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Head of Operations Todd George explained that the last major competitive opening will be lapped in February of next year, but the next 12 months will be 'noisy' due to PENN's own projects coming online. CFO Felicia Kantor Hendrix added that financing for these projects will be timed to match their openings to avoid premature costs, highlighting significant optionality with their REIT partner, GLPI. George detailed that disruption would be minimal for most projects, with an expected two-week downtime for the Aurora and Joliet relocations.

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CFO Felicia Kantor Hendrix stated that financing for the Illinois projects will be timed close to their opening to align rent expenses with revenue generation. CEO Jay Snowden added that for the OSB business, they expect continuous market share improvement in 2025. If targets are not met, they have levers to pull, such as adjusting marketing spend and cost structure. He also noted the three-year clause in the ESPN contract allows for re-evaluation if performance goals are not achieved.

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CEO Jay Snowden stated that the path to interactive profitability includes the launch of the Hollywood iCasino app, which has a stronger margin profile, and cost efficiencies from scale. Head of Operations Todd George addressed the retail guidance, explaining that Q4 has seasonal margin pressure and that Q4 2023 benefited from onetime items, which accounts for the year-over-year difference.

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CEO Craig Billings confirmed the lower promotional spending was tied to the Super Bowl comparison, as reinvestment correlates with the exceptionally high Average Daily Rates (ADR) from that event. CFO Julie Cameron-Doe stated the remaining UAE equity of $650-$725 million will be deployed through the rest of 2025 and into 2026. Craig Billings added that this contribution is pro-rata with debt financing, not an equity-first model.

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CEO Craig Billings acknowledged their conservative stance on hold percentage and confirmed they will continue to evaluate it. He indicated that strong Q1 volume metrics, excluding the Super Bowl, are indicative of healthy demand and expressed confidence in managing costs. Regarding Macau, he described the market as competitive but stable, reiterating their focus on maximizing EBITDA and margin over market share.

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CEO Craig Billings explained that the company focuses on aggressively managing revenues and costs rather than a specific margin target. He noted that in Las Vegas, the high-end consumer remains stable against very tough comps, with major union wage increases now lapped. For Macau, he described the competitive environment as intense, with a focus on maximizing EBITDA over market share. Billings declined to quantify the Super Bowl headwind but noted that Q4 demand for the F1 event was shaping up nicely.

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Executive Scott Kreeger attributed strong margins to better sports win, leveling payroll, and a 35% drop in utility costs. Executive Stephen Cootey added that revenue growth on top of Durango's launch highlights core business strength, though insurance costs are a headwind. Cootey also stated the Red Rock revenue backfill is running about six months ahead of schedule and confirmed the North Fork capital return would be recognized in Q2.

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Executive Stephen Cootey quantified the negative year-over-year sports betting hold impact as $8 million in October and an additional $6 million in December. Regarding seasonality, he noted that historically, Q1 EBITDA tends to increase by approximately 6.6% compared to Q4.

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Executive Stephen Cootey explained that historically, Q4 EBITDA is up about 12% from Q3, but cautioned that October sports results were unfavorable by about $7.6 million. He also confirmed the full-year 2024 CapEx guidance of $185 million to $195 million excludes the Durango project closeout costs, which were approximately $97 million for the year.

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EVP & CFO Jonathan Halkyard confirmed that managed labor costs reflect continuous efficiency efforts, including a reduction in FTEs. CEO William Hornbuckle added that increased digital customer interaction is driving productivity. Regarding the insurance, Halkyard stated the proceeds are included in EBITDAR, not revenue, and that while the majority has been received, discussions for remaining claims are ongoing.

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Executive Jonathan Halkyard estimated that the high table games hold in Q4 2023 benefited EBITDAR by approximately $70 million, creating a significant headwind for the upcoming quarter. He noted that strong December group business could provide a partial offset. CEO William Hornbuckle added that gaming theoreticals for the Formula 1 event look strong. Regarding promotions, Halkyard confirmed that the current reinvestment level is a 'decent' and 'safe' rate for the future.

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CEO Tom Reeg stated that 2025 is expected to be a record year for group business, with particular strength in Q4, and that forward cash room revenue for Q2 looks in line with last year. President of Caesars Sports Eric Hession confirmed the Digital headwind, explaining that the 'other revenue' category, comprising skin fees and World Series of Poker revenues, is expected to see significant declines in Q2 and Q3 as WSOP event revenue normalizes to zero and skin values deteriorate.

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President and COO Anthony Carano noted that smaller union contract increases in 2025 and operational efficiencies should position the company well on expenses. CEO Tom Reeg added that the company recognizes the valuation disconnect for its Digital segment and would explore all strategic avenues to drive shareholder value if market dynamics persist, emphasizing the advantage of owning the full tech stack.

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Eric Hession, President of Caesars Sports and Online Gaming, explained that sports betting reinvestment is low (about half the market average), while iCasino reinvestment is in line with the market to drive growth and will not change with the Horseshoe launch. Brian Agnew, an executive, added that for Las Vegas in 2025, the group segment is pacing for another record year, with expectations for higher occupied room nights and rates driving increased revenue and EBITDA.

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CEO Jason Robins affirmed the analyst's reconciliation was 'pretty good' and noted that the company has numerous initiatives aimed at beating its prudent guidance. CFO Alan Ellingson explained that sales and marketing costs will fluctuate with acquisitions, but the long-term focus is on optimizing fixed costs to achieve the company's target of approximately 30% EBITDA margins.

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CEO Jason Robins explained the guidance is a bottoms-up build based on cohort data, implicitly assuming flat market share. He said growth is primarily driven by natural market expansion, handle growth, and some structural hold improvement. Regarding the 8% ARPMUP growth, Robins attributed it to smarter management of legacy customers and hinted at improved product-level disclosures in the future.

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EVP and CFO Josh Hirsberg confirmed the flattish outlook, citing caution due to the retail segment not yet pivoting to sustainable growth. He explained that capital allocation is a balanced evaluation of alternatives, prioritizing projects with the best returns, whether they are internal investments, share repurchases, or M&A.

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EVP and CFO Josh Hirsberg explained that excluding the new Treasure Chest casino, margins in the rest of the Midwest and South segment actually improved slightly. President and CEO Keith Smith noted that the full impact of local competition won't be anniversaryed until 2025 and mentioned the ongoing Tropicana interchange project continues to affect access to the Orleans. Hirsberg also clarified that Q4 last year benefited from broad-based favorable expense adjustments, particularly in the Midwest and South.

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Executive Keith Smith confirmed a prioritized list of development projects exists, ranked by potential returns. Executive Josh Hirsberg clarified that while projects like Par-A-Dice are planned, they are not expected to generate the same high level of returns as the successful Treasure Chest conversion due to different market dynamics. Keith Smith added that after adjusting for Q1's calendar and weather noise, the core customer continues to grow, while the retail customer remains consistent.

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President and COO Patrick Dumont affirmed a strong belief in the SCL growth story and stated the company's intention to actively acquire more SCL shares. Chairman and CEO Robert Goldstein, along with Patrick Dumont, attributed the MBS success to a combination of a strong Singapore market, the fruition of capital investments, and the growing high-value tourism segment, calling it an accelerating trend rather than a one-time event.

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Sands China CEO Grant Chum outlined the room return schedule, noting a temporary dip in Q4 2024 before a significant ramp-up to full inventory by mid-Q2 2025. He expressed strong confidence that the completed Londoner Macao, with its unprecedented scale and quality, will drive a recovery in both EBITDA and market share.

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President and COO Patrick Dumont stated that the company sees value in both LVS and SCL equity and will be aggressive in repurchasing shares of both, aiming to increase their SCL stake to 74.9%. Regarding MBS hold, Chairman and CEO Robert Goldstein explained that higher hold is driven by the composition of bets, particularly side bets, and that future smart table technology will provide precise data. Dumont added that the primary driver of MBS's record performance is the growth in the mass segment from high-value tourism, not just hold fluctuations.

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Charles Protell, President and CFO, confirmed that 'stable' meant flat year-over-year performance for the Locals casinos and Laughlin in Q4, while the STRAT is expected to be down slightly due to labor costs. Regarding M&A, Protell elaborated that the disconnect stems from buyers, like Golden Entertainment, taking a more conservative view on future underwriting EBITDA compared to what sellers are projecting.

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