Release Date: February 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you quantify the total sports betting hold impact for the fourth quarter? A: Stephen Cootey, CFO, stated that the sports business was healthy overall, with a 10% increase in handle. However, there was an $8 million impact in October and an additional $6 million in December year-over-year due to hold issues.
Q: How do you see seasonality affecting the first quarter, especially with the Durango property now fully operational? A: Stephen Cootey, CFO, mentioned that historically, Q4 to Q1 EBITDA increases by about 6.6%. The company anticipates similar seasonal patterns, despite the low sports hold and the new Durango property.
Q: What trends are you seeing in consumer behavior post-election, particularly in the locals market? A: Scott Kreeger, President, noted consistent positive trends across the database, especially among high-end network customer segments. Lorenzo Fertitta, Vice Chairman, added that there was an expected acceleration post-election.
Q: Is the backfill of revenue at Red Rock taking longer than anticipated post-Durango opening? A: Stephen Cootey, CFO, clarified that the backfill process is on track and typically takes two to three years, consistent with past openings.
Q: How are you thinking about customer spend levels and group business for 2025? A: Scott Kreeger, President, indicated stability in core customer spend and positive trends in group business, with strong pickup expected in the latter part of 2025.
Q: What is your current appetite for M&A in the gaming space? A: Stephen Cootey, CFO, stated that while they consider all opportunities, the focus remains on developing their existing land bank in Las Vegas, which is seen as the best regional gaming market.
Q: Can you provide additional color on the EBITDA impact for 2025, considering ongoing renovations and Durango ramp-up? A: Scott Kreeger, President, mentioned potential $25 million disruption due to renovations but expects incremental growth from new capital investments. Stephen Cootey, CFO, highlighted the focus on achieving a 20% return on Durango over three years.
Q: What are your thoughts on developing the Reno market, and where does it sit in terms of priority? A: Scott Kreeger, President, acknowledged the gaming-entitled land in Reno but emphasized a focus on Las Vegas development opportunities. They remain open to developing or divesting the Reno site based on market conditions.
Q: How do you view the impact of major events like the Super Bowl and F1 on your properties? A: Stephen Cootey, CFO, noted that the Super Bowl had a significant positive impact on both gaming and non-gaming segments, while F1 had no noticeable impact on their business.
Q: What are your expectations for corporate expense growth in 2025? A: Stephen Cootey, CFO, expects corporate expenses to remain around $21 million, consistent with current levels.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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