MGM - Earnings call transcript Q2 2022 | MGM Resorts International

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and welcome to the MGM Resorts International Second 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 second

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 the 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

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

want Our not of we both world-class sincerely basis in our we and dedication and was an Las overall results sequentially, of could the and have our creating company's the EBITDAR quarter, to employees improved Vegas, our U.S. in our excellence of experiences their have second to seven records. all our property second scores quarter each again servicing history to commitment thank across customers. I seen to be work, represented all-time the our hard metrics service highest same-store guests. for quarter proud highest continued I and Thanks quarter progress them, ever the more track. absolute in both on adjusted regionals for setting properties our

experience, delivering continually me detail, guests planet, operational our allocating and remains planning in our into focused Before We're on more I in investing results improving reiterate people unchanged. dive let that and our responsibly. our strategic long-term capital excellence,

those of a excuse to time We to growth pursue One another real had Las that about meaningful to there. has acquisition I such closed our modernization corporate turn the of May. April of met $X.X strategic took and in that was the the let's structure officially the say exceptional This step at in transactions and with culture Vici. cash, been CoStars. meaningful assets in Cosmopolitan -- which Properties have our the of billion So, closing estate results. MGM and complete the cannot brought to of of our opportunity some use spend opportunities. the invest service to us the in simplify I've and enough we transaction me our while businesses, team Growth created intend number the between to continuing the property the Vegas opportunity at strength Cosmopolitan core

maximize this is integrating MGM of now into portfolio operations property the future and of focus Our success resort. working to together world-class the on the Resorts

June, we In an Tunica the million. recently Goldstrike of strategic operations reached Nation the $XXX Cherokee portfolio. divestiture the in to also another agreement We for our announced sell to

thank of international I'd like this a Tunica take property. our again for special online valuation. every with a Nordics. to on focus growth leading this guests. entertainment close and and first transaction also track talented presence a in we felt this very Consistent in grow we close Goldstrike sharpen in first-class in LeoVegas, our gaming we for our amazing footprint, announcement year. delivering seeing an expect our an execute The eight the the stay a with primarily gaming sell still on jurisdictions, As gaming forward later our to that has which We experiences Cherokee in consistently part prior global LeoVegas to announced opportunity employee is Boulevard on platform for Mirage, in the operations was we to company, to tender strategy of a appreciable of success our plan and XXXX. May divestiture and the continued offer gaming licenses Nation, management follows Goldstrike advantage develop company will and Europe. digital team, to with look as Mississippi online the to mobile-based a attractive technology cloud to

We're will transaction one year. the now York of casino of in close the this focus additional by of brick-and-mortar end quarter back to Shifting the hopeful pipeline. third expect also three solicit licenses. this New applications We that for our development to on year

Empire our We look forward to expand working and City, miles economic submitted decision New is our we license, development to footprint Manhattan, which to are for jurisdictions that Japanese and this In and the are growth that we York, a Japan, approval respond to growth. Yonkers, April with XX of than eager do region. the If we'll an property fall less receiving of the development government year. attractive receive existing our state from we're in and to in and drive plan Arian jobs and surrounding optimistic with

bringing in on management UAE, have project future. does [indiscernible]. with development make Dubai, continuous to Following we to gaming the developed been watch we MGM the share that non-gaming in about progress and that The the a integrated in will we're family doesn't happen what hopefully will on And has a interest progress we partnership ground around the region, further great or details for broken near process, and the with brand in resort we has the agreement where project. continue

and BetMGM Greenblatt term announced a experience their their roadmap The improve provided Day the interface path and Adam refresh team update customer year. BetMGM, Analyst at later a reaffirming comprehensive long profitability. to is team on comprehensive working Turning to also and the this to had

which with is looking and puts million the potential the California, now to share with XX in markets iGaming, the BetMGM. provide Carnival three United markets May, continue ship those onboard and XX% two brand. the Canada, and iGaming addition online sports states share recently And Corporation in States successful Ontario and XX iGaming market great sports, has we accessible the see forward gaming a Cruises BetMGM over U.S. across BetMGM audience. the Following launch clear for partnership in addressable in a active well operations. In and April, leader under May. announced reached opportunity BetMGM BetMGM in betting both We're retail, having in in to as in of us betting position. number as operates XX% expansion Ohio Massachusetts, was committed for with BetMGM to

and these a property channels. from BetMGM strong to XXXX. those a for omnichannel coming Early us BetMGM enabler to in acquisition of Of Our Rewards important this story signups earnings XX% time. an been positive our with over strategy online allows advantage in have investment that of we is seen our versus between incremental and visiting our key brick-and-mortar strategy and results with substantial QX XX% the competitive growth have first signups, MGM MGM are who drive

to restrictions. to region, our to the limited COVID visitation Turning affected by operations the obviously due Macau, were

Last business more long-term. of all you've the in operations short-term As of rising working properties properties. our reopening week, closed to in in hopefully a demand businesses impacted we seen government our basis non-essential mass than in our the operational costs case position saw and our minimize also working on concession face our fair share limited premium likely and counts, capture which Macau on we're returns, renewal. We're as the to the July

were are September we partners We of to future of in this of of terms course, the nothing gaming received will premier our future of concessions, have end. by second in marketplace Well, all to The recession. hopefully, and of tourist submissions proud XXth. quarter with grant confident entertainment Macau, then surprises no tender be the short of due spectacular, pleased by of are the submissions concerns potential review mindful year We and week the government destinations. with remain the are, the Macau last world's and new shaping one results the

business we'll this half mind, highlight we that said We strong. we is That the our agile and of be pent all around year, lapping built pivot and in demand we factors important other also strong to will today if in adjust back years up that demand we here re-openings. With consumer few last driven incredibly comparisons an quickly and business COVID of slowing. recognize starting the remains by of sit it due in extremely to the see over pace our any signs forward-looking

to a we business, on international number a fact, tailwinds exciting Las domestic year, the outlook the continue coming the near travel, our be of to based rebound business and our on lineup of ahead, events in Vegas. looking bullish in quite of convention return including In

Let of more. a me bit points couple on touch a these

convention customers to MGM of forward the the events Knights of primary Vegas, to longer in Vegas the a XX% one positioning. attended calling beneficiary we summer is with arguably Also in be XXX,XXX. XX% that returned is in now pandemic Golden form mix and week X% -- international look patterns our north Vegas rate And city-wide have Vegas Trade Las which sports and to return most guests and first with welcoming and rotation of we destination XXXX powerhouse best COVID back scale and in historical event. XX% ConExpo XXXX levels. of in the Las ever terms well Add calendar XXXX post international stay expect First forces This event better once in our the shortened be and their again finally, city truly guests reach international of to represented CES in even expect will Raiders only is pre When visitation Las attendance of Vegas visitors, the this Las Show March XXXX, seen, has the capacity, to as domestic year-over-year. our will the flight Las we home. XXXX. and then return of and grow to these over city-wides, in year of well year, in at the

will X XXXX, in When in and and and describe, put And of Bowl. value the tournament turn the the all business host Looking will and city see quarter. the NCAA's Jonathan our and business. together, Super host incredibly on shares XX of we Elite I'll ever tremendous you for momentum One play ahead With discuss Resorts. potential the that, our the to it growth in then case of first race the the as XXXX, the details MGM of in continued is men's will February rounds Formula job Sweet early compelling

Jonathan Halkyard

employees all employees We quarter. this the best for also the their the and thank the and truly this Thanks would extend great have express to too of welcome Las Goldstrike very my Tunica best to much of Cosmopolitan my property, we the for of the like business. the to achieved in sincere want the of results and I also to I acknowledge team Bill. our thanks contributions talent Vegas. to CoStars incredible

So, results let's more detail. quarter discuss in a our bit second

of a $XXX Our despite the consolidated to billion, $X.X compared million second due limitations remarks. MGM, negative quarter revenues XXXX mentioned China COVID-related his an XX% to net in visitation were from to Bill increase impact

Our net income a MGM to from the Properties. benefiting to attributable gain billion, Growth MGM sale of $X.X Resorts related was

Our Las was adjusted net and the Strip property EBITDAR $X.X million. revenues for $XXX second were billion quarter Vegas Strip

XX% Las and net Vegas, quarter in XXXX, which same-store And increased Vegas of the versus XXXX. was same-store revenues the ARIA, last excludes property second Our XX% adjusted the up in second EBITDAR quarter year. Vdara, in versus Cosmopolitan Las

we visitation in were our the the through profitability unlike second to occupancy, the first the that quarter Omicron, variation, consistent quarter. due and experienced ADR, month-to-month Now, are quarter

saw we occupancy quarter continuing when we was March. Second strength XX%, exited that the

mentioned, pricing strong the quarter As at record a ADR remains Bill with second $XXX. in

$XXX the second XXXX. was basis, same-store above quarter ADR On of XX% of the

marketing and ARIA completed our of the we XXXX. is other Bellagio room midweek Sky Our number attractiveness pricing benefit versus value which and factors; conventions by driven power efforts, the the returning, renovations, the Suites, and certain of destination relative markets, a sophistication in the of including

occupancy up with July the XX% X% an experienced of versus preliminary encouraging from year-over-year, sign last third year. toughest trend XXXX, this we our Our comp results and the reopening are being to quarter ADR strong also given

all growth continue future Our and bookings be occupancy each XXXX year in months double-digits and rate month. to up robust this growth versus with

the most far day Las we Vegas. June really the this during per fact, liked year. for rooms we In so Yes, demand outlook booked

down to versus was XX% second more of million, regional Our second revenues adjusted the EBITDAR of net $XXX approximately quarter the increase brought were quarter compared XXXX. property XX%, operations. last our delivered regional we points basis quarter X% $XXX XXXX. above were back second XXX an non-gaming year of million, of Margins of We which as

$XX second the Macau, has policies compared million year. Moving the to Public $X region, $XXX decrease EBITDAR last million of been in remain Adjusted in of a a represented as was the last XX% limited. in revenues property the positive net versus quarter severely year. a million second quarter entrance to quarter loss into Macau second health headwind

Turning BetMGM, part $XX of share which the $XXX XX% our second calculation of of a in million, unconsolidated million to our quarter as losses BetMGM to reported was BetMGM to affiliates and we expect the this year. contribute is adjusted EBITDAR line

$X.X and billion. of of BetMGM $XXX with XX%, track to compared associated revenues on XXXX, million, our of half first net first an the well improvement operations generated meet in is of to half the of XXXX, Now, forecast which

included of We're improvements to growth enhance in our and share-based digital efforts corporate expense, our infrastructure, of for offerings which corporate $XX IT Our course, investing including second strategically compensation expense our million million, and was costs. Japan. $XXX IR transaction our areas, quarter guests, including

we I'd before wrap-up our So, our company. capital how valuation restate and our touch allocation on the briefly prepared view of like we to strategy remarks,

as follows; first, strong a with balance sheet Our strategy maintain liquidity. ample is will

through the announced our where of announced have the these of we'll with improved our and again and We completed clear through announced commitment to the shareholders. in shareholders. for prospective of Goldstrike Tunica. of and transaction. we've exercising demonstrate with and cash sale of We our invest transactions the our our measuring this The acquisition returned cash will advantages, our priorities. we closing Cosmopolitan international shareholders the We prudence Mirage transaction. share yet and operations We quarter invested the digital portfolio Second, the bolstered those future liquidity And repurchases. LeoVegas Vici the execution to to returns return finally,

billion, brings quarter, $X.X our During We've past count over repurchased of shares multiples. the activity for of XX.X million value repurchasing Since XXX shares. cap. market XX we we share our XXXX, of billion. at current our or This to see trading down for million approximately XXX through shares shares aggressively night, been the $X repurchased second last million beginning months we because the the XX%

it. about think I how Here's

of As was $XX we price our yesterday, and outstanding. million shares XXX had share

this subtract our we end in MGM So, domestic cap wait, this X.X EBITDA and $XX for this a BetMGM of corporate times implies debt few net market But the Mirage, of multiples were deals XX% a announced times add value trailing and value and with our ago, expense, quarter stake XX traded implies domestic of our operations. enterprise billion. sales we of the If trailing the stake GoldStrike by a Divide but XX and have Goldstrike trailing our at respectively. These times, Cosmopolitan, XX then adjusted our months China, Mirage of there's and the free. more. months transactions, of multiple for EBITDA

our a and X% cap for XX years annually CPI agreements and have the first X%. fixed thereafter is escalate all debt rate we traditional lease only of Our by

So, we same-store back driving operating EBITDAR In by EBITDAR to cash above X% X%. our the free leverage second or by grew enjoy growth domestic adjusted Bill XX%. quarter, you. flow

Bill Hornbuckle

Thanks, know Chief my for Officer going I Sales to Jonathan. me. is new come

be not As gaming be of we've this there more all best lot are to to work employees wait premier I truly year And like have company. thank of I'd of understand the do. progress entertainment I'd accomplished. in questions. I with what's for in contribution like but world's clearly of rest our open more been vision to busy come. to made, operator, to the could up our to to we've can't a excitement pursuit Again, is our that I is company, days their we and yet it come. believe a XXXX of There for our beyond. the everything for proud

Operator

you. Thank

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

Joe Greff

Given Singapore, that the my guys. M&A, that activities afternoon, about and about any Jonathan some a discuss you news your in -- it well, to as us I'll allocation you the to different leave about. can aspirations little But Bill, talk in you scale to can for Asia? potential first bit is Good particularly that you other capital large question interest of open ended wish. it as is talked than and you've maybe

Bill Hornbuckle

But Joe, at Jonathan, active look to to--. be obviously, We're Macau. to to situation. I'm we anything We'll know extent you it else. and comment M&A not comment I don't the to love in I about our on in don’t continue position excited really sense. want Japan. the But aggressively want Singapore makes going

we So, we are stand Joe. as

Joe Greff

into, we're perspective, though pace and any achieved into through, How for the And particularly of If we're you had do you kind flow comments in begin managing start Okay. that's or manage retrenchment that others and the of into course, plan to in an downturn a a in which per sort me. of consumer maybe from and business? in God industry is since our be started? Las about sort of terms what that's margin of portfolio not think going And from you forward would And the it any forbids, B maybe spend the of from does downturn, Can labor in I that, you see of light others that is visit see talk and Understood. that universe. in obviously, that to coverage reflecting great consistent Vegas. retrench. going with a -- translate perspective? stay, the OpEx length How all you've gains

Bill Hornbuckle

Look every of price thing this obviously, part to over we business, hotel is off I'll rooms day. Yes, it and/or turn to Corey. interesting our our kick an maybe inflation and Jonathan

about position great is some our our beverage in in XX,XXX company the or XXXX that already with there. kind of a review employees, XXXX. and of XX% on and end the done a dynamic shape of Most of were -- food with of a also biggest form are think in in lift energy some form way, bought to we we we've a union job contract energy. as year them a some We've great respect, cycle. employees I some comes next of So, about culinary have in most And got in

just how make we meaning at this are. think into we've good feel a high premium would margins company are with manage this to came product. our generally learned scale I we at I So, COVID, comment, And back and where through with broad hell operators high the we're we XXs stretching, XXs. premium, still end

properties about costs. our to we're model I we feel we the good play. not put good what levers But and have even handle we significant naive higher. the about the I of Some not on in feel or may Obviously, may happen. have operating that

And to general if some my happen, Jonathan you it's might about so of want but talk view. specifics what

Jonathan Halkyard

pretty MGM supply it able in done here Joe, with in model company our possible brief demand and confident and has and January, the dramatic, would and has that the really on recessions will the of the really over under come where think still circumstances. of of other to is it now, visitation in material be they've company than Yes. our get having environment number we very we've was or I'm also, XXXX, kind but greatly of those in any and the last regional I works increased and that dealt reductions share A from which in Vegas, pricing whether we operating think now September in just And be perhaps as part in like cost course, help customer I our Rewards different the or prior such demand that the thing past Las time of impact stimulate that relatively from this we designed, reduction is program flight in our above a reduction couple operating has are situation, us adjust certainly back as customers we Las playbooks our to tried visitation, where the don't a have cross -- behavior fair not the I add have of then now. to certainly visitation and also would huge much properties upon within I the August, back maintain and buffer margins, been they of things my and for it opportunities past and kind that are believe years forensics think twice that experienced be work would adjust the a now, property to both. on XXXX. I would better These visitation Vegas. model include that what course, say, depends company, in of and seen with environment. of pricing that a we've are while done changing that for the done bit initiatives such us where And

Bill Hornbuckle

that maybe last market In they're scale, And million. couple $XX here think resorts, properties not cases, a $XX large to XXX hopefully do our I think or that smaller scale really million, do places many regionals. one leading million ultimately, about they're comment large

And of is regional thirds different, up even our you so our average $XXX,XXX. know, a household income two the sets database, over little portfolio

of a our be who downturn. and therefore, where how impacted, have a So, the base opportunity severely in that upmarket may are, customer by and context may it's not significant such we or

Joe Greff

Great. Thank you.

Operator

next the Santarelli from go question ahead. And is Bank. from Please Deutsche Carlo

Carlo Santarelli

he the into to Is you've the synergies wanted Cosmo, wondering to guys, certainly time thanks that was anything had it's there integrate? exists in But certainly couple metrics there gave release afternoon. think of but tangible lines believe months, I good only might in kind gotten the out? know XXX you I the were as a I LPM disguise call and and that to little a over been Hey, around enough along asset, run of at that some I or be so. some time rating acquisition, And level I getting that it property It's could of was stuff. same-store awesome. helpful. ask

Bill Hornbuckle

the a offices, is six and of in pay have -- and things Cosmopolitan had that Well, over from not expect the of sales years. maintain -- they associated we relate rest. for you this footprint generated I next to owned able park small facilities warehouse say under kind the we bit transaction, same spot. there things transportation the certainly the couple some might of and I'll on or relatively that just note realize in to second therefore can same-store their I probably bus synergies Cosmopolitan remote like the But on but you $XX EBITDA save Bellagio the would combination synergies I'm a the will needed you that are Las same-store of the think Vegas EBITDAR. little in the to garage, the proud quarter, do their and calculation during to corporate the take after step employees, this transaction, space, closed that it million the math weeks yourself, a we of to day, CoStar the with the

is and rollin' business this right So, rockin' now. Corey?

Corey Sanders

And would were that other that both on they They buys and I procurement we Yes. is Blackstone, through immediately that they and go buys ways savings get. were add, that. Carlos we've go getting thing on identified that the

Carlo Santarelli

but color could in company on side, guys been a we up. you if on Thank wondering and side. And at what Ontario I sports I add one date perhaps soccer the at launch gaming any on the had guys. could or the just how if season could a that's gone. set Great. you then was Maybe to you if experience, the level has some acknowledging industry color there an level follow

Bill Hornbuckle

would you know, iGaming been thought it's as season we softer we're was where it great Carlo, know, you it's Bill. is It Obviously, market, our particularly as be, now with exactly we business. sports a regulated.

a and single there's in digit couple high single the of share growing. digit market dozen So We're competitors.

it's gaming clearly that And and a marketplace betting. real to is it's sports so real, AI a used

And so all our has ultimately what that pretty about we're goes. productive. been And excited entry that into

Carlo Santarelli

everyone. you, Bill. Thank Thanks, Great.

Operator

from David Please from And Jefferies. the next Katz ahead. question go is

David Katz

talk strategies the Thanks know, Afternoon, a to you with for plate and very and Could this question. we it? what on it of busy you moment everyone. just success for the looks pitching that just sort how my taking LeoVegas that, like spend through have and obviously

Bill Hornbuckle

again, Sure, Bill.

We a is of So, a take real David, digitization $X our revenue to line and business year, to are our and heading straightforward. a is and something real the billion and that end rest world. BetMGM by brands through business believe make ability pretty hopefully interested and obviously, we ultimately otherwise bit next omnichannel therefore of profitability

like acquisition, up And million, XXX so XX were really team platform. XX, a in that It's smaller be hopefully going the numbers, got at its to built under probably just know, we expandable got first between throw it's you But a terms we and in a the of in year. management.

the as liked so We large might before have time, And moving, over not we're was live it we scale needle and And most the a importantly, want we therefore and mean team. start. players so thought they entry. the great recognize I dabbled the as place gaming we -- looking to but live and platform liked at dealers M&A, we at studios, gaming we're looking in it's

-- we well. it. essence, in that's so over And think And in Canada, that's time, as it's

and marketplace, obviously, open an it's our for LeoVegas, BetMGM So, well. entertain and partners as

And so guys. understand learn rest we'll us us we a it just it's the curve think for liked exposure learning we from lot world and a of gives to these

David Katz

Understood. And my as follow-up.

and might that? an quarter to in out ongoing thinking or wanted the amount about obviously repurchases, of that share just happens and we fair might strategy just recurring be late, about how share and, a how I Jonathan, repurchases, quarter through of of done frankly, For aspect and you've talk something that think

Jonathan Halkyard

just should X.X surprise -- most repurchased since quarter, results a of quarter, million over at nobody that's a note our above XX the -- shares attractive at another today, price we it's the at that's highest since in the investments year mentioned little ago, this Well, David. shares Sure, in second purchased I $XX. billion change. program restarted price should XX just we've we the and of -- our we a the $X.X end that the

billion we into attractiveness strategy our repurchase the our we've to of around of So -- end of we quarter. why still us. that under front been aggressive of shares. the of past authorization I some York, billion leverage capital also keeping will $X this of around remaining of is the the and here We things reasons just we're a other -- in the in did the of we do was we'll on. business the third is repurchase capital have and so we the opportunistic, shareholders months, and the on soliloquy at fine-tune our $X to continue the strategy certainly this one excited continue that the the to more like have share at think about part so in LeoVegas, and be value true But is and XX My program asset-light it's up strategy return than us New behind that requirements coming shares the mind,

David Katz

Understood. Thank you.

Operator

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

Shaun Kelley

Las questions, everyone. Hi, two both related I've Vegas. good to afternoon,

event up -- of relative give both further about scale maybe And maybe Vegas the Thanks. then So, play, about some to just in obviously of the how give would we events or would some return bit Las wondering get of maybe just just recovery? to quarter second into further be of we you gaming get bit a versus out be a normal Can mix, large really business. the talk the the made a second group of convention stabilized how specifically, to us rated some much your sense part all saw to in group the as sense just quarter, first metrics, a and us areas of a second the trending of those little recovery types sense kind anymore and there? health unrated the just in just what customer, that's of

Corey Sanders

catering the it's the highest were about banquet we Shaun, had Hey XXXX since In room actually And of convention Corey. segment. and we quarter fourth QX, in XXXX. nights our XX% of numbers

strong is most We're of regards that pretty our say group to group positive of large big but customer. We Even canceled, not It's it's considerably. With only flattened seeing the our strong come across did very continues unrated groups in gaming end we been since there. our are one in all groups The And Vegas. segments all to there. back trends. come indications have is back. environment out strong outpaced were age it, in be business that's we're to especially XXXX, happy Las XXXX. the So, lower all where

Bill Hornbuckle

pace Shaun, And said in we'd we have at XX% about to be XXXX, XXXX.

that the his we're right point. of cancellation, on exception With

And know, so And return been the seen what we've it. we that's of you that's, expected.

Cisco in have think week, with XX,XXX I town we people. next

is is tech large So, scale back. back,

next And continues positive year, look to so given. real particularly the that into

As I to mentioned earlier, this city-wide are through. cycle going

Shaun Kelley

Thank you very much.

Operator

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

Dan Politzer

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

hit or is international you Is pecking it? prioritize just of it what's talked is for global you I think, Or cash So, I that there, Europe to it -- and flows? guys is -- digital general wanted about on the that I the mean, diversifying have do in at allocation becoming revenues really Asia? media, capital importance or versus of order how more your brick-and-mortar? terms and diversification the and your or

Bill Hornbuckle

we're think, Dan, dollars have it's I both. actually if invest in keen obviously, Japan we to a mean, opportunity. going several billion I given We're the interest.

on Japan we be are. so us, that like if about can will And like to what's you for many any and grow. we'd going and continue us places there's then we'll other places, scale. to And we Asia. some And happens only Vegas think so and But in go be comfortable at in obviously, furthermore, place where matter. we another Las particularly everybody, watch domestically, love we obviously, And cornerstone pretty in there. for or what Between that that feel Thailand else with for Macau,

reasons, And why in so continue and many going is attractive digital, BetMGM. so to so that's Obviously, among invest to to us continue to into that. lean we're

day, going years While painful, that the productive. let's be tell to ultimately say $X in millions, and we're it two to if going going believe build We by of goes reap you'd journey. and a I now quickly that hitting in do, three was business what to this time doing the all to it's is it invest way, marks, cycle it's years, how business hundreds end go. sincerely But the it profitable. at half the billion said It's into said of its and

so. for by could or we'll in comes anything And watch that reasons. either vehicle opportunities that so we our up, either that remain potentially and strategic other economic And digital, LeoVegas excited through for we're meaningful else be basically or broader

Jonathan Halkyard

point... other Only

Dan Politzer

ahead. Go

Jonathan Halkyard

the think, now. embedded that businesses applying as company's financial real second of the is expect our vehicles at least Bill of require And for we've BetMGM, the those much would is growth compared that will our I resources. to And growth base company. At business not leverage recovery ultimate for two to Well, see think the benefit provide right capital do these, only our Macau provide we two within as capital is I we One and capital, the as time, to the that same add reduce other shareholders. those earnings point mentioned. more been we have

Dan Politzer

that Got you said for on XX% I you're going which the still total pace of. $XXX it. just think investment, you're BetMGM, Then million guys

As you're so back the think first half the through, the cadence? million of you year through think have or the and about How should $XXX year. I the half we pacing of

Bill Hornbuckle

way which goes then the third The cadence football, down given we back productive. get seasonality. is And quarter into

year, to So the the back behalf. on going invested we're number X.XX X target half to still the have of about of MGM's

little as heard this been would. not as pacing seen are better, And to this. we you've is betting has iGaming Sports or a much. us, probably thought we which accretive about We

We are spend. continuing to of down pull marketing our some

we markets, and we're getting how particularly about be While this. smarter smarter important, smarter new share to and do in continues

to our as And this we comfortable about within and ability think so business beyond make XXXX is our in money feel grasp. we

Dan Politzer

Thank much. it. so Got you

Operator

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

Chad Beynon

Good afternoon. Thanks for taking my question.

In commitments of half we terms year? the at are the back see was it's expected thinking whether the about from Thanks. when capital what's draft rebidding process, released, you guys bill a thinking of or about this time broadly Macau that gaming how

Bill Hornbuckle

I'll kick last can this we RFP started. Obviously, add off, got and then week we have request Hubert on just has the The the for you RFI. process phone. final color. some Maybe

to when for submissions, XX-year a challenges licensees tough original I'm the ultimately until you have but We XX up to present in window we're make tell still obviously six years. shows of been pretty about confident our think who there. It's the will Time COVID. couple some be submission. September midst of

would things the a investment opportunities employment, programming, wants are heavily be we're around and so And that understand and things of lot the a really job we'd idea to into. dig have around of There push kind going is things social experiences, and significant really we study. there's which mass that other government and a lot to more something around gaming culture, programming own of a de-lever that we around plays daily existing ultimately, as big work activity. to our And event in junkets on footage into already square on of sports. around There

And so push. Sports of is love that big to that & in see activity case Entertainment a They'd market. more

able And positioned color? so want think do know don't I any we're as more ideally I you if to add well. to Hubert, be that to

Hubert Wang

that for XX the working Thank you, timing, question, September terms submit, we're before progressively I We'll on the think course, Chad, in deadline. Bill. you, of tender by Thank -- package. the of

on government overseas of commitments, focus the terms market. In does

distribution has So think, with network. a global where this I is, lot its strength of MGM

be non-gaming of as able Bill requirements, lot on side to the mentioned, on as focus a There we'll So that. well. are

underway with we for these and the -- our produce, strengths are together we'll to So culture. that the asking And show diversification that leverage for. government traditional nongaming is strength currently to to leverage in arts

Chad Beynon

you separate it. a And very Appreciate Thank follow-up. then much.

just how terms years? remind of of there Thanks. of this the cash to us, you CapEx, square about Vegas, guess, Just million I trying of slide in projects, maintenance? Just come going $XXX particularly think what in for we in the free nine, are $XXX to noted maintenance year. on be could kind other, Can could go-forward that you should kind million a be the next Or forward? flow couple medium-sized

Jonathan Halkyard

components largest investments. year, and the are Now, renovations our CapEx. we've months $XXX the six million the room in technology our of CapEx, first invested Through about of Chad,

the XXXX XXXX. and behind year. we're outlined And pace, but will close be I'm that confident we'll we've this to number those pretty into going So continue for

or maintain renovations reasonable set is of revenues. a probably CapEx going and a the a forward room be lot has now in the are renovations grow timing Beau of but need at Rivage under out flexibility Biloxi, of maintenance in a point on large room we of X% think we've net and for Grand we, just have is those on of right a New to, And a that have I'll of kind if team multiyear is so which to investments of course, York, to at then in just year And in we of one York, so begun number we segment New revenue. important X% and Brandon renovation down his order phenomenal just And leadership what the MGM Bardo room far. having business, going schedule

Chad Beynon

you much. Thank very it. Appreciate \

Operator

John question And next ahead. Please CBRE DeCree the from from Securities. go is

John DeCree

the Bill you need do How or it difficult Jonathan, question. back, labor? are still about the those of comes ready Is of that international for staffing Hi, for the then to peak outlined in feel my everyone. to And one, ramps, now? of continue need of Or kind will and Maybe taking city-wides, to Thanks needs, events perhaps some get on hiring you big labor the be? you you as right your kind build busy periods? context staffing market you've get convention to where

Bill Hornbuckle

Yeah. Good John. question. you, Thank

X,XXX and we've guess at had making look, good the And usual just remember, et this such any under I So you hard tell scale X,XXX. need. and XXXX, we there's number. keep usual time, always jobs. cycle in cetera, the as news I'm It's XXXX, if between open to We're given I thing when going that X,XXX

around security, we some We housekeeping, areas like people with so of have cooks, people in struggle to in work. back better key that still a shape. hospitality, getting we're And in most terms

the challenge, challenge. And continues offshoot our and has our won't so and it for Tunica here in City seeable be soon but even some like sure, the it's in and that regions into Mississippi, Beau markets of Obviously, been Atlantic a

into up into We ARIAs ability feel -- about and flex employees. Bellagio the our flex think the our still up. world I the with so to portfolio And of

assembled FX And to teams around get the which but community, will amazing. undertaking in overly for company we're terms all We've like not the trying is be I'm of a so the head. -- our of that concerned. Things significant opportunity,

retail the will anymore. we're going ultimately to with in there's But on still business But note not speaking, of you interesting some of economy, for potentially what's kind state be fairly of board. their hair still running we million business. of fire, and X.X think, jobs industry that there's We're are represent around And shape. And by we think if are generally gaming I America. getting shape. in available excited by we're the open jobs and in folks pretty back But I I in the coming on million squarely. this that XX think decent decent

John DeCree

think kind should Vegas, with cadence any hard great, if expect events kind you revenue ramps about on stability how about the option, follow how as leisure the you big predict Bill. as events, Vegas a in big Like that business that spending, you to is consumer but revenue costs maybe some in margin side a That's you of obviously said, come kind big would would you Thanks. some big of hire? up In to margin about those probably at of the of as we which FX, think well? how this well revenue lot opportunity. still as as but kind point, And context. or profile, of of in opportunity, pullback back, think the Would

Bill Hornbuckle

have will are The There and you are the to will event that but that for what as potentially, then of some. packages we talking $XXX,XXX we're something retail. roommates, a upside this, substantive, normally are FX sell Corey, at Xx, tell Look, potential view I like it relates retail on that in like

XX scale scope to we charge the want. by as have we And we be access million. package tickets, the want we XX and our as access ability to and million, to so those ticket, alone about and And have will then

do think excited want margin one, by activity. other pretty Corey, And to a will anything? don't to of that some I'm be tell got so won't I that you you, heard. I the add

Corey Sanders

in way I to T-Mobile add, have probably we our because John would margins What already the is seen the of Grand record Yes. the and Garden. impact

just going will especially will saw now including will at And UX into more these benefit games, with quarter in and the that, fourth the which had. with what be city. and events events happen others, the people and spear, we So bring the they bring they've outside I we're to think Allegiant from they NFL that the

allow will -- think margins. upcoming So these to increase events actually I maintain us these I our don't and upcoming bring customers or think premium in

John DeCree

so really everyone. That's helpful, congratulations good much, on you Thank and Understood. another quarter.

Bill Hornbuckle

Thank you.

Operator

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

Robin Farley

taking is offer of would as how you'd question. made a because now. the I'm does you to down an price -- to benefits -- the think same your they've make revisit, offer still BetMGM Entain’s guess where stock the offer bit Thank they much guidance. as all made and ago. curious a last I Entain, were that whether owning for And obviously, now I significant just and XXX% was now the your partner Great. JV and year is XX it are regarding premium year lowered ago, you of then, curious stock a since quite had I over months

that? curious So I'm just you're about how thinking

Bill Hornbuckle

time. the Robin, all about we it think

BetMGM. keenly remain Of We'd course, be for otherwise. foolish can't focused buy it. what's think it'd We to more of like not And sale. you on

business a provide, them. have all our of our what with their technology. That we ultimately IP, well great is We database, working because partnership

and a seek But is -- to And those the potentially follow But intimately. continue other are we for is. it so it now obviously understand it no ways there what skin and to math we have there. cat may we story to and have we there's

Robin Farley

I'm about having I right. on of unrelated. outlook. And as and others the follow-up the Vegas have kind comps. the kind curious a seeing talked flowing talked just front, and of that you're All regional about Okay. then regional tough know in you've strength forward

the view your outlook? Thanks. curious So I'm regional for

Corey Sanders

is Yes, Corey. Robin. This

tourists, those seeing competitors, a We're type Boulevard, in think the different I FIT lot about Vegas. of you National customers properties Las I lot of think seeing a strength, our have two Harbor unlike we regional think properties. in Borgata, of get sets we're when same we

a traditional especially we at they the The in driving probably range, into hiring more play a come seeing softness end As unrated, like little in the levels, continuing get that Empire. our at that markets. are and bottom properties little customers and of were in to bit

Robin Farley

Thank All you. Great. right.

Operator

And go ahead from Truist question Barry be the Please Jonas from next will Securities.

Barry Jonas

Great.

the of performance different your through properties QX, differences look moved lower the sort there you Are major from and in now. end? end to in we strip higher any As as

Bill Hornbuckle

are case, and to activity parts think Look in anything now high you well. end retail Room Aria percentages all and doing Cosmopolitan broader and I things parts of and into high to market. the tied Well, the rate that above MGM it The put amazingly luxury can teens, ties Mandalay remains ADR ever. Bellagio, of obviously

pricing, extremely Our food and our me, beverage and and our strong. excuse is costings,

economy, in for done And so to well able end us. it higher ties Corey… we're up to just about everything you've else on heard it's products. about leverage the retail broader And

Corey Sanders

gaming play. high seeing the And we end incremental in piece are that those properties,

see you'll properties So the properties. those legacy outperform

Barry Jonas

wanted it's maybe Got iGaming, ask to possible think state the anything, have And I in you about if just just expectations two? legalization, you it. any around curious next or future Got year it.

Bill Hornbuckle

of Yes, I couple think there are states. a

a is there's now. reality I right think the not dozen

ultimately to in them. though, that of that can is because that interesting business, think iGaming they bottom that it There's line break couple have officials there and continue an and everything the regulators. targeting. but we We initiating with and regulatory grow know. states into have are we to subject And couple for government think a the make next were And you a year. benchmark discussion think I clearly we obviously as they key

some excited money, do need they this When on so deep this to vehicle. time to be. going continue that. may or It's turn how though, And in states depending to not to recession sometimes we're take may

So we'll see.

Barry Jonas

quarter. on Got it. a All right. Thank you. great Congrats

Bill Hornbuckle

Thank you Barry.

Operator

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

Bill Hornbuckle

you, Thank operator.

into insatiable our to a congrats and Cosmopolitan couldn't in been And Las today. thoughts it Much appetite key team. has I has think There's The be our we've what Just it. frankly, about been, you a are you for our economy, When happier in -- about I properties, call experience, again, millennial think and shift. where obviously this done, of stepping accomplished. based we've travel seen with experience couple more and I much entire go. And we think to as particularly and all of the here think, aptitude others. Vegas. There

think in ideally I we're to think I it. a great we're advantage place, of suited take

We ideally feel way. either naive our the lever about go in travel up. last situated not do what things quarters, may think about storm operating are we've whether whether success the model, And We're think we're or proven reported our the and shape You has to model coming a to future, deal to should the or that. worked, up we experiences I frankly great frankly, We learned do think that. we weather say, we as think two great we've need We think working out. to to how to in economy we not we've the do. had may

in we all all around ourselves we've And the remain this have don't so replicate to past want things and of made around keenly the mistakes and through some it. pressure that. constant related, focused labor, employment, see expense we on before, We've around on lived

into generally balance back back digital, And so in about front go sheet the that. the on to today, go our more potentially know our to of some shares speaking, to buy think take of But where is Asia, if we're into potentially you us stakeholders. opportunities for more company more and

amazingly be and excited future. an couldn't our in place, we're think I I for great more

appreciate to to continue we thing. the of and support today kinds do and we I everyone's same time hope generally So

So thank you.

Operator

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

disconnect. You may now

MGM Resorts International (MGM) 4 Aug 222022 Q2 Earnings call transcript