functions provide an auxiliary context for the company's cash status and promotional behavior. In particular, the company's P / E coefficient has raised 9 and 87 adjusted to 7 and 79 in the past 12 months from Q4 2023, and has been evaluated that has the ability to be interested in Valute Radar concerns.

Despite the difficulties formed in this quarter, the rise of Caesers is positive, showing company abilities to increase functions, including complicated times, and 6, 53 % in the last 12 months as 4Q2023. there were.

Investment professionals are expected to decrease in no n-characteristic profits this year, and the promotion volatility is actually an important ability for traders, taking into account the characteristics of the company and approaching. 。

Promotion is closely traded with its own minimum amount of 52 weeks, in fact, to the acquisition of the company's long strategy and its legal abilities to cover up and overcome the current difficulties. In a digital game section that has the ability to provide the opportunity.

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Full transcript - Caesars Entertainment Corp (CZR) Q1 2024:

Operator: Thank you. -meeting. It is the first quarter of 2024. It is the first quarter of 2024. After that, a concert and questions and answers are performed by speakers. [Operator instructions] Don't forget that the current program is fixed. I would like from the current main program, Brian Agney (Group Finance, Finance, Senior Vice President in charge of IR). Please continue.

Brian Agney: Thank you, Jonathan. A telephone conference was held for the first quarter of 2024. This is the date of announcing a press release to announce the performance of the stage that will end on March 31, 2024. Press release photos can be viewed in the "Investor Information" section of our website INVESTOR. CAESARS. com. Currently, rigs, Anthony Karano, Anthony Karano, President and Sea Executive Officer (COO), Brett Yunker, the Chief of Economy (COO), Eric Husdation (Caesers Sports & Online Gaming President), And my colleague Shaliz Clamlaz (IR) is attending. Before that, what we needed to tell the Anthony pipe can make specific predictions in coordinating with the Federal Securities Law during the current meeting, and there is a good chance that these remarks will be realized. However, remember that there is a good chance that it will not happen. Even during the current meeting, the company has the opportunity to discuss some cash functions that are not related to GAAP, as defined in GEC's views. To adjust the difference from the no n-cache indicators, see the press release on our website by an investor spokeswoman. < SPAN> Operator: Thank you. -meeting. It is the first quarter of 2024. It is the first quarter of 2024. After that, a concert and questions and answers are performed by speakers. [Operator instructions] Don't forget that the current program is fixed. I would like from the current main program, Brian Agney (Group Finance, Finance, Senior Vice President in charge of IR). Please continue.

Brian Agney: Thank you, Jonathan. A telephone conference was held for the first quarter of 2024. This is the date of announcing a press release to announce the performance of the stage that will end on March 31, 2024. Press release photos can be viewed in the "Investor Information" section of our website INVESTOR. CAESARS. com. Currently, rigs, Anthony Karano, Anthony Karano, President and Sea Executive Officer (COO), Brett Yunker, the Chief of Economy (COO), Eric Husdation (Caesers Sports & Online Gaming President), And my colleague Shaliz Clamlaz (IR) is attending. Before that, what we needed to tell the Anthony pipe can make specific predictions in coordinating with the Federal Securities Law during the current meeting, and there is a good chance that these remarks will be realized. However, remember that there is a good chance that it will not happen. Even during the current meeting, the company has the opportunity to discuss some cash functions that are not related to GAAP, as defined in GEC's views. To adjust the difference from the no n-cache indicators, see the press release on our website by an investor spokeswoman. Operator: Thank you. -meeting. It is the first quarter of 2024. It is the first quarter of 2024. After that, a concert and questions and answers are performed by speakers. [Operator instructions] Don't forget that the current program is fixed. I would like from the current main program, Brian Agney (Group Finance, Finance, Senior Vice President in charge of IR). Please continue.

Brian Agney: Thank you, Jonathan. A telephone conference was held for the first quarter of 2024. This is the date of announcing a press release to announce the performance of the stage that will end on March 31, 2024. Press release photos can be viewed in the "Investor Information" section of our website INVESTOR. CAESARS. com. Currently, rigs, Anthony Karano, Anthony Karano, President and Sea Executive Officer (COO), Brett Yunker, the Chief of Economy (COO), Eric Husdation (Caesers Sports & Online Gaming President), And my colleague Shaliz Clamlaz (IR) is attending. Before that, what we needed to tell the Anthony pipe can make specific predictions in coordinating with the Federal Securities Law during the current meeting, and there is a good chance that these remarks will be realized. However, remember that there is a good chance that it will not happen. Even during the current meeting, the company has the opportunity to discuss some cash functions that are not related to GAAP, as defined in GEC's views. To adjust the difference from the no n-cache indicators, see the press release on our website by an investor spokeswoman.

Anthony Karano: Thank you, Brian. In the first quarter, the consolidated no n-consolidated funds decreased by 1 % to $ 2. 7 billion, and Artel adjusted EBITDAR indicators to $ 853 million. Towards this quarter, we will lose the ratio of sports in North Caroline, as in the low level of the Las Vegas section holding table and the immature winter weather in our regional sections. I faced a temporary task. Looking not at such shor t-term problems, recorded operating rates based on the highest number of Las Vegas in the first quarter, 23 % increase in OSB's implicit game rescue in the digital category, and the tacable games of Ikasino There were some bright factors in the current quarter, including 54 % of rescue, and consistent improvement of business performance in each month in the first quarter. Recognizing the problem of guest retention in the quarterly direction of Las Vegas, we have not paid attention to the fact that the EBITDAR indicators were distributed at $ 44 billion after adjusting our Las Vegas category, which is the first quarter of the company. It is considered to be the second best indicator for the situation of the entire company. < SPAN> Anthony Karano: Thank you, Brian. In the first quarter, the consolidated no n-consolidated funds decreased by 1 % to $ 2. 7 billion, and Artel adjusted EBITDAR indicators to $ 853 million. Towards this quarter, we will lose the ratio of sports in North Caroline, as in the low level of the Las Vegas section holding table and the immature winter weather in our regional sections. I faced a temporary task. Looking not at such shor t-term problems, recorded operating rates based on the highest number of Las Vegas in the first quarter, 23 % increase in OSB's implicit game rescue in the digital category, and the tacable games of Ikasino There were some bright factors in the current quarter, including 54 % of rescue, and consistent improvement of business performance in each month in the first quarter. Recognizing the problem of guest retention in the quarterly direction of Las Vegas, we have not paid attention to the fact that the EBITDAR indicators were distributed at $ 44 billion after adjusting our Las Vegas category, which is the first quarter of the company. It is considered to be the second best indicator for the situation of the entire company. Anthony Karano: Thank you, Brian. In the first quarter, the consolidated no n-consolidated funds decreased by 1 % to $ 2. 7 billion, and Artel adjusted EBITDAR indicators to $ 853 million. Towards this quarter, we will lose the ratio of sports in North Caroline, as in the low level of the Las Vegas section holding table and the immature winter weather in our regional sections. I faced a temporary task. Looking not at such shor t-term problems, recorded operating rates based on the highest number of Las Vegas in the first quarter, 23 % increase in OSB's implicit game rescue in the digital category, and the tacable games of Ikasino There were some bright factors in the current quarter, including 54 % of rescue, and consistent improvement of business performance in each month in the first quarter. Recognizing the problem of guest retention in the quarterly direction of Las Vegas, we have not paid attention to the fact that the EBITDAR index was distributed in the amount of $ 44 billion after adjusting the Las Vegas category, which is the first quarter of the company. It is considered to be the second best indicator for the situation of the entire company.

Eric Hession: Thank you, Anthony. Caesters Digital failed profit from $ 282 million, up 19 % yea r-o n-year, and after adjustment, EBITDA indicators were $ 5 million. Digital divisions were justified by the strong pace of Internet sports, sports, and squid in the current quarter. Online sports failed profits increased 23 %, and profits other than Icacino failed were 54 %. The highest feature of the two vertical data was somewhat offset by retail and decrease in other sections. Online sports have an increase of about 80 basic points from the previous year, maintaining age. However, the results of the Super Bowl and the reckless match in March were the most unpopular, so they did not pay attention to the number of visitors, but they were less than the expected spectrum. The response to the party did not pay attention to the negative results of the main events. We identify our confidence that the more advanced degree of a mixed bed can continue to improve the characteristics of maintenance after 2024. Igaming is the number of intensitive buyers, large < Span> Eric Hasion: Thank you, Anthony. Caesters Digital failed profit from $ 282 million, up 19 % yea r-o n-year, and after adjustment, EBITDA indicators were $ 5 million. Digital divisions were justified by the strong pace of Internet sports, sports, and squid in the current quarter. Online sports failed profits increased 23 %, and profits other than Icacino failed were 54 %. The highest feature of the two vertical data was somewhat offset by retail and decrease in other sections. Online sports have an increase of about 80 basic points from the previous year, maintaining age. However, the results of the Super Bowl and the reckless match in March were the most unpopular, so they did not pay attention to the number of visitors, but they were less than the expected spectrum. The response to the party did not pay attention to the negative results of the main events. We identify our confidence that a higher degree of mixed beds can continue to improve the characteristics of maintenance after 2024. Igaming is the number of Intensive buyers, the large Eric Hasion: Thank you, Anthony. Caesters Digital failed profit from $ 282 million, up 19 % yea r-o n-year, and after adjustment, EBITDA indicators were $ 5 million. Digital divisions were justified by the strong pace of Internet sports, sports, and squid in the current quarter. Online sports failed profits increased 23 %, and profits other than Icacino failed were 54 %. The highest feature of the two vertical data was somewhat offset by retail and decrease in other sections. Online sports have an increase of about 80 basic points from the previous year, maintaining age. However, the results of the Super Bowl and the reckless match in March were the most unpopular, so they did not pay attention to the number of visitors, but they were less than the expected spectrum. Correspondence on the bed to the party did not pay attention to the negative results of the main events. We identify our confidence that a higher degree of mixed beds can continue to improve the characteristics of maintenance after 2024. Igaming is a large number of intensity buyers

Of these, 26 companies provide mobile betting. I am very satisfied with the progress of the first quarter. In consideration of the impact of launching a new state, the failed revenue associated with EBITDA was more than 50 %, in fact, in the worst year, which was the basis for the worst year. Now I am sending texts to the blet.

Brett Yunker: Thank you, Eric. In the first quarter, the parent company's debt of $ 4. 4 billion was performed in the cash market, the CRC-credit company was abolished, and the debt repayment deadline was extended after 2031. On April 26, the Denville mine was stopped at $ 425 million new bank loans at the joint venture level. The Credit Highway will be allocated to all other important expenses on the construction of an invention in December, which is scheduled to invent. Until 2024, excluding the Denville Joint venture, will be $ 800 million. We want to reduce the burden of debt to the benefits of the target by applying a large amount of currency flow by vacancies to the subsequent debt repayment. I am sending the sentence. < SPAN> 26 of them provide mobile betting. I am very satisfied with the progress of the first quarter. In consideration of the impact of launching a new state, the failed revenue associated with EBITDA was more than 50 %, in fact, in the worst year, which was the basis for the worst year. Now I am sending texts to the blet.

Brett Yunker: Thank you, Eric. In the first quarter, the parent company's debt of $ 4. 4 billion was performed in the cash market, the CRC-credit company was abolished, and the debt repayment deadline was extended after 2031. On April 26, the Denville mine was stopped at $ 425 million new bank loans at the joint venture level. The Credit Highway will be allocated to all other important expenses on the construction of an invention in December, which is scheduled to invent. Until 2024, excluding the Denville Joint venture, will be $ 800 million. We want to reduce the burden of debt to the benefits of the target by applying a large amount of currency flow by vacancies to the subsequent debt repayment. I am sending the sentence. Of these, 26 companies provide mobile betting. I am very satisfied with the progress of the first quarter. In consideration of the impact of launching a new state, the failed revenue associated with EBITDA was more than 50 %, in fact, in the worst year, which was the basis for the worst year. Now I am sending texts to the blet.

Brett Yunker: Thank you, Eric. In the first quarter, the parent company's debt of $ 4. 4 billion was performed in the cash market, the CRC-credit company was abolished, and the debt repayment deadline was extended after 2031. On April 26, the Denville mine was stopped at $ 425 million new bank loans at the joint venture level. The Credit Highway will be allocated to all other important expenses on the construction of an invention in December, which is scheduled to invent. Until 2024, excluding the Denville Joint venture, will be $ 800 million. We want to reduce the burden of debt to the benefits of the target by applying a large amount of currency flow by vacancies to the subsequent debt repayment. I am sending the sentence.

Tom Rigg: Thank you, Brett. We're not in the habit of presenting quarters like this, so I want to go into more detail on why we got to these numbers and also whether there's anything that's fundamentally changed in the business. That's how I would answer the question if I were with you guys. If you look at the biggest metrics, it was kind of a sinking quarter for us. Everything that could go wrong benefited us. The biggest of them were retention in Las Vegas, weather across the country, which is well understood and you've seen examples from other companies, losses related to our entry into the digital segment in North Carolina. There are other smaller things, but we posted a loss in the quarter of over $75 million. So if you look at what we left in the quarter and how the company operated in the quarter, I would assess that the quarter that we presented was rather even, EBITDA aside. Take Las Vegas for example, we typically hold the table at 20% to 23% in Las Vegas, and we're gaining 15% per quarter. So, if you're 500 to 800 basis points below the typical range, the midpoint is 650, so you're down $850 million. So, you can see that this is a very large part of the breakdown of the quarter. This is a classic bell curve table. Of course, we had a quarter in Q2

But this is profit and EBITDA that will be booked in the fourth quarter, it's been deferred. In fact, this is basically not an event and it's not counted in the metrics for the current period. Looking at the long term, as I sit here right now, I'm looking at April, May, June. We expect market occupancy for each month to be 98%. Exchange rates will be up 8% to 14% depending on the month. Vegas, for example, remains very, very strong. I'm not a person who likes to talk about retention, so I think this will be the last time I talk about it this year. But if you look at the future opportunity from simple retention, I think Vegas will start to grow in one of the last three quarters of the year. We're retaining a little over $70 million this quarter. I think this $70 million is probably what we need to get going on the right trajectory, but I think we'll make up this $70 million every quarter by the end of the year. Continuing with the geographic units. It's down 3%. As I said, the weather had a big impact. Without the weather impact, regional sales would have been above last year. We are optimistic about the remainder of the year, especially the second half, and we continue to believe that regional sales will be above last year.

The first $ 75 million additional gaming profit is not subject to additional gaming tax. In other words, it cannot be denied that it is a very high flow. Finally, Vegas Regional Games. And another comment that emphasizes the region. Looking at the trajectory, the local unit EBITDA decreases more than 20 % in January, about 4 % in February, and about 10 % in March. Looking at this term, April is the second quarter, so it's not easy to talk about April from a monitoring perspective, but we are very good at evaluating the remaining year this term. 。 Digital is a very interesting situation for us. Perhaps it will be a repetition of Eric's numbers, but looking at the digital, the launch in North Carolina was much better than we expected in terms of earning buyers. Also, what I actually saw in the latter state was not to be replaced by promotion. This is about our database strength in North Carolina. But in the first month, our market share has reached nearly 9 %, about three times as we have just started our activities. As a result, North Carolina contributed $ $ 20 million to pure recovery in the current quarter and EBITDA. If this launch is liquidated, EBITDA will be $ 25 million. OSB profits increased by 33 %, and ICASIN's profits increased by 33 %. < SPAN> The first $ 75 million additional gaming profit is not subject to additional gaming tax. In other words, it cannot be denied that it is a very high flow. Finally, Vegas Regional Games. And another comment that emphasizes the region. Looking at the trajectory, the local unit EBITDA decreases more than 20 % in January, about 4 % in February, and about 10 % in March. Looking at this term, April is the second quarter, so it's not easy to talk about April from a monitoring perspective, but we are very good at evaluating the remaining year this term. 。 Digital is a very interesting situation for us. Perhaps it will be a repetition of Eric's numbers, but looking at the digital, the launch in North Carolina was much better than we expected in terms of earning buyers. Also, what I actually saw in the latter state was not to be replaced by promotion. This is about our database strength in North Carolina. But in the first month, our market share has reached nearly 9 %, about three times as we have just started our activities. As a result, North Carolina contributed $ $ 20 million to pure recovery in the current quarter and EBITDA. If this launch is liquidated, EBITDA will be $ 25 million. OSB profits increased by 33 %, and ICASIN's profits increased by 33 %. The first $ 75 million additional gaming profit is not subject to additional gaming tax. In other words, it cannot be denied that it is a very high flow. Finally, Vegas Regional Games. And another comment that emphasizes the region. Looking at the trajectory, the local unit EBITDA decreases more than 20 % in January, about 4 % in February, and about 10 % in March. Looking at this term, April is the second quarter, so it's not easy to talk about April from a monitoring perspective, but we are very good at evaluating the remaining year this term. 。 Digital is a very interesting situation for us. Perhaps it will be a repetition of Eric's numbers, but looking at the digital, the launch in North Carolina was much better than we expected in terms of earning buyers. Also, what I actually saw in the latter state was not to be replaced by promotion. This is about our database strength in North Carolina. But in the first month, our market share has reached nearly 9 %, about three times as we have just started our activities. As a result, North Carolina contributed $ $ 20 million to pure recovery in the current quarter and $ 20 million to EBITDA. If this launch is liquidated, EBITDA will be $ 25 million. OSB profits increased by 33 %, and ICASIN's profits increased by 33 %.

I have already read the legs of the stool, which leads us like this. From a different point of view, it depends on how you build this business, but will have a $ 1 billion unpaid rescue in the digital category by 2023. In the fourth quarter, we took $ 40 million EBITDA in retention adjustment, which is $ 60 million. This year, the industry is rising by 30 %. We are growing. It is required to grow at this level, taking into account that our Igaming is more important than the market. According to Eric, the flow of this term was 50 %. For example, if you understand 1 billion, you will be forced to grow at the market level, and if you take over it yourself, you can easily do this calculation. If you repeat this in 2025, the profit is $ 1, $ 700 million, within the EBITDA range -$ 400 million or more. This excludes the interests of partnerships that are functioning from 2024 to 2025. For example, I came up with a $ 500 million goal in 2025, that's not enough to believe, and I continue to continue this unpretentious arithmetic and that it has already happened in this commercial. Think of. If you want to discuss with me, do you consider $ 500 million in 2025 or reach this value in 2025 and not reach $ 500 million? I will be happy to discuss it. In fact, it is of course possible to discuss. But we < Span> I have already read the legs of the stool, which leads us like this. From a different point of view, it depends on how you build this business, but will have a $ 1 billion unpaid rescue in the digital category by 2023. In the fourth quarter, we took $ 40 million EBITDA in retention adjustment, which is $ 60 million. This year, the industry is rising by 30 %. We are growing. It is required to grow at this level, taking into account that our Igaming is more important than the market. According to Eric, the flow of this term was 50 %. For example, if you understand 1 billion, you will be forced to grow at the market level, and if you take over it yourself, you can easily do this calculation. If you repeat this in 2025, the profit is $ 1, $ 700 million, within the EBITDA range -$ 400 million or more. This excludes the interests of partnerships that are functioning from 2024 to 2025. For example, I came up with a $ 500 million goal in 2025, that's not enough to believe, and I continue to continue this unpretentious arithmetic and that it has already happened in this commercial. Think of. If you want to discuss with me, do you consider $ 500 million in 2025 or reach this value in 2025 and not reach $ 500 million? I will be happy to discuss it. In fact, it is of course possible to discuss. But we are already reading the legs of the stool, which leads us like this. From a different point of view, it depends on how you build this business, but will have a $ 1 billion unpaid rescue in the digital category by 2023. In the fourth quarter, we took $ 40 million EBITDA in retention adjustment, which is $ 60 million. This year, the industry is rising by 30 %. We are growing. It is required to grow at this level, taking into account that our Igaming is more important than the market. According to Eric, the flow of this term was 50 %. For example, if you understand 1 billion, you will be forced to grow at the market level, and if you take over it yourself, you can easily do this calculation. If you repeat this in 2025, the profit is $ 1, $ 700 million, within the EBITDA range -$ 400 million or more. This excludes the interests of partnerships that are functioning from 2024 to 2025. For example, I came up with a $ 500 million goal in 2025, that's not enough to believe, and I continue to continue this unpretentious arithmetic and that it has already happened in this commercial. Think of. If you want to discuss with me, do you consider $ 500 million in 2025 or reach this value in 2025 and not reach $ 500 million? I will be happy to discuss it. In fact, it is of course possible to discuss. But we

And the state of New Jersey gently nudged us to spend $400 million on capital expenditures in New Jersey. Now, that's already in the rearview mirror. So, this quarter we're a quarter away from lowering our cost of capital and increasing our free cash flow. What I said is, this is an opportunity to get on the offensive, buying stocks that we think are attractive or looking for growth opportunities in different post indexes. Now, we're five months away from April. So, we should expect to see a lower total cost of capital of over $500 million by 2025. Brett mentioned that we just closed the Danville Line of Credit. So, we feel very good about where we are and our outlook for the rest of the year. But, as I said, I'm not in the habit of reporting quarterly. I just wanted to give you guys a sense of how I view the company and how I view the quarter. You can do what you want with that. But we're going to go back to the quarters that we've been printing for the last 10 years, starting next quarter. Now, I'll take your questions. Operator: Of course. [The first question comes from Carlo Santarelli of Deutsche Bank (ETR: DBKGN). ] Any questions please?

Carlo Santarelli: Hi, Tom. Thanks for your comment. I won't go into retention. There were some points that I don't quite understand, but you can see them in offline mode. But I wanted to ask how the gap between GGR and casino net profits in Las Vegas is widening. Is this a change in promotions? Is this related to increased fill-ups? And as you pointed out, the cash rate has grown a lot in the coming months. But what percentage is that? Should we expect to use the cash rate going forward?

Tom Rigg: Cash rate for us compared to the normal rate?

Carlo Santarelli: Yes.

Tom Rigg: Las Vegas is about 75% cash, and that hasn't changed.

Carlo Santallelli: That's right. Regarding another point, reinvesting, etc., I admit that there is no slot, but assuming that it is fixed to some extent, this gap seems to be slightly increasing. Is the dynamics of the table affected? Or ... has the promotion strategy a little different?

Tom Rig: There is no change in the promotion strategy.

Carlo Santallelli: It was good. Some may fall to Rio. Is there a small tributary?

Tom Rig: That's right.

Carlo Santallelli: Like. I agree. thank you very much.

Operator: Thank you. [The next question is JPM Joe Greef. Please ask a question.

Joe Greef: Good morning. good morning. When I talked about Las Vegas, the number of Q-board games was 10 % in annual calculation. And the number of slot machines decreased by about 7 % compared to last year. Last year's indicator is Rio. What is this number that doesn't add Rio? Rio's pure income was not so large last year. It was about $ 55 million in the first quarter. What is decreasing without Rio?

And the state of New Jersey gently nudged us to spend $400 million on capital expenditures in New Jersey. Now, that's already in the rearview mirror. So, this quarter we're a quarter away from lowering our cost of capital and increasing our free cash flow. What I said is, this is an opportunity to get on the offensive, buying stocks that we think are attractive or looking for growth opportunities in different post indexes. Now, we're five months away from April. So, we should expect to see a lower total cost of capital of over $500 million by 2025. Brett mentioned that we just closed the Danville Line of Credit. So, we feel very good about where we are and our outlook for the rest of the year. But, as I said, I'm not in the habit of reporting quarterly. I just wanted to give you guys a sense of how I view the company and how I view the quarter. You can do what you want with that. But we're going to go back to the quarters that we've been printing for the last 10 years, starting next quarter. Now, I'll take your questions. Operator: Of course. [The first question comes from Carlo Santarelli of Deutsche Bank (ETR: DBKGN). ] Any questions please?

Joe Greef: It was good. wonderful. Then you mentioned the decline in capital costs. From the perspective of sales activities, it is clear that the numbers you are talking about have created attractive free cash flows from the last three quarter and next year this year. Free cash flow is used for debt repayment, and EBITDA is in the right direction to reduce the coefficient of clean cash flow. Can you talk about other possible ways to reduce the debt burden?

Tom Rig: Yes. Of course, Joe. Some businesses that do not run a casino have assets that do not have cash flow, do not bring cash flow, but may be able to monetize with an attractive bed and do not need to change the model significantly. 。 Also, if you don't think too much, don't be surprised if this happens in 2024, and the reduction of leverage is no longer limited to free cash flow.

Joe Greff: Very good. Thank you.

Operator: Thank you very much. [Next question is from Brant Montour with Barclays (LON:BARC). Questions please.

Brant Montour: Good afternoon, everyone. Good evening. Thank you very much. Now, on the margin profile that you reported in the first quarter, we can look at it by region. Looking at the creation costs, going back to the creation costs, we can see that basically the creation costs were actually sufficient for one quarter of 2023, without paying attention to the invention of the two objects. I'm wondering if there was a one-time savings due to the weather in January, or is there anything else that we can think of to try to take your operating costs in a day going forward?

Brant Montour: Absolutely.

Brant Montour: Absolutely. Finally, the operating expenses for the regional divisions were unchanged from the previous year, excluding the tax on the gambling business, right?

That's right.

Brandt Montour: And we've been trying to understand why it's possible to maintain this low level of costs, given that we've opened two properties since last year. Was it the weather or something that helped keep costs down in January?

Tom Rigg: Well, there were very few positive factors with respect to the weather. In fact, savings, for example, didn't work. In fact, as you've been understanding us for a long time, we're thinking every day about how we can make our margins better. We try to not be dependent on where the economy is moving so that we don't become a rudimentary like a cork in the ocean. As a result, we're always looking for the ability to improve productivity, and this suggests that our team, who have been together for quite a long time, understands that we are actually on a joint inflationary basis, where our largest unions in, for example, Las Vegas and Atlantic City are cost expansion, and we're not a rudimentary that was established to eat this. We're going to make a better business from an operational standpoint, freeze more effectively, and guarantee the rise. This is what we expect for the future

Brandt Montour is great. Very good. This is cool. A question about digital technology. Tom, you called North Caroline, and I'm really interested if you have an opportunity to provide us with some abstract data on fresh deductions that increased the mix of bets in March, or if Eric has an opportunity to think about new standards going forward.

Eric Hesssion: Yes. We are not opening up the current structure holders, but we have set ourselves a challenge of 8, 5% and we are already heading towards it. He said we are raising the bet. But we have also increased the number of people who make pallets. They are increasing it to the foot where they have the full effect. In fact, for example, we are quite happy with the progress that has been achieved. And, as you have already read, if we had not had the data from the two big events, among other things, we would have noticed a rowing increase compared to the previous year than what we were able to achieve.

Brandt Montour is great. Thank you very much.

Operator: Thank you very much. I would like to ask you a good question for one minute. This is from Steven Vechinsky from Stifel. Any questions please?

Steven Vechinsky Yes, kids. Good afternoon. Tom, I would not have had the opportunity to help you with some of the songs that you brought in the concert that you prepared. I was a little lost. For example, actually ... it's not easy to arrange. But I had a dream that you announced that you had a big $75 million in North Carolin. But I had a dream. Actually, what you said was that Las Vegas would lead to $70 million for the rest of the year. For example, I'm trying to make a rudimentary comparison, and actually, it's -- I'm trying to make sure that I have a continuing effect of $75 million, right? And how do you have the capabilities that are shared between Las Vegas, the regional shops and the digital technology?

And the state of New Jersey gently nudged us to spend $400 million on capital expenditures in New Jersey. Now, that's already in the rearview mirror. So, this quarter we're a quarter away from lowering our cost of capital and increasing our free cash flow. What I said is, this is an opportunity to get on the offensive, buying stocks that we think are attractive or looking for growth opportunities in different post indexes. Now, we're five months away from April. So, we should expect to see a lower total cost of capital of over $500 million by 2025. Brett mentioned that we just closed the Danville Line of Credit. So, we feel very good about where we are and our outlook for the rest of the year. But, as I said, I'm not in the habit of reporting quarterly. I just wanted to give you guys a sense of how I view the company and how I view the quarter. You can do what you want with that. But we're going to go back to the quarters that we've been printing for the last 10 years, starting next quarter. Now, I'll take your questions. Operator: Of course. [The first question comes from Carlo Santarelli of Deutsche Bank (ETR: DBKGN). ] Any questions please?

Steven Vechinski: Okay. That's great. This makes sense. And then Tom, you basically said that as it gets reduced, it's starting to carry over into Advent. And then you basically said, what does this mean, basically, you can see the outside skills of Emergency. So, I think maybe a pretentious question, but what do you think the odds are that it will emerge in real time?

The Rig: I believe that if I'm present in the current region, it's actually an exclusive decent probability for free currency flow, these are my personal promotions.

Steven Vechinski: Great. Very good. Thank you.

Phone number: Thank you. 1 minute for good questions. The next question is Wells Fargo's Daniel Politzer (NYSE: WFC). Please ask a question.

Daniel Politzer: Hello, thank you for answering my question. I would like to talk about Las Vegas a little from the aspect other than the gaming. It is a story that the occupancy rate has risen by 100 Basis points compared to the same period of the previous year, but looking at no n-gaming, the occupancy rate increased by 100 basis points compared to the same period of the previous year. However, looking at the profits of no n-gaming, I think that the market is slightly delayed, including the adjustment of Rio. In other words, could you raise it a little more and get the color? Is this a lower grade than a high grade? I take into account the confusion for this quarter, but are there anything else to know? thank you.

Rig: I don't know the other numbers in this quarter yet. Hotel profits have increased. Profit from food and drink sales increased by about 14 %. I am very surprised if this was delayed to the market.

Daniel Politzer: This is a number without Rio?

Rig: That's right.

Daniel Politzer: Great. And it's a continuation of the topic of the no n-cash assets you mentioned, but I want to say that on the balance sheet, you have passed the floating interest rate structure of the asset. What do you think about interest rates and these assets? In other words, does "Centaur" come back as a potential option? Or, if the assets do not accompany the exchange rate, is it a real estate on a strip, completely regional assets? Please let me know if you have any backing or hints.

Rig: I don't intend to give hints. In fact, I will tell you that "Centaur" is not an inactive casino that clearly creates a foreign exchange flow. In fact, for example, it is not included in its composition. However, this company has many assets that are not included in the necessary parts and have the substantial price we can realize.

Daniel Politzer: I understand. thank you.

Phone number: Thank you. 1 minute for good questions. The next question is from Trueist Securities Barry Jonas. Please ask a question.

Barry Jonas: Let's talk a little more about Vegas's highlights from the children, buyers and local businesses. thank you.

That rig: Yes. In this quarter, we tried to prove that all of our distinctive sizes were awakening. Vega s-We definitely fade the con/ agg [pH], and we took a super bowl. In this way, you had a huge group that you did not drive up, and a huge group that was not part of last year. But you can see this in the perfection of our hotel, the profit from the hotel, the food and beverage s-all these features remain awake. The precedent of the fact that the regional costs in January were influenced by the comparison with the previous year, the fact that consumers remain healthy and have the highest cost.

Barry-Jonas is clear. It is clear. And it's elementary interesting, what is your expectation for the current day in connection with the fact that Vich is fulfilling a personal option to buy Centaur?

That rig: I have the appearance of you, the children approaching the results and dilution arithmetic for them. In fact, I believe it is the final and a prerequisite to approve the conclusion. We move from the fact that they are happening to fill the options they mentioned in the past, but they have not yet been divorced. And now, as I know, everything is giving up considerably.

Barry Jonas is very good. Thank you, Tom.

Operator: Thank you. 1 minute for proper questions. The next question is from Jeffreze's David Katsu. Please ask a question.

David Kats: Hello. Good evening everyone. Thank you very much. I would like to dig a little about digital separation. If you start with a relative amount of $ 50 million and perform mathematical calculations, how did you calculate? And is it concluded that these transactions that are concluded are actually important to set 9-digit numbers? O r-If I allow it, can I help understand my mistakes?

The rig: The rewind of the partnership is important and meaningful. In fact, for example, I want you to feel how the bazaar is increasing and how we are growing. We are growing more than that. And here I basically said that we could claim 500 million. It can be said that the jury has not decided it yet. It is a debate that it does not reach $ 500 million. Mathematics has not acknowledged this so far.

David Kats: I understand that. For example, the possibility that the bazaar will grow a little more, and as it develops, it will depend on partnerships. But is a partnership a pretty important material for providing them?

And the state of New Jersey gently nudged us to spend $400 million on capital expenditures in New Jersey. Now, that's already in the rearview mirror. So, this quarter we're a quarter away from lowering our cost of capital and increasing our free cash flow. What I said is, this is an opportunity to get on the offensive, buying stocks that we think are attractive or looking for growth opportunities in different post indexes. Now, we're five months away from April. So, we should expect to see a lower total cost of capital of over $500 million by 2025. Brett mentioned that we just closed the Danville Line of Credit. So, we feel very good about where we are and our outlook for the rest of the year. But, as I said, I'm not in the habit of reporting quarterly. I just wanted to give you guys a sense of how I view the company and how I view the quarter. You can do what you want with that. But we're going to go back to the quarters that we've been printing for the last 10 years, starting next quarter. Now, I'll take your questions. Operator: Of course. [The first question comes from Carlo Santarelli of Deutsche Bank (ETR: DBKGN). ] Any questions please?

David Kats: Indeed, $ 100 million ... $ 100 million is a big number, but it's great. thank you.

That rig: Yes.

David Kats: Thank you.

Operator: Thank you. 1 minute for proper questions. It is from Steven Granbling of Morgan Stanley (NYSE: MS). Please ask a question.

Stephen Granbling: Hello, thank you. If you look around in the region or Las Vegas, you have some of one that mentions that your expectations in one cost are substantially consistent. But what kind of KPI, if it contains any importance, is probably not to actually consider to start defending in terms of cost? And as an additional question, what is the huge lever when the situation deteriorates, the bazaar begins to worry about customers in the same way, and the traders are generally about the operation lever. How should I think? thank you.

Tom Rig: Yes, Steven, we maintain the defense every time. And in this term, these companies have achieved great success, so we can make their local leaders even stronger, increase their rescue, or rescue. It will indicate whether it can be increased. I am not obsessed with devising a smart title for such a program family. I am not obsessed with devising a rough name for such a group or testifying what these goals will be. But basically, as we expect, we must wait for more important initiatives that are more than nine digits sold by the end of this year. And this is a rudimentary thing we are doing, but we still say that the number of spectators mobilization will not be mild in the commercial of the actual store as much as Cobid. 。 And we will continue to grow. In fact, for example, wait for what happens in the footfall until it continues. I don't have a good initial word for this, but basically I will wait in the worst quarter and see how it will happen.

Stephen Granbling: I understand. And it may not be said that the sentence should be said, but it will be clear. If the situation deteriorates, are you already taking measures to reduce the weakening of the operating weakness? But on the other hand, if the situation accelerates, can the maximum flow be expected?

Which Kuzu: That's right.

Stephen Granbling: Great. That's it for this time. thank you.

Phone number: Thank you. I have a good question. The next question is from Sean Kelly of Bank of America (NYSE: BAC). Please ask a question.

Sean Kelly: Hello. Hello everyone. I would like to dig deeper into this theme. Some of the numbers announced in the prepared concerts on the rise of OSB and Igaming are definitely very convincing. However, it is not completely consistent with some information revealed in 10-Q. Some of them may be related to what you are following in the physical part of the sportsbook world, or how it has affected the Super Bowl. Again, I think that the OSB side is very strong and mature, especially for the number of sports betting. However, from the information disclosure, at least the actual volume of sports betting seems to be slightly decreasing. Please tell me a little about this.

Rig: Yes, North Carolina is just a small part. However, yes, sports retailers were negative in the quarterly retention rate, which affected Bailout and Jet. The influence of Super Bowl and March Forry is more strong.

Sean Kelly: And Tom, I want to make it clear, but in the case of a sports shop, the grip was negative throughout the quarter. Was this result big?

Tom League: No, it has decreased significantly compared to the first quarter of last year. < SPAN> Steven Granbling: I understand. And it may not be said that the sentence should be said, but it will be clear. If the situation deteriorates, are you already taking measures to reduce the weakening of the operating weakness? But on the other hand, if the situation accelerates, can the maximum flow be expected?

Which Kuzu: That's right.

Stephen Granbling: Great. That's it for this time. thank you.

Phone number: Thank you. I have a good question. The next question is from Sean Kelly of Bank of America (NYSE: BAC). Please ask a question.

Sean Kelly: Hello. Hello everyone. I would like to dig deeper into this theme. Some of the numbers announced in the prepared concerts on the rise of OSB and Igaming are definitely very convincing. However, it is not completely consistent with some information revealed in 10-Q. Some of them may be related to what you are following in the physical part of the sportsbook world, or how it has affected the Super Bowl. Again, I think that the OSB side is very strong and mature, especially for the number of sports betting. However, from the information disclosure, at least the actual volume of sports betting seems to be slightly decreasing. Please tell me a little about this.

Rig: Yes, North Carolina is just a small part. However, yes, sports retailers were negative in the quarterly retention rate, which affected Bailout and Jet. The influence of Super Bowl and March Forry is more strong.

Sean Kelly: And Tom, I want to make it clear, but in the case of a sports shop, the grip was negative throughout the quarter. Was this result big?

Tom League: No, it has decreased significantly compared to the first quarter of last year. Stephen Granbling: I understand. And it may not be said that the sentence should be said, but it will be clear. If the situation deteriorates, are you already taking measures to reduce the weakening of the operating weakness? But on the other hand, if the situation accelerates, can the maximum flow be expected?

Which Kuzu: That's right.

Stephen Granbling: Great. That's it for this time. thank you.

Phone number: Thank you. I have a good question. The next question is from Sean Kelly of Bank of America (NYSE: BAC). Please ask a question.

Sean Kelly: Hello. Hello everyone. I would like to dig deeper into this theme. Some of the numbers announced in the prepared concerts on the rise of OSB and Igaming are definitely very convincing. However, it is not completely consistent with some information revealed in 10-Q. Some of them may be related to what you are following in the physical part of the sportsbook world, or how it has affected the Super Bowl. Again, I think that the OSB side is very strong and mature, especially for the number of sports betting. However, from the information disclosure, at least the actual volume of sports betting seems to be slightly decreasing. Please tell me a little about this.

Rig: Yes, North Carolina is just a part. However, yes, sports retailers were negative in the quarterly retention rate, which affected Bailout and Jet. The influence of Super Bowl and March Forry is more strong.

Sean Kelly: And Tom, I want to make it clear, but in the case of a sports shop, the grip was negative throughout the quarter. Was this result big?

Tom League: No, it has decreased significantly compared to the first quarter of last year.

Sean Kelly: Great. Great. Going back to the scale of Las Vegas, I mean, when you look at the numbers that Tom mentioned and subtract that or adjust for the Rio, I don't think there's any significant scale or consumer challenges or margin changes. I just want to say: A, check this again. B, what's your take on market share growth? What we're seeing, essentially through the industry statistics, is the fact that there's been just a little bit more consolidation, particularly at the top end and some of the richer, more baccarat-focused properties in the market. How do you adjust and move your portfolio to maintain market share in this environment?

Tom League: Yes, I'm looking at EBITDA. I'm not looking at GGR share. This is actually what we advertise. Our international business was in line with 2019 this quarter. Our best initiative, our VIP initiative, did very well. We couldn't hold out. If you look at March, are you still reporting? Someone would say we were holding back, because it wasn't us. But baccarat is still there, quarter and month. In fact, we don't see any particular changes that we have to react to, for example. If you look at it quarter by quarter, I think January was a little bit off compared to last year. But February and March were trending up, and as a result, the quarterly numbers stayed pretty much the same as the first quarter, which was the biggest in our situation. For example, I think if you listen to the other data, you'll probably hear that January didn't start out great, but it was a pretty short period of time, and February and March were much better than any of the other data.

Sean Kelly: Thanks for giving us that detail. I appreciate it.