The paragraph introduces the Sands' First Quarter 2024 Earnings Call and provides information about the participants on the call. It also mentions that the call will contain forward-looking statements and non-GAAP measures. The Macao market has been growing consistently since its reopening in early 2023 and the company is confident in its future growth.

The speaker is confident in the growth of the Macao market and the company's business strategy to invest in their assets. Despite ongoing capital investment programs, they delivered a solid financial result and remain the market leader in gaming and non-gaming revenue. They believe their unique competitive position and upcoming redevelopment program will further strengthen their product advantage. In Singapore, they achieved record results thanks to their superior product and location, as well as the appeal of the city as a tourist destination. They anticipate even more growth in the future as they complete their investment programs.

The company's EBITDA would have been higher if their rolling program had gone as planned. The ongoing capital investment programs at The Londoner and the Cotai Arena have affected their results this quarter, but they expect to have a stronger competitive position once these projects are completed. In Singapore, MBS had record-breaking results due to their high-quality investments and market-leading products. If their Rolling Play segment had gone as expected, their EBITDA would have been even higher. The refurbishment of both towers in the Marina Bay Sands hotel has been completed.

The company has completed its $1 billion CapEx program and is now focusing on realizing the benefits of new products. They have also started a $750 million renovation at Marina Bay Sands, which will support future growth. The company has repurchased $450 million of LVS stock and increased its ownership in SCL to 71%. The company expects to see value in both repurchasing stock and increasing ownership. The market in Macau has been strong, but there was a decrease in EBITDA due to disruptions during the quarter, such as the loss of entertainment programs during a peak period.

The speaker discusses the company's financial performance in the first quarter of the year, comparing it to the previous year and mentioning the impact of ongoing renovations on revenue. They emphasize the company's strong product offerings and future growth potential, and turn to Grant for additional insights on profitability and the impact of capital works.

The hotel renovation at Sheraton has caused a decrease in available rooms, with more to come in the next few quarters. The closure of Cotai Arena for renovation has also affected the number of shows and attendance. The VIP segment grew faster than mass in the industry in the first quarter, with overall GGR growing at 6% sequentially.

In the first quarter, the company's premium mass and base mass segments had similar growth rates. However, visitation numbers are still lower compared to 2019. The company believes that their assets will prevail over promotions and they will continue to focus on margins. They also mentioned their success in Singapore and their belief that the same will happen in Macao in time.

The speaker is discussing the fourth quarter and how the turnover rent affects margins. They confirm that margins are similar and the turnover rent is a significant factor. They also mention their bullish view on the market and their plans for capital allocation, which will focus on share repurchases and dividends. They intend to be aggressive and opportunistic in the market.

Patrick Dumont discusses the opportunity for share repurchases and the company's strong balance sheet. The slides for the first quarter have not been posted yet. Joe Greff asks about the impact of renovations at Londoner and Cotai Arena on revenue and EBITDA, but it is difficult to accurately quantify. The missing shows and high-quality patrons typically brought in by live entertainment have had an impact on the first quarter, which is usually a strong quarter for the company.

The company made the decision to take their arena offline in order to improve its quality and attract more high-quality tourism. This process began in January and has caused some financial pain, but the end result is expected to be one of the company's best properties in Macao, with high-level design, good casino layout, and additional food and beverage amenities. The company is confident that the result will exceed that of their Venetian property, but acknowledges that the process will be disruptive.

The company is expecting disruptions across the summer due to a decrease in key count and the removal of the Sheraton. However, once the Londoner phase two is completed, the company expects to have the top two assets in the GALP and dominate the market. The level of premium mass reinvestment has been consistent in the first quarter, but there may be changes as the year progresses.

In this paragraph, Grant Chum and Patrick Dumont discuss the consistency of their company's profitability and margin, despite inflation in payroll costs. They also mention the intense level of promotion activities in the overall market, but state that they stick to their strategy of focusing on their asset base and providing quality services and entertainment. They believe that as GGR continues to rise, their asset base will improve and contribute to their success.

The speaker is discussing the company's strategy for competing and maintaining profitability. They believe that their focus on quality and service, rather than chasing promotions, will help them capture their fair share of the market. They also mention their upcoming project, the Londoner, as a potential market leader. The next question from a caller asks about the company's margins, and the speaker explains that once their properties reach their full potential, the margins should be in the upper 30s.

The company is expecting margins to be in the upper thirties, similar to the performance of the Venetian. As tourism returns and visitation increases, the company's assets are ready to accommodate more mass play, leading to revenue and margin growth. The Londoner, although currently not fully operating, has the potential to bring in high-value tourism and increase margins in the future. However, this may take some time as the investments are not expected to fully pay off until 2025. Despite some current challenges, the company is confident in its assets, team, and ability to execute, and believes that margins will eventually reach a more normal level.

The speaker discusses the importance of visitation to continue in order for the Venetian to recover and reach its full potential. They mention the completion of the Cotai Arena and the Londonerization of the Sheraton as key factors. They also highlight the unique ecosystem of the Venetian in Macau and the focus on asset development rather than promotional activity. The speaker then addresses the breakout quarter in Singapore and the potential for sustained growth, despite some one-time factors and ongoing renovations.

The speaker believes that the $500 million a quarter annualized revenue in Singapore is sustainable due to the country's growing popularity as a destination and the company's expansion of top tier suites. They also express confidence in the potential for even higher revenue in the future. However, they mention frustration with the operating environment in Macau and acknowledge that their construction projects there have caused setbacks.

The speaker discusses the growth in mass and premium markets in Macau and Singapore. They note that the same trend seen in Singapore will prevail in Macau. The government's efforts to increase tourism and entertainment are appreciated. The speaker mentions that their property saw a slight increase in premium mass compared to base mass, but this is not seen as a major divergence in trend. Visitation to the property also grew sequentially.

During a recent conference call, executives of a company discussed the company's performance in various regions, including New York and Singapore. They expressed disappointment about the delay in New York's expansion plans and uncertainty about the timeline. They also discussed the potential for growth in Singapore, but acknowledged that there may be constraints in filling rooms with high-value customers.

The speaker expresses surprise at the rapid growth of premium mass in their company, which is expected to continue due to the popularity of their product and the potential for even more growth. They believe that the only limitation to their success is the capacity of their slot machines and rooms, but they are confident in the future success of their company in Singapore.

The speaker discusses their strong investment in a property in Singapore and the factors that make the country an attractive market, such as great infrastructure, stable government, and favorable policies. They mention how other investments in Singapore will help drive further tourism and add to the critical mass already present. In addition, they note the substantial wealth creation in Southeast Asia and the potential for new, affluent customers to visit Singapore and take advantage of its offerings. The speaker also mentions the supply constraint in Singapore and their confidence in future investment. The conversation then shifts to Macau, where the speaker discusses the growth in base mass and premium sectors.

The speaker agrees that Sands has a strong advantage in the direct VIP and premium businesses, but their scale is their biggest advantage in the base mass segment. They discuss the slower recovery of base mass compared to the premium market and attribute it to the higher quality of patrons and revenue per patron.

The speaker discusses the potential for growth in base mass revenue and visitation in the casino industry, attributing it to factors such as improving economy and distribution of non-gaming products. They also mention their continued interest in potential markets such as Thailand, which they believe could open up sooner than Japan and have great potential due to its large population and popularity as a resort destination.

The speaker is confident that their company will not slow down their investment programs in Macao despite ongoing renovations. They may not be as aggressive as their competitors, but they will not dial back their efforts. The speaker does not believe in taking a conservative approach.

During the earnings call, the company expressed confidence in their buildings and lifestyle product, stating that they believe long-term GGRs will continue to grow. They plan to maintain their current reinvestment strategy and will not dial it back or increase it to compete in the market. They also plan to address their upcoming maturities in short order and bring down their total debt level. In regards to Macau, the company saw a decline in mass shares for the second quarter in a row.

The speaker asks for more information on the factors driving market share shifts in the current quarter, such as disruptions and promotional levels. Another speaker points out that their market share may be impacted due to revenue and margin decreases from their own projects. The second speaker also mentions that it is difficult to draw conclusions from a short time period and that historically, their market share has fluctuated but they have consistently maintained a low to mid-30s range in terms of EBITDA share. They also highlight their success in achieving 35% EBITDA share and 41% share of non-gaming revenues in the previous year.

The speaker discusses the company's performance in terms of revenue and non-gaming EBITDA for the year, acknowledging fluctuations in the quarterly results. They also mention their intention to increase ownership in a subsidiary and address upcoming maturities before refinancing a subordinated term loan.

The company has obtained a favorable loan that allows them to have high-quality financing at a good rate. They have ample liquidity and are confident in their ability to meet their needs. The company has worked towards achieving investment grade status and believes it is important for access to the debt market and cost of capital. They have a financial policy of maintaining gross leverage between 2 and 3 times, and expect to delever over time due to EBITDA expansion. The company values their investment grade status and sees it as important for their growth and flexibility.

The speaker discusses the company's gross leverage parameter of 2-3 times, which is consistent with previous statements and practices. They are confident in their ability to handle new development and maintain a healthy balance sheet while also returning capital to investors. The goal is to have an investment grade balance sheet. A question is asked about their progress in this area and the speaker thanks the questioner for their interest. The call ends.

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