MGM - Earnings call transcript Q1 2021 | MGM Resorts International

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Operator

Good afternoon, and welcome to the MGM Resorts International First Quarter 2021 Earnings Conference Call.

Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President; Corey Sanders, Chief Operating Officer; Jonathan Halkyard, Chief Financial Officer; Hubert Wang, President and Chief Operating Officer, MGM China; and Jim Freeman, Senior Vice President of Capital Markets and Strategy. Participants are in a listen-only mode. After the company’s remarks, there will be a question-and-answer session. And fairness to all participants, please limit yourself to one question and one follow-up. is conference this note being recorded. Please

would Jim Freeman. I like to to over call the Please turn Now, go ahead.

Jim Freeman

Good This broadcast the XXXX at afternoon in MGM laws. Resorts Form under harbor release provisions have we contemplated International to and furnished first investors.mgmresorts.com, our and of to earnings On call on live call, statements. this call. being from is the internet on welcome press safe X-K these may we will materially federal the securities Actual the SEC. make results differ forward-looking statements the those quarter

update otherwise. that Additional information filings these our non-GAAP of information new periodic press concerning during to cause And to factors financial about a in and statements release could with will forward-looking the from obligation result measures as no is today’s also or contained differ statements performance. call, undertake by these the SEC. our results Except in we discuss talking actual we required in law, as

You website. press our release can presentation, statements in on investor available to our reconciliation which are find and financial GAAP the

Finally, Bill this being presentation will Hornbuckle. it over And now I turn is to recorded.

Bill Hornbuckle

this and Jim, you, joining afternoon. us you all Thank for thank

business domestic long-term maximize the and for significantly February, work has improved significant be positioning mid state vaccination, We’re of you pace the to has excited we COVID our restrictions allowed Since growth. last state progress speaking that done throughout in in us our recovery given operating consumer spoke to sustainable observed the by us we’ve and we’ve to trends, sentiment, the quarter. while

be the on focused in remain long-term premier the we to company improved, vision trends business As gaming entertainment world. our

at turning people inspiring on vision this four delivering of year. capital in to shareholders. performance first outlook focus operational each every our guests, fun for first our experiences and these the level might before achieving and excellence quarter I the our be on details providing update and thought of the to investing the planet, allocating to strategic for drive rest focus provide return an areas strategy and areas, of for it centers our Our our highest our helpful for

planet strategy pinnacle investment would amazing But Our I’m hard in the our ultimately to because the tough That the is throughout past awed everything understatement. in got and At commitment this people been across one company uncertainty. of bright the and organization. strategy say dedication, their consistent this part of that’s resilience guests. our unprecedented the year, and is their so spot is why humbled I about their work reflecting does. an our company through passionate simply people to on of the and employees the this the face have year of am this investment consistent be We in been them.

we people only to not here vaccination of our entertainers for bring demand, employees families, well As our onsite also as getting in clinics who as to well Las course across partners we’ve as regional our levels resources continue employees, at our that our U.S. of as opened dedicated health Vegas properties properties. the their back we work but our recently their and and significant end, vaccinated. heightened to To safety. We meet prioritize

XX% help of production of doing proud we’ll I’m getting share to square XX by with the of goal also the to part community, just Array. and As a largest in believe to Mega properties the reaching environmental flip megawatt I private our feet are been X. full This array leader city back short daytime our on over combat few in needs local provide more a employer switch Solar than solar our Strip June accomplish total solidify virus team million Vegas to up XXX electricity has representing in MGM at the what buildings. MGM these Resorts for are the open able efforts Nevada, all In Las far to of months, our as sustainability. we Resorts XXX% will ultimate

about Our second we’ve our providing fun inspiring eight current focused date across and area portfolio for opened safety To restrictions. adhering to is guests. all experiences shows and our health

large one T-Mobile set examples regional XX the just leaders We to with continue see that properties and for differentiating summer. demand excited can’t Las tickets to these how experiences host focused UFC McGregor note them. our the clear our through event. – XX,XXX provide, it’s starting however work attribute to we’ve the provide events guest we’ve This July, what fight also back for Delivering offerings to McGregor in get our minutes. in scale Vegas a a remains values. in not we fight, customers. Arena we entertainment many local is embedded and safely yes, deeply on in It’s just both focused early delivering our of an you highest culture bring we’re to that of and sold path tickets of is quality this We service on In important to the

We employees of what best guests. will continue providing do empower all world-class our our to service do they to to

to in first our in of business finally, bringing and and ultimately creating our guest we sustained by for accelerate closer value always XXXX, are savings margins operational we significantly simplifying goal operating efforts, spans costs. refined the us over demands by of allocators to will driven deliver target us quarter that control fourth part decision-making, late the the domestic increasing shareholders. returned and of our cost quarter, to Turning grew these disciplined to of confident organizational capital, And excellence. are changes million levels. reducing full our layers enable these XXXX to We of model when Driven $XXX

last leadership targeted to Vegas casino with position in New team Empire in in and hope and the our its for Day We let all grows again in drive the with the to Jonathan a in vibrant more It’s along we’re over York, and enjoy. continue properties, our customer our to also on betting future forward has investing discuss and vision. initial to we that, come journey I to been come partners our City. you look detail. Investor as we’ve deeper then U.S. with aligned now opportunities with developments that BetMGM our in sports the great growth time. listened Our week loyalty regional it recent Las our invest legislature then digital full-scale comments alive and long-term results path iGaming. license In I’ll Las to outlook, a destination Vegas engagement working and and our With been high in on strong. and And potential quarter recovery will some provide first across see on level know Jonathan – business all and

of the we in the the fill heavily especially strategically future as to periods, performance are normalize but Our news lines built large on one quarter. the business, months were demand start is broader Booking the up casino to yielding and to history, pent-up continue we time trends base the in gross a enough out our And best by of our adjusted company’s now naturally March bound resorts over clearly operating backed good the weekends. back by driven bookings property and was trend half followed in demand. leisure EBITDAR

solid secure in in leisure half group. we anticipated look levels remains working more the gathering and the back the of year the expect Nevada’s actively our demand year. weekends. for attendance months year business more we XX% increasingly and group With of will and to business ahead, offset and spring the hotel to clarity range this meetings be around with the As wash throughout partially guidelines, driven occupancies we’re conventions summer robust and per the on in Weekdays by

received accommodate differentiated Our program to great safely designed and with large feedback our confidence events clients. has from convened small

to at larger XXXX the levels. with in is and our XXXX scale expected pace XXXX, business pre-COVID in With on return groups

restrictions, still casino extremely While levered demand, business domestic through will which the we’ve casino depend healthy. international on remains travel our high-end crisis, our successfully

and plus seen our receptivity engaging age with and more proactively demographic, travel We’re to flying group. also increased from that XX we’ve

strong restrictions. close are and slots to EBITDAR that in plus noticeable by higher well. XXXX persistent our regional of into our first lower ability quarter surpassing saw April. now see results regional in resulting our to efficiencies, aided improvement XX regional despite and property with return in first fee of in drive a continuing the XX-plus weather XXXX despite also segment statewide at inclement revenues. our levels, in I’m delivered as been March already adjusted operational begin pleased age trends especially These team’s again to players that to and some as for particularly Our we value encouraging easing was It’s strength properties segment well rated quarter, age a with XX-to-XX

first all- and In regional our fact, time quarter both margins records. quarter EBITDAR this were

now As further our consumer gains, recovery we on like to state-wide full COVID we to thoughts we alternatives entertainment and begin options, will the margin expand through stable, begin EBITDA to entertainment ease, can confident remain Macau. some restrictions structural But trends broader are efforts discipline cost assuming share consumer sustain monitor expand line options, will alternatives this resulting and environment. I’d top we year.

the levels. fourth in market again remain the MGM of GGR business market-wide the pre-COVID Macau’s compared to below quarter once quarter, sequentially improved volumes While outperformed recovery. first pace well China

corner. testing of ultimately recovery. pre-pandemic XX% ultimately quarter The as is pace bottlenecks depend believe, restrictions. variable levels overall the Macau’s in am, requirements market the in also recovery will bear other throughout confident Kong fourth believe as our will It mass of region, and as marketplace. well premium well much longer-term would the compared opening another quarter growth market’s Nucleic Macau turns recovery, rollouts strength acid easing important the the is which our Macau’s recovered XXXX Our of approximately this of us broader of Hong the to remain travel we that of heavily and prospects lead border fruit. evident Macau’s GGR to on investment impact currently however, XX%. is I gradually vaccination sentiment rate The positioning

of of third in in construction this the South quarter Tower additional be Cotai MGM that expect year. the complete We the could suites

gaming XX. Macau space are we and on We And food are our at adding on focusing also and both properties, remodeling the options, beverage our MGM villas Level floors. gaming

experiences. over overall with And build attractions to help theme the to time, destination. visitation. meaningful another provided are this unique as space Investor last out another executive a and incredibly drive we on off-line also color excited the MGM business, Cotai, iGaming We’re offers property entertainment diversify BetMGM sports finally, BetMGM its ability build we race, our the tower team at three-horse out trajectory about its week, see unparalleled extensive betting Day, in organizing the in ability hotel and Today, at we offerings online market. have to and assets to and where along And

significant players see to that, quarter, key to targeting I’ll to the Jonathan? retention range. in as to broad relationship momentum over expects more date XX% this through the reach we new sign-ups billion our have efficient XX% operations to XX% first competitive turn also now BetMGM. value M with this now offerings remain margins in relationships destinations, committed U.S. In long-term our partners program loyalty reigniting and customers From between first MGM’s range revenues benefited to XXXX. from EBITDA and BetMGM, market Life of only the had together, not gone It its acquisition to dormant. BetMGM introduced its and XX% also is time in share opportunity space. XX% quarter why life XX% long-term new and and that is being life, M to we’re detail. but it our that’s over our MGM a come over lever Given BetMGM’s tools. its and and Jonathan this be ability positive ensuing in from BetMGM’s in Putting ensuring to MGM $X of With M new the also from this BetMGM’s leadership both advantage came and customers customer affect discuss

Jonathan Halkyard

Thanks a lot Bill.

quarter results. first the discuss first Let’s

than $X.X quarter’s and fourth Resorts MGM Our $X.X was consolidated net our revenues first to billion, XXXX our better million. quarter $XXX were loss billion, attributable

million, heavily our Our first quarter domestic $XXX by adjusted operations. sequentially EBITDAR to driven improved

by fourth in quarter. with the impact leisure driven coupled revenues Our improved XXX from sequentially million, cost basis quarter that to XX% points XX%, fairly double and pickup Strip a EBITDAR and in significant control our Hold operating the this had the Las leverage demand, and business. $XXX property first a Vegas fourth quarter, Adjusted our the net increase casino insignificant of inherent the million, $XXX was were margins quarter. in

occupancy Our first With Occupancy through due XX compared Weekends quarter. quarter, quarter midweek. first XX% business improving of we Strip and XX the was the lack were the XX%. each in grow with month March quarter to days week exited XX% fourth at occupancy at has to in continued the were group at April. to

last Strip was weekend approximately XX%. Our Las occupancy through Vegas

Our sequentially the from XX% first fourth EBITDAR $XXX to quarter quarter. Adjusted to increased well quarter regional $XXX net the million. revenues million fourth increased XX% over property as

grew regional basis points quarter XX%. first an Our margins by impressive XXX to sequentially about

domestic Our domestic million of a have our identified. how model efforts ranges all to reinvestment the of to gives from that me savings is our our effectiveness which utilization business. management. margin we previously put of of And that This $XXX the operating deliver marketing energy work teams and great into procurement, breadth confidence testament growth we’ll maximizing the from cost we the on rethink our run to

on XX% betting strong active by iGaming raises It the BetMGM its share U.S. in in February Iowa, bar number remarkable top and growth markets. with iGaming month the all delivered last first ones, the the into Virginia. in in of in XXXX. $XXX online BetMGM We solidified markets New BetMGM’s $XXX new share. and Jersey million has operator. considering one two overall in Its betting net betting. also results successful Michigan of share leadership from million in results in delivered venture, based BetMGM iGaming. number strengthened XX% and position It existing ever clear three iGaming market well market to This that associated it are the the gains every as best U.S. BetMGM of In has estimate, including revenues sports February, net as entries quarter. market quarter, in with month its BetMGM had sports led State quarter. operations operators revenues These the position results Our its first driven as sports Garden over as overtaken the U.S. operations was is

part which Given MGM affiliates of the to quarter the from were expect Resorts. would Much markets, we year, calculation. our earnings, quarter. last million we quarter, half unconsolidated MGM reversal which a funded February. the of our is discussed bonus fourth the million, capital our require revenues share stage $XXX quarter, million million sequentially EBITDAR $XXX during of as million, strong million losses number fourth this momentum the in $XX In accrual in by in China’s early reported BetMGM in of of development down from BetMGM’s amounted $XX decline of EBITDAR of Adjusted the benefit back X% be property first which of was a quarter. first was line by to $X of also call to driven down this the $XX sequentially adjusted

had exogenous our call, remains a margins. earlier Still, described Macau. our quarter, which to of table largely that fourth addition, reasons impact was In in the in negative Bill the environment than quarter due first the demand lower games mass the challenging hold on

year-over-year, million, XX% Our share-based expense, XX% corporate fourth sequentially first a compensation quarter XXX and excluding from a was the decrease quarter. decrease

stable flow domestic bit our Throughout inflection to from neutral and were IR our roughly as and liquidity the the efforts thoughts on during month. our conclude navigate expect that volumes point served net ramp continue last our of forward which expense run I’ll an for to capital we with as company offerings in operations crisis. we cash a corporate our And our higher the Now a March IT, improve. digital as in business our investments our allocation. was few position year, Japan. a will quarterly foundation liquidity going

an business begun backdrop with core posture free progressively our in Now improving sustain from shift domestic to capital a cash preservation capital positive our flow, and to solid have path allocation. to we

X.XX quarter, second million for million we the million the of an million MGM program yesterday. X.XX first shares quarter $XXX in and capital through repurchased additional we’ve $XX quarter, This resumed returns In to shareholders. purchased shares for our

the to share entertainment balance are allocate ways and shareholders. Bill world’s and and remunerative We the will described will be in a the premier of company, approach for repurchases vision capital our gaming to further into that that programmatic and disciplined take vision year. to we

MGP we for return or MGP growth for reducing million quarter, our units cash stake approximately This capital XX.X to caused shareholders. of to of proceeds that’s releasing MGP billion, XX% OP to and redeem aggregate our ownership investments $X.X in

approach capital strong our long-term our with as well. it served allocating maintain liquidity. adequate We did we’ll XXXX, will balance Our shareholders follows; in be to this and sheet first, a

and cash return we’ll clear first we’ll opportunities, this And in where our we’ll as are value quarter pursue we and to shareholders. third, shareholders, close, to prospective investments prudence repurchases. our but exercise of there is I for through growth the measuring begun equity and potential share upside others. BetMGM already we innovate this, one returns accretive in quarter To assessing element time. Second, see over we’ve and have meaningful advantages do which when invest current

These forward on the the our will to of his in new I’ll doing current back for closing that, Bill look regarding investment calls details it turn and resourced these to future sharing in with company the digitally with require plan technologies. you guests, And this improve investments. build MGM. the creating marketing Much more valuable of interventions, for will our our and will more will offering a sophisticated of which brands, growth translate customer in invest customer quality of interactions all share value for value market into pools and so from talent are in We our and I for payoffs delivered be toward remarks.

Bill Hornbuckle

in long-term to U.S. cost focused about domestically I’m BetMGM’s my model and our world gaming – very company Jonathan. improving positioned the optimistic and to market. pursuing the the And pleased sports provide our like long-term we remain dedication our believe and the excited I efforts about MGM laser I’d by and to long-term end to our gain of I’m all recovery the operating that operating structure. as positioning experience Obviously, aggressively in continued then their for well across share. and for our managing and enduring we’re diligent comments Resorts of growing Jonathan on other betting environment thanking with markets employees started acknowledging remain Thanks, best we mentioned, also is the vision. where rapidly guests. this our

are best I up for I’ll to the that, simply you. people them Our thank open and this say, With questioning.

Operator

you. Thank will come first with Greff question [Operator And Joe Instructions] the Please from go ahead. JPMorgan.

Joe Greff

good Good as on markets It’s group afternoon, Las in comment the Vegas, your XX% to everybody. April, an well the about XXXX U.S. as kill What mix of companies And business as my second the and there. to urban a of your and in hotel understatement hear positive difference in level XXXX, that year. occupancy in would most the occupancy for half Bill

going So next of XXX% the are Strip think of capacity expectations back you sense early you with comments what do your And Vegas a Las in out serving Bill, us McCarran? September, capacity? where for pre-pandemic these sense XX% can that Starting you do starting year? of be can give a I’m get get to you seat airline a you

Bill Hornbuckle

yes, Joe, turn studies commercial to but with the this Corey team, answer it is but I’ll intimately over who Corey… a

Corey Sanders

think it that’s and hopefully stats give July you any And XX% building. of capacity. June where XX% in be international little, keeps be some if obviously, we at we’ll Joe, think very capacity of June, we’ll of travel. and what then me July we let Yes. and

to was air it expect pretty yes, the years. close least at in So prior what we lift to be

Joe Greff

out maybe the it – generation heavily think you was portfolio you extended – And the about to out little portfolio. generation March. domestic you detail the the run was I as the on your but I exited EBITDAR more the rate the comments of quarter, quarter, U.S. bit guess, to half more your it the for put a Can Great. in Vegas sort that whole Strip, it terms coming Las obviously was Bill second regional maybe in of the that of the mentioned earlier, what’s in given coming of, EBITDAR first quarter Strip monthly weighted EBITDA strength

Jonathan Halkyard

Joe, it’s Jonathan.

starting to going Vegas. EBITDAR true by not that it accelerated business month numbers We’re Las is provide certainly around mid-February, the in but particularly month,

consider right with Las Just couple March our we a where margins, we the thinking the Vegas demand week. practices had here at of were where when growing. beginning about January, in in big the changed We when businesses of the mid closed you during those

But we the it a costs, able being really and And in fixed those those overall demand. did demand that on yield company’s was pretty really the of quarter when as so then earnings Vegas, we level in when generation. to we of through impact in Vegas, had operating many as Las relaxing And the the had into as dramatic even aggregate rooms against change regional got Las as markets, restrictions March markets just well see the started not pronounced.

we So coming and of continued exited we than higher March started we – March, the lot did April. out through relates that’s want to a occupancy to it numbers

Joe Greff

Great. Thank you.

Operator

question of from Thomas Stanley. the Morgan And will go ahead. next be Please Allen

Thomas Allen

Thanks.

when you back to But like until to about a what online? probably XXXX, to thinking in few the Great get conferences, And kind you XX% fully up that of think versus there going the Just the the follow-up quarters? questions going Any you’re about a and back percentage entertainment couple just ramp visibility at and rate? recovery. be I you back that to historical to are comment think then how low next levels that’s occupancy month you’re come is you won’t levels Thank events, running Vegas of do you. think your date. XX’s hear XXXX. at on way

Bill Hornbuckle

can off Vegas occupancy. masks. can County news three people is apart here for I’ll good go now we May turn Las be no is mean, that to it Yes. to this again, over to and XX% I going The And kick X. that us Corey. in and feet requirements Joe, the the relinquish so

to restrictors occupancy We’ve requirement, restaurants, of unleashes biggest equal pools. that six we it and equal. those of the the being importantly, being goes away. environments Saturday, restrict because spring its through feet, three basically April requirement. X then all most break people has been the had Mandalay, mass June up we the By that March in And one into County At that the got restrictions monitor and our things demonstrate late the it So has gotten away. but things can dramatically XX% to opens coming go all of all of vaccinated, foot

And so when you in talk Chappelle show been It Dave about and hear about The on the on things, had we demand out pent-up sold a day. go talked We sale about the is entertainment. Monday. one incredible.

You That’s heard queue DJ Bunny. people in much tickets. XX,XXX Bunny, – year about know waiting whatever But Baby story. for a or to my buy UFC Bunny. the I Bad Baby Bad We next how had Bunny,

a you And come push think X accommodate to irrespective be and to is be point X strong, so going if activity, of I and which will June beyond, is, will. July the year group this

a to it As speak groups. little about Corey more the relates next maybe can year,

season. with we the is Thomas, know middle in season think be So there’ll third lower. is busy seeing I their here quarter little of be which right January. in know on consistent business come think high their coming concrete, things when low going back in world in in I It we’ll And a – of It’s do question to and was, to dependent back. we group it get will We’ll a start that? the normal XXs your

some conference. half in Bay. challenge pretty of think is have some year, at until coming be a but that expect pleased of are Back current groups coming hitting groups good and Mandalay a we higher, that to size And some normalcy a may the out understanding we there, have I So decent some lower a little the little we than be we’ll XX%. have normal,

a half XXXX, occupancies. did think you could the Hopefully, more be ask with that think us gets we luck, I we we if and there’s any of CS real if they year, last just the full the I chance, only you business said based slight the to distancing changing The first quarter, the early And at get about people start in coming of scale. that’s year. announced the of in for but first social a XX% chance aside, that back they’ll on half this back feeling. international think business. feel said It’s quarter, the comfortable seeing back relapsed, important, come And everything half exception last obviously were the the might ask we’re Well, year. that with encouraging be news to pretty optimistic we meeting I and us to January. integral

Thomas Allen

then lack people. Thank there’s to around just inability you, follow-up, to and both. of And a that? lot pressures feeling a Are operate wage of shortages, macro leading discussions labor you because of

Bill Hornbuckle

I help Well, operator, Corey this, to be. say would and the is but I can’t myself, I used

we March, that off off the of got caught in weeks took guard. middle three first really this The thing

today, asked you us probably openings. X,XXX we If have

in how given If about have XXXX, moment, you it’s X,XXX. X,XXX, middle we many the of any openings asked us at

quickly just of it back. And velocity came so how the it

back they we’ll Because teams see and job to be I have be. think the levels where in think service over to staff couple done up, the next XX are there where to want particularly or get us responding. you’ll holes. And I is place a days able need of a great

Corey Sanders

I said I would shortage. national agree, Thomas.

We’re well aware it. of

of some some to instituted have that help the alleviate pressure. front hiring things We from

But we’re there As able we’re days, with. right Bill But a back catch in that at in we now. levels that comfortable little up yes, general, we’re to hoping bit is operate mentioned, that burden XX staffing of area. next

Thomas Allen

Thank All you. very helpful.

Operator

ahead. America. And the next of question of is Please from Shaun go Kelley Bank

Shaun Kelley

at if I turn progress. in the through quarter, to was wanted measured afternoon. attention Thanks mean, to of a good I the it the everyone. Vegas. if flow sequential think, is flow of Hi, pretty some I just gaming Las the in I right, kind we the little given number which looked like astounding, XX%, in through component. tax XX% regionals over it over sequentially And look

I you of was levels how timing driving bit, some through just some Corey, just think us back that of through coming flow little of of kind But and this? year depending think mentioned maybe in upon the little and do So how wondering non-gaming a obviously, of overall, that the what’s sustainable, a help of expense rates bit, also sort kind we that catch-up factor through those move as just possible to in progression just I you is

Jonathan Halkyard

good Shaun, lot. and it’s I think a studying been quite very a Jonathan one we’ve It’s it’s question.

in end – right business, structures. What it against grown operating past in the some the casino that yet like with primarily particularly like. particularly but hotel parking and are the and the floor demand food are has gaming important lower parts We businesses days of can of XX valet profitable, now impacting beverage entertainment not like in even businesses margin services the margin be some which Vegas, really things the of and like has Las and cost is streams and the and revenue or the in these where capacity the XX, hotel

because – but suite So be EBITDA of come we going They provide. see add to dilutive, potentially accretive, it’s will offerings be to back. margin them they expect that that those we’re but important to full costs we the

profile in really through Las revenue of almost has business been these of regional the the flow in – Vegas presenting ways been some many of businesses kind So have kind strong the because that our did.

businesses businesses delivered quarter over XX% regional the the regional the first the – to delivery, can margins I in businesses that So quarter. the Vegas both belief I’m firmly Las that there is but over that had the from XX% XX% for long-term, the of think we and everywhere these margins

full to made but certainly intend we amenities as securing that level in we’ve we be of the will give on add provide. can back structure, gains there we cost some the So that the

Shaun Kelley

follow-up just then very question. Great, clear. follow-up, would to my a on really last be And the

rates there As you’re of about you’re rates, better seeing the I just as pre-COVID weekends pretty the up maybe little thinking on and talk the opportunity to here. hotel hotel than bit how is second about quarter thinking levels meaningfully possibly as soon do the good mean, recovery, occupancy little to a yield about your think about on a we’re bit mentioned some yield on the – you ability I and

rate periods kind weekends Just of on was kind how least or – trending. of trajectory at at that peak

Corey Sanders

Shaun, it’s Corey.

quarter, put be now. books to higher build a base. first to because XXXX of just the the fourth And XXXX seeing to last So levels, pre-COVID now. is pricing or significantly probably flavor $XX And the rooms right of year, the really, slightly, up really a quarter up they compared our that where month The see little we’ll you some the weekend August than where on were we’re challenging that lot it’s see will compared over second to we rates not to we give probably to from expect $XX. rates

the Now there. all don’t and that take that multiply demands and up yield it our we have because of to by base rooms

will rooms. the on challenge getting It’s We’re the that the convention pricing. on it weeks that comes And stay incremental challenged really back. until mid business

Shaun Kelley

Thank you very much.

Operator

next the And Please Bank. with ahead. Santarelli question go be will Deutsche from Carlo

Carlo Santarelli

some that levels, as XXXX, of is and mentioned Hey numbers international you obviously, of that significantly very much. XXXX, obviously the to of would XXXX, the not But and allocated kind you the in both your if down there XXXX base kind you the that the high-end year. say be bit obviously strip of mistaken, lower the extent, ahead seemingly thinking that anything cuts of returns, XXXX hampered cost that you kind international cuts obviously, Vegas. cost you driving Is guys, maybe in and in comparing line when thank high-end be business upside that factor would incorrect? look I’m fairly to to would was in obviously XXXX, XXXX the international of to if talked you little in about Bill, a

Bill Hornbuckle

every to think based confident where really a structure $XXX the know was. know million we think really, frankly it around hold, this work and we and on former about We than we we that. the put good the that what better today working operating and whole is is cost cuts, we bit feel I than That going on working started look, this. more No, lot when

we really good so about And that. feel

simply recovers, falling business The particularly to the was it getting of it market that off of to of on the and depend and was China-based other it market it problem, itself – the liquidity there. international slightly was what least Vegas. the out come here Genting get how presumably about will Las how part more getting to Part pipeline back be and happens into Macau the it at anything to the and but the out XXXX, we in with market will than our connectivity Macau else interesting reestablish It’s Sands market, going will of direct Singapore.

we falling there’s – overtime. a so And out somebody and competitor potentially new

gets potentially the Vegas. liquidity to and net of cash from probably It and and gamers And from out China, ability China here down to getting so Las really tourists into neutral. and just Macau it’s a

think so We I you’re the And XXXX beaten up though. pretty way right about in thinking got there.

Unidentified Analyst

be now options it mentioned. may do XXXX and kind you as or obviously here being spend little XQ, guys for here Japan you some handle kind or programmatic sit Thank Do arise, quarter on was bit the buying sheet core it that the bought for of whoever stock average, in of kind to back domestic Great. back when a bought with $X.X as York, the you in kind story XQ. million or the today be wherever cash this this be that expansion more in to guys of of and to then money of the bill, it more a pandemic, as on you. MGM, Jonathan million in it you $XXX billion that you of operating guys And in to it obviously you wants in with were is a Right. see back prior one, or Macau the $XXX New see to balance

Bill Hornbuckle

a company it a the high was it’s The my year. as think the during And really to by I I in core that XXXX, of in program well-thought-out think seen the time seeing prepared did had the do certainly being embarked I the was story. a we’re the liquidity, it company but truncated certainly results it many to confidence in then see remainder thing had having mentioned in remarks that that pandemic. the ways I return on, as good to that.

how an going course shareholders on be of shares I that things capital the magnitude. important commit certainly the proceed we’re any believe our It part our are return of of depends but not during valued to ongoing kind to and of and attractively to is our going Now, specific capital year, to allocation program.

Unidentified Analyst

Great. Thank sorry… both very you much. Oh,

Jonathan Halkyard

the only X.X you my I liquidity. – and was think comment Carlo, said

that that think far number I off one. is of

Corey Sanders

Yes.

cash. Sorry. just to the referring No, I was

Unidentified Analyst

Thanks guys.

Corey Sanders

Okay.

Operator

Please ahead. from Yes. Macquarie. Beynon is Chad go question The next with

Chad Beynon

the Wanted Thanks to markets. afternoon. on good my taking question. regional for focus Hi,

to just Some of helped companies in margins, about unrated has you’re you’ve and more what that’s coming you able unrated think the Jonathan. Can the have seeing to players about talked If strengths sustainable program? some M to little if your of guys over them you which which bit Thanks. play, volumes the terms in been a properties? and talked you from convert elaborate life

Corey Sanders

Chad, Hey, it’s Corey.

player unrated big compared on saw March jump to Our in February.

up sustainable? XX% regional markets. going the grows. in as I We’re over continue to revenue grow that it’s Is to think

relaxed. the As grows total restrictions get revenue has base

we is The will key unrated to people think point your converting I know. component stay. into the that them

is have programs even converting M members. our place to We how – is spent But enough MGM to do much members understand them that into how now. of right where put goal we not to BetMGM and convert that on in really life time

Chad Beynon

Macau, when Thanks, don’t Obviously, but inflow you. is and think team the Golden this of be more expect how thinking big for restrictions? about think your of people, give throughout respect I for can of Corey. visitation And then Week with we just market the ramp could coming up. us an you to is Thank how May you permitted kind terms you to year? the ready have update in current

Bill Hornbuckle

news think turn some I’ll May over got Yes, he’s this good I the Chad, on to Hubert, weekend. but

ahead Hubert. go So,

Hubert Wang

Chad. Thanks Okay.

pretty so I’ll May actually the reach occupancy. Week to anticipate We demand full Golden strong. almost So is

that So May, similar October XXXX two Chinese early customers Year year in-house saw or demand pacing end in to what Western booking we in years for point remains Week VIP. saw mass to ago is year. New And from Golden the the premium at our also pretty of Golden year, faster Year important high from what strong actually, this Week New very during last the upcoming the out we end to and exceeding than

So books. off-suit actually a are product and already lot all of the there

these as of the in talked in So, China we Macau Hong with I recovery. for this pickup. vaccine be And to to month that about via Bill’s that looking saw deep reopening be rates in in gradually momentum, Kong think think the and in also application market forward, be prepared saw think process, I of I year, the rates, actually March I balance we are coming redemption and that the also the that also process EV triggers going remarks, will the will the important vaccine

Chad Beynon

Hubert. much, Thank you very

Operator

The next David of Katz go from Jefferies. question David. will be Please ahead.

to next your or open DeCree is on David, from your Gaming. we that’s move end. All are ahead. is And you. right. with Please question. Union line on hear Your line go muted John our We’ll to unable

John DeCree

together. two Thanks taking Good Bill, afternoon, questions. my everyone. maybe for

You’ve initiatives how Japan give us kind progressing, reports little in New I growth well out expected perhaps about progress look two York bit at better we play how on focus kind as as, Yonkers the timeline as and and and talked on guess, and a opportunities Japan downstate a anyone those a at New York you media your insight might cloudy, of in as as thoughts could than this of point? are

Bill Hornbuckle

is start RFP. opened it changed had this intent to Not Japan. It’s really an deadline, I’ll I submission year last the for up. with that. company’s do They has it’s Sure. There much XXth still quarter. July, our a think since of

of reopened Osaka able been new we’re up There back were the given to to them Japan the and of to on improve about the have of weeks. COVID, note point it frankly criteria some no enhance and they’ve requirements and work We able participants. of three the given City with them for

in And had process, July, it determined starting be so the in the where happens. lone we believe locations to it stand – anointed. then in entrant that what obviously determined be national at and believe following will the And three that’s year June that will by as government be the

back went weeks last couple Japan You lockdown. that into know all

it’s that still on apply we it. fact tenuous if some to focused in happens. but very July intend in So, are respects, We hopefully in

York in particularly more simple, is there of understanding what was Nothing context New is immediate. obviously done. the

the XX, have until As of closes. now, June legislature we until

process to are I to hoping depend would cetera, our later good a there reason in early to that this but would too year. are would ultimately We an from but our we believe. RFI the around happen or to Monday zeroed literally there on be, about obviously the we timeframes. to at we’re remain It on two there get make our with an of process. it didn’t optimistic. RFP an was legislators hope might to We keep Ultimately, and those some what what all tell exactly tax governor’s remain And entrance. cetera, talking have budget. it, three both if those It in we the et et liked on We do. position of on radar team

Unidentified Analyst

That’s Thanks, very Bill. helpful.

Operator

Katz David Please to Next go question. with Jefferies. We’ll move back ahead.

David Katz

perspective question. be talk those or what could stake of sort be just and here. MGP outcomes my which gating lower. around the taking that we continued everyone. afternoon, from proceeds Hi, to for If about what some factors Thanks to alternatives moving lower would there, the discuss could move and wanted I and to generate has the

Bill Hornbuckle

gating – time potentially we Sure. right to a to we’ll over us over taken There’s opportunity so. process just years. no look the time do that David. has monetize that items think It’s when particular over for been stake of a few a period the that now company that is

and better story through to be we balancing our from with that, and have investment is Resorts of course One other that to consideration invest So in we it’s investing clarity MGP, the we that that they about think with that the the uses able by being for MGM other Resorts MGM in yield capital. MGP thesis the served have and directly. shareholders behind investment MGP of the

But we think it’s going the from timing. I’m speculate magnitude really or process, I not So one relates first the quarter. a we go it to further that during here as where on the to advanced

David Katz

gating issues, not is Understood. factor. aren’t up, relevant, as follow themselves a away can implications, I factor there, and if gating in of in there’s lot that you it obviously that but And take a but tax said, of to a fair

Bill Hornbuckle

Yes. relevant. not They’re They’re a factor. gating certainly

David Katz

very you Thank much. Perfect.

Bill Hornbuckle

Okay.

Operator

Jonas is The Truist go Please next from Securities. question with Barry ahead.

Barry Jonas

be Hi, do quarter? to any, stimulus would I the the checks thanks first my if extent, you what on guess taking for question. think weighed

Corey Sanders

it’s look, think definitely Yes, the a I regional in benefit had performance.

no there I think on there’s also of savings a is quite options also like really, sidelines. bit entertainment things the

So would exactly each be what I to able of those out it think have, to sit there and carve be difficult.

Barry Jonas

Got it, okay.

Jonathan Halkyard

This that is we’re with it. Jonathan. operating has sentiment offering it’s aside. teams. I we real was undeniable think also just service that changes It’s with what a as well think I add some checks going together in are in and – It’s to our improved our stimulus business restrictions dramatically fantastic just as product

has this a certainly improvement. of think demand we combination it’s to that events So led

Barry Jonas

York, are Great. U.S. New And beyond follow-up, opportunities as the any a other there in land-based just then development

in Georgia, anything pursuing? else? Texas, There’s potentially Chicago, You’d or be interested

Jonathan Halkyard

say Barry, Texas of the didn’t it, legislative is presumably course this. you of through session. interest, would know get I

just potentially away, something two the tribe. down So we you at but that Obviously, it complicated would Florida years as interested cities, the a them closely. deal be road we’re governor is of very the one the big is made watching the was the least four there, and are defined in. discussion as with know,

great the and under complicated. at in resort just And had Chicago, immediate as well obviously sports know spend the in any context how we the and horizon. see Georgia probably out, a right is while I improvement. scale think betting. as energy we’ll up. of so both they’ve And deal tax the there that time to pans The history of And And not integrated there. marry some of is notion marketplace We land-based circumstance. necessarily have the Chicago It well. be don’t

not overly in time at there. We’re keen this point or focused

Barry Jonas

Understood. so much. Thanks

Operator

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

Robin Farley

may labor – of kind Thanks. help think of to. be you be, guess, you how mentioned, regional for can didn’t nothing of control, property versus And top Thanks in that, has nearby, the incremental and some get of but do would have, might is competitive at how margins from you kind much in business I to wanted have it margin do of about you maybe the much ask like that the the it that a a to do competitive. for just or how saves, about fact much on that, issues cost that high you promotions trying on of taking to efficiency question. us with that lower that improvement more things sustained competitive can your come back, hold is, the to things area, line looking the certain Great. I

Jonathan Halkyard

aside for our from there Jonathan. of I restaurants, sustainable. additional example, in than earlier are – the The a centers. to of other labor few operate in are there relatively which properties adding complement what revenue expect we’re there circumstances – employees, businesses margins where we’ve regional lower couple costs is about mean, capacity we There’s to been it’s under Robin, a at some largely are of those be circumstances where those. couple our intended mentioned of but I our

not recapping it So, regions the pages website regional going the to those have program we much I’m that. would the realized on confident on them. specific is today, and of tune put a in the a sustain That certainly markets. to reinvestment operations was we well, is the already of actually, pre-pandemic in than It true But and lower been probably our the presentation. streamlining that can couple in we’re cost offer of

that Just improving to think rather they control, and haven’t own effectiveness marketing those reinvestment also are driven as been I changes of our than of that much always the and really our practices issues by sustainable and say competitive on test

Robin Farley

that XX those the that saves, of side of there’s across amount XX Of you that aggregate cost of but of would points savings points that, dollar the you, kind improvement, out company that know I regional say the is the labor of percentage a which… much how margin lays still

Bill Hornbuckle

to Yes. XXX of savings. XXX say compared points or levels I roughly pre to would points of XXXX basis about so basis kind XXX probably

Robin Farley

other as to was from market than topic new the I share sequentially? sequential there’s just about that different course Macau, follow-up change a a we dynamics you well. math just looking Thank and any market then as great. QX And in looking was and should at you. a of QX on anything expected, be know QX. else the I’m thinking mentioned should, there you at And share that, Is competitor shift we Okay, the lower hold

Bill Hornbuckle

offices are I reason own the and up database hold offer to customer own in No. we offer have our have we I customer, – Asia suited share ideally branch might the one given with might nature environments, done and we’ve on our company, own programs. sec, and gained historically the we’re of what

premium have the positioned. shift And add? will we to the as into benefiting obviously continues market market we’re as junket down, ultimately you from I so don’t us it’s and go well Hubert if returns, mass to that away but mass, anything know, think

Hubert Wang

you it’s October last we what the first averaged that’s and market call, last quarter about on were one but that same, Yes, the and decline. a, our the did count a quarter, there was XXXX little question think always I I share you can if Overall, we I that you for share, market at up year. on increase look XX% in back in an quite think

see, base that I think I we’ll on think mass. think all is what coming as That’s math focuses that but high end I premium anticipated, the markets. that well into

these suite in more actually in second suite products we’ll are the our portfolio. year, high-end this So half introduce products very of

of So, in decline market QX. back that I think that some we’ll share the regain we saw a

Robin Farley

you Thank much. great. Okay, very

Operator

Please will final Goldman question come Sachs. our Grambling ahead. And go from with Stephen

Stephen Grambling

into to you’ve think in help see as like ultimately try digital I think what an going high just pre to to outs looks Can sneaking think in for thanks about to And improve think in the shifting the level that we you cost from opportunity revenues. a boost of there efficiency us I but MGM deck, XXXX was about some forward? that talk investments the loyalty Hi, of digital, there’s question, somewhat me of improve investing loyalty. highlighted pandemic, I and as

Bill Hornbuckle

Yes, Stephen, Bill.

what tech We regional some some have we garment We transformation, spent of and take and players. great better but deal in it of time do we to kinds there. activity doesn’t. think moves retail we study from regional high-end a surely and some some opportunity business, of opportunity of an we’ve already Las Vegas what debt that’s to have and the have ideas non-gaming environment its ripe So, sure with the And to needle business, resolved identified. retail the trying movement around business, players making around high-end things. not digital its those of part some other secure that And so around getting around those our BetMGM players of ready is part to

And so we’re lean with going in to teams.

high-end. completed went years. do We’re in more What’s things hell of some And the going and lean the mobile to we three investment digital stand know, business check-in the the really things. to other the going of on to to with of the and nature. down about what’s going like, it’s on of majority us the that or into during vast we get put those more some to of do that obviously you as be things We pandemic how customer we’re because we over now focused four drive lean next the pandemic the experience. wallet that But share, help How drive opportunities. of the do side

Stephen Grambling

markets. not may promotions in if where follow-up structurally the related or do permanent back the on. you play intensity have cuts cuts, a the be words, regional even your In as be They changes the perhaps see it sense rated promotional And can’t turned competitive you well? on altered right Are there other in promotion drafts. may just may be so significant the peers

Bill Hornbuckle

it Yes, the I market. think depends on

think numbers published. City, I those Atlantic are

consistent. fairly they’re see can You

up seems like promotions I going you and to at other beginning business. turned just that see they’re of actually way rational listening more their their markets; the run the the Some performance competitors. our to type the is It pandemic, think

So is as sustainable market-by-market definitely I think up. some pick you it it of

Stephen Grambling

much. so Thanks Great.

Operator

any our concludes session. over answer conference Ladies turn and gentlemen, for and to this Bill like back closing remarks. the question to I would Hornbuckle

Bill Hornbuckle

Thank you. Operator.

where thoughts We of deal it you been we you see see the and going. we’re leave for a sense we as we great today. thank demand, huge of obviously pent-up a Look, here and where your we, we optimism call around with can all as and couple attendance major for events. have are There’s it. Just activity

fall. And so summer we’re the very excited about and

think Vegas. us think XXXX be regional’s returned by year. you half XXXX going Las And But the hope I versus us here we I amaze. the the to back levels levels you hope in to say, save say, to end heard We to of international. we’re you heard think us come second I heard half, MGM first say continues

we NGR compelling. of XXXX in great We’re where very excited by is kudos billion team. A that are to dollars

now have think you and what six we to the have were about the months market this year, ago continue for If May long-term it about Macau, aspirations still returning and in holiday. and see we hopes we, of we

and XXX we’ve we very business our then that. think real XXXX to around we’re enough got deliver plan we’re excited that. ultimately the I now on so that And to is by maturity And and going committed

excited we’re so, And where by are. we

digital job service bar portfolio of and much deliverable the job service taking here terms we’re whether and out or going about we’re a We’re by capital the and excited by it’s raising in we’re some company places excited conservative across to we’ll approach Asia thinking that. and better want, the we and and know, other And on with kinds true the place of by or of you put earlier, know allocation, excited his now growth that in do to that. the the do and

evening. your I a have attendance. you for you thank hope great all So

Operator

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

disconnect. You may now

MGM Resorts International (MGM) 29 Apr 212021 Q1 Earnings call transcript