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President, Chairman & CEO Adam Aron responded that while a small number of underperforming theaters may still be closed annually, the focus is on profitability, noting that newly opened theaters are outgrossing the larger number of closed ones. He indicated that future net additions could be driven by attractive M&A opportunities. EVP & CFO Sean Goodman addressed the tax question, explaining that while capital investments generate benefits like depreciation, the actual cash impact will be delayed until 2027 or later due to existing Net Operating Losses (NOLs) that will be utilized first.

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CEO Sean Gamble expressed strong optimism for the Q4 film slate, calling it one of the most compelling since the pandemic. For the international segment, he explained that Latin America faced a very difficult year-over-year comparison against the prior year's 'Inside Out 2,' which was the region's highest-grossing film of all time. He also noted that certain films like 'Minecraft' and 'Sinners' had different levels of cultural resonance, contributing to the divergent growth rates.

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CEO Sean Gamble described windowing as an active, industry-wide discussion aimed at finding an optimal, flexible structure, suggesting a 45-day average as a good target to avoid consumer confusion. CFO Melissa Thomas stated that moderate year-over-year growth in domestic concession per caps is expected for 2025, driven by strategic initiatives, though quarterly results will fluctuate with film mix.

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CEO Sean Gamble explained that concession growth is a result of many small initiatives, including product assortment, layout optimization, mobile ordering, and merchandise, with a key focus on driving purchase incidence. CFO Melissa Thomas added that they expect moderate domestic concession per cap growth in 2025. Regarding the film slate, Gamble noted that after a lighter Q1, the rest of 2025 looks strong and diverse, though some content 'bunching' could create positive capacity constraints.

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President and CEO Sean Gamble projected that the 2025 box office in Latin America would be relatively balanced with the U.S. for the full year, despite some quarterly fluctuations based on specific film appeal. On Movie Club, Gamble and CFO Melissa Thomas emphasized maintaining the program's value proposition while periodically reviewing pricing. They confirmed a recent price increase was successful and that they see continued runway for subscriber growth.

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CFO Rob Coldrake described the Italian lottery as a "unique opportunity" and stated Flutter has no broader interest in other lotteries. He emphasized that capital allocation remains disciplined and unchanged, continuing to focus on being an "and" business: investing organically, pursuing M&A, and executing its share buyback program while deleveraging.

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CEO Jay Snowden explained that Q2 retail margins were pressured by the significant impact of new competition in Bossier City and elevated promotional spending in certain markets. EVP of Operations Todd George added that unfavorable table games hold was also a factor. Looking ahead, they expect margins to improve as new projects become accretive. Regarding predictive markets, Snowden stated that Penn is monitoring developments but does not plan to be a first mover.

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CEO Jay Snowden stated that while they are monitoring predictive markets, it is considered a niche opportunity and not a current priority. Regarding divestitures, Snowden explained that selling assets is complicated by their master lease agreements. He suggested a more likely strategy is to enhance value by redeveloping older riverboat casinos into land-based facilities, similar to their current projects in Illinois and Iowa.

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CEO Jay Snowden clarified that the $350 million repurchase figure was chosen to be substantive and the approach will be opportunistic, not programmatic. Head of Operations Todd George confirmed that strong consumer volumes seen in Q4 post-election continued into Q1 during non-weather periods, indicating sustained consumer health.

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CEO Jay Snowden expressed that the Missouri sports betting development is good news for Penn, given its strong land-based presence there and the attractive tax structure. He noted their understanding is that they will receive multiple skins. Regarding hold, he explained that World Series hold depends on the matchup and that while Q4 started with low hold, November and December are higher volume months, providing an opportunity to recover.

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President & CEO Brooks Pierce expressed his hope that Virtual Sports will return to a 'real growth trajectory' in 2026, driven by rollouts in Brazil and North America. Regarding competition, Pierce noted it is too early to see substantive changes from competitor privatizations, as Inspired's primary head-to-head competition with them is limited to specific markets like Illinois and Canadian provinces.

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Executive Brooks Pierce reported that the U.K. retail market is challenged, though the company's business is up due to strong performance from new William Hill terminals, while Greece and Italy are relatively flat. Executive A. Weil stated that with Interactive outperforming and Virtuals stabilizing, he expects the digital business's EBITDA contribution to meet or exceed previous forecasts by year-end, a sentiment bolstered by the planned divestiture of the holiday park business.

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Executive Brooks Pierce confirmed market share gains in the U.K., driven by game quality. Executive A. Weil added that the company's strong retail presence in the U.K. creates an omnichannel advantage. Regarding the 40% margin goal, both executives explained that the shift in business mix toward high-margin digital products makes it an inevitability, but they declined to provide a specific timeline for achieving it.

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Mark Locke (Co-Founder, CEO & Director) pointed to the 43% revenue growth in the 'Rest of World' segment as evidence of strong opportunities in these markets, specifically mentioning Brazil as a focus. However, he also reiterated that Europe remains a significant growth area for the company, with 26% growth and substantial opportunities for continued product distribution and investment.

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CEO Mark Locke characterized predictive markets as a positive opportunity for new products and partners, noting it could also influence the broader conversation around federal sports betting legislation. CFO Nicholas Taylor stated that the guide assumes a small increase in the NFL in-play percentage for the upcoming season, with any more significant shift representing potential upside.

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CFO Nicholas Taylor highlighted the resilience of the company's business model, stating that regulatory and tax changes are not new. He explained that Genius's global diversification, multiple growth levers, and the fact that the U.S. is not a majority of revenue, mean that any single state or country's tax changes have an immaterial impact on the overall business.

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Mark Phelan, President of U.S. Gaming & Interim CFO, stated that growth in Illinois was consistent throughout the quarter without significant peaks or valleys. On M&A, CEO Andrew Rubenstein and Mark Phelan explained that Accel remains opportunistic but conservative, focusing on smaller, accretive deals in the fragmented local gaming market that do not over-leverage the balance sheet, while using their scale and technology as a competitive advantage.

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Executive Andrew Rubenstein stated that tariffs would have a minimal effect on the existing business as most CapEx prices for the year are locked in. Executive Mark Phelan added that while steel prices for Fairmount's Phase 2 have increased, the overall impact is uncertain, and Phase 1 was unaffected. CFO Mathew Ellis confirmed that weather was a neutral factor in Q1 due to geographic diversification and that April trends were in line with forecasts, showing no change in consumer behavior.

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CEO Andy Rubenstein explained that pruning underperforming locations is a continuous process to improve free cash flow, with noticeable profitability improvements expected later in 2025 and into 2026. President of U.S. Gaming Mark Phelan described the e-pull tab space as a content-driven market where Accel would need a strong partner to participate. Regarding legislation, Andy Rubenstein stated that iGaming is unlikely to gain traction in the current session, especially in established route gaming markets like Illinois.

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CEO Carsten Koerl reiterated that U.S. in-play betting is tracking towards their Investor Day projections, currently around 50% of handle and trending towards over 70%, noting each 1% conversion adds approximately $6 million in EBITDA. CFO Craig Felenstein added that betting margins came in as expected, with the company's diverse global sports content minimizing the impact of any single event's outcome.

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CEO Richard Schwartz described Live Dealer as a growing segment where RSI is focused on improving the user experience by aggregating games, adding exclusive tables, and leveraging partnerships to build player trust. CFO Kyle Sauers explained that G&A benefited from favorable foreign exchange in Q2 but is expected to rise sequentially in the back half of the year, though the company will continue to gain leverage on the line item as a percentage of revenue.

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CEO Richard Schwartz highlighted strong, accelerating growth in Mexico, which is tracking ahead of Colombia at the same post-launch stage and is expected to be a larger market. He noted Peru is still in an optimization phase. Executive Kyle Sauers confirmed that sports betting hold rates have continued to improve due to better product mix and merchandising, despite player-friendly event outcomes in Q1.

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Executive Kyle Sauers stated that the lack of Q4 buybacks should not be correlated with M&A activity and that the company will remain opportunistic with its buyback program. CEO Richard Schwartz confirmed they are actively assessing M&A, particularly bolt-on opportunities. Regarding guidance, Sauers affirmed that it includes an expectation for additional sports betting hold improvement in 2025, building on gains made in 2024.

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Executive Kyle Sauers explained that despite a massive influx of new users during Copa America, ARPMAU remained nearly flat, which is impressive. He noted that October's year-over-year user growth trends in Latin America are as strong as August and September's, indicating good retention. Regarding Q4, Sauers confirmed the guidance accounts for the player-friendly football results in October and also noted currency headwinds and one less NFL week compared to the prior year.

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President of MGM Resorts International Interactive Gary Fritz stated that the international digital business is near breakeven, excluding the current investment phase in Brazil, and expects a 2026 inflection. On Macau, MGM China President Kenneth Feng and COO Hubert Wang expressed confidence in sustaining market share and a stable EBITDA margin in the high-20s range, supported by their premium mass strategy.

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COO Corey Sanders stated that excluding the Super Bowl's impact, revenue per occupied room was up about 3%. CEO William Hornbuckle highlighted a strong upcoming event calendar that should drive activity. On project ROI, Hornbuckle said potential tariff impacts would not change their thinking on significant room remodels or core CapEx, though they will monitor sourcing costs closely.

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Executive Corey Sanders responded that the core casino guest segment remains 'consistent' and 'solid,' and he does not envision the customer mix changing significantly next year, with the Marriott partnership viewed as a way to displace lower-value transient business. On M&A, executive Jonathan Halkyard stated that the company's criteria for acquiring regional assets are 'fairly restrictive,' requiring a new market, significant scale, and high quality, which creates a 'pretty small list' of potential targets.

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CEO Tom Reeg explained that the focus in Q2 shifted to redeeming the company's most expensive debt, which is why share repurchases paused. He stated that going forward, capital allocation will be a balance of debt repayment and buybacks, but called the stock 'particularly attractive' and said investors should 'expect us to be a buyer.' President of Caesars Sports & Online Gaming Eric Hession commented on prediction markets, stating they are actively watching the situation but have no updated views.

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CEO Tom Reeg explained that the flat year-over-year regional margin reflects the positive contribution from new properties like Danville and New Orleans offsetting competitive pressures in other markets. He expects both overall EBITDA and margins to improve as these competitive impacts are anniversaried. Regarding buybacks, Reeg stated that if the stock price dislocates as it did in early April, investors should expect Caesars to remain active in the market throughout 2025.

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Eric Hession, President of Caesars Sports and Online Gaming, affirmed that while the flow-through will fluctuate, 50% remains a 'reasonable expectation' for incremental revenue conversion for next year and into 2026. CEO Tom Reeg responded that they saw no further deterioration in the lower-tier customer base, stating that while a segment remains challenged by pricing, the primary driver of regional performance is competitive impacts, not a change in consumer behavior.

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Lorenzo Fertitta, Vice Chairman, stated that the development strategy remains unchanged, with an update on the next project likely on the Q4 earnings call. Stephen Cootey, EVP, CFO & Treasurer, described the revenue backfill at Red Rock as being in the 'mid-inning' of a process that historically takes about three years, noting the core properties are now driving growth.

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Executive Stephen Cootey stated that top-line trends are very similar across all property classes. On management contracts, Executive Lorenzo Fertitta explained that while they are always looking, significant ground-up tribal development opportunities are rare. He affirmed their strong reputation and commitment to tribal partners but does not expect a multitude of new opportunities to arise.

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Executive Stephen Cootey expressed confidence in maintaining a 45%+ margin profile, noting that while food costs are a concern, the market is rational and they are lapping prior wage increases. Executive Scott Kreeger added that they are bringing six more taverns online within the year, following the successful performance of the first two new locations.

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EVP and CFO Josh Hirsberg confirmed they are more comfortable managing tariff impacts through mitigation strategies like alternative sourcing and pre-ordering. He stated their capital budgets are not at risk and emphasized that the company's stronger balance sheet, with leverage below 2x, provides significant flexibility to handle any external uncertainties.

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President and CEO Keith Smith explained the flat guidance is due to the Sky River property operating at its physical capacity limits on weekends, which restricts near-term growth. EVP and CFO Josh Hirsberg added that the next growth phase will begin after the Phase 1 expansion is completed, with contributions expected in 2026.

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President and CEO Keith Smith advised analysts to remain anchored to the $100 million per quarter baseline for share repurchases, explaining that the recent increase was an opportunistic move based on stock price dislocation and financial flexibility. Regarding F1, he confirmed it was not a positive event for the Locals or Downtown markets last year as customers stayed away, and he expects a similar dynamic this year, though the weekend will be boosted by a Raiders home game.

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Executive Keith Smith stated that exposure to Canadian customers is minimal, representing less than 0.1% of the business. Regarding Hawaii, he does not believe legal sports betting would significantly impact travel to Las Vegas. He asserted that due to Boyd's 50-year relationship with Hawaii, the company would expect to be a participant in any gaming that is legalized there.

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CEO William Carstanjen explained that the Derby's global brand recognition provides a strong foundation. The strategy involves a multi-year process of developing the brand in key international markets through initiatives like the 'Road to the Derby' series, focusing on high-end consumers and sponsors. He noted that while most cited social media stats are domestic, they are actively building their international social media presence.

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CEO William C. Carstanjen acknowledged that macroeconomic volatility and tariff uncertainty have created consumer hesitancy, which is most evident in lower-tiered and unrated play. He stated this trend has been consistent with recent quarters and that the company is better able to manage its rated players through direct communication and incentives. Carstanjen clarified they are seeing hesitancy, not necessarily a confirmed decline in disposable income.

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CEO William C. Carstanjen attributed the confidence to two factors: a broad consumer shift toward experiential events and specific company strengths. He confirmed high return rates and strong demand from existing customers, but also emphasized that the team is aggressively pursuing new customers, including internationally, to support future expansions.

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CEO William C. Carstanjen confirmed that plans for international and new jurisdictional growth for Exacta are progressing. He mentioned a deployment in Malta but noted it is not yet material. He expressed confidence in future opportunities, stating that while there is nothing material to announce currently, the team is actively working on the strategy and expects further overseas deployments in the 'relative near term.'

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CEO Richard Gelfond responded that IMAX prefers to use its strong negotiating position to secure enhanced marketing support and filmmaker involvement rather than altering pricing structures, aiming to maintain fair, precedent-based studio relationships. CFO Natasha Fernandes added that the company aims for a normalized effective tax rate for the full year, moving past the volatility seen in H1.

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CEO Richard Gelfond stated that while he lacked specific city-tier data, he believed the strength was uniform across all markets. He attributed the success to the quality of the film 'Ne Zha 2' and a highly effective new marketing approach focused on social media. Gelfond confirmed that there have been no changes to signing terms, as the company remains disciplined on its ROI calculations despite strong demand.

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CEO Richard Gelfond described the 2025 slate as exceptionally strong and tightly scheduled, particularly from May to September. CFO Natasha Fernandes added that key local titles like 'Creation of the Gods II' have been approved for China in 2025. She explained that high box office levels create significant operating leverage and margin expansion, amplified by network growth and operational efficiencies.

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President & COO Patrick Dumont explained that while the company is not targeting a specific EBITDA margin, revenue growth is the primary focus due to the high fixed-cost base. He stated that reinvestment will be market-based to drive revenue, and margins will follow. Chairman & CEO Robert Goldstein added that while margin is important, EBITDA matters more. Regarding Thailand, Goldstein called it the 'greatest opportunity in Asia' but noted its development is uncertain, while Patrick Dumont confirmed LVS would consider it if the framework is appropriate.

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Sands China CEO Grant Chum explained that the turnover rent decline was due to a difficult comparison against a record-setting 2023 driven by post-COVID demand, not a structural issue. He noted they are well-positioned with new flagship stores opening. On Texas, President and COO Patrick Dumont reiterated its great potential but stated there was 'nothing to report at this point.'

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Chairman and CEO Robert Goldstein and Executive Vice Chairman Dr. Wilfred Wong both anticipate "business as usual" in Macao, with the government's focus remaining on diversification and non-gaming investment. President and COO Patrick Dumont confirmed that the company continues to study the Middle East as a potential market.

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CEO Matt Wilson characterized the ruling as a "favorable" tailwind that creates margin opportunities for the social casino industry. He noted that SciPlay's DTC revenue has already grown to over 13% and this ruling allows them to be "a little bit more aggressive," with specific targets to be unveiled at the upcoming Investor Day.

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CFO Oliver Chow attributed the gaming margin strength to ongoing enhancement initiatives and manufacturing efficiencies, which he expects to continue. For the broader company, he anticipates margin tailwinds from SciPlay's DTC initiatives and a positive impact from the iGaming segment's exit of the Live Casino business. CEO Matt Wilson added the Live Casino divestiture was a strategic decision based on degrading pricing dynamics in that category.

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CEO Craig Billings clarified his earlier remarks, stating they do not expect a significant OpEx impact from tariffs as they can re-source most F&B items. On retail, he noted performance was flat against a very strong Super Bowl comp, and they have not seen or heard of price increases from tenants, which would be the retailers' own decisions. He added that lease structures vary, so gross sales cannot be inferred from lease revenue.

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CFO Julie Cameron-Doe stated it's too early for specific ROI on Macau projects but they are brand-consistent and designed to drive visitation. CEO Craig Billings added that entertainment drives market share in Macau. Regarding FX, Billings stated it would have no impact, explaining that the Las Vegas business has become significantly more diversified and less levered to international play than ever before, with strong growth in domestic business.

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CFO Joan Bottarini stated that the outlook for non-hotel fees remains positive, with strong Q1 results in franchise and other fees, partly boosted by the UVC transaction. She anticipates healthy growth for the remainder of the year and noted that the performance of incentive fees is closely tied to the U.S. and China markets, where they see potential for improvement.

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President and CEO Mark Hoplamazian stated that while the portion of the pipeline under construction is stable, he expects it to improve. He expressed optimism for Asian markets, citing momentum from the first Hyatt Studios opening and the rapid 9-10 month conversion cycle of the UrCove brand in China, which supports a constructive outlook for openings this year.

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President and CFO Charles Protell and CEO Blake Sartini both described the promotional environment as stable and rational, focusing on food and beverage. On M&A, Protell stated they would not pursue greenfield projects or small single-asset deals, but are open to larger, transformative opportunities. Sartini added that any deal must 'move the needle.' The company's long-term leverage target is 3x or less, but they would consider going higher for the right deal with a clear path to deleveraging.

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President & CFO Charles Protell reiterated that given the dislocation between asset price expectations and the company's own stock valuation, share repurchases remain the priority, stating there are no attractive M&A opportunities currently. CEO Blake Sartini clarified that the STRAT has immaterial exposure to international markets like Canada. Protell added that while near-term events like EDC are strong, visibility beyond June is limited due to the short booking window.

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CEO Tony Capuano stated that Bonvoy growth is occurring globally and that the entry into mid-scale offers a great opportunity to attract younger members. He also highlighted a renewed focus on leveraging partners like MGM. Regarding China, he noted that while January was encouraging, it's too soon to call a broad recovery, though the record deal volume in 2024 shows long-term developer confidence.

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President and CEO Tony Capuano explained that the strength in group business comes from both existing clients building out their meeting calendars and new partners starting to schedule events, partly driven by limited availability of dates and space. He also confirmed that demand for City Express is quite strong, with franchise applications coming in and the first openings expected in the next few months, attracting both existing and new franchisees.

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CEO Jason Robins characterized international expansion as an 'opportunistic thing' rather than a current 'need.' He emphasized that with over 30% growth and strong margins, the company feels no immediate pressure to expand internationally but remains open to the right opportunity and is staying patient.

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CEO Robeson Reeves noted recent sports betting launches in Maryland, with Illinois and Tennessee planned for later in the year. He explained the tech stack transition to a single platform will complete in Q4, simplifying operations and improving cost-effectiveness. CFO Marcus Glover clarified that the CapEx reduction resulted from re-evaluating and pausing some smaller expansion projects to ensure proper diligence.

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