The Sands Third Quarter 2023 Earnings Conference Call has begun, with Rob Goldstein, Chairman and CEO, and other executives present. The call will contain forward-looking statements and non-GAAP measures, with a Q&A session to follow. Goldstein reports that Macao has generated $630 million in EBITDA in the quarter, showing growth in both gaming and non-gaming revenue. Sands China holds the largest share in non-rolling table win, rolling table win, and slot ETG win.

The company has strong revenue to EBITDA flow-through due to its operating leverage. The transformation to Londoner has created a top-tier product for visitors. There may be some construction disruptions in 2024, but future EBITDA growth and margin expansion are expected. The company plans to return capital to shareholders through a $2 billion share repurchase program. Share repurchases are expected to be more heavily weighted than dividends as they are believed to be more accretive in the long run. In the quarter, the company converted some premium mass tables to base mass tables in response to increased visitation, and this may continue in the future.

The airlift capacity in Macao is recovering, with both domestic and international flights increasing. This will benefit not only the company, but also the entire market as it becomes easier for people to travel to Macao. However, the recovery of air travel and accessibility is not yet fully back to pre-COVID levels. The lower spending customers are mostly coming from non-Guangdong provinces, which have seen an increase in visitation compared to 2019. There are regional differences in visitation, influenced by factors such as transportation and hotel availability. The company has seen a strong acceleration in non-Guangdong visitation this quarter, with Mainland China showing a significant increase in visitation and base mass revenue.

The speaker reassures Rob that the renovation and repositioning of the south side of the resort will be managed efficiently and quickly. The goal is to complete the Londoner hotel and enhance the overall experience for guests, staff, and business. The speaker also mentions that this part of the property has the lowest yield, but the earnings power will be significantly enhanced once the project is completed in the first half of 2025. The company is focused on returns on invested capital and growth in Macao, and the initial market reaction to the renovated product has been positive.

The biggest story for the company is their suite product, which has been a huge success and has enabled them to reach new markets and increase their revenue goal to $2 billion. They are currently in the early stages in Macao, similar to how Singapore was at first, but they believe it will catch fire and continue to perform well. They have faith in their product and believe it will continue to attract customers. They have seen a significant increase in visitors in the past nine months, but they expect even more growth based on the trajectory of Singapore.

The speaker discusses the current state of the retail and gaming industries, noting that retail spending tends to lead in terms of growth. They express confidence in the future of MBS and its investments, citing its strong buildings, service, and architecture. They also address the decline in win per visitor in Macao, attributing it to the reallocation of tables and the normalization of base mass.

The company has recently opened a new venue in The Londoner, which has been successful in attracting more high-quality entertainment to the region. This is seen as beneficial for the market and for diversifying Macao and Singapore. The company's focus on entertainment has not wavered since the reopening of the Board, and they have redoubled their efforts, with 15 different show events in the third quarter alone. The company has been able to calibrate the investment in entertainment to ensure a good return, and there are various partnerships and types of events they engage in.

The speaker believes that their company is not for everyone, but they are a valuable tourism asset in their markets. They have seen growth despite different economic cycles due to their target audience and required volume for success. The interviewer thanks the speaker for their input and ends the call.

This summary was generated with AI and may contain some inaccuracies.