Pinnacle Entertainment Inc. (NASDAQ:PNK) Q2 2015 Earnings Conference Call - Final Transcript
Jul 30, 2015 • 10:00 am ET
(Operator Instructions) Demetri Typadis, Barclays Capital.
My first question is for Ginny. You mentioned in the opening remarks that spend and visitation was up across all customer segments, but I was hoping if you could dig a little deeper for us, was that mix spread evenly across rated play or unrated play or are we still seeing kind of the greatest strengths at the top tier segments?
This year we've seen growth in our revenue that has been a bit atypical from what we've seen in the past, meaning we've had strong growth at both the high end as well as in the retail segment. We've also seen a growth in unrated play and we believe that has happened for a couple of reasons. One, we have a very strong visitation to Lake Charles, first time visitors. So that will obviously fuel growth in both the retail segment as well as, I mentioned new guests, and then we have the growth table games play that we're seeing at the Ameristar properties and that also will fuel growth at the lower end.
We're seeing our new sign-ups have a much higher concentration of guest under 40 that are -- we see more male guests coming in by way of our table games growth and then as I mentioned, we're seeing still and it's very positive at the high end with the mychoice, our top tier Co spend and trips. So to answer your question more specifically, it's occurring at both the high-end and the low-end and unrated play is growing as we attract both new guest to our properties as well as the growth we're seeing in Lake Charles.
And I think, at a higher level, do you think it's safe to say that we've hit a broad inflection point in regional gaming, obvious it's going to differ by geography to some degree. And as a quick follow-up to that, you think there is -- if there is -- if we have hit an inflection point, do you think there is enough strength in the trends that you're seeing to offset tougher comps that might be coming down the road the next six months or so?
Yes, this is Anthony. We're very bullish on the trends that we're seeing and July is shaping out to be a very strong month and we couple that with programs that we continue to put in place, most notably our mychoice program that we have throughout our portfolio of properties and the service that we give.
So, we believe and we've all said in our comments that we see opportunity going forward on both sides to drive profitable revenue growth as well as to continue to realize more efficiencies from how we run our properties. So we're bullish on the future and we don't think that we've reached any type of inflection point. We think that there's a lot of growth of both profitable revenue and just pure EBITDA going forward.
Just a quick