MGM - Earnings call transcript Q1 2022 | MGM Resorts International

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Operator

Good afternoon, and welcome to the MGM Resorts International First Quarter 2022 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 and Treasurer; Hubert Wang, President and Chief Operating Officer of MGM China; and Andrew Chapman, Director of Investor Relations. Participants are in a listen-only mode. After the company's remarks, there will be a question-and-answer session. [Operator Instructions] Please note, this conference is being recorded.

to call like Chapman. to would I turn over the Andrew Now, go Please ahead.

Andrew Chapman

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

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

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

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

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

Bill Hornbuckle

every that at thank MGM each were into afternoon to for and want perseverance, assets for Resorts. operational day our other. country, recovery again Thank and call of our in record for Vegas leading once and that joining continued results MGM to fuel begin Las the challenged and we These I'd agility, good thank to mode, Omicron our EBITDAR our take today's efficiency, do helped talented strength they strong Today, the across by for but our We and service digital you demand quarter you, I experience again, thanking several at of care employees guests us team quickly for their pivoted properties Andrew the commitment determination, provide multiple in the our all employees, and another acknowledge March. the of our today. company. strong Resorts variant, January by all to and focus like all-time and on to at showcased

on As be a our the remain plan company, entertainment and we long-term our gaming vision: strategic world's laser-focused company. premier to

following plan reminder, and highest providing a guests and our by at of strategic level; digital experiences in operational for data-driven the capital and yield people excellence consists to the every priorities; unique our our investing responsibly to four our leveraging capabilities; planet; customer insights shareholders. allocating our delivering As return our

the our to our another quarters, April condition. discussed Friday, meaningful and structure Properties support several monetize estate closed Board have last journey, corporate their built to the of we've over real meaningfully and the assets the this milestone strategic in the simplify employees We Vici. years. I'd Andy Over like we've when bolster MGM important the reached steps and relationship taken XXth, cash and transaction we Stewart, the James for and Chan, with thank all for MGP great to Growth we domestic

ability business this States the are opportunities. strong platform for in digital the closes with of professionalism LeoVegas. team for LeoVegas, potential BetMGM working grow management deal to and the and which fully today look team more opportunity internationally half with financial a also announcement for our compelling for growth about continue opportunity we will us core gives billion in the business will conviction, MGP meaningful ever netted with technology success $X.X Its that when our transaction the to tender us is for at forward LeoVegas cash, and the and this of with than at throughout And to their reporting team allowed pipeline expanding our thank approximately marketplace. to such to we in the the share assume growth to support Vici new in process, year. Our in the our use like exciting One We'd with conviction invest United grow second we deconsolidated present online. and gaming to our our from also us

for the eager three to new Another this XXXX licenses for in a we're excited includes important that amenities of by our Again, New this foster new the commercial opportunity look enacted growth recently discipline license, will York. where that replace issuance New in forward York existing provisions opportunity the slot receive issue XX-acre quite of Governor the New the our line. table the about the legislature and jobs investing across process machines Hochul, license through casino vision on finish games portions fiscal floor existing and excited with VLTs to to pursuit up RFA we're getting create is new Yonkers, construct of and The share the have property state. future if We're a thank we and in We'd in year to like the begin York of site. the our region. and in we plan to gaming budget and allow this economic to

this to Vegas at all MGM Las Resorts we an existing adding acquisition strategy, Cosmopolitan as towards quality met The enhance complementary at to the to loyal sale and culture the the we growth months, We've iconic have solid made Mirage base as of progress the Las of with progress brand operations leaders the of they their CoStars last by portfolio. look forward operations Vegas which me, the impressed of last portfolio to We've Cosmopolitan on and of well of We the Cosmopolitan Strip and with our that brand portfolio. are the that of team, the our customer Rock property, and excuse welcoming weeks is track to further Cosmopolitan also build. our the on Hard International, -- year. over our to this made announced are key and will and quarter. Las close The Turning Vegas a

plan Last smooth area with closely a this submitted of growth week, to we this ensure working transition the to half are transaction development partners before and of hopefully our expect to this milestone our our of the strategy. Osaka. of license ORIX final be regulators at in government in This to October City decision and Shifting made, close year. Japan second a international is year. will with the We the

license bring to the to Japan. closely beginning broken wasl. agreement MGM government we this diligent being and resort and the have make into in with work fully we continue other UAE, management an We developed later resort The integrated in the a development process, to remain ground obtain In opportunities national continue a brand to hopefully year will to integrated awarded family brand progress be a MGM the where is for bring world. Dubai, a for we to around partnership in with locales the that

New and to in committed on Ontario XX. BetMGM Turning quarter Puerto be US in online betting Rico Illinois, February, investor XX% having markets in their in which at the reached one iGaming, with able BetMGM in sports May XX% the results team in leader now The launching and Louisiana on share active meeting clear more market to in and will BetMGM, markets is us puts color market provide Thursday, coming position the management the February. early we and XX York, live nationwide. BetMGM share strategy both in are first In April. iGaming, number

our our launch different a minutes first spend On and XX% came our strategy. a strategy We've as relaunched with the to our ultimately BetMGM. building via non-gaming the seamless further of customers person. MGM MGM creating both our In full activate of benefits in play our in of like to I'd and in strategy X, XX% few customers, loyalty in patronage driven year QX, Super Finally, growth online to between loyalty tier progression, and the gaming for BetMGM particularly Bowl, target solid increase XXXX. we cross-property to and on our for motivating our at it while high-value BetMG to quarter, enrollments channels committed MGM organic growth addition program February experience as a Rewards since seen properties. the goal relates compared to We've to customers results by with omnichannel Rewards customers Rewards

a reflection to our outlook. occupancies weekend In over the from Strong current driven Vegas, the strong and future operating robust event we implemented like margins pandemic, the Before maintained of that ADR a second the we and to trend continuing and few see our a were Las by in sustainable highlights learnings I'd calendar, quarter. into trends this of I turn first Jonathan, hit quarter,

the mid-week, the and ramp business a an still remainder our to group allow For behind improving but will in year. mix XXXX, us growing of base the occupancy of is

XXXX. to to levels reach half our XXXX expect of back continue nights We in XX% room the of convention

trends of our indicators levels spend and increased seeing catering see beginning were groups including positive to capacity. international spotlight, flight are our we leisure to return the banquets, year-to-date, Importantly, for and international of

entire by this BTS shows activated weekend, Las NFL the at in This at MGM fact, flight which levels. Strip. XX% Grand to capacity Las expects we Garden. sold-out return In our summer, of past the Legion the Draft, Vegas were the welcomed four international the Grammys properties Vegas, We army events to highlight pre-pandemic Further to to Stadium. we host for hosted also honored LVCVA

Las first the kind also along sporting in Strip Vegas on will host Formula And, Race of events Regionals Super February November a in XXXX. year, we NCAA in tap next Basketball for Bowl X with the Men's of the We coming of have big the March of with XXXX. of course,

an these progress entertainment incredible as has of big made the events the destination. All and sports show City

first rated to value our and the had with a Looking revenues focused to database by yielding very we are quarter we strong strong margins driving on our properties, players. with regional highest competitive gaming XXXX

touch to operations briefly Finally, in I our want on Macau.

market discuss the and Macau government's higher our renewal ability part to of mass our we We volumes in capture future, to begin our the policies to to industry this, remain ultimately supporting further return. diversification get as Macau's Despite an historically, license to seen is the promoting tourism the will that, it work to with health We have fair government's With approach business we continue government properties turn details development the long-term process. I'll Concession impacting public headwinds enter the this are the and to region. over premium process Jonathan of our customers is for share short-term for and the confident forward and quarter. and look well-positioned the XX% underway, of is continue in with and gaming to we judicious to goals to renewed. important Macau. see than

Jonathan Halkyard

Resorts Thanks face plan the we in Bill, look as the of very also like by entire thank echo this I'd like words MGM to Vegas ever-changing the the team and for welcoming an Resorts into team Cosmopolitan the to thanking much, environment. resiliency for professionalism support everyone. closing, CoStars to and good Bill's MGM Las and afternoon, for I their I'd of their family quarter. forward operating

our let's first detail. a few results Now quarter in minutes spend on some

Our net when compared first quarter MGM improvement our $XX of billion consolidated first $X.X net XXXX. a the million billion, revenues and net quarter of loss million, Resorts of loss was net in attributable significant to a and were to revenues $X.X $XXX

billion Our a occupied $X.X due $XXX adjusted XXX,XXX down January. were in first quarter all rooms, on were Stirp same-store Las X% was the EBITDAR Net fewer Vegas property million. for Strip, nearly revenues revenues net basis to and

$XXX same-store our versus XX% quarter However, EBITDAR demonstrating adjusted of was broad-based XXXX, of the up first improvement. margin million property

where of was it went with January, the of a occupancy to finished above the quarter quarter significant First first January, weekend quarter Again, for different up occupancy ADR. quarter first XXXX. cadence a February X% March, a 'XX story and in different same-store then saw We by month April, the and on but XX% February quarter ARIA quarter. had down similar was of each occupancy same-store of basis, And a XX% the $X XX% occupancy, we of March. basis versus which was The recovered was impact, month XX%. on The which Vdara was into $XXX $XXX as improvement Simultaneous we were in Las XX% each in strength points volume a dramatically basis, Strip Vegas quarter XX% on Omicron same-store versus XXX for Despite XXXX. the the margins and occupancy improved an occupancy pricing and of ADR in excludes the demand. pandemic in first the increases in driven X% or during quarter. same-store up as an in story our financial Strip. of an basis. continued XX%, in and ADR strong on impact performance over a XXXX in was the XX% through

XXXX efforts sustain blueprint above through the operating have to cost We in our well leverage. and efficiency levels place margins

in is in robust and the demand, XXs. Vegas will mentioned, increased together that support drive in second exciting there with quarter low As the group Bill Las business leisure programming occupancies

$XXX regional $XXX the first million, revenues quarter regional delivered XX% XXXX. We XX% versus property million, net Our an of XXXX. adjusted were first EBITDAR was of which increase above of quarter

business in Our regional casino quarter. despite business strong first the during was the typical quite seasonality the

improved of Our first versus quarter XX% the casino revenues XXXX.

is XX% quarter first Our versus were grew the due levels. in situation to and improving nicely in in nights XXXX this promotional the XXXX. staffing margin down regional challenges, markets below part quarter a quarter. are basis expenses Room of XXX regional The points that few points stable but first

was first first million first quarter XXXX. $X EBITDAR a million the quarter quarter the positive prior in versus to loss of a of the decrease Moving to Net Macau. of the million in property compared represents quarter. a Adjusted $XX year in X% revenues $XXX

the also to – litigation Now, once we're product and positioned in related demand in well premium mass particularly and of reserves. our charge grow, quarter offering our $XX mass a current million confident included returns, believe product our that offering Macau to that segments. we very in We're

BetMGM. Turning to

to affiliates driven pillar long-term in customers these our a plan. BetMGM's of EBITDA develop optimize to guest experience, initial our in XX% we largely key reported York, link strategic the is as story quarter of the $XX Our by for strong line is MGM which calculation. losses with to the with unconsolidated investment person. a upcoming first and in will was part BetMGM Rewards growth This allows adjusted New but our BetMGM Connecting in of us amounted The quarters. the in omni-channel both our online that losses expect narrow million,

our we compensation, strategically wrap million to I $XXX Japan. areas, like improvements Our in first enhancing costs. including allocation. million, transaction quarter capital efforts corporate our to share-based of $X our corporate including was and again our to included before expense, growth would IR our infrastructure, which our reiterate offerings digital in once remarks, up approach investing We're prepared expense And IT

with balance maintain a we'll adequate sheet First, strong liquidity.

exercising year capital. allocating Second, actions priorities where advantages we'll prospective prudence we'll invest we demonstrate finally, shareholders. for our think our cash thus measuring and return far I have And shareholders. clear to this amply our returns in And

proceeds transactions We balance have the liquidity closure $X.X realized MGM, and with strengthening on Friday of for VICI bolstering our sheet. and our in billion strategic our

and digital This quarter, we announced Las position, or will close two strategic growth Las investments Vegas to and LeoVegas augment Vegas. Cosmopolitan of our The market

XX.X Finally, during In April, repurchased billion. we the million $X first another X.X shares. we quarter, for repurchased million shares

XXX count XXXX, our it closing the of about market to since his approximately With $X Bill This million XX.X capitalization. down to billion beginning for brings for remarks. So repurchased turn of or I'll XX% our share shares million activity that, shares. we've back

Bill Hornbuckle

models their position take the even team today the been. of in operator, our are turn XXXX and and are rest are that, for Thanks, our like our operating members and questions. best solid it to to work. we With Jonathan. and without We've again of beyond the yet be of Resorts. of coming commitment days come. with forward are over MGM looking as to we I'll not company strongest I'd in and hard We've pandemic, confidence all Obviously, all to the thank made their out dedication progress it feel

Operator

you. Thank

question Joe We come ahead. [Operator with The Please Greff question-and-answer will from Instructions] now the begin session JPMorgan. first go will

Joe Greff

Are pushback year? equity your they're Strip? you then on bookings? at there And higher starting interest are both obviously market of out where given want product? on Vegas Bill, pricing, Any to group well. you’re Jonathan, maybe on hasn't you and how any any all of your see in that pricing, hope that an view maybe of the and really rethinking and from this Las pushback And you kind maybe you terms F&B pricing you're particularly behaving typical slowdown, rates, hotel well done and to translating sit, what's hotel food Everybody, how in ask higher how you out afternoon. is into regionals. I gas consumer Good prices, kind beverage

Bill Hornbuckle

is strength I obviously We've answer of tremendous generally, Thanks have the not think April Joe. yet. seen a continued. of seen that in we has Look, amount any March.

maybe is think finish this, probably Corey can some up. Jonathan I want to of But you best Corey, to-- suited answer and maybe it if

Corey Sanders

strong, power change Pricing putting still revenues not anything Joe. Sure, in any breaking We're betting are is seeing we're -- seeing records, behavior. not so it. customer

Joe Greff

small can very that about I then joint or how company's then venture? And to fits you Great. your just that about it's with LeoVegas. talk small, talk maybe Can exposure relatively know you gray trend gray market some And markets? -- maybe to business would change of tend to a in legitimate, markets? markets presently developed transition you see as that into trajectory those revenue expect more And

Bill Hornbuckle

Sure Joe.

that take one. me Let

our I what thing just better. and never been to first particularly The we've by has want partnership start accomplished Entain relates BetMGM as to it with stressing

think finally I caught really we've stride.

lot of numbers hear we're XXth. You can way. on next some the in excited will see that becoming our you'll And that our market launch guys Day May product the that's Investor go through about whole of the our more that and on a some shares, for and define

them. changed. we ago, relates a lot to as you to don't tried whole it Entain And think specifically, a buy As year I know, has

which we and segment, the LeoVegas of strong space the in our We been absolutely and this to the that, when was watch the BetMGM now, then, need we revenues diversify the we deal. is validated now double I'm It's did iGaming of in. space going right thought particularly to company. And basis by extremely kind go probably want and their hand-in-hand. shares shares You've repeat said the

it's does, they've exposure It had compounded not accomplish sized. growth markets largest your They've we have. acquisition, give XX% that we world's year-over-year. love bite that made years, over years. it's so though, global currently point, last over our what the the five We able to nine to And move. the been To last team, us don’t XX

he's so and all And the sits Texas great, able has -- is the been cloud. down on platform accomplish. team Gustaf been to the The rate,

something assure employees. are potentially we're but them effort, can we at for and desperately XXX about at, I So, It's And the technology all obviously look of in company. first-class. can it this we for things technologists, of only other the lot. company hundred not going get to several looked need and use a There's our long-term you, who

things. for so good us, all And

As it of relates to a markets, there single-digit markets, them. in are few and that that Jersey only being about BetMGM, XX% down are because one markets their are current we will close of our New but of a regulated few

I think I don't Jersey market think, X% month. know in I share they they had -- last New

And So, out it I know real and as don't have see they organization, capture. and any of are things go other any consider hurdle demonstrated have to through. growth potential within kind there get we because we that to of that

would have last when a I they quarter think great quarter. potentially this had struggled, demonstrate again others

this €XX last think million first just which they the morning, EBITDA, I gain reported year. a of is over quarter about XX%

technology longer be I even excited term. exciting pretty So the opportunity, more us. the for us and the ultimate so more by transition, and couldn't I team provides it think, It's the just by

Joe Greff

Great. Thank you.

Operator

Please, ahead. from go Deutsche Santarelli question from next Bank. The Carlo is

Carlo Santarelli

dollars. years. that obviously, you challenging on about of is kind Vegas of provided Vegas seasonality with did XXXX, it, of has And that maybe group variant my business group guys question. move sense of current Hey, coming as year? couple back, and you Las came Jonathan, just suited guys but revert you slight market had and as the hindrance balance a you with a the as think everything think of greater maybe business best the Clearly, just it you the is taking this group outlook be quarter for some the -- kind through could quarter stuff. is margins, the returned, it kind and something over for about to color back want secondly, you. EBITDAR do by said spike else for with that, you the guys. one But when the Thank get quarters January I to Las the to build we would ago, But the

assuming what that's As still structure today, pretty you the I'm cost that, you'll feel confident sits see?

Jonathan Halkyard

Yes. Thanks.

in take turn. me Let questions those two

our business quarter. as second group we of be year the to the for able to the the into group In quarter build. First second many rebook back customers unfolds, group January in very will our because, canceled was that and team business, see do of particular, all, the strong continue that's

course, strategy to across levels all grown seasonal being the XXXX as it we've But about said, year we've really, business, the properties year think, an our really that as exit group our optimal not So at keep think, running marketing of the and might we've at streams, strategy, the it, in continue our XX% through event we're of that that the of to as revenue been level. our diversified down you was business of through grow year, I is our but able and levels. drive business, early seeing part will

types back drive depending of get, story. As far the as this on The the And going yes, important groups effect margins. you a the upon are described, it margins margin the bring we diminishing a really additional slight we may business, that interesting it's that dynamic EBITDAR. quarter of to segment as clearly, have

those margins XXs that you started know, the ended low out Vegas, occupancy. Las XX% and low in as As drove in about But the additional EBITDAR XXs for we quarter. the reported in we

business. generally good margins in occupancy our really So speaking, is for

Carlo Santarelli

Thank very much. you Understood.

Operator

from question David from next is Jefferies. Katz go ahead. Please, The

David Katz

Does just bit, long-term to it the the looks suit brand? a need is is. of my the And -- you there. Afternoon, the about a MGM in has I able it it you an XX% What's day. ceiling through sort What everyone. CAGR where the Thanks the way are on of some wind information CAGR that some out rate though up as inherent the to for It for to wanted growth I on it? But what's from? do LeoVegas ask having change this? it's little that's taking accelerate vision think question. shingle for way? in

Bill Hornbuckle

I fundamentally LeoVegas and see in spot grow Nordics great management foundation a have from Sweden, liked XX% both in They're starting a in we, as vehicle share. a in the think they they and We're technology, continue David, globally, of because company, a to we it to it's again, the markets have Sweden, in the dominant share. iGaming. particularly Nordics. over and in the in particular, fifth-gen dominant

But always, ultimately be, for and to to demonstrate them continue environments So couple in that's that. obviously, that it's won't lean we'll the happy they to understand them things grow was targets of and in We'll we've that capital. space, our And restrained to our are as we're desires something with we help of Bellagio mind use about a that we us seen map. -- there. have company. through, interest into, be cautious makes think the given ultimately, us acquisitions. a have be sheet, grow pie piece on others us this all able get use and will bigger brands, things the will because, aspirations organically to the us. hope out of one we, near of regulatory the with capital to be it we'll they we puts And, our in are to kept and wanting ability restrained and our our And with and them we that And given both term. their again, and if to MGM, obviously, balance it, this them growth

Jonathan Halkyard

If add…? I can

David Katz

Sure.

Jonathan Halkyard

capital So, repurchases a the year, we could cap towards light company and -- we've platform we're of over is other while perhaps like proud David, if a allocation verticals type one investment important on to was set that well we follow-on platform could opportunities, of our the LeoVegas, and just the of also made that had gaming, share our the is strategy. market in repurchased put higher capital asset the into extend part we've mind strategy of this internationally. it of we But and exactly about M&A with company, that as that I growth this allocation to progress an the add a of to very that XX% or digital when thing of brand

So it allocation really does strategy. capital complement our

David Katz

changes -- as I into we start Understood. I backs, and we roll happens step to the just But touched follow-up be ADR and about and a the quickly few as thoughts mix convention would the a -- this can different more And from mix perspectives. get rolls that think April getting Any you what on year? midweek in helpful. if regarding and through Vegas,

Corey Sanders

power Yeah, David, do midweek it's pricing that it bit convention business Corey. those What the had will with in rates. our us will us is little help up less we've a business that will which ADR, allow to yield

displacing and the the of any that. casino before base displace package do contrary, that the strong, continues we casino see lower business we we'll To don't be Our business business. end to

David Katz

is So the less? answer, or more up

Corey Sanders

Yes.

David Katz

you Thank much. very

Operator

The next America. question Shaun from of Kelley is Bank from

Shaun Kelley

start with much. very you margins. Jonathan, to Thank I just wanted

we maybe I think Las remains thing pretty us Vegas has occupancy. March what growth related should there, help improvement one you cautious highlighted reason how timeframe? Just you've year in we You gave an the bit the in Any through puts to unfolded little about as past far? relative so more the shift. that think But interesting be move on just quarter takes the and trajectory and strong delivered is to mix margins. the around in a gaming

Jonathan Halkyard

was how almost the in performance by was and in to impossible month. mean, our just cylinders – all calendar certainly a This helped overstate March. very company performance Yes. I strong it’s strong on it was event firing

in the because of margins and property that. a to levels revenue regions So, were strong Vegas in very the market

we're the Going that forward, we go see business particularly margins. what that no the been The in that The for we're to has midweek and structure as in means be going meaningful particularly there's through seeing for strength demand strong. rates, cost casino changes will group year. to healthy

over But that is normalize levels. in planning, quarter. in delivered are prior year. certainly in being level take the said above extent on call, happens, well like our in we the margins of we're that we first sustained I said some those our the that a do calls, in Las business we've be the Vegas could to spend we on expect comfortable did margin and certainly that that with As And XXXX, to that

Bill Hornbuckle

color Bill can't here, maybe a because Shaun, just little added myself. And help I

in March January, XXs, Led is to by Las and business in the points rolled of another the the we're basis this in thing the margin that Omicron, and March. reacted that because Bellagio team And X,XXX I'll XX%. the still brag in of by So I'm particularly, midst Vegas company them – time, low was improved – for around proud did on this and we know and times just month. these, help property doing of it margin. Bellagio helps. we $XX.X margin, in it helped in all-time And years normally did XX% is myself, give you're can't it March. million shows just don't a that, Don't strength it When a an the its EBITDA into XX by Having history I at go XX lot but was I and now. said

Shaun Kelley

was I question, similar this then a April. think And a color. on in million but the the follow-up, given for X.X time. shares sort as you just repurchased number of capital Obviously, allocation Thank

we as tender there -- was You of a kept little a repurchase and by there think, QX single of look bit pace offer very or strong a a through shareholder. a course I

invest in continuing just about the think versus a we of about obviously, to the think able investors in cash things you door? about opportunistic year help pace maybe programmatic as going other the in? the help forward, can us some you're all ton of – the think addition buyback just balance buyback to and So So

Jonathan Halkyard

So share $X in a done, of just billion over we’ve we repurchases. – year just just over

and number And of Bill that ahead the I out interesting before we that predicted have the is this say terms think have asset in have in believe of the the to course, the M&A them, we've our remarks. pricing set we transaction our strategy opportunistic growth with projects. to we year. a two undervalued. opportunities and market the opportunities of it's because now fair shares, prepared pace conclusion presented come of New of other That last said, it's with we week. that are of York been which bit VICI-MGP a largely of might the LeoVegas us mentioned we monetization of And last closure being

dry we're to on going as those they themselves. opportunities powder to able jump present keep to be So

it's lot think through the I go year. by opportunities pace is So of again, repurchases the a that of fair provides driven our of balance But it markets lower might us. the to we say be as share

Shaun Kelley

you very much. Thank

Bill Hornbuckle

Thanks.

Operator

is Morgan Please Allen question go ahead. next Our from from Thomas Stanley.

Thomas Allen

you. Thank

being that interested betting sports really an the for they other opportunities Kambi in part iGaming-first business. platform. interest do my piqued [ph] the of sports was I to Are in platform? see earlier know just the comments your Can bit for LeoVegas this of has I a deals. that LeoVegas space? you. potentially by a a reputation more? think going you you one about acquisition of mean, platform I Thank use you be Kambi other betting little digital What So that talk

Bill Hornbuckle

I exists, continues at that continue through launch, there Clearly, Europe other particularly talk that think the South -- exist. as vehicle. Eastern still we expand, to places, like-minded to scale will are There potentially that look that Africa, about Brazil, America, you other in whether of Europe industry acquisitions to

us, it volume We've diversifying it's going wasn't opportunity there. talked size goal ultimately do so keep it to to And revenue about that. recognizing to a and cash bite it's and of look, midsized for flow, take the some buying

like And is the and perspective, been reinvestment And good been for margins right again the our their mindset business, acquisition business. business. have into the market We think an the that they team genre. Their great. like way from about in like and they way that never we they've start so this we the got that

we'll so through this transition but I grow back that. tomorrow, at looking expect And use and very organically don't we'll transaction, about know that business, soon how and be both to through acquisition. get once we can I

Thomas Allen

$XXX sports And what losses that's quarter, million you the thoughts latest environment Do on for the Perfect. BetMGM this year. are think then of having still I then And about competitive betting estimate? last on Thanks. US about fair revenue item. like your you environment a think the that the side, on talked

Bill Hornbuckle

yes. first Look, is answer

of We we particularly we to hours if May see. thunder, what seeing we with I don't want iGaming. but tuned it, they've XX love in you Second around one got we're generally it, take Investor understand Adam's good. sit, the several it the Day, at is but noise through From all, where

I so Joe. And think be Adam digging detail, team, and Madden will Company great that in into it some

Thomas Allen

much. very you Thank

Operator

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

Robin Farley

may talk New of kind a Great. returns bit York? Yes, I you targeting what little if in wonder about be could you

Bill Hornbuckle

things, to invest the billion facility to X, put to of any as had and the $XXX the Phase the interesting, parking business, which for and our the look, opening into RFP minimum XX, billion neighborhoods Well, and couple entertainment highest to with that the be history the opportunity other all round, the of bid, and know a different. to as by we potentially hoped beyond, to and it up garage industry talking favorable. that, is of need $X.X obviously, creates. Xx. us -- and much the at it set that is an an we know it, favorable. available there is the of expand some we're an put is kind process governor It's of we to kind Having We in and we fee We put million currently license. arguably, a market where some both wouldn't date, said games the table like of areas, in tax will there amenities first license target opening mid-teens surrounding this us attract It's stuff, the XX about our think like that's went of like we this in

way about think a to I so And that's good it. think

Robin Farley

a tech the Thanks. capabilities US? you you bit the Great. little can in LeoVegas, Okay. about what that And talk to compares how have and

Bill Hornbuckle

say from the expansion about end, and ability it back end there scalability would the cloud-based. front when it's the you easily. differentiator and therefore, bifurcate is I about you to talk talk the Look, And key fairly presents that

and not so. of to we're a a We're code-based so And or around hardware. deal around goes to that bunch deal having running running having with decade back not with

to be the exceptionally it Obviously, to in-house ability scale casino demonstrated to well. they've It and us studios like we'd two brand differentiators. quick things, through and works. meaningful. we think, principle game then we've works when enables the this have MGM seen at business it of and on is so to And And others our put

of And intend I that BetMGM both And give business that enables you that great do Some the thing here of exciting again, and in can't you way, us a and valuations shame a into. on it's and place thing do it, to there in understand will industry do think from same the dealer us, last dealer. kind do. one Vegas' then fun to and the some and and live continue we to of of live well. so best we at the to do If is when offering. providers, noteworthy It's a our compelling we do relates games push if represent all then and And they the the games are that This and space want vehicles exactly us core, in our stores think the what as grow there. on MGM-branded there's it about a backbone that. opportunity background to think that's to this to so we

Robin Farley

very much. Thanks great. Okay,

Operator

go Politzer with Wells Please is from question next ahead. Dan The Fargo.

Dan Politzer

my afternoon questions. good Hey, Thanks everyone. for taking

wanted maybe volatility one given talk prices? properties in trends in just on your bookings, any booking Is across there terms in the more fares about So, Can to the Las I Vegas. air the hit of and portfolio in different luxury you versus core? differences the discernible just fuel

Corey Sanders

seen anything properties the mean, you any challenges. but not more we I of have don't -- similar Corey. pricing business challenge, is Mid-week what have luxury We're past. when in different legacy the this aren't bit saw have properties seeing a have this obviously probably convention Dan, to than that's pre-COVID. don't in we a little very would

Dan Politzer

that's over Is actually level, mentioned think as staffing in our this bring I continue ramp, have about and or expectations of just think in a think out there, we I mean, then regional maybe should regionals, business that And over to it. this the structure pretty to margins is enough business remarkable expected continue Got about, that the range. cadence non-gaming back ramp, good the margin rate should time? amenities, in you on deck, for we how the we mid-XXs but the cost to current the labor inflation been you the time? moderate

Corey Sanders

enough are the or finer not getting of another. strokes the to that material but we're way are amenities, think terms to margins, move the of I nongaming opening ones in financially meaningfully important one

that in the of also because labor what's is and -- recent have happened we in -- more we've course, hotel. months, we to order can availability been really So helps need the capacity has customers able when in that, of meet improved, the demand. -- And cell open margins

in amenities, the margins on forward markets, impact going So on I be small. very the to going is regional the think

Dan Politzer

so Thanks much. it. Got

Corey Sanders

Okay.

Operator

John from from DeCree Securities. is Next question CBRE ahead. Please, go

John DeCree

just Corey, and question. Vegas. the Hi, have -- of any as the spending up back to Vegas? well or the Las insights taking But if We when is some curious actually know that leisure of business Bill. and ramp Las international domestic to group my customers come really the customer starting I to those patterns Hi, Jonathan. Thanks business a to of for maybe US now. to revenue trying other getting back are how sense get segments as they they're spending traveler saw of spending you

Bill Hornbuckle

has international interesting the returned fully is, return and of far, last and success this international John, comments, kick it to me days, Canada air. XX Despite Corey. XX yet. -- of last the XX% the Kind one turn particularly things we've the in days the Let not so in I mentioned off, quick seen or over in my

the But news And we've so, half come is, only good good about back. why. seen that's and that news of

opens substantial end higher whether half of we the to Europe’s And uptick business. or that there's either well. not when the a been as at leisure it's finally about think think we from Mexico seen there. so, come up. the then, much obviously, have We Far is East, And

from up perspective. a holding casino is marketplace international the Although,

so, knows we where that Europe six be all and God of I accretive year balance today. returning, are the it Canada, it now, think Asia will from of the between a whether months, additive And of genesis ultimately, to be and all or

John DeCree

as Bill. us licensing in the on end probably under the and to the rough of line might a and you the moving, you're of you update, guys horizon. potentially might goes kind of ground you hopefully, have when time year, exciting like licensing could and look Maybe one one to gave the the if shovel you Thanks, timeline? what current give most if helpful. of outline get from a there, That's successful, as, process get I projects Japan. Curious towards process know on able sense a ballpark an be

Bill Hornbuckle

of Thanks, Yes. a be scale question. long-standing have to think think, one John, I be market crack we agree, for we the and in this survivors, will at pretty the And compelling its project scale, XXXX. all And then, for four-and-a-half-year is be this doing hope to is early to late XXXX, of That build. I'd us. a -- said, by given pylons this

XXXX way this is to So think really think. I XX about it, a into XXXX late the project is --

John DeCree

Thanks, Bill. it. Got Thanks, Jonathan.

Bill Hornbuckle

john. Thanks,

Operator

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

Chad Beynon

taking I dissect Thanks the afternoon. Good my question. casino segment. for wanted Hi. to

the touched baccarat, slots You is be going Thanks. noted XX% where regionals markets? to of slot in higher revenue on, XX%. disconnect the I stack returned, the Vegas could table understand slide forward? that the higher something end And up business, that on hasn't just change or Vegas, a to in structural two-year regional Bill. the tables you this probably, of But was what's -- percentage guess, that a deck revenue because flat versus just the up was on to I a in that is three-year basis in XX%

Corey Sanders

on on impact Jonathan Corey. it's the touched that little room In and limitations, regionals, properties like with the Hi, particular, a had -- Chad, an tables. at bit especially this and Borgata

Vegas, see solid, come pretty play Asian is you're that to without of are play some starting back. game typical that In We player. any and Las the doing

think same I question, even that time to Chad, be, a there which there don't some of again, change? We might amount had to market. your seeing marketplace see testament activity once there Blackjack. think to to I think, a is successful I tournament strength be case, mean, Maryland. proved there, we core for one. whether is extreme in a cash very in Borgata, for up the it's on I the mean this fundamentally, just of we see the we're us And the business So is I check, weekend of tables

Detroit, we by fundamentally, the look so And here a at understand We day. don't see dissecting numbers you you're for but it. place the like way, the

hampering some If when you begin they of see restrictions off, where hope look this business they Detroit, that to are at some to and this well. have come ultimately we still and as finally

Chad Beynon

And -- how acquisition, close, and regarding the in Vegas Thank guess, your Vegas then you. implemented into great. loyalty and quickly Okay, I your portfolio just Cosmopolitan the be your Las after the can system? asset

Bill Hornbuckle

It environment. depending and the the take system on will

of because guests, some want to properly, and it takeaways. will quickly guests year. want the ultimately we do for sure that to take think rewards particularly we pretty are property, there is make stuff we integrate no to you employees out want and When a their it Some both through

to earlier, subject piece from mistake. I and We're segment days again, done And talking environment anywhere so it's how you're think we're depending on place we've what well. what what particular it year of the matter exceptionally said on is. -- has a about. That that depends just But XX a -- to in make

million cash you think flow $XXX back that XX, of it's if trailing something I or like like number. around look

And cautious and go so we're relatively going slow. to

Chad Beynon

it. very much. Perfect. Appreciate Thank you

Operator

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

Barry Jonas

Great. seeing all your the Vegas not inflation, is window you any yet across there? out extent from the uncertainty you're how you but visibility the today? given just then talk booking can have long in to Thanks. impact consumer appreciate forward I what to And macro about markets,

Bill Hornbuckle

been it's slowdown We're the pretty it's we XX to past, XXX past Yeah. have booking visibility we're any that. what those not Barry, seeing and similar areas. days, in comfortable of plenty window with the is there, to in

Barry Jonas

will just their and a thinking are great physical cashless players how hear. Thanks. in ability And at Great. Rewards. the to how in into BetMGM as use allow the the noted integrate about maybe and fund to you deck, your But then wallet think That's to BetMGM MGM play I follow-up purchases remarks, question, you gaming, to casinos? seamlessly

Bill Hornbuckle

Adam's to he'll he’s on offering take and XXth. I over he'll Investor the in But May don't go talk that wallet about thunder, come Day. single product that but want making, is literally more

Barry Jonas

that your with about integrating casinos? talk We'll physical

Bill Hornbuckle

that the given with technology perspective, that, ability lot structurally soon. a is the environment, regulatory to that along given Obviously, Yeah. from there's coming state, our but of a do and Yes. goes

Barry Jonas

Great.

Thank Looking so much. forward to it. you

Jonathan Halkyard

Barry. Thanks

Operator

from Please question the next go Credit is ahead. from Chaiken Suisse. And Ben

Ben Chaiken

sales get us nongaming it color is intra-quarter some stand In of I etcetera, spend? how basis just Could So, some versus Hey, F&B, helpful going? you margin commentary. we give the ballpark entertainment, on guess, where same-store Vegas on very a you some nonhotel 'XX? on

Corey Sanders

are covers, also. entertainment now, come The close there. spend pretty Sure. more lot There's numbers we 'XX Ben, it's so at out covers, Corey picks is up, a bit again. to The supply 'XX there. even in close as food and pretty levels little beverage with where occupancy less to less a it

our in up of remaining ticket consistent. many seeing So, venues we're our with average prices fairly occupancy

and month with we're business seeing eventually, great comfortable back the in and spend what catering other a banquet all that. was And pretty March we're So in in comes the all areas. for the then

a record actually business. banquet business is that properties just restaurant that catering We than had again, have business. normal some higher-margin Once

we're about pretty that optimistic So also.

Ben Chaiken

on you. on you Thank amenities process noise? slots, head against property on project to then the if Would guess, amenities. stand license or at tables, And up it discussion the guess there being fee. one where and ever point, sure there, new New I of was start. outcome? out we the Downstate then, a those back one I'm some the new start if I That's licenses, spend that any based of was netting really At the to mentioned sense not receive do York, you get thought helpful. make now dial just the

Bill Hornbuckle

sustain. will Obviously, Look, netting given we that it stand. we this, like we Yes. of I presumptuous. competitive I don't won't. the piece to know where want don't suspect out be nature the

that served we're or we day give we've make roughly to tables slot circumstance this. can we're community us. on a facility diligently master to sure And think parking I a now. machines it's flip a we're in how But billion And be of building. going and months. happens ready that on and to couple soon to hell prepared turn, an be they're to well piece said under to wouldn't get going parking and that and We head I to when a needs any mind when plan, go we're around on master about we do of plan. had real all this which take, it's ultimately X,XXX dollars, that make as the going assessment go to We're possibly in going to like support into are the machines bring as out go within to quickly our the thoughtful done. to go working

Ben Chaiken

you. Thank sense. Make

Operator

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

Bill Hornbuckle

and Bellagio even Thank us want team mentioned in the the to do resiliency fact, all of today. in March, you of in particular quickly like unprecedented. for given industry. I we to we were COVID mean, in how Thank you. joining able and just out our the I I all kind the company, one examples of Again, came emphasize what

couldn't be thankful and for everyone's that. on excited I it So, more by effort

an We're liquidity. been extensive on amount future Our sitting of never brighter. has

put that never fortress. balance work with is us and our interested space to I LeoVegas we're saw And in You immediately it highly have by. position. we in sheet a been this mean, highly motivated

continue this our allocate to whether in think, continued capital the or most repurchase ways proper or to to so the of we've context the stock Las venture, And going at more -- enjoy Vegas we're events world. notably, of look flow. I grow cash and to at it's ways to capital, growth And

and down event those of coming with an X I digit Now forward, properties. the in growth a or had game weekend sports, South mentioned the every norm for that things teens a was in Formula we all note earlier,

And now. all inherently so into future our that's built

excited massively revenues will on Vegas. that term, in New And so thing well we're happening it, exciting point think help is very for York, globally. the by very and by our We're And Jon as more what's course. a I put Las Japan of diversify a ultimately, company, then long excited

you I today. thank And thank with that, you, and joining all for so operator, us I

Operator

And thank Thank attending concluded. you, sir. for The today's you conference has now presentation.

disconnect. now may You

MGM Resorts International (MGM) 2 May 222022 Q1 Earnings call transcript