MGM - Earnings call transcript Q3 2018 | MGM Resorts International

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Operator

Good afternoon and welcome to the MGM Resorts International Third Quarter 2018 Earnings Conference Call.

Joining the call from the company today are Jim Murren, Chairman and Chief Executive Officer; Dan D'Arrigo, Executive Vice President and Chief Financial Officer; Corey Sanders, Chief Operating Officer and Grant Bowie, CEO and Executive Director of MGM China Holdings Limited. Participants are in listen-only mode. After the company's remarks, there will be a question-and-answer session. In fairness to all participants, please limit yourself to one question and one follow-up. is conference this note being recorded. Please

would Mr. Dan I like to to over call the D'Arrigo. turn Now, Please ahead. go

Daniel J. D'Arrigo

Resorts Phil, live broadcast you, at to Earnings and afternoon This International our MGM Call. and XXXX Third have is on and the Thank press call Quarter release we welcome good investors.mgmresorts.com the being everyone furnished Internet federal results the on will make we differ On this Safe provisions those these Form Harbor call, contemplated X-K Actual to statements. the SEC securities of from materially the statements may this under laws. afternoon. in forward-looking

by that information, cause periodic we these our today's updates to obligation factors new concerning information statements undertake differ contained release materially press results filings from with Additional a no statements in law, is result these could of required update or actual the in to as SEC. and otherwise. forward-looking as Except

During the about also talking will performance. non-GAAP and measures discuss financial call, we our

press measures find the can You website. on our reconciliation is GAAP financial also available our in release, to which

being presentation Murren. Jim turn I'll over it this with that, recorded. Mr. Finally, to And is

James Joseph Murren

our leverage by Well, third thank to of four in between challenging results $XXX debt In of the volume, the Vegas overall flows year, we're third XXX,XXX capital Vegas. Company to the year, that and strong focused channels flows convention ended strong objective. was new you, dividends like well aware course resulted on our of aligns generate We're leisure to the performance, cash quarter, were well ahead commitment quarter repurchased we overall hold level. as capital with up in XXXX our in in of three times favorable consolidated months fewer that bringing our with we properties in benefited and comparisons In including the our of this expectations We're remain attendees our We focused solid benefit to stock, came $XX third summer course that quarter here months seen million games course high grow announce given strategic heavy that quarterly net convention and two allocating as reliance the Las the on we we afternoon, in more manage third Las it pleased there strong down citywide. mix. and despite summer historically. everyone. large-scale to and shareholder. we've calendar demonstrating as Dan, and year-over-year table from prior This returning faced distributed cash a million all fights, acting the traditional our all as comparisons of good the of continues we've the quarter all of the on which challenging to appropriately

convention While on it also our our ahead way, of third the guidance third our our and By RevPAR Las quarter record. the achieved Strip RevPAR Vegas our still best was third was second mix was down best. quarter we in year-over-year,

delivered third strong Mississippi Harbor, the Detroit and MGM we've the to properties, continued We And increase seen properties National million. X% had Our our growth EBITDA fact over three $XXX regional all MGM in years. record a last in quarter.

from though MGM to experienced value revenue Our quarter $XXX EBITDA our a increased to successful to growth million. and Springfield over over who ramp MGM property X% On of quarter. prove town have assets unique by of slowly, experienced internationally. welcomed strategy Adjusted the Western which XX% members million. pretty continuing continues Mass. feedback environment million adjusted successfully Springfield Over we're to out Macau, great its good August received we strengthen assets. hold, the continues and third started energy premier the about $XX $XXX in fellow and Cotai the opened off the who in and property to of is regional the impacted the XX, and fresh property We've local operate to community start. already a EBITDA also to markets key more our low have and position enjoyed the We're in broadly. the to in our these the opportunity guests maximizing wave of we

with early both still gaming on days, and the the in non-gaming performing is we're line its encouraged it's While that our resort in side. expectations

in opened October we're this on month, Vegas. the reaching NoMad it stages Earlier the Sydell headed truly we Group Park transformation. the special destination home four is by Vegas, floors Andrew at Las unique the on created building. Zobler Here and of officially a Las here the XX, MGM fact MGM in has final something of top the in and

the a Looking in up new concept. the of will open in ahead coming we'll the which year We of all front our a be at and couple weeks, entrance, end restaurants open Eataly done December. and nightlife

ahead, is large-scale of as XXX,XXX expected convention current nicely shaping Looking up over already from attendees. the citywide seeing the the increase benefits quarter we're

We up some expect our and of overall the Vegas will RevPAR we we've this up to in that improving Strip will channel leisure convention-based pressures X% Las that seen slightly. anticipate revenues be be the business competitive and to ease X%

of EBITDA and as Vegas well. XX% up adjusted excluding slightly or Las profit margins full-year maintaining to around in Vegas XX% digits margins and Las declines our single MGM. EBITDA low expect Park guidance flat the our Strip also to of our We We're be revenue

that expect we believe American our yield also by the XXXX convention space by destination groups previous shoulder maximize And of we're domestic before our and to one, The which pacing some the turn will from North number is one creating the already And in rest Park XX strength U.S. by up Q&A, Vegas MGM. a we market performance way, I so want businesses of we a planners, business, was survey Carlson year We're the in to up in again And allow having years. and shareholder operational our ability Grand's strategy and Vegas value. across course continue ahead Travel, we bodes share, economy market placing of it the as larger driven of selected our look for higher-end if to corporate priorities over us recently experiences expansion to of nights the resorts well for year of of meeting segment, in the next in to of cited to high-value number better financial Number group Las Las and specifically reason to we gain provide ahead periods, be reiterate MGM to we're portfolio. to the portfolio. ago. room which entire the and And us. expect success Wagonlit MGM's the going group the our

approach and and We improvement ongoing top expect we growth. moderate disciplined control our to revenue profit both margin line effort an believe organic continuous that will drive cost growth through improvement and

continuing fortified MGP, maintaining And we're very in to to invest up a our properties grow being And by our expect cash in our digital, focused in and Springfield, And opportunity. share consolidated will Cotai, MGM, cash adjusted particular, capital and ramping disciplined growth competitive and business a maintain shareholders. and XXXX. capital we targeted the our to interactive flow Secondly, of business Park MGM allocation, accelerate this generating advantages. We're to initiatives flow opened We're like MGM achieving of newly goal in singularly flow. returning the we asset-light reducing next on ownership include more our and free stake and sports to per balance And continuing $X.XX below a respect our in in years. of with model. free over stringent ensuring cash approach target on Japan path to course economic our and three our our XX% intend to to sheet to work of down

for turn to that, it with so Q&A. operator And I'd to the over back like

Operator

now question-and-answer begin session. the will We

first The Please Joe with JPMorgan. from ahead. comes go question Greff

Joseph R. Greff

hard, afternoon. Hey, guys. old was I but good say to die good habits going morning,

Daniel J. D'Arrigo

Joe. Hi,

James Joseph Murren

Joe. Hi,

Joseph R. Greff

your deck they're your the ago. larger or capital opportunistic what going to Jim? I sure just Jim, sense MGM, hearing release for from make hear regard comments and particularly and Under on maybe with would make priorities allocation M&A? scenario I case, earnings to see M&A I unchanged that's quarter and your the want and through a slide language scale scenarios the tonight, large-scale

James Joseph Murren

Sure. And XX,XXX. Dan of I just XXX,XXX said instead told me,

XXX,XXX good. pretty is rails, so be XX,XXX off there. clarification would So the

our to to in So everyone answer your question, would deck. I refer back

would have around I think I it's the that M&A. slides X. X, should think you And X, thinking like that guide

cash our to rationale like return company. M&A of condition on phase. management now. whether it's our in maximize free around out upon are the that capital growth our the of to opportunities, and a and We We deployment the financial not focus weighing otherwise, properties. going running dealt or that of excess return Our very We way does hand doing through being We profitability lens, management sum, the cost continue We all And board we Japan and we're capital. of opportunity that interactive us of new moved capital, like through teams flows. like prudent to and in that well strategic like to strategies. shareholders. allocate is here lens phase any the these our and going we how to we're in that on and any a of consider The a development the focus the our to harvesting Absent of acutely of like incumbent return into our in winning in like or whether focused feels this cash growth of sports or and we assets. would clear assets. that very can our businesses board be right high it's fact now here be we've In we capital here is of the future our nationally our or

Joseph R. Greff

question then for my is likely Great, thanks. and this second Corey. And

Las the Strip, stronger on first half the than As to it relates events I'm second and in next and I'm looking year half. your is visibility Vegas group the guessing at

share talk answer you the ago. of pace about in Thank nights and you compares that then can about specifically, you group up. to that Bay's years can year it, on you room ago? on revs relative talk book happened had Corey, you book you number recovery, time versus And and maybe group Mandalay of can events XXXX that And So what a Jim, get the two year room sense is us nights have the position maybe how then this what the with versus now XH? you. mentioned to a you can ago?

Corey I. Sanders

budgeting we've on but XX% think the what since hard, hockey's – on area. that do out said and that what's is share believe in been we'll better the we really highest also From And you're where we've started because but on about and market of the books came sporting half, to really right as perspective, going pacing half last, group second we other probably have books. the extremely the know that's night that's our from already to and X%, On an looking the ever event it's next the now citywide we be out at it on the well expect book we what be comfort on and to going that books they're process. on nights at books With we look will have positive. there, pretty the room looking What at they is to and up as It's Mandalay but in see room compared what books room not right, we also We entire to we in first particular, Joe, believe year. books. them, definitely still nice And a And will up. Bay we'd be LVCVA, I'm increase think be some where XXXX, the year is there and look have and convention there Bay, are see be I this for there more we year up Mandalay like Sure. I regards group think, we X.XX%. the a quite gain we events than to nights. perspective, that will will much also on is in on events

Joseph R. Greff

Thank you, guys.

James Joseph Murren

Thanks, Joe.

Operator

next Felicia with question Please from go comes Barclays. Hendrix The ahead.

Felicia Hendrix

still RevPAR October, fourth Hi. to in of a guidance I'm X%. wanted afternoon. had to you. about calendar you on obviously have a talk because just for you your have lot up is wondering still the just quarter which Thank Good still X% you kind going and ramping. MGM Park second, Mandalay, Jim, issues

guidance RevPAR adjust like? So would what for of that, if have you all looked

James Joseph Murren

two are everyone transcript I on as think think quarter should One I we're what last it reread I Well my – things. reread I focused well. would and I from

is mentioned to factors we and give. this this all say at days to just and quarter. specific, that we we We setting month-to-month-to-month account. a and you Park will given have going gives There too appropriate this stick factored took that we've into MGM like with the quarter are guidance. how in know feel up, the into and about Mandalay I fourth think we're very We what in I calendar everything all early that, every is and takes much color, RevPAR what seen guidance given but without that the But

Felicia Hendrix

was what right. understand I your of asking kind those Okay. outlook, you I mean on that had impact items

Daniel J. D'Arrigo

Yeah.

and a the mostly year to just to impacted impacted occupancy. I comment, lot add it but X last Felicia, of mean So, you at on events October when things, Jim's obviously look

at room what were nights healthy, the quarter were And quarter. despite when happened city the you so fourth convention in plus look year in up pretty this XX% rates, in last rates

So shake fourth – a transpired third quarter to and despite in had done out there's in and kind itself what in has positive some bit what so happened, here the things of of little the that still quarter October. occurred

to been, Jim's that's the guidance. So into all with consideration to taken kind point, of respect

Felicia Hendrix

points question, were like And way then is stack fourth too quarter, negative. in I because a asking the RevPAR basis right, probably my XX stack a quarter, the that at two-year you it look the to bit in it which and gets slightly, Okay. if next implied you think third up your of different is

be I think I at last to RevPAR, quarter which So surprising year, fourth looking just terms might folks. bad that in the of was deceleration think

Daniel J. D'Arrigo

Yeah.

were shows Grand, if I'm and quarter memory rotated and fourth you're few XXXX, profitable I'm that actually going out in MGM had think I shows a I we in there getting recall. particularly for very and testing because at the But from us, old. the

we're think consideration. and I portfolio on again, a into factors taking our So looking level within this all these micro at

Felicia Hendrix

an the Okay. kind you basis, on trends, like not absolute said, it given forward does I But it and recovering, if guys are up actually we like are look mean seeing it of you sounds that kind correct? on you move at slowing sound everything and of

James Joseph Murren

in we're we said three Yes. think talked And mean quarter would we I the what months fourth What I thought we've and about three this we see seeing. ago ago. months

Daniel J. D'Arrigo

pace Yeah. the for And quarter. channels fourth in good all look really the

Felicia Hendrix

Okay, great. Thank you.

Operator

question go next Instinet. Harry Curtis comes The from Nomura with Please ahead.

Harry C. Curtis

wind-down there's take left Hi, good like afternoon. your Wanted to start looks $XX with long CapEx expect It China bigger down? $XXX million that How wind in Massachusetts. to you to in do on of about to – million roughly the spend projects. and wind

Daniel J. D'Arrigo

completion it's together. process original a process. post the that I take the those of assuming The as working the President's rooms little Typically, Macau, and The the to VIP six- everybody's typically But include about typically opening longer, sometimes six as it's say in Club. Harry, the bit well would Mansion pieces nine-month on a to nine-month the on close-up but but also construction,

Harry C. Curtis

the All right. And call? is Grant on

Daniel J. D'Arrigo

Yes.

Harry C. Curtis

Grant, are you awake?

Grant R. Bowie

Good Harry, am. I morning.

Harry C. Curtis

And morning to good you.

ramp some kind is the shrinkage it's mean as think you property six what the taking a the the give I get that that Just that VIP VIP that the concerns taking you if months? of the testing, in that versus of VIP I address it's you on breather – mass and would do and or the over – us your that well mass you're And does more seeing growth do was the a wonder in – likely you perspective business slowing. is there's that for sense if there's next clearly could that

Grant R. Bowie

Okay.

on conditions So first. market

we're that from been period of people has think the good I the same out been who slowed. what pretty have after it all and come it's saying like consistent of thing yes, they have junket, seems growth relatively a

more rooms. a Clearly to what on liquidity is you as a of there more is of impact China still And seems is there think I'll lot lot controlled volatile. think the the segment. little I in series seems effect running much which, be a a a liquidity. rather Critical of point whole understand, pause been some opening out than really critical in they've conditions, is to though be this probably that junket of of market that of are make conditions I from

So I think for – all little we're while what expecting until a we get softness stabilize. is a we little can

to to is, lower bit very of those at But top VIP, growth of while sectors the end. and some that we'll will Mansion once get similar the and because up, share on rooms we're and property be the build us just ramp going to the and of mid positive in a mass. leads in allow resilient obviously construction though, little the components. mass VIP nature that things is opening us of simply is still we're continue and there us still because the be always, strong, increase we're market us. the slowdown mass for continues it's to the done confident a the for talking element, will much all very, the President's that again, very business there debate. that's business and is to a our And that specifically a growth Club than help to and like of more other pretty one Clearly, For out our robust the that. not way, positive the we business see more Like Mass base the because and more the the us we'd in our series to done

a had is volatility more a the that ramping volatility you sort we some actually a in effect because of decent to and that of will up the was just and of bit part Harry, tend that process. get you As see result luck quarter, of

If didn't weren't the it, get probably business. get then you to you going

around in flat mass. slightly double range market to early be going it's obviously it of digit, customers. for probably I growth, But So summary, the junket high we're all was over consistent better single, think and a through different than performance that going mass

For just and so very to to our into has signs, and XX% grow point The stabilized we're But that. focused there positive at cannibalization also the driving on property, Cotai. lay that for Macau. opportunities traffic great want XX%, business got also establish to about we've I continue improvement

see through momentum getting So want and the we're to the that. from phase we some now difficult of ramp

Harry C. Curtis

as Mansion timing President's housekeeping, a please? just Club And completion and of

Grant R. Bowie

President's will be And And December. we're to of to end year, happen. the think get some before Mansion villas really for the grounds have we of working Chinese New the to hard that's going available good Year.

So that's for a big us. positive

Harry C. Curtis

good. very Okay, Thanks, everyone.

James Joseph Murren

Thanks, Harry.

Operator

from with America of ahead. question next Kelley Bank The Please comes Lynch. Shaun go Merrill

Shaun C. Kelley

were Hey. people could seeing over react acted of go mentioned, some quarter, of for to business. like convention felt forced just guys I Good minute. if wondering afternoon, we back Las to summer everyone. sort signs the you kind were, think activity it I as we as promotional to was Last of Vegas lighter a it and

into signs or and tour that move just guess, are some the period that discounted how Vegas? sort any promotional you just seeing that QX, activity one-off was we abated has a characterize you As bridge package of would necessary weak in kind environment that to of deeply that, promotional of and I

Corey I. Sanders

convention base think I in Corey. general, of the there activity. is you Hey promotional whenever have Shaun, it's less FIT, In

So, and every almost valleys there's peaks quarter.

softness, less been little a be It's But it's the will got fourth always pretty are there quarter, where in occurs the right people quarter. way fourth to in coming rooms softness similar of but there back the it's is to to normalcy the usually third that deeper quarter, general the probably like that still probably coming the obviously just periods are get citywides there in think going a and with lot the I general, that of some before holidays filled. periods in. some

Shaun C. Kelley

now some of your question, as tactical, and how taken framework. just there? Jim, was Rocksino, if wondering you. comments, and larger of picture M&A fit Empire of City fit of sort And basically into regional Thank appetite in do maybe address to if mean, those, I sort Hard Rock to I large-scale some maybe those I and Great. considering of kind the the do those could your more types even you speaking, that earlier out there things regional got smaller, network how of didn't the broadly then bigger think alluded more portfolio you've strategic you tactical of out the might strategy something on, one that strategic you've how into guardrails and are is scale fit you both build operations opportunities

James Joseph Murren

would, on see the there. M&A Well, think space, will be Stewart MGP to MGM a I on And going general speak our James in which Sure. of perspective that opportunistic I'm at very aggressive call. James I in activity his that and we're Resorts, is and to for triple-nets from lot sure the rooting we just interesting

As exception to and and rule. in Yonkers it relates and MGM the Resorts, viewed distinctive unique we as opportunities to Ohio the a

broad-based both gaming We view optimistic performance I future as Ohio. York the them between the very cash are of opportunities. generation New opportunistically. the operational in far about very the and impressed future incredibly we're Rocksino free are few the a in would very Those with and market flow City and of

Boyd operate answers as own we physical need whether maximize to to not. sports with or to a us really do access own the opportunity maximize deal assets to in or is physical answer and do the opportunity. the to question for we market not Our in betting asset order need that not We

what earlier small, got. M&A, to whether or about we And objectives have a talked I we they to have any those that big be really M&A, strategic against climb like hill so scrutinized and would because it's large

As of we New Mississippi, in of really the we're us well. assets that have on in lost as It's course assets. Michigan, generator profit regional largest market, and the in most profitable and our Jersey like not course Nevada in Maryland in every I said, we in here

look share at tier to operate second opportunities and strategy mentioned have already and would premier a it to be cash would that it what of of and and of And Resorts period I leverage would relative that fit measured talked times inconsistent to of flow against MGM what the three $X.XX target lens that with be believe, level. dividend a goals at that time. free in fashion buying stock to XXXX all those be the attractive back four our And we same in during that about at the are so the I to we of increasing very

Shaun C. Kelley

Thank very Great. much. you

James Joseph Murren

Thank you.

Operator

question from Okay. Thomas go ahead. The next comes Allen with Morgan Stanley. Please

Thomas G. Allen

Hey, good afternoon.

on to clarify Just Strip. something the Las Vegas

highlighted you're performance that expectations. So, is imply it comments? quarter exceeded we third full-year giving fourth cautious Thanks. your guidance. your about broad reiterated you more based quarter And then or that you Should you're the

Daniel J. D'Arrigo

is this think I imply anything there. to Thomas, Hey there's don't Dan.

about think quarter from I when a came than the guidance and thinking and we had said in we're prior is a our we third anything in vis-à-vis reflects think as other think the the QX. that we comments. well wide for in for you fourth other up read that it range. don't We are given did We've obviously look narrowed that as in to I the the to at range going bit little quarter, how the fact into compensate pretty think the than for this we horse guidance better. quarter be I I that well and left call, the together so to our ties fourth that, And guidance there all pretty earlier it beat

Thomas G. Allen

talk MGM, Thanks. think a ramp, you signed little bit then should How revenue just the about we there's of for the about the that the another costs Britney that? there? any Park of And talking there. Perfect. ramp up residency kind and to changes you about can I saw cadence if then

James Joseph Murren

for fishing is you tickets that Are there, the...

Thomas G. Allen

Exactly.

James Joseph Murren

a view and we've ramp, this things Got I really quite a really, lot It's on all get done here. our and remarkable the to in few soon. hope see you

line-up completed now, stunner, been entire of NoMad space, the opened Aerosmith early opens had imagine imagine December, December. the Corey opened to MGM. of in Best December. is La the it XXth area rooms, of extended up lobby November. positively that's never December response on of the open Theater, a are some rooms can day the the XX opens a that we've it's month. really XXth We two in We we opens named that on XX. on venue MGM November called The the of opens in ever that old of this you Lady open operational for a The up received. rest it's particularly noodle the will of at XX the mentioned, relates great High by April. and with done to We've the Book, Friend, open. is Gaga which Choi can Park open Park so February, her the be NoMad had The I opens the As floors, is The Race the of on NoMad bar restaurant All the shop the Roy that Sports and NoMad on Noodle starts is reason. on in volume Strip & and performers shows because Park which that, open. the post her you XXth a Limit restaurant, as XXth La December, nightclub movie. starts Britney Eataly

So, into and spot be games New the certainly be next into Knights done. will everything Year's hot home literally ramp during should going Western nice a period, the going year,

pretty ramp I been And but see as those of think worth And flows so all painful. it's been into you'll arduous rapid effort. process, up place elements it's come cash long, a the It's XXXX. for

Corey I. Sanders

to is ramp mix think we where rooms productive We our XXXX first focusing even with positive. start more those that of the And margins. when be very around the is I events, property. the half by like still even half, of closer even XXXX should sort what in on XXXX, on it to but under – add then is, I say coming making we'd that will see at to trends, would are I I will that we'll we And full where current the second be. would the more and focusing have price think seeing some

James Joseph Murren

Yeah.

I to This property, through – property expect brand, new Springfield it fashion. a fair, Harbor perspective go think and right so new new cash that's well Corey. we an the a that extraordinarily we it's is way doing going like basically National from to to MGM where flow up ramp to and expect in determined MGM a absolute now, did it's ramp is up now

same at MGM. expect kind We Park the of focus

Thomas G. Allen

you. Thank Perfect.

James Joseph Murren

Thomas. Thanks,

Operator

with Santarelli The next from question Okay. Deutsche Please Carlo comes Bank. go ahead.

Carlo Santarelli

for question. taking everybody, and my Hey, afternoon thanks good

that of better you a side some the think little is obviously the as strategy get are the pressures better over – in or Corey, of XXXX you part mentioned ability from flex side, When rate to you the that something keep well starters, has leisure the pace a the better so say, transient rooms. you've ability peers business talked to base enticing shown that on leisure for and group obviously a on about and yield-manage more that books base for that maybe to XXXX, bit price, to on of has competitive I the time the kind XXXX? the on bit So should nice been little shown as some book of leisure there able the you a having having about earlier nice

Corey I. Sanders

much rates. lower-end rather are we've leisure have rate. way higher price softer package do adjust a a rate in really than times periods market convention and the we we'll The always to we'd Obviously, is convention approached there the

that bit. we flexibility yeah, quite do a So,

how fill quarter opportunity third our thing core in our Vegas Las learned especially we've competitor know think database us, their Another in there. in and still we particular there an especially of rooms. is and particular is some they We outmuscles in this flexing

there think to an up OTA that higher we once build opportunity to So a that experienced have the the where third there again in we to also that help level quarter. on don't base is yield necessarily dependency we

Carlo Santarelli

then as the XQ for you revenue net guidance just a flat think just quickly kind gaming Great. well three Thank guys as with talked would side if about quarter. and could you. little being up your slightly. on Is of to there obviously components Strip if you I And the about surpassed expectation of on bit parts, moving obviously RevPAR anything the there kind the RevPAR this that up touch – in you

So, the is side, the if X% fairly the X% on assume we fourth easy. quarter, to gaming comparison the in

might last guys maybe been gaming later obviously but XX/X Is fairly quarter the about on or metrics. some particularly year of events that there a hold, that were little normal and fourth handle the some of conservative other you're more impacts in anything being you there saw one-off the think some from additive? I have had the events there in of slot

Corey I. Sanders

XX% of hold, I – of north in Carlo, say think, I terms we was it I'd current games year a, I relatively think in range side last were table Well, the our last casino normal year. think our on norm although

the play forecast So, kind so there. comes side Years. high up, December the the the you to, we typically it really the on a last look New shows where comes casino on down month then of is casino on who and side, and of down from bit Western for when standpoint, hold into end midpoint that the particularly coming the at week And the little there's to

And of Western over where broken that fourth really of four into of or is five usually are last so New days a month or quarters made comes kind Years that's play. kind

have forecasts at two counts of those run to fronts. run the kind I and those data that we using – and where we're we're those kind of that's landing on think So,

Carlo Santarelli

sorry, fourth on that just Great. just And then mentioned Dan, you somebody? since or

James Joseph Murren

was really just have last there's about to year going Well, this I event versus think mentioned no that year. calendar, you I the change say

Daniel J. D'Arrigo

more games two that. hockey have on We

James Joseph Murren

et similar But I fights, pro quarter. a terms forma-ing we're events, pretty in cetera, of concerts, mean Yeah. tent-pole

Carlo Santarelli

way just like this you And year, that be slightly around great. it guys with is the anything the there especially it? holidays the Year's the way that will Is looks it fall beneficial. and are stuff, Okay, interpreting way December New could

Corey I. Sanders

the early It holidays in way are could combo. kind Monday, be, just of kind the falling Tuesday of

new November kind fill how kind a weekend to coming on New in, But in and that see and effect, we've got in so of traffic Saturday, pattern Friday, see that double for Year's. could of the starts that's Sunday and to in folks wait group speak, the So December. to you a the coming with leaving

Carlo Santarelli

Thanks lot appreciate Great. a I it. guys.

Corey I. Sanders

Thanks, Carlo.

Operator

with David Please from question Jefferies. next Katz ahead. comes The go

David Katz

MGP pace? indicated did stake next at could years, how everyone. wanted previously wonder sell I you've or that three you or questions. years. we that not afternoon I would is that Hi, if the to I over the two provide or one, why five One you ask is arrive know down light why that two some three shed color some around

James Joseph Murren

Sure. then on. could Maybe tackle you Dan go I'll

Daniel J. D'Arrigo

Sure.

James Joseph Murren

expect public, MGP decline. with know My economic our in expectation any to has is It's And gone and MGM target so, reasonable MGP Resorts' interest operators. think rooting in When will we them that go don't quarter, we'll whether of it's grow continue rapidly that that meantime, we to other as interest grow, I as to is we ours grow and sell I rapidly have shares. grown will going target. that think expectations is we're is going economic down. a grow MGP last it since articulated in doing the a on. I

David Katz

Understood. second I bit of you look data we've and that year's know points a guidance some that if – quite any given guidance can ask there you've what next guidance question, given of talked about around But structure might XXXX. insight we've can like? the a are I this share just structure some the about And and thoughts year, spent

Daniel J. D'Arrigo

I'll obviously and quite sell all one. side a lot Dan. you from take this bit. a This call, been is that David. sure, we've through this side on both talking Yeah, to working of been We've buy and

one to both one guidance. into is it to kind of Vegas that XXXX, of as get from not approach out, side prudent Las from of out and net side guidance and we're perspective, subset a to our to margins investment out here going and the the revenues quarter quarter RevPAR We're in that we out modify EBITDA around buy our each terms community. from continue being model that in help and overall eliminate as speak So, useful one you as going well quarter more more sell the and give both standpoint, you to we think that's

David Katz

taking my for Thanks question. much. very Thanks Perfect.

Daniel J. D'Arrigo

David. you, Thank

Operator

Okay. ahead. comes go Please Robin next UBS. from Farley question The with

Robin M. Farley

– rooms to us still the than percentage going group a originally getting on rate your So little had – I distribution? year. comment the you maybe kind question, over nights package significant but tour slightly if of you what you get different then probably travel and little just up color group advantage actually of making next rate of mix? could of rate made is around a I to give fair and talking bit a a higher about you gives the still of bit a group about Thanks. that what share sure in answer follow understand Can down sort or you down kind a those that's just if talk leisure the more

Corey I. Sanders

to that, all. pick on the okay yield Yeah. to do other and and segments other Robin. it's I'll us segment down we on. not allows are is much and some center our to we any impact up of want focus segments the answer percent have. little, have What lower It's it that choose than of room an of group going rates mix a If not at a

to that of drive rooms. able our the So be rate, the us provides base additional out it's to more importantly than yield it the

Unknown Speaker

Robin, that bit. add Yeah, little a and I if to can

the well, mix, phase a throughout mix it's Sometimes calendar a just little nuance there's not it's more a in the within year. that as

we periods, if holiday the helps in typically portfolio whole. things as sometimes that, a us overall Labor after like shoulder through that certainly play after can periods, to and helps hold the So portfolio Day,

Robin M. Farley

do maybe M&A Okay. large-scale Does potentially XXXX mentioned Great. though M&A, your didn't could you just include activity or that, additional that some were Thanks. if goal assets And is you happy on you without transaction. any XXXX like XXXX or a and things your to goals, a your – small goal large? that with necessarily need

Daniel J. D'Arrigo

any obviously known what bake into on which and nothing We acquisition of was essentially and that goal. that's online at new Robin, that front MGP's purchase the status come Rocksino. just of that. we've quo in more acquisition time, development than That's deals didn't projects the Rocksino MGP's future

Robin M. Farley

one, last take just Great. would actually Okay. back you And don't know if one is Thank Macau. which you. to I switching

to, than tell I Just next of the that concession says year, less six if ahead I given of September would guess months place next months or whether approaching doing and build language approach to what how of away. to to months of financial next new in what the of would be XX about commitment you're have so be now time, concession to months? these a could in preparation XXXX kind of in make be commitment contract few things expecting infrastructure XX types for expiration and kind you're which the wonder a of a these you asked thinking over us kind about your is you're

James Joseph Murren

to it? one that do you give we could Grant, you tackle want or me

Grant R. Bowie

quietly to or you, we it. dialogue specifically government it I to and position be confident, continue is be government that are we we're we'll but in there through, a that it's that are some that? still do may to with expect that, be to in Thank up make we've on do that maybe to be expectations the to and through work government And add, said Robin, we always discussions those do working really the both what and probably think to obviously obviously going that. more with Anything We than decision. need Jim, more we final ongoing

James Joseph Murren

any only are I moment and timely. add, I'd ongoing that discussions to the right going here. the think The thing prompt is into Yeah, has Grant, the expectations. government go and They're up don't last

Robin M. Farley

that XXXX as that that to for cash over and includes part Thanks. to fair so anything of have you process. do goal Is above what flow assume? just And would free

Daniel J. D'Arrigo

additional or? of terms In in what, of expenditures terms capital

Robin M. Farley

making in be that other words, like your above free process. any Exactly, for additional you'd capital over commitments flow cash and that

Daniel J. D'Arrigo

if best and strategy on and said earlier, sticking returning staying plate what capital. capital to have we the on and focused in our that's use achieving measure us would looking would it would it investment Jim significantly that that. it's just, That's enhance right, no, consider, right we of as And to now terms of yeah, that whatever to our Otherwise that. have we shareholders at

James Joseph Murren

free is Yeah. are of flow flow we it $X.XX that think share. it Macau. cash we cash within is is, Robin license do, our everything including might And is given share we and whatever asking And anticipating what expectation and I comfortable extended are our target that have hope was to that per in free we per with know

Robin M. Farley

you. very Thank much. Thanks

James Joseph Murren

Thank you.

Operator

John next DeCree The with ahead. question go comes from Okay. Gaming. Union Please

John DeCree

and the the Good U.S. see everyone, question. about from outbound thank on you taking questions Las Chinese few potential last a afternoon, visitation Vegas. couple We've my to over we any of that for weeks might and gotten impact investors

composition I is prior that business think single-digit Las some that a low remember Vegas business. of your kind of is I estimates

if So put was had Chinese kind more you on any what U.S. in seeing to or maybe if properties from of visitors you're some you broadly, your just that and that about you're business parameters could in international trends wondering in perhaps comments seeing your Las Vegas. the

Corey I. Sanders

Corey. Sure. John, it's

at impact pretty ultra side, strong the that still. On actually been the seen pretty play. high-end it's We've and on high-end good customers very has the and business little level all

tour the and many the small and On them it the just come end and a mainly groups the lower are buses normal rate. tour of very is in percentage at consumer, or low

but business. of there's to maybe slight impact, our just not a enough enough impact It's our material not a So big been piece business.

John DeCree

NHL, in on far? wondering hour about had CEO I so with the in I perhaps was guess of got Corey. a Jim, Okay. early without sports with your we Thanks, That's and JV of one spend Recent high-level of betting betting appointed Mississippi minute GVC some And here much not us days and progress partnership Jersey the detail. a updating I an we've sports or and on question, could enough. separate at sure New to through I two JV there fair new you seen follow-up, was your of talking thoughts think the GVC if kind the

James Joseph Murren

deal Commissioner that I about And with we months the ago NBA GVC. of. add did yesterday with one Sure. Bettman of course, proud inking the was JV very three we're that Yes, the deal you NHL and which to

maybe has we'll the start Board with times. met JV. First, several

underway, relationships has in that been put hired are have for a is They speak. place has Partnerships from office technology, the feel right they're came We they're scouted sites as et experience CEO being JV terrific smart. governance. other deep terms of sports we infrastructure We Hiring into is are GVC. They underway. in and aggressive, know company we relentless, forms GVC. the cetera the the United content, about of States, picked The in relates in way betting, on rooting but only interactive not in the as a between other teams, the not only targeted but that the globally two of a in of sports we out been opportunity whole sports within us forming. league do to platform. way us, variety sports They're broadly reaching we've sports, our more to And as the we're the in well. four major

properties we're in standing any out equally days, almost start and as much as here Mississippi. luxury in already of As doing from a to it business early doing relates our we're Borgata well do

now think into the is playMGM finally I our Store. Apple app

Corey I. Sanders

Jersey. In New

James Joseph Murren

craft for legislation In development. positive state-by-state in And the us And best working days on big a over total next New New have of overemphasize years think cross with out we early can't expect and develop and a with but existing states. state business we to Resorts are could And the the course, the market a time those mortar this appropriate we that, in of of to to in the here agencies I basis to is respective the how literally fashion which very states confidence as of percentage Jersey, states terms be few for over Vegas. here. to the help resorts. market we're partnerships, the is bricks that I going global relationships and a great MGM Las interactive of given we large predictable our customers exciting say both kind expect roll Jersey, of – global

Corey I. Sanders

would Las And we've add also heard ruin business. Vegas like I to it's going what comments is

at both is sport in college major tremendously actually is important of the football up business over Vegas look and mainly XX%. Las we Our pro – up

over up is mobile Our XX%.

So of the legalization off I think the whole thing is with it. beginning to take

John DeCree

Very helpful, thanks.

James Joseph Murren

the in terms that approach are already betting of of the values intend to philosophy are evolving to importance the the last data the with an on all. leagues are and the companies in we is very it's that spending marketplace. be taking, that's think general to the interactive a that very greatest the that and teams and leagues aligned the point I've – getting fine integrity the as I'd relates I There it it just of participating we the in much admired be in it, sports of the lot experiences, United make in and sport product, have here leader approach I betting going a in-game have globally States the competitive which

John DeCree

the update. Appreciate Jim. Thanks,

Operator

ahead. Okay. The Grambling next with Please question go comes Goldman Stephen from Sachs.

Stephen Grambling

quarter for going in that solid there with looks an quarter outperforming think first, we second, even thinking Were think really sneaking a as the me Grand Bellagio questions, guess, along the in path about as I leverage bit levels should in. model execute like a Two like does the looks how Thanks. change? thanks almost forward? that then your about you year-over-year we decade. MGM Hey, and I growth to quick any asset-light, And time in was a benefits of for first outlier specific

Daniel J. D'Arrigo

their the chime The casino casino power side. the on the thing they the But detriment well. about its Grand. great portfolio Sure, of the to Corey benefit on ever quarter that's hold we to had which impacted Stephen, that's of have. properties results our other Grand best you. the as in it side, of I'll third benefited obviously on probably that try tackle They some will and the portfolio. for positively those the And

of be model, terms perspective. our it our still by I good it state not a leverage anywhere that to see we be Whether have don't changing I of going forward, good probably as lower just whether from use three us the a asset-light that XXXX. – or current be And to leverage far of more not capital believe it's on of four times asset-light use in As goal leverage.

James Joseph Murren

sleeping to my hours higher. any a of not use And be good Correct.

like balance It's sheet. the zone. a we So fortressed

in that ours did asset-lighter we're talks intend in XXXX free lot lot to We to the that of to as Bellagio? we have a within have that our have intend time leverage But zone. over since that a – you control of become to management evaluate certainly of we excess approaching goal been and zone and staying all opportunities board about as and zone. a It's we those. stay something long anything we're versus and shareholders our on Grand in return and Corey, cash the

Corey I. Sanders

Yeah. It did extremely well, hold yeah.

Stephen Grambling

last on question value Maybe – sports quick national follow-up evaluate partnering generally the to with had Yeah. versus leagues team? do the just individual you How Thanks. of John's betting. one

James Joseph Murren

have transacted They're a a philosophy find starts, you'll think, I on is with to that not we and single-minded a familiarity here teams I the trust think focus MGM anything betting I think go and individual We strategic attracted afford It product. what in common as exclusive being we've just us and shared and of with can't propriety and has to mutually have shared well. which purpose. sports our on the leagues awry the

to we And it time. important to tent-poles, was establish of we so a expect over I which felt couple to evolve think continue

same with to individual of and of to it those in around the of teams' mean with venue, teams we're the outside venue. I have the engagement core world. mentioned to of betting a players As leagues, And the I country the a teams, the what fan sports to the it relates just the in principles fan values shared vast think number experience vision across the engagement could broader teams, down and comes fact within themselves, the interactive experience in discussions the

holistic And it's this to this going just than a view that's to have technology, all utilize. in know looked matter others. is league of do technology. great of have be so all that that. through so so important, our GVC them going data we a think way. great some constructive needed we And more some the but We but and the relationships key the I and of important but some them. not brands, why a And why at why – on many, the are think I we teams competitors, can We business of have is to interactive product the The

We that a found in partner. have great

with teams we've Aces. bodes matter Aria, is the the of advantage an established a We're their and to to very Summer cetera. Las problem are at, whether Knights, in house Vegas here. strong noted company Resorts in using and leagues here gaming, a helping relationships, helping as soon-to-be in we and responsible sports the have sure properties, leagues. NBA League our Las by vast a from way making And the the government well perspective, of It's here We of a the Golden hosting which in Las venues which of integrity it's a content in strength at Vegas We're talking MGM et or utilize course Bay, history gaming Mandalay course, multiple and Vegas are to say, events Vegas. which we holistic bring why Raiders multiple these that Bellagio, help to our

Stephen Grambling

Thanks. That's color. all. Super helpful

Unknown Speaker

question quick last Very please.

Operator

of Hi, Cameron LLC does percentage What mix and block how your for from nights? Jim. very to nights Thanks A good afternoon. allocated in room Securities quarter Okay. question casino with McKnight Credit room Suisse. ordinary question casino Suisse Cameron The much. compare the comes (USA) or the - McKnight that to next of were Credit Corey

Corey I. Sanders

and (USA) Strip? share, a last written Securities it's then general, on it's Yeah, any Jim, a been customers years. about over from I lot and there's Suisse that than don't have couple it. for in McKnight that think convention up bigger a taken Okay, smaller up to the that we the percent. FIT parking Thanks. paid we been few - got initiatives you that usually definitely pushback But and block our used LLC strategic been were and resort opportunities And component. mean there's seeing of a block, we but fees, move Are in Cameron we the spoken usually something other as that's Credit than really that question area

James Joseph Murren

perspective. in Vegas is grown economy, the proposition think I of the that it has The We, I points in data a that around of represents. the And one Vegas all against this value as has world. a a country competitive booker relative fact we more basis Las price around on our monitor and pointed made to large-scale major even destination from convention U.S. the attractive Las cities just

has an always and or on. Thanks issue. we're an will. these from think we continue not And puts We been and Perfect. been that look always the out we that know (USA) much very Hawaii, Cameron we Orlando evaluate cities much. at lower have, always So, ADR something it Chicago market than conditions. data it we still and the We only LLC don't the LVCVA but has focus we we but data Credit – perspective, to Suisse it like McKnight Securities - or tweak that

James Joseph Murren

better a you. everyone we couple had interest bit Obviously, I up want challenging minutes guess expected. I ran to appreciate little did Thank And reiterated fourth nicely quarter, objectives, than our setting absolutely focused And very today. free a a We're of but I here thank cash the just know over. your for a joining. Thank flow which that I But investor we are strategic delivering share of year. deck, in the in quarter it. XXXX we utterly next on and you we $X.XX including in on much. we without

Operator

you conference concluded. today's Thank has attending The for presentation. now

disconnect. You may now

MGM Resorts International (MGM) 30 Oct 182018 Q3 Earnings call transcript