Q1 2024 Bally's Corp Earnings Call

Participants

H.C. Charles Diao; Senior Vice President - Finance and Corporate Treasurer; Bally's Corp

Robeson Reeves; Chief Executive Officer, Director; Bally's Corp

George Papanier; President, Director; Bally's Corp

Marcus Glover; Chief Financial Officer, Executive Vice President; Bally's Corp

Barry Jones; Analyst; Truist Securities, Inc.

David Katz; Analyst; Jefferies LLC

Jeff Stantial; Analyst; Stifel, Nicolaus & Company, Inc.

Chad Beynon; Analyst; Macquarie Capital Inc.

Colin Mansfield; Analyst; CBRE Institutional Research

Presentation

Operator

Good day and welcome to the Bally's Corporation First Quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. And now let's turn the call over to Charlie Diao, Senior Vice President and Treasurer for Bally's. Please go ahead, sir.

H.C. Charles Diao

Good afternoon, and thank you for joining us on today's call. The earnings release and presentation that accompany this call are available in the Investor Relations section of our website at www.at-least.com.
With me today are our Chief Executive Officer, Robeson Reeves; our President, George Papanier; and our Chief Financial Officer, Marcus Glover.
Before we begin, we would like to remind everyone that comments made by management today will contain forward looking statements. These forward-looking statements include plans, expectations, estimates and projections that involve significant risks and uncertainties. These risks are discussed in the Company's earnings release and SEC filings. Financial results may differ materially from the results discussed in these forward-looking statements. In addition, during today's call, management will refer to certain non GAAP financial measures. Reconciliations to the most comparable GAAP financial measures are included in the schedules contained in our earnings release. We do not provide a reconciliation of forward-looking non-GAAP financial measures due to our inability to project nonrecurring expenses and onetime costs.
Finally, I also want to note that we will not be commenting on the special committee process during our prepared remarks or during the Q&A portion of today's call, we refer you to our news announcements from March 12 and March 28. This call is also being broadcast live on our investors website and will be available for replay shortly after the completion of this call that I hand it to Robeson Reeves, our CEO.

Robeson Reeves

Thank you, Charlie. We're pleased to have you join us today to discuss Bally's solid performance in the first quarter of '24 and to provide updates on our growth prospects going forward. First quarter revenues increased by 3% year over year, reaching $618 million, with gains in two of our three operational segments. Our casinos and resorts segment saw a 4% increase in revenue, and our North America interactive segment experienced a substantial 70% growth in revenue. The international interactive segment saw a 4% decline. However, primarily due to our operations outside the UK.
Notably, the UK continued to perform exceptionally well, posting a 12% increase in revenues on a USD basis. The 7% rise on a constant currency basis. Our proactive strategic measures in anticipation of the white paper implementation continue to yield positive results, enhancing revenue generation. It's significantly boosting segment profitability.
As in recent quarters, I'll start by briefly revisiting Valley's vision for the future and discussing the current status of our development pipeline. After this overview, I'll hand the call over to George Marcus, we'll provide a more detailed analysis of our performance for the quarter. As we sit here one quarter into '24, we believe our robust core business units and our strategically phased development pipeline positions us well.
Our development strategy is designed to optimize the benefits from the cash flow produced by our core operations, while also enabling flexibly to adjust to potential shifts in the market in Chicago. Our temporary facility is continuing to ramp up, offering us valuable opportunity to build and nurture relationships with customers as well as gain insights into the market. This intelligence will prove beneficial to our continued operations of the temporary facility and extend into the opening of the permanent casino. We are on schedule to access the River North Campus in July and we continue to expect to complete the permanent casino by September 26.
In Las Vegas, we closed the Tropicana on April second, preparing the property for demolition, having recently received receipt of the necessary permits we expect to demolish the Tropicana in October. This step is crucial for keeping up to our expected timeline, which includes Las Vegas, a starting construction of the new stadium in the second half of '25.
Simultaneously, we are actively assessing our options for the highly valuable land Nextra stadium, and we'll provide updates as our plans further develop in New York. The licensing and approval process is extending further. We now anticipate a decision from the state no earlier than late '25. While this delay will postpone the economic benefits from the planned integrated resort later into the future also reduces our immediate and medium term financing needs.
Finally, I'll turn my attention from property development to our interactive segments in our international interactive segment, the UK continues to be our most robust market as success is largely due to proactive strategic planning ahead of the white paper implementation, along with enhanced acquisition efficiency and refined marketing strategy segment has also benefited from our strategic reorganization and diligent cost management efforts. We are actively exploring additional ways to expand our presence in the UK and will soon launch online sports betting to further strengthen our market-leading position and service supply acquisition funnel.
Outside of the UK, we strategically shifted focus to maximize profit yield by pulling back on uneconomic marketing and cost structure reductions. This impacted our year-over-year top line comparisons, which benefited our adjusted EBITDA margin significantly in Asia. Although the market has shown some variability there are signs that it's beginning to stabilize, which we view as a critical step for business growth in Europe, we anticipate benefits from the recent lifting of advertising restrictions in Spain which we believe will provide a significant boost as the year progresses.
Finally, with respect to Brazil, we remain very focused in the market and expect to provide more updates in the near future.
Our North American interactive segment delivered a very strong quarter as we continued to capture an incremental large share of the gaming market in New Jersey and Pennsylvania. Additionally, in March, we successfully launched gaming in Rhode Island as a sole provider in just under a month of operation. We generated $1.2 million in gross gaming revenue, and we've observed an accelerating pace of revenue generation thus far in April.
We also successfully continued the rollout of our Bally bet online sports betting in the United States, which, as we've mentioned, many times before we view as a funnel for gaming growth, we are very pleased with our transition onto the Cambium Whitecap platforms and believe this transition has been well received by our customers. Our results and our continued ability to gain market share clearly demonstrate that our plans are recognizing the benefits of this technological transition.
Additionally, it's important to note that our North American interactive segment is expected to incur adjusted EBITDA loss of about $30 million '24. However, we anticipate that this loss will decrease in a nonlinear fashion as the year progresses.
With that, I'll now pass the discussion to George for further details on our operational performance over the last quarter.

George Papanier

Thanks, and I'll begin my remarks by providing operating insights into our casinos and resorts segment's performance.
On that, I'll dive into the latest developments at our Chicago temporary facility and our ongoing efforts to build on our results. Our Casino Resorts segment delivered strong top line performance revenue growth of 4.1%. This growth was driven by a full quarter of operations at the Chicago temporary facility, which helped offset the wind down of the top accounts. We all also navigated a few challenges during the quarter, which we believe to be temporary, as we mentioned on our fourth quarter call, nor has been widely reported adverse weather in January significantly impacted our results.
Fortunately, we saw a recovery in February and March as conditions return to more normalized seasonal trends. Additionally, visitation to our Rhode Island properties was notably affected by construction on the Providence bridge on Interstate 195 critical north-south route connecting Rhode Island to Massachusetts. One of the two bridges has suffered structural issues leading to lane closures that disrupt traffic during peak periods. Unfortunately, there is no immediate solution, and the disruptions are expected to continue despite the weather challenges that impacted our margins.
This quarter, our underlying operating trends continue to be strong. Encouragingly, aside from weather related disruptions, we observed stable trends across the customer database and properties. We expect improvements to continue as the year progresses. Since these impacts are largely temporary, we must manage the effects of wage pressures from recent union contract renewals, but we do not anticipate other major challenges. Additionally, we are actively exploring opportunities to better leverage the synergies within our 16-property portfolio. We're excited for what the remainder of the year has in store.
Moving on to Chicago, we continue to ramp up activities at the temporary facility and expand our customer database. During March, the temporary facility generated GGR of over $13 million, which represented a greater than 50% increase compared to December. Emissions also rose to approximately 118,000 versus 100,000 in December, and we ended the quarter with over 80,000 New Valley residual words members up from 60,000 at year-end.
Each day, our team gained a deeper understanding of our customers were already using this knowledge to enhance the performance of the temporary facility, which will also benefit the permanent facility once it opens proven some parking continued with valet service set to launch soon. Additionally, we're adding more VIP options and actively seeking partnerships, local dining establishments and outlets to integrate Valley's comp currency, thereby enriching our cash rewards.
Beyond just replay, we anticipate beginning to hit normalized revenue production rates as we head into the spring and summer months and will focus on gradually improving profitability over time. As Robert noted earlier, we're on track to gain control of the North River campus in July and will commence site preparation and demolition shortly thereafter. We remain confident that the property will be operational by September 2026 as all timelines are currently on schedule.
As a reminder, there are approximately $1.1 billion in hard construction costs remaining under the host community agreement with the majority of these costs expected to be incurred in 2025 and 2026.
Turning to Las Vegas, Tropicana officially closed on April second. We're currently preparing the building for demolition later this year. This will allow the Las Vegas is to begin their stadium development and keep pace with their plans to play at the new big Las Vegas stadium, beginning with the 2020 major league baseball season or working with the team, we continue to evaluate development options for the remainder of the 36 acre site.
With that, now let me turn the call over to Mark.

Marcus Glover

Thanks, George. As Robson and George highlighted, our core results demonstrate we saw a solid start to 2024 in the first quarter. First quarter revenues on a consolidated basis increased by 3% year on year to $618 million with gains in two of our three operating segments. Revenue for our Casino & Resorts segment rose to $342.3 million, up 4.1% as performance in February and March somewhat mitigated the adverse impact of January severe winter weather.
Other challenges during the quarter included low hold in several markets. Construction on a major artery interrupting access to our properties in Rhode Island and the winding down of operations at Tropicana. Adjusted EBITDA for this segment was $89.4 million a 15% decrease from the previous year, primarily due to the negative impacts from the January weather and the aforementioned issues.
As George mentioned, just a few moments ago, we expect margins to return to more normalized levels as our core portfolio remains strong. Excluding Atlantic City, the Chicago, Tim and the Tropicana adjusted EBITDA margins were 35%, including the January weather effects, giving us confidence for the remainder of the year.
With that said, we continually look to improve performance and enhance profitability as we strategically integrate our portfolio of properties as our Company matures. International interactive revenues declined by 4% year over year to $235 million, primarily due to our strategic reduction in marketing outside of the UK which affected our year-over-year top line comparisons. This decision is part of our broader effort to optimize marketing investments and cost structure, enhancing profitability, a strategy that is proving effective in contrast our UK operations. The crown jewel within our international segments continued to perform strongly, with revenues increasing by 12% year over year in US dollars and 7% in constant currency.
Overall, our strategic choices and robust results in the U.K. drove our adjusted EBITDA up to $84 million for international interactive year over year increase of 4%. This growth was further supported by significant enhancement in our adjusted EBITDA margin, which climbed approximately 290 basis points to 36%.
North America interactive generated revenue of $41.5 million, a 70% year over year. Improvement segment generated an adjusted EBITDA loss of $10.2 million as we launched our gaming in Rhode Island late in the quarter. Which is off to a quite great start. We continue to believe that losses for North America interactive overall overall will narrow as the year progresses, driven by our strong gaming operations in New Jersey, Pennsylvania and now Rhode Island, in addition to the scaling of our Bally bet online sports betting app.
Turning to our capital structure, at the end of the quarter, shares outstanding were approximately [40 million]. We also have incremental warrants, options and other dilution of approximately 13 million shares. We ended the quarter with $169 million of cash on our balance sheet and $3.57 billion of net debt.
Shifting to guidance, we are reiterating the 2024 guidance we laid out on our Q4 call in February, we continue to expect to generate 2024 revenue in a range of $2.5 billion to $2.7 billion and '24 adjusted EBITDA of $655 million to $695 million. The guidance reflects the closure of Tropicana on April 2, continued growth in the international interactive business and approximately $30 million of adjusted EBITDA losses in North America interactive.
In conclusion, we remain very excited by the road map and executing the opportunities in front of us in 24 as we approach the summer, we will soon launch sports betting in the UK and our entire team is excited to take over the river north campus in early July to begin preparation for construction of the permanent casino.
And we will now open the call for questions and answers. Operator?

Question and Answer Session

Operator

(Operator Instructions) Barry Jonas, Truist.

Barry Jones

Hey, guys. Wanted to start with international mid maybe specifically the crown jewel or do you think the growth and also the share gains you're seeing in the UK are sustainable? And then I guess as a follow-up, I wanted to touch on Spain with these restrictions being removed, how meaningful do you think Spain could be for value? Thanks.

George Papanier

Hey, Barry, thanks for the question. Robeson will handle that is straight out of Central Canada casting for being able to answer that.

Robeson Reeves

Yes. So UK performance yet very solid, very consistent. We've got excellent customer retention. So we'll look KPO to high customer retention with our track record active levels. We're getting excellent quality acquisition volume, and we've seen improved KPIs as well, driven by our brand campaigns that we've delivered on Virgin, we just launched actually further brand campaigns with Bally's to drive further awareness and maturity doing well. So we've got a lot more tools in the locker to continue to grow and drive performance there. Adding sports will be material as well.
And as some of you would have seen, the white paper consultations were released by the government commission to that arm. Personally, I wanted to say they've done a great job the UK government commission with the industry that would listen to all operators and they're doing the right thing for players and this will be a good long-term environment for great operators to existent. I'm delighted that it's been released. What I've said before on this topic is still remains true. Our larger our high-quality operators will continue to gain share and get more and more difficult for smaller operators.
Very happy with where the UK is. I see a lot more that we can unlock the jump onto Spain. I'm just delighted to see that the decree largely has been reversed, and that means that we will spend in the market. We'll stick to our normal formulas, exacting formula. So we'll spend in a highly optimized fashion, will deliver growth will also drive EBITDA margins in any case. So yes, very positive with Spain, very positive with the UK, we see good upside there.
Did you ask about Rhode Island as well or not? No? Oh, good.

Barry Jones

Well, I guess that's a fair a follow up. I was sort of curious what you're seeing, if you give more color what you're seeing with the Providence bridge work and maybe just an interactive angle, is there a chance you could maybe offset some of that with without gaming in the state? Thanks.

Robeson Reeves

I think George can comment on the bridge and then I'll give you a bit of color figure.

George Papanier

We're seeing definitely seeing impact primarily during peak periods, but not material at this time. We're obviously mitigating any impact primarily in our variable expense. We're geared towards up any customer volumes.

Robeson Reeves

And I guess we've always viewed our gaming and bricks-and-mortars complementary products, which sit alongside each other what we've seen so far. I'm pleased the launch in March in Rhode Island as you know generated in of the $1 billion GGR, the trends that we're seeing a very good and we've seen great growth actually through April. I've got a lot of confidence in the Rhode Island market. And we think it's going to be material from North America, a gaming revenue generation perspective, and we'll give good opportunities to offset some negative impacts that you sometimes get with weather and other adverse effects with bricks and mortar.

Operator

David Katz, Jefferies.

David Katz

Afternoon everyone. Thanks for taking my questions. I wanted to ask about the North American interactive business and just get a little bit of a qualitative longer-term vision on it. Where can we realistically expect that business to evolve to and over some two, three-year period, particularly on the heels of representative of your comments about other markets where it's hard to be smaller and sort of catch up.

Marcus Glover

David, I'll start and then Robeson can clean up on it. We've always stated, especially last year, if you recall when we repositioned and went to the variable cost model and what can be white hat relationship have we kind of at that point, have repositioned our approach on this OSB. side where we say we want to have a quality product and quality offering. We want to be available in states, but it was really as a means to an eye gaming outcome.
And so we believe that our future for North America interactive lies on the strength of our gaming performance so far, obviously New Jersey, Pennsylvania now recently Rhode Island, and we're seeing some great promise in Rhode Island, but we are very, very prudent with how we are approaching our positioning with OSB. from a reinvestment standpoint, I want to again have a competitive offering, but we'll be very measured with how much reinvestment we actually put on the sports side of things other Robeson give any additional color that he may have on that. But just wanted to tee it up with that initial intro?

H.C. Charles Diao

Yes, as Mark said, we're focusing our investment in the gaming states or what might become my gaming in the future. We haven't made any assumptions around additional states kicking in. So we're making sure our cost base aligns to that. I would say the big difference between the UK market and the North America market whereby in the U. K much more of the operation because of the regulations requires manpower on human intervention, 24X7, not just by definition, just means that you need to be much more scaled player. Our cost base, as Mark has indicated, we've gone for a variable cost structure at our existing scale, but also of this lower human overhead required and for North America, as would I call it the UK business, it's just differently different designs of regulations.

Marcus Glover

And then in general, just as a reminder, we've always we've always stated, and we continue we haven't seen anything that gives us pause on what we've stated publicly in terms of migrating toward a negative $30 million loss for '24. We haven't provided any kind of guidance beyond that in terms of where we think the business will get from a financial performance beyond '24, obviously better than where we finished. But And ideally, we'd love to get that business to a -- from negative 30 to zero and then eventually positive. But we haven't given a time horizon specifically on unused.

David Katz

I understood. And if I can just throw one follow-up in there with respect to the Tropicana on my impression is a wide range of options and is there a timetable by which you expect we might have some no plan in place, something that we can put our own pencil to on when we might know a little bit more.

H.C. Charles Diao

This is Charlie Diao stepping on the question these days are building their stadium for the 2020 season. We have minimal capital required to supply them a portion of the land, the bill in April '28, we have absolutely no urgency whatsoever to get to certainty because our option value increases over time, the closer the more that they invest and the closer to the 2028 season. While we understand that you would like to have some certainty, that's not how we maximize the value of that optionality.

Operator

Jeff Stantial, Stifel Bank.

Jeff Stantial

Great. Thanks, afternoon, everyone. Thanks for taking our questions. May is starting out here on on the casinos and resorts segment. Markus, if I heard you correctly, you called out 35% brick and mortar margins, excluding AC., the Trop in Chicago, if I recall correctly, I think the comparable metric what's close to 38% in the prior year quarter. So So first off, can you just break out how much of an impact that flow through you from adverse weather in January had on margins? And then second, how do you sort of think about the puts and takes here on the cost side heading into the remainder of 2024?

Marcus Glover

Yes. I'll let George, thanks for the question. I'll let George start and then I'll give any color commentary should there be the need for it after he answered.

George Papanier

Jeff, and let me know if I miss anything, there was a lot to unpack in that.
So one of the questions was on the impact from weather. Last year, we did 33% margin in January of this year, we did 24%. So obviously you had a significant impact on weather. No data point would be if you look at February and March combined last year, we did 36% and this year 33%. This is of course, without volume, Chicago and also without a truck Canada's or as truck cabins winding down during Q1 so really the only impact that we saw was really a 100 basis points for those two months. And that was really as a result of specifically the union increases through a collective bargaining last year, part of 2023 that flowed through this year. But I don't know if I missed any part of your question.

Jeff Stantial

No, I think you covered it perfectly. I just want to clarify one thing on that last point. So you're saying if you if you exclude Tropicana AC and Chicago, margins were down about 100 bps year on year in February-March.

George Papanier

Now that includes AC at this point, if we include, if you exclude AC, then were up closer to the levels that you described. I think you said 30%.

Jeff Stantial

Okay. So in other words, adjusted for weather, excluding those three assets, margins were essentially flat?

George Papanier

Yes.

Marcus Glover

And Jeff, one other thing that I think it was in George's script. But in addition to whether there was those so some hold impact, obviously, we expect that to come back to us throughout the year. If the math works the way they're supposed to work, but that had a slight impact on Q1 as well, modest book.

Jeff Stantial

Okay, perfect. That's very helpful. Thank you both. For my follow-up, turning over to so the North America interactive business, in the prepared remarks, you talked about sort of sequential improvement, albeit not linear through 2024 in losses to get to the $30 million full year number, I think you called out was a ramp in online casino revenues as well as contribution from sports betting as the key drivers and to sort of get there of that margin inflection.
Can you just remind us kind of more what's going on the cost side of the equation? How much of that guidance and eventual inflection to the breakeven and then to the positive margins, rationalization of marketing spend? And are you still carrying any duplicative tech costs? Or are they access fixed cost otherwise?

Marcus Glover

So I'll try and answer all of your questions in there, Jeff. A couple of things. One is that we've gotten much better on the cost structure side of things and rightsizing labor contribution there will still need to be some wind down as we continue to improve that, but definitely some gains on that. But you got to keep in mind year on year, we are in growth.
And keep me honest on this, I think seven additional markets than we were for sports versus the core same quarter prior year so that that definitely helps. We also in the spirit of how we view our North America interactive world, we shifted our retail sports betting business that existed in the casinos and resorts to our North America interactive segment that had a modest impact, nothing material, but of significant revenue gains is really what's driving the better outcome.
Now, keep in mind also with the Rhode Island launch in Q1 there was a little bit of an additional labor boost to get opened in time. We committed to Rhode Island that will be opened by March, and we wanted to adhere to that commitment. And so there was a little bit of a labor push, which increased a little bit the expense, but we think it was well worth it given the early results that we're seeing at Rhode Island.
So to answer your question in short, a lot of revenue gains, obviously on the strength of our gaming, but in more markets and sports, some definite cost structure improvements, and we expect that to carry on and the cost to continue to come in line and subside, while revenues continue to ramp on both of the verticals within North America interactive.

Robeson Reeves

Just to add on that on pace, there is a bit of duplication and cost as well. We're currently running two technology stacks across North America, interactive that will go away by the end of the year. That will not only reduce costs, but it will actually allow for much more fluidity players across different state boundaries. Currently, we have multiple apps in the App Store. All of these journeys will become simplified on a single technology stack.

Jeff Stantial

Okay, perfect. I apologize for the multifaceted questions, but you are you answer all perfectly. So thank you.

Operator

Dan Politzer with Wells Fargo. Hello, Dan, your line is live. If your phone is on mute, please unmute, sir.
(Operator Instructions) Chad Beynon, Macquarie.

Chad Beynon

Thanks. Good afternoon. I appreciate it. So wanted to focus on the temporary. I know originally when you were opening a property was generating roughly $9 million of monthly GGR last quarter and in meetings, you've kind of talked about all the items that have changed since the December period. Now you're at [$13 million]. Can you just kind of talk about what's left in terms of ramping and then more importantly on where margins are and kind of what that looks like and kind of how that feeds into the annual guide for C&R?

Marcus Glover

Thanks. Yes, Chad, I'll start and then maybe George can give some additional color.
As you stated, the property continues to do well with the ramping on obviously, I don't know that there's a science behind how much ramp is enough ramp, right, though. The team is going to continue to push and grow their market and credit and continue to drive additional sign-ups and customers for the database with ideas that really continue to drive that top line. We feel that if we continue to drive top line, we can have enough meat to really begin focusing on profitability later. And so you'll continue to see us focus on driving top line right now. Profitability is pretty light, but that's somewhat intentional as we continue to focus on marketing, introducing people to our customers to the to the property and introducing them quite candidly, to the Bally's brand and operations.
So George, I don't know if you have any additional color to add on.

George Papanier

The only thing I'll add, Chad is out Marcus is right. We're going to stay very aggressive on the on the marketing and at this point and continuing to drive primarily database, we think there's still a lot of opportunity there. We still have a lot of runway to penetrate the market. So we're going to stay aggressive there. And obviously, as you're ramping in spending costs, margins are impacted at a certain point, we'll flip the switch and we'll see a lot of that flow through and margin increases. We still have some some stop some tools. We continue to add parking. We can continue to add certain types of incentives from a from a physical perspective we've added a high-limit slot lounge.
We're in the process of providing a BIP. lounge, which has which is something that we feel we need primarily on the slot end of our business. And if we just break it down and look at table games were already at the metric that we thought we should be in the in the temporary environment and we still think there's a lot of headroom to grow there. And on the slot side, we're just a little deficient or a little under where we think we need to be. So because of that, we're going to just keep a very aggressive from a marketing perspective.

Chad Beynon

Great. Appreciate it and see the progress. And then with the launching of OSE. in the UK, should we expect some additional marketing cost or is the approach as of now really kind of focus on the current database, just cross selling them another product that would be, I guess, you know, margin neutral or maybe even margin accretive long term. Thanks.

Robeson Reeves

Yes, so we've got the two prongs. As you call out, you've got existing players who already spend on sports offerings with our competitors. There's a large proportion of our player base to do that. So we're hoping to consolidate some of that wallet into our system just by having a product that we're missing.
Also, as you'll see in virtual in market, acquiring three sports, is much cheaper than acquiring direct to casino yet sports players often play casino too. So we look at it in both ways. I don't want to intend to spend more in marketing. I intend to just drive more volume through acquisition longer term because they've now got another tool in the locker room, and we expect to see better ARPU. And because you're just getting a little bit more spend from the same players, it's just spending on other offerings.

Operator

Colin Mansfield, CBRE Institutional Research.

Colin Mansfield

Hey, everybody. Thanks for taking the call maybe first to follow up on the temporary in Chicago on a second. It's definitely nice seeing the trends that you guys are putting up month over month. So what are you guys learning about sort of the customer that's coming there? Is there anything you can share there in terms of what the catchment area radius is maybe mix between local versus tourist demographic mix or repeat visitation, things like that, that would help us understand a little bit more about the customer that's coming there.

George Papanier

So I'll take that Collins, George, we mentioned that we're about 80,000 in our database now, I think 74,000 at the end of March. We're continuing to grow that database right now with customers skewing younger than you would typically see in a US or regional environment. And again, remember, this is not a resort facility or they are anywhere close to what we're going to have in a permanent facility. It it's again, a temporary facility, although very nice, it's more along the lines of what you would produce in a regional environment.
So the customer, the customer is a little Young. It's primarily driven by table games on the swap side of the business typically see a higher, a higher percentage of female and the age skews a little bit older. We're not seeing that yet. We're drawing significantly right now within a five-mile radius and not to say we don't draw significantly outside of that, but more of a concentration within five miles and down. And we're going to continue to trying to penetrate certain areas that we think the demographic makes sense primarily through a lot of bundling that we're currently doing and the works.

Colin Mansfield

Great. That's really helpful. Thank you. And just one follow-up on the international interactive side. Just maybe moving away from the UK and focusing on Asia for a moment. You'd mentioned some variability in the business there and what's kind of driving that? And what are the signs of stabilization that you guys are seeing that gives you comfort that you should see that market returned to growth and that's it.

Robeson Reeves

On the Asia business has always been a bit lumpy. It has sentiment challenges. So driving new traffic has been harder times the positive sort of call it. The green shoot that we're seeing is we launched online Pachinko that has driven a large volume of new sign-ups. We're getting traction because we're the only ones who have it. So actually, that's getting cut through driving new traffic to us.
But I get a lot of comfort because the team delivered working on that are showing they have exceptional control in how they can manage their business. You've got the revenue coming through, but the conversion is excellent because as we can see revenue has come back in USD. We should bear in mind that we're at a 34 year low for a Japanese car. It took the dollar, which is pretty challenging to overcome anyway, but seeing new traffic coming through the door, it's definitely given us some comfort.

Operator

We have no further questions at this time. I would now like to turn the call back over to Mr. Reeves for any closing comments.

Robeson Reeves

Thank you so much for you all to just keep in mind that our core is incredibly strong. We're managing extremely diligently our development pipeline to capitalize on all the opportunities ahead of us. Our team are performing well, and I'm delighted to report that we're very very enthusiastic about delivering value to all of our stakeholders. And we are eager to provide you have many more updates in the next quarter.
So let's stay in touch and thank you all very much for joining us today.

Operator

This does conclude today's program. Thank you for your participation. You may disconnect at any time.