MGM - Earnings call transcript Q4 2018 | MGM Resorts International

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Operator

Good afternoon and welcome to the MGM Resorts International Fourth Quarter and Full-Year 2018 Earnings Conference Call.

Joining from 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 begin. to to over call the D'Arrigo. turn Now, Sir, may you

Daniel J. D'Arrigo

Safe Well, at fourth good the and is press being On earnings Harbor to those the thank release of differ welcome on call statements we SEC you, to the this well. have live everyone call, our X-K as Internet forward-looking may we call. Form securities afternoon on under contemplated This MGM federal and and quarter afternoon and the International provisions the broadcast results statements. full-year laws. make will investors.mgmresorts.com this in Actual these XXXX from Resorts Cole, materially furnished

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

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

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

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

James J. Murren

a our everyone. year-over-year one-time certain basis, thank coming XX% end On grew good to in our Well, in here grew We the fourth EBITDA revenues and above good Dan, consolidated you, fourth XX% and Vegas. benefits. afternoon, Las year a quarter had quarter and adjusted our excluding guidance

intra-quarter. or you the RevPAR grew range. over low of at healthy our convention We games leveraging EBITDA of quarter We driven benefits holding improved selectively and casino exclude our X%. by our data fourth strong in despite that growth growth base if of XX% X% delivered end revenue Vegas, table X% one-time was Las Here and business by

best EBITDA fourth and United XXX We’ve in the that basis since Vegas adjustment. quarter the properties the XXXX. margins We quarter by points fourth MGM assets Beau available with Harbor, regional and have. points any performed answer after in quarter Rivage, MGM we up records market Gold the many quarter China's quarter States and Macau, by up EBITDA same set during gaming across Detroit, fourth XX This Grant Tunica. our questions by XX% Our revenues Grand well as basis by Las Over that and up XX% was during the overall XX%. revenue was at X%. you fourth to the fourth may of increased National or EBITDA revenues will gained Strike and grew grew be the premier course XX% share market quarter. in Q&A MGM

a minutes month. Now on I announced want few to XXXX our we last which plan, spend MGM

and we we ago, business resort create functions couple our and of running established with functions. operate. announced rolled as X organizational outside implement comprehensive help more X XXXX the in out As profit an we and This in centralized be the phases. platform transformation that leverage to resulted growth on ways underwent will when to portfolio. We now can find years is of best Phase we across now efficient plan, you know, organizational MGM our implemented key centralized practices consultants, January we will changes

savings, the portion reallocating our and on Half EBITDA be to a by labor uplift XX% announced, annualized sourcing from remaining of As XX% revenue from technology company Phase X $XXX in will Phase end CapEx the we budget to of X annual that expect million is investments. XXXX. the optimization. realize centered of

capabilities. data, centric customer digital loyalty investments revenues these our expect strategy, and to increase by We a through driven

business $XXX will we our are to XXXX. of growth. end MGM Through EBITDA million this in investing an expect the in We yield XXXX, additional drive by long-term

of expect initial benefits we Accordingly, million a this PGP, building. of we with to into of And the XXXX. back financial realize see case third half $XXX expect end As in our about properties. Vegas this of spent we this. of it EBITDA two-thirds lot the on in it to We a saw the official during talked that by Investor year January. Las We time of We coming last with our from approximately May made Day.

our of full We numbers. achieve and will this the those a focused more numbers progress will the on have We’ve We future. team near how hear the we internal effort. know strong about you in sense

year, Turning in as here own Las to well convention Vegas as better bookings. we well we positioned this our expectations are with believe citywide

excited great Gaga Lady about every Park Theater, also single out by featuring are calendar, the programming who sells course at bolstered entertainment We of night.

are Our fundamentals solid. business

for caution we we're we we seems the cost as concerns the of for strip consensus through what maintain rising will global resulting EBITDA a Las today the reasonable. volatility, market growth. XXXX and seeing broader environment, the said, navigate believe, on Vegas full-year trade level on tensions based that That However,

we're progress making MGM earlier, XXXX. mentioned I good As on

second some We we front said see this in as start the costs in will incur of I year. to half the benefits end financial the before

fully reap investments We And entertainment property up we're that like this over couple next normal Park brand-new making just and you future We are to the important excited will in a have believe opening as period benefits. and sports a years. ramp MGM open. and NoMad we expect view know,

be our long-term know remain acquired focus is a operational, efforts and look solid to Cotai enhances we VIP share open, in and portfolio. soon it are become market our in our is is Ohio, our and now gaming the City all the can goals to beyond, Casino Northeast stunning properties world, but cross guests. our our cements We're that across is fully the Therefore one are in in number York leadership entire high-end committed which as marketing volatile. market soon-to-be amenities start Macau there as receiving strategy we Mansion increasing all and into be will the are And further the now New areas in regional on this Our our the mansion available. pleased addition intact. year. Northfield The Empire junket Park XXXX and off we our of

X-year now is will Springfield XXXX. consolidated we Cotai, and complete Park our cash Harbor, the per investments share And these are Our and National reaffirming flow in we of in free today of cycle MGM. reap benefits $X.XX target capital

project uncertain increased Our those light confidence hit of us even gives macro a our XX MGM in ability to in more targets environment.

balance consolidated XXXX. to continue sheet on be a to by Xx leverage fortified year-end targeted Xx net We of with focused

portfolio continue. industry's And estate value to past two And unlocking value the long-term time, has executed successful Over of most in on that focused strategies for this real developed have and been we've assembled this United our States. and highlight premier decades, shareholders. will during MGM on our the

and that company's own of MGM recently optimal sustainable cash committed per real supports committee Our executing goals Resorts. the flexibility creating remain management and flow strategy exploring announced hoc maximizing estate, our and for to a One financial of real ad enhancing team is preserving most that the share, shareholder estate free our value the value.

opportunities dividends. is the will IR, Lastly, company we while Japan's form cash return growth shareholders the excess to on buybacks of and in as sports betting and continue share such to any focused targeted

afternoon, in fact, XXXX. this returned dividends shareholders In increase we another buybacks billion $X.X to just in announced we In to our through dividend.

for over turn So now Q&A. let's back it

Operator

Morgan. our Instructions] question Greff with comes ahead. Please J.P. from Joe go first And [Operator

Joseph Greff

committee talk my in My to or it's questions. nature. you Thanks momentum the afternoon, also my more Strip, for Jim, Good everyone. not in great question in and relates talk this first and lot to to Macau. to the present its Board looking are and make I real --this the Is out the know because passed when is is willingness you the a do Independent strategic that evaluation. weren't was to hoc just questions ad the taking month. before And recommendations, How being But to of for it terms upon when versus extent timeline and before? a Can hear considerations to broad on recommendation about what considerations and what’s tax committee's about willing what booked but then transact And Board regionals the of question would are first this it evaluated, on such is Board committee i.e. front the that Board has today committee related established center the things? of to The to would before. looked timing here. you MGP important in you act estate expect new circumstance. at these it's and to last Board,

James J. Murren

thanks. Yes,

MGP security, grow. with value, space us at time we doing -- borne best long brought of MGP have in the I So $XX. create expect belief followed about you’ve thought fact, that out while, the creation and the triple in that the we continue successful then, of let can time. We’ve strategically the and a the we very that what new share, me create we've we at committed that it's We've $XX The remained can partly create net a we like shareholders, and a value. to it's how is and very said been a public interest course always to of start UPREIT of to will been for and -- was

of of for idea has And entire and the to going focus the real committee to members, they’ve ad States can management group MGM I’m we kind have get transact course growth the get In for working op board strategic decline that, throughout are tomorrow, full to it MGP the tomorrows And the the sector. as the in estate and other helped outgrow ahead own. like their not estate consisting findings. make which is have the shareholder they’re is management very to focused through accelerate and unlike to many be deliver are committee expect make our experts future. expected right we many how craft going goal. with sell that input We triple we Resorts can but not real exciting, and can going very, but in done we very to fact, because to through maximize complicated a property we this uniquely the sure And with among transactions we you board even on the of of expect give ad believes accretively it times, board it In with by us XX grow. was and was on because board MGM hoc public. as members advised estate But hoc as talking management The would board United I that going us not and With opportunity be are expert, that they’re January. MGM will professionally hoc be ad its opportunities any the will the the it ad effort. and peer evaluate only since working Resorts committee affords we we're a focused, it been excited but because and assembly to to that on be it full will formed we company hoc and company a timetable lot it committee a they interest have will that and that be of than in broader real they it net the on they’re met and bankers, months management about have considering MGP, the third-party done speak already our to seems basis, to space. other the of There quarters. in that more has coming others, already will this to couple a the any value. us to opportunities property say more to And greater units,

Joseph Greff

Thank you thoughts. your for

my taken. I already think was question follow-up

James J. Murren

Joe. Thanks,

Operator

ahead. question next go comes Curtis with Harry from our Instinet. And Please

Harry Curtis

everyone. Hi,

you to what do How that on compare far to strength data, could strong, talked use even color And the some for probable growth Jim about the give quarter's in us it see so group Las you stronger. looks your first in to second is quarter if you So LVCVA Vegas like -- books the you by? XXXX. And quarter. outlook how according by is

James J. Murren

I side. that will the Corey to over convention on turn

Corey I. Sanders

Yes.

our convention year I is hey, pretty solid. Harry. think business -- the Throughout

first lot has, a for already, us quarters on the quarter, all books it. have but a seeing to re always is on of in other every by the We quarter going Obviously, as we' be good to the it improvement also. compared our of but look pretty last Most its strongest quarter cadence year.

Harry Curtis

is Jim, minds on first that some in And follow-up you any of giving a bid quarter that. like? The question have might to just indication know inquiring RevPAR Okay. for want in what the look do

James J. Murren

guidance? about think what Dan, kind Harry. a want of try give of Nice that we you in view to terms on

Daniel J. D'Arrigo

will. you here sir, seeking a Well and most trying side a of on both and been for Thanks, talking Cathy, counsel time. we've some all, that team lot of as really buy input really we’ve to the and I side one know those and here for the have all Clearly in been, Harry which from you to came that Aaron, myself, sell the question. real and There the through that goals was the been thread achieve getting story to that longer-term we're quite vision company common guidance attain that is standpoint. really and and conversations, whole

kind and you what you So Obviously, quarterly We're out color But we're worked of Corey the convention you lot to of too going not the to around for seeing. to color. a us. into lot a business. a just give lot well has into getting of to we're continue insight continue business going give specifics, gave baseline of

to are we going lot long-term, the in which through you get continue it. focus we a chance as a has on to posted, the deck to So of go will that information

You will consensus per well here. points guidance numbers $X.XX trying Obviously, like EBITDA of for of XXXX. targets lot free reaffirming community data we Jim, with good we’re as to achieve investment some on management our see and be and that cash the commented share as feel year our what aligned the the it's to XXXX we are in a flow

Harry Curtis

more of the this ahead, how flow into revenue the question growth a Thank to that Grant. EBITDA had And particularly And VIP wanted more growth you would Mansion to that. you question that strong of back I Would look my year, real that. XX%. mix, we mix? do you we very for quick as look shy opens? shift expect up to to when through Grant second was Macau, get half as for

Grant R. Bowie

junkets expected. we clearly Yes. [indiscernible] you us. had we critical And we of The are margin the that now Cotai were there correct about on into was put with where operation introduction But focus and management mix the to particularly actually obviously is are cost effect, the to stabilizing Cotai. that

of phase So everything we down. go just in in forward, locking of terms are that the

all clearly excited on getting we're we and assets terms those mansion, In the of board that generating. all that are bringing of

in now Macau, we terms stabilization that, the drive we're because that already momentum. a starting very And two of opportunities as are of result Also importance so a business how we we are by as -- that see and strategy I’m well, indicated want in -- I’ve building and positive we excited to as reemerging to always see this property property.

we are performance. the terms still the look give We to upper in that yes, XXs we improve to mid We confident margin. can margin So, of guidance.

Harry Curtis

Thanks very Terrific. Grant. much, Okay, guys.

Grant R. Bowie

Harry. Thanks,

Operator

ahead And of our next from comes Bank Kelley question go question. with Please America. with Shaun your

Shaun Kelley

afternoon, Good Hi. everyone.

attain do know Vegas so necessarily see on or I can basis, Vegas the of you some to those a environment? give there what from -- kind at line it would an guys Just margin of will backdrop top achieve benign the you the going what to even on that? or mention provided, and the of line get piece clearly XXXX. a you us come fairly plan in XXXX But assumptions be Las you're in think actually you goals need lot to a maybe that the XX% a sort to from top to perspective maybe I Las you of slide has did a operations. property adjusted high-level savings low where for or that that XX% deck trip longer-term of believe, now Could you your expecting be to the

Daniel J. D'Arrigo

target. growth at quo. gives definitely we start in market When a the I the component we’re into we anything of you can less I status in fourth terms in the and of rates of will of quarter the of is kind or tools in targeted terms EBITDA MGM the used level in in -- control profitable That saw of here. those continue well look to on assuming, most and low single-digit buildings line really that that can margin, From rooms Dan that at think in past. standpoint more higher has and up, we've of is to you it's kind confidence terms else going did job the in as going important yielding when a anybody honing if us how with customers kind the it, we're great of continuing to kind as top Shaun, forward. It we to strategy a of obviously use look assuming what there, Hey, that we're margin the our XXXX strategy an get team put getting deploy filling you as numbers. and what kind cost of

And so a were lift, Herculean it's but it's much status not from standpoint pretty the top quo. line looking at

Shaun Kelley

That's Dan. on just perfect follow-up then plan. be the my Thanks. XXXX and helpful And would

the kind contribution total into, guess move be this that to would you to the in With expect one-third then year, the that upfront help these run the at consulting is you of are rate am thinking first type of expecting XXXX, investments those the my dynamics. we of -- meaning burn investments, expenses, have net two is to in costs, the will I going those half? understand contribution as some which not off head And these we -- some of are point, us just they're I are primarily necessarily things occur

Daniel J. D'Arrigo

Yes, sure.

phases. those X So the the that X net both -- the rolling and of get of two expenses we kind are ball to need of Phase goals, Phase in both on

operational at we look capital. be it, will As there both and obviously

in spend $XX of year, for looking technology you the on as that we with through side. will capital them our are will there's you these well. see million number deck, come the those incremental ascribed a this projects there's return probably to And As go at about

be transparent the is will this as upcoming net, we through possible So as and it over quarters. in going

So numbers analysis. you make the have sure for your you all

James J. Murren

next year it burn as are And go the off, into year. you throughout will right, we

Shaun Kelley

Great. Thanks very much everyone.

Daniel J. D'Arrigo

Thanks, Shaun.

Operator

And Hendrix go comes our ahead. question Felicia from Barclays. Please with

Felicia Hendrix

afternoon thanks. Good and Hi.

So, said past were -- guiding as reflecting guys job past out past quarters over get great you're quarter, don’t conundrum, Dan, said, that the the a you guidance the guys in. you you’ve such Jim in upon have that do one you your few with and quarter

just you gave the confidence can your in us guidance us in remarks? full-year So help understand EBITDA the you prepared

Daniel J. D'Arrigo

Well, things. I think, a of couple

hang I wouldn't think official that I are And period. looking on at being are out current the again, the one looking necessarily What from that is, my there. guidance. they seem reasonable head estimates at in XXXX that perspective is we obviously

James J. Murren

of not the instead also, of half job, market. business And baccarat we’ve this in a good

bigger two our than are competitors combined. We top

We have that's very but over a XX,XXX hotel is market dynamic. rooms, it

color, is does sense very Las but I And that assets specific the to are and we think to are not world, all all in better fact the don't the of as giving than so around a you recognizing a color anyone company give we spreading us. Vegas, global trying our this of job

I dynamic been think a it's market.

Felicia Hendrix

guys I'm used … just words using you have

James J. Murren

Yes.

Felicia Hendrix

because around is you could my I’m because when estate three of just the But really about wanted your process And estate assets in JV and for. and just wrap release circle know it's out time. Springfield past. portfolio, estate real on way there, in committee the think already perhaps evaluate called your of whole real evolve Strip your to in the to portfolio. your … back to to and it's arms it's kind trying really real this over that portfolio, stages right, wholly-owned CityCenter early this then I the the evaluating I

use -- -- just get my I'm because you to those purposes, get Japan, even potentially to without see for trying benefit might special to what trying that, or your analytical so, own CapEx to will maybe optimal from dividend, a cash balance levels. assets holding sheet beyond selling And from your issuing that for

based would -- have on guidance everyone next years. the think the you few for that I

because understand what lot you -- left? just help of portfolio don't have real you real evaluate can estate I’m really us your really So a means, estate

James J. Murren

in don’t a Well we've billions a now. building Sure. value. assets of that's have we real worth left, I'm estate lot but amount tremendous a sitting of right

Felicia Hendrix

perhaps what could that? those -- longer-term like could kind yes, -- to I is, generate I'm or Oh benefit valuation special that that’s be and at something strategically And how trying that exactly, really just right? have get the you two, beneficial of for it's dividend but beyond -- your -- guess, shareholders,

James J. Murren

willing basis this. our goals our to management believe be use, in to to to to we to we very The while as get our here of that our be because on of what And that on talent going Right. flow, committee, create beneficial into Thank and their as cash I Japan to mean part management what accelerate focus thinking, we the going I should ad our want the clear board to sheet, part as I us -- why specific are of board, to on focused as because board and the entire decisions real is the real cash leverage concurring we're our they've is felt committee time, created of And create knowledge to the we cash be the the the strategic into hoc give the same of forecasts. our this that question with to want reason part on our would on don't But to complex all full allocate the estate around management to because you. of free we're believe and do. accumulation, at very board. as our leverage, our to shareholders, targets. working tax reduce that's to evaluating and -- really drive board, quantum some get balance the and assets, get we’ve the that it we been growth able I into win

wholly-owned only today that MGM are And by have so, absolutely are we Resorts. a few assets right, you

maximize future. ideas feel said, we’ve valuable, our that really is group in joint advisers to properties we those we a to want entities focused, rationalize very And very two really And asset output shareholders bankers. really as those to been in value. with they've that's ventures going have outside shareholders I our maximizing even Springfield. why already focus a a all We expert we people, of And because they've is look is at and way the management to standpoint we happy outright, like from we've ROFO would the portfolio, to they’re thought will want very I that met, about that far. them look the unmatched great of and this And we it be it both it let committee. in the that value. the strategically and what those that and allow They're company through said, terms and And to identify know, the what what in best the setup seriousness, of interest we know, I've how I work of frankly, good will with our and and been at on MGP, the joint venture own own the with and a has so

Felicia Hendrix

early super just Grant, And quickly, Chinese comments you. Year? on New helpful. Thank any That’s

Grant R. Bowie

in indications anniversary, Well year. We This our the Chinese actually was pleasing of It New traffic like converted are year our first But us, longer. see of as through revenue. [indiscernible] looks play lot had that a our hasn't for bridge traffic. gaming into is solid the across most the driven for we us. we second. the is we Probably are Lot has extending so Year. is -- It also city. the seeing

market day the well play XXth are now particularly is end -- in positive. pretty upper of the and the we and into So that

would think past. continuing in probably made for I've would So us, city, but definitely spikes good that, just that fourth Lots but GGR. of in us, the I significant expect not comments for holiday solid. period traffic, it's the expecting has a there's reiterate from been I’m from I I the it on quarter

clearly are It's a from traffic strictly, footfall starting into of leisure we not play, say, find getting lot that of I gaming more visitors, when think are as lot to we opposed -- gaming holiday city. likely we now to we to necessarily more the and a these a -- are leisure. be seasons, big into it's probably get

Felicia Hendrix

Okay. Thank you.

James J. Murren

should up here Chinese Year's anticipating question. I bring Vegas, New maybe the And Las over in

the last that highlighted We high not secondly, percentage deck? And to hold we year. had there I very level a think in now, we holding right number we, this, are And didn't one. Sydney few a did London. to to other just that issues. not government places some the lost logistical the to We partly groups are come due players some shutdown, States, United and like

of can Las we we're good So a year as earlier play thank but business said still last the Vegas. we And government I have at in our -- that, for town. total in of as least, baccarat XX% entire

what's here, the point and in we say Chinese going fewer New last but at would like we a feel of what I a whole delta have in Year, going to we're be for as I time, earned feel on for customers good so, -- town. this year for And below result

Felicia Hendrix

lot. a Thanks

Operator

with Santarelli next Carlo ahead. our go Deutsche from Bank. question comes Please And

Carlo Santarelli

casino Hey last the I to made be concerted mix and this. XXXX; to If should good your nights. for kind may is Corey occupied could you expand year afternoon. everybody, With -- say guys best XXXX, of a respect room or I effort with know I

increase I the As casino higher little you acknowledging, better, bit. to so your little that a Is expect think at teens be like a in-house obviously going to grow base and to present? group and like about citywide what bit is mid-to sounds continue to is objective a would it XXXX think I

Corey I. Sanders

Yes.

at look doing. look the and market I competition at think we -- look is constantly what our

and is I focus in night, from our gross having customer of will general, are that also our by a especially on they’re we're per just to transient side. challenge areas. company. seeing this the there's think much more base, The the our improving see But other and In as think But the than casino side, convention, but offset other opportunities leisure profitable one is we and there's segments. that on potentially database, of those particular, definitely we think side higher only. a not areas. few it Europe to us the in a some I of and market mentioned the in customers on profit going grow now percent, room we loss increasing casino be the move you it, to some as opportunities And land still help

Carlo Santarelli

follow-up Great. of on And to kind Corey, what you said. just

season earnings that’s this and earlier assuming you referred promotional Vegas kind on, business. around activity business? you with the Las of what Las kind that any that marketers competitors seeing market, your of One just leisure of to heightened I’m leisure in Are a noted dovetails guys as on Vegas

Corey I. Sanders

a Look, was and segment third think I any a have in see this I’m don’t you it offers been. of competitive. or events a happening than they rich, the the out has year, When than of other lower in seeing I amount happening in base the town, much what has been what little don’t difference pretty They there. seem that are convention quarter. always different it's going of don't very always actually

Carlo Santarelli

Great. guys. helpful. you That’s Thank

Corey I. Sanders

Thanks, Carlo.

Operator

Morgan with Allen Thomas from comes question Stanley. Please next our ahead. go And

Thomas Allen

Hi.

in in second based investors on progress comments, a XXXX? there's XXXX, from there. or that the they Thanks. previous quarter margin of up is margins, seeing and and lot should that 'XX your make half more Considering So focus every your your does into sense on hockey-stick Strip

Daniel J. D'Arrigo

Dan. it's Tom, Hey,

of we comments always first midpoint high-end we did pretty the do the around we of are in year, more kind our quarters impacts. kind high factoring of range and when the few numbers. New hold, obviously, made of modeling, think, so last that that range, Year's hold And using towards Chinese I our we

the So ramp up MGM in to that’s going part But to as margin. of that, the help a that that’s half XXXX going of you're impact begins correct the in back to year, margins for burning of perspective, a of the in expenses some the and as well cost fourth of that as terms upfront initiatives. off the quarter some of third of from the

James J. Murren

of our up And and business. the MGM ramp Park convention

Thomas Allen

now? you Springfield think the then about that and the today, topic incremental give you. probably are talk you how ramping, ramp, and And do properties going color is that just Helpful. ramping on to you -- see can right on Thank how other performing of any

James J. Murren

great. to Sure. the Oh beautiful was customers, we commission the feedback just our it's elected beverage operations are from get and gosh, ahead in both go gaming I Massachusetts, that? We officials target. Do food and you from and know. want a with property Unbelievable of from there.

business hotel of Our is ahead target.

the gaming exact Our Harbor, saw for built same new brand as into at a market slower, National us. ramping. actually almost we business We but is thing

half we same the the going seen a but we’ve people of that, Harbor, expect a year. we different in at much up second what are properties. there as this But in investment National in and and the very Everett, seeing the little the in our what quality a we its other opening view future to than new to that operating word-of-mouth people a with up smaller scale, be the in up working there, more we marketing, that's and we marketing So are of bit assets particularly, given competitor reminding tactical there are leading

Thomas Allen

you. Thank Helpful.

James J. Murren

Thanks.

Daniel J. D'Arrigo

Thanks, Tom.

Operator

And Stephen question Please with Grambling comes ahead. our next Goldman from go Sachs.

Stephen Grambling

and hoc on real Hey, estate I a first committee. ad guess the follow-up

think in response the would priority, light reducing and with to monetizing kind underlying another real you You first leverage real question for appropriate How about OpCo leverage an ratio a mentioned the estate? to as estate. relative asset one thinking about of

James J. Murren

to does. be what part I the going that’s committee of think

capital MGM continue invest the asset that the always a we and properties, evaluate will MGM understanding very we Resorts the been and is fact to has of is which MGP successful. As into Resorts for be triple net those that intensity and responsible

to very are we’ve before, meets we've made possible. the laid global clear not going out going make back as found eve be objectives recession. situation on in a as durable I this of And in balance that sheet that think 'XX the and MGM to are we is sure a Resorts' we We ourselves

going are postured. to more be conservatively We

going declines hotel We are reductions around on at Global tensions, RevPAR RevPAR increasingly guidance trade aware the world. of companies. and what’s slowdown, of

free do those very cash XXXX, strategies. real delivering that on eye board on of that is have all And making an own we [indiscernible] balance have sure will or the fit so, and are that our squarely with beacon, of portfolio with in within to $X.XX anything to that toward we MGP, we flow that we going sheet that what estate we take are

Stephen Grambling

on That’s are bit, out maybe your resort you Japan integrated can the a on about side. key little clear. just on Can the news And you color thinking drilling seeing changing next evolution more directions of we how provide you expectations? are whatever the including opportunity, and milestones any

James J. Murren

there, framework. else. world, We’ve still government longer in well the as so a how proper best We’ve been I -- of implement literally is than of a anyone to had you regulatory traveling learning practices know as The Sure, process, around the in as lot progress terms RFP Japan. will.

we up to likely first of resources they next and And Osaka We as the XXXX, XX, out is have with World Osaka. Governor on Mayor step will MGM operator Tokyo office our IR has Osaka. the to early likely We when will a our time, of opened this And XXXX. selected is central now there in the a opened are but and government government by We its is Osaka. and considerable to of that XX a the rules Expo probably focusing July operator. adopted come for has jurisdiction months has think strategy, in believe three We’ve in by policies any come large will think itself That the Osaka's thereafter. Osaka that Osaka its out Osaka operator. know that and soon an picks itself concessions Osaka in guess the Osaka, to that's central just both have maybe by we after that other Osaka recently know 'XX. happens to one go or goal be Osaka. its team in granted, The that we August RFP be point we said at select to year, Osaka we government. this will The committed prefecture, be an remember is

Hornbuckle our you That's focusing in Bill are been Japan why very don't energies active. we’ve hear So now. on this there. is call, And we right he because

partners, exciting developing been submission. have getting programming, We for ready RFP consortium

will will We I who be stacked it But have favor country, the a program, those the I it in who the highly illusions will the have understanding best and been of of think like competitive, competitive. that strategy, to best be the have the are are chances. not no lot, prepared, working prefecture, who cards hard, best fact, MGM's of the

Stephen Grambling

That’s last great. I if quick One could. one,

trends you the anything will past unfolding Park has can this expectations MGM at give how And in we changed forward how returns Just shake renovations? your get sense for for out? as ultimately any us are property Thanks.

James J. Murren

Lady And on in been only and of throughout we the the investment Gaga, all in we've Yes, days, elements return of a month right a it, Multiple, couple of Park multiple food a and venues, early in had busy about we've into of in the both terms at in half the what was -- opened I that residency terms goals. on of mean the for MGM. terms it from quarter, up track is fourth building right quarter course, track. on -- our terms nightclub, talked beverage

doing basis. property confident a are is highly now. revenue we on daily is are The Eataly has achieve to been We and opened completed extraordinary going them.

single moving MGM is successful. are NoMad. The other up selling and The every quite out both at Park are ADR restaurants The shows very at show. rapidly,

from and customer. We NoMad Carlo the are the transitioning still Monte customer to old a customers a MGM Park

scores through Corey add? do of it, the property in anything customer you to of terms but GEM the ramp is that or roof, attractiveness component have and So the scores are of our

Corey I. Sanders

Yes.

thing, other to seeing in plus numbers door at casino a game. front been getting that are has this the stage The and hoping see the we were big we

Jim the numbers hotel expected, the are as mentioned, As where beverage food and we are numbers.

think you do been the property some night event acceptance that we is time, have has and Just through take the but amazing all there and for of to on what will transitioning just see any property walk that customer, potential which is.

James J. Murren

I amazing in the an we east profoundly than thing. before T-Mobile, they But west know built of the were talked of Strip on Park, were the built if the the is don't side this. before Strip. Here higher counts we the the traffic on side we've plaza about

the on of Park, the bridge, county T-Mobile, But traffic from improvements as right to county and point the side don't I to result underway of to of west last that Park so That's the opposite to to going completely element. is the give you the really done, west MGM. that a know improvements be the a to the the It's not in a our building east New it's control, is the run sense project. that when to now it's that's is the a now. side. obviously across the but bridge stop people flow Now trying York side Strip,

Grant R. Bowie

The summer. to Bridge is supposed done around be

James J. Murren

Summer?

Grant R. Bowie

Yes.

James J. Murren

The this summer. Bridge

Stephen Grambling

That’s helpful. Thanks. Best of luck year. this

James J. Murren

Thank you.

Corey I. Sanders

Stephen. you, Thank

Operator

John Decree Union ahead. Gaming. go And Please our question comes from with

John DeCree

question. Good afternoon my everyone. Thanks for taking

for one Wanted get on your sports thoughts betting Just Jim. me, to industry.

an company? in that You’ve choosing a been has had seems the all interactive still bit from the and full the seems on or and and in more And throttle path GVC, roadblock thinking I I at industry. we a your changed you the betting your like is little your if opinion sports very partner on DoJ, deliberate guess technology league, quick latest wondering partners' of aimed and with inhibiting specifically, for near-term it side the sports had view initial was forward? MGM's the it at

James J. Murren

second the it missive is would DOJ that the words, read an United the from XX Powerball it is legal the Yes And latest isn't perplexing exists in if as in anymore. first on mean states part, understatement. States, as

any the industry, the And poorly differently. industry, think absurdly, opinion. the think I -- in anyone so industry, just And don't gaming it's and an sports betting unenforceable we feels written

-- have are to we relates it excited. our As strategy, really we

of proud are what we've done. We

the the and would I us didn't technology to and had knew that felt I but say same. we but pillars extremely and negotiations shelf to to want perspective, of robust before, following. buy that we and venture and that the make sure we in-house, an have this is think right company, off we've success want GVC, certainly we think didn't to it we be we GVC about of talked the did evolving buy would the scalable, joint We not and a with working out well, wanted it from MGM the the conclusion led technology,

have They their there. up scaling operations. the headquarters. They are are sourcing We a They leader building staff. are

only the really are decision, to the but was right perspective, vital not success. get real that, feel one. from betting analytics, a That’s we technology So that which to in-game

lived and is we A's resulted leading robust of number Secondly, customers, with of their the partnerships MLB announced, Japan, The which relationship doing our for started the ownership we as Golden an us, addition least of before and viewership, as to have of against a Japanese The puck activity with else, led NBA, proud out with year, NHL, leagues. MGM going other -- through channels, with at the opportunities this events outside in far here you as attendance, to and partnership, anything number advanced example. dotcom see teams. themselves longer targeted exciting, partnership, Those wanted games the trusted against a course because Knights, we are opportunities their roadshow of almost extraordinarily as resulted their a of -- also out why manifest us. The MLB has think relationships hosting develop are and some to reaching we’ve interest, did town I more in up which what is the exciting to tremendous to to has league analytics, playing that and play, for that. of one more Mariners summer an league example, that some that in is in MLB like teams Japan working

just out league how weekend transparent. with not days. early working I has that slow, The level, is think tortured, bigger That’s rollout as -- but unclear, expected American last right well, at a we of Football, now league AAF. with view which the resulted level, launched play, in micro these is interesting state-by-state extremely relationships So alliance technology involvement even and frustratingly which at the a

believe we it a very major that right now, are now. well, states there are Some done done right And everywhere and in states market is it mix there that states have poorly. between, have several some exploring

well. is app betting sports doing Our

what thought sports cases would only the young in are Our of as case books, temporary, as they at/or and above we they some in are, do. Mississippi

call would competitive. I this think I very So

and Some us. clever this too really companies one. transaction Ceasar's smart with made space is against I The have smart a They progress. think Turner, competing in

you in than our be the going paths, about will -- to digital at but see total strategies going space, more will simply about as to I I'd as talked I our an at everyone only has a opportunity. say, which look of around you this similar experience, find other part talked think we’ve bringing think consultant betting that or paths betting but sports around sports. a we opportunity view big social us be is is company interactive from why outside a and not talking ventures, larger have that interactive about in view games, XXXX, as down second a our in digital But on may it good we a that MGM, sports. perspective We phase

John DeCree

That’s I on really appreciate that tailed I color, smaller just if sports, And helpful. all question that. Jim. for Thanks could. one

gave You Year. about little Chinese a commentary New

you wondering But during we how felt your are Bowl. think Super if that some comments this close on pretty had to properties overlapping I with event year?

James J. Murren

a they did game for last itself, year game. on money apart were have each a could different and shows profitability like almost year, a Yes, year should had us Chinese I up. at opposed New made of bringing the of for good that challenge on handle having Year weeks it half that’s this is Bowl we a and power I on lot a the good apart. add of the -- could of The on Super liquidity that We as everybody this we right two Super thanks week with have a game top the but for We we and to lot year other, up. than Resorts. the guess last Bowl better on brought MGM did outcomes, where more is, almost --

that challenges good of that New United to did activity it reasons, because year. coming the Chinese had than case challenges was feel around a just We a Bowl, but So of had some States, any more we the product. around like we Year, room in high-end didn't fact we money is and then made Super number and exacerbating of last folks

John DeCree

questions appreciate and fourth the Thanks, again Jim. congratulations on and quarter. the color, I

James J. Murren

you. Thank

Unidentified Company Representative

And last have Cole, question? can please we the

Operator

go And thing. that will Sure with come Farley UBS. from Robin ahead. Please

Robin Farley

Thank Great. my or of least at Most been you. have answered asked. questions

mix where mix for have some property, quick some kind end about XXXX, convention a opening last up Analyst also out but year XXXX? did I kind made a if in your convention know then, about ones. One be? had And [indiscernible] comments which little of will a on one bit -- you So at Day, And couple you coming was of capital of Strip don't general the I a just to projects, potential question MGM the Grand of you reorienting more. talked future it of is, kind

like are options at Just wondering of different kind -- estate? for if the real that hold, you have Thanks. any time around frame while that Board looks or on capital your projects committee

Corey I. Sanders

we 'XX, be this So we -- year, under for hi, and that ended for XX%, Robin. It's amount. we On up a expect to above convention, little Corey. --

to a them On usually get figure time right out. and those project take MGM, the long at projects

the the mix what’s seeing out in there of planning put us other right what product, successful. investment MGM, gives some to figure think Park we seeing it to So in, think happening there with right at an We getting be there's Wing, opportunity that the also it, really the could income. time West

we’ve And when announce, you. planning to will to so, it get keep we more we news and

James J. Murren

the that I number. evaluate years, about don’t CapEx There guess talked aren't terms -- capital for because are we’ve will Anything the that have that we and Grand, In can number additional projects anything. our that changed. of We hasn't different evaluate we the it's sometimes, have I come. annualized would And levers the moved and in pull. quarters of add spends away, market we’ve nothing, We to illustrative case in of do too to ideas. potential or do overall capital incremental Robin, any that

the what we and and should consultants there is like allocated will in think the property did future around more do be our it over in set we which we say, in combination in money that to at and we our area I do that the for to all priority, that XXXX, a needs limit going than of will taken past the and there, quarters properly, ventures to within as OpEx the close attendant technology, be very that property, not we this capital time. What are there. and are outside represents. new has opening responsibilities we’ve the new absolutely spend will focus we point think couple a the that capital next on ourselves, We think of without if digital up it's capital It's is,

cash free do to everything through projects given that add Las we and lens for the side, more major really we evaluate ROI, way, engines very much we answer on capital the more now see are also opportunity that fact leading capital that in can yes. we but given So business the on that of portfolio, is lens here done are our our flow, through spend higher-margin those of technology drive with the happy a position in now with Vegas, the

Robin Farley

Okay, great. Thank you very much.

James J. Murren

Robin. Thanks,

Operator

Well, And this conference remarks. any would closing like you. thank the the question-and-answer concludes to MGM our back turn session. to I management over for

opened to company. is us was we achievements. allow targets framework talked because regionals investments about XXXX, for challenging But behalf confident, today, to we talked Springfield, MGM, and PGP we’ve I not we the laid We finish on rewarding that -- to Park interactive the for achieve the be we had We about. beat think to quarter. in and going want lot us the the strong centralized records. is today. large we expertise dominant. And fourth sports profit these year, going team a of joining confident going profit that that year our a and in but for opened about The whole here, be clear without achieve to of First it we to a to whole today it, to a hit foundation talked thank Obviously, a are the of -- provides lot you opened it's we are also exciting space expect really technology, growth long-term about Cotai,

over. is Our cycle development

our tactics that, I Japan, world as we joining that. company here is we the it, more cash to us the intend Our that you return at we do better target the engines while we're going think be I that free said, will importantly, meantime, it And set company. ago, that and hit all questions. intend drives beacon a that for leverage out in to much your free and and free And new and for that’s the achieve. thank in in us of the harvest to flow cash to a shareholders. goal net quite there's XXXX And flow cash And $X.XX absolutely give the that around the to flow resorts in we positioned always any win share and to use with very targets don't most

Operator

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

You may now disconnect.

MGM Resorts International (MGM) 13 Feb 192018 Q4 Earnings call transcript