Earnings call transcript Q3 2022

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Operator

Good afternoon and welcome to the MGM Resorts International Third 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,

Andrew Chapman

live at afternoon MGM press This earnings broadcast the welcome release call the International’s being Good to to XXXX on Resorts Form and the furnished We've investors.mgmresorts.com. also third X-K quarter is on our internet SEC. call.

statements. the from we Actual results laws. will call, under those this securities in forward-looking statements the differ federal materially Safe On make Harbor contemplated these provisions of may

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

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

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

recorded. Finally, this being is presentation

Hornbuckle. I will now turn it over to Bill

William Hornbuckle

you quarters leadership Las MGM expectations. initial its heels Also, under Vegas best to and second on us and first results you, one the had operation for another domestic These and by quarter new adjusted Vegas of of for Vegas our setting continues fourth of Resorts record this to Cosmopolitan come quarter pleased in property a business, all report a our Strip quarter outperform record-setting in Thank results afternoon. its driven of the financial I'm regions. the revenues our Las phenomenal Andrew, thank with quarter EBITDAR. -- joining in Las and Las our Vegas

further our reward and look sister opportunity improve see physical the with continue we our to Cosmopolitan system to properties. connection integrate We as to

want year that in benefiting lives MGM the perception brings up again employees to I their XXXX for which to to our their measured our that for continue achieve tremendous have emerging put change we last travel, in Scores, And year. TripAdvisor is record to our which they this net across believe and Resorts Las in of people's experiencing efforts is by and as are the thank forward Net Net as our significantly value guests that results. well know portfolio our fundamental many our Promoter rankings, the a internal to exceed improved greater We theme. as be projections, satisfaction these resorts. shaping Vegas in outstanding stays,

our remain achieved the plan. gaming all to Put and make laser long by MGM is premier together great towards this on vision, vision world's that focused continues We've company. entertainment be which to strategic progress term and

Let me hit some of the results the more in will quarter and into the Jonathan detail. highlights of then dig

Hagman, online digital This Gustaf Gary pleased and share expansion is addition the our Gary here the significant which announced and LeoVegas broader both will internationally recently of an strategy step U.S. our in off, acquisition acquisition a of international Interactive. in to MGM. represents a in the president I'd like our first Fritz LeoVegas lead for also of team part. important First to were again as we've of aggressive I'm completed that of September. welcome the gaming

XXth of a for we in on market have to last bullish new quarter. the third quarter year. the every eighth moment, digital since with Staying representing on BetMGM build we BetMGM, success which Kansas, continues In its added and to November remain launched date, market

share BetMGM commands Maryland and leader But from XX% iGaming. we'll Looking portfolio. Ohio to clear a online markets sports, XX% market remains active betting share. Massachusetts, sports combining our and And the iGaming add in U.S. with forward, in MGM betting

expectations remained more the preliminary be season markets NFL acting metrics, reinvestment halfway rationally. As within our the we to we're hit point and by has the appear of encouraged

spending allocating strategy in is its bonusing. exceptionally profitability and geographies with and We May believe ROI shared our executed is day, investor this well. focus highest being BetMGM the As by to targeting on

fact to of generate age are strategy, story BetMGM results our to channels. BetMGM a acquisition will us allow earnings our creation XX. are of drive younger of brick-and-mortar XX strong allows seen LeoVegas have omnichannel to positive of incremental us of brand the and the investment younger as a well online as in customer the players we've visit and a between who Vegas customers both that the All over key under Our been omnichannel and with XX% stickiness in continue strategy the over to play the channels competitive XX% than time in a advantage almost

at Overall the per play into future. and acquisition, operating engagement which leverage the reflects cost have and can increased properties will drive our online who customers are lower we

We're Now we look and it we anticipate proposal I'd the coming of compelling integrated the Gaming have. forward developing York the development At pointed we casinos the early talk October, and Board resorts by opportunities State the a months. Location like about the New to to to members January. in Facility majority in submitting RFA issue state

United of Osaka the our city in with development along Japan are submitted Beyond area ORIX, April. plan States, partner the to of development MGM the Government

be that in optimistic opportunity to the fully and more a excited integrated Japan. near future. are site, development receive to I and ORIX we visited the our we bring by team certification We recently resort couldn't the

is process and We expect to proposals, to decisions Macau and by concession goals, application to be its invest to Macau. concessioners we destination. each we diversification Macau reviewing year end. the and submitted the Turning the innovative of government new support achieving continue class development good leisure world the for programs and remain the committed in made officially help in will of Macau's continued and aim a supporting to that government flourish. projects region September, in tourism in our We as

market we resorts outside comments Business in exceptionally remains Las we're and close the business seeing right outlook. exceptionally see remaining our Resorts the me In future high MGM and robust. luxury making we Let particular, Vegas pricing on strong state now current strength by level our some is hot. of in at are

In fact, terms of was month ever our hotel October highest in revenue.

and we future. which convention us As lead into the longest gives visibility time the at the look segment, has

convention Our XX% of and year-over-year. increased with pacing room ADRs our goal mixes

to we're full Our the be of demand outlook advantage experiencing positive to marketplace. the and operations in take flexing we're continues our

which Las an Programming story the Vegas exceptional further nation's as destination. also solidifies remains top sports

year. We weekend Suite And the X will you host the men's November know in NCAA One T-Mobile has XX Regional XX Elite March. and as West for at selected rounds next of Formula

the dates, So hotel of it's one of thanksgiving. We'll the race us for happens strip. the weekends weekend tomorrow Vegas this on our studies be prime our host properties other on exceptional race. cities. Las based capture an slowest to historic We believe That for demand ever first us year ahead of the and of our the of calendar exciting open to allow the expect fully benefits those positioning of

to So be and remain look not right said, blind conditions. to of recession. aware the we a keenly We have potential That concerns as optimistic ahead. of overall now, we're we inflation of the macroeconomic reasons impact the

continue are actively our stay business to alert slowdown. We and monitoring and a indications of

over to prepared adjust if Our me, occur. operations trends the teams changing nimble business the have and become are last they few demand our to quickly excuse years, incredibly

select capital provide continues more of to for MGM promise all opportunities In businesses and continue to our on benefits to our properties, core MGM our rewards in drive deliver our in investments Rewards to compelling we'll look through the key organic to our members. growth meantime, program.

since Plus Rewards fact, direct greater launched we've players. for we MGM tear program, In a our a portion and an bookings seen Gold increased new of from particularly members progression,

discuss Jonathan more to With to turn Jonathan? details this that, over I'll the quarter, of

Jonathan Halkyard

very Thanks Bill. much

of XXX over earnings to serve I'd Let my thank straight record confident our echo and as Resorts. employees a remarks of of MGM me Bill's the of also like bright, will enterprise start future and employees welcoming all by company. to the for results. doubt meaningful is quarter the LeoVegas comments and I'm Gustaf No LeoVegas to also and contributor our second talent this

Our in every show the people they they the guests. day that business care our are the for with best and demonstrate

discuss quarter detail. results some our Now third let's in

decline increase the net MGM, XX% revenue $X.X and XXXX. China Our consolidated limitations. an third compared Despite quarter COVID billion, due XX% closures related revenues of other were to at to

net top store was driver same the same major was reaching the and up over start the for improvement since pandemic the Occupancy of year-over-year. X%. year-over-year of improvement basis line the it's Las a and store of XX% increasing improvement EBITDAR Vegas Strip, XXXX property XX% On demand been quarter, and points highest revenues adjusted with strong the an

normal the third is our of key demand, levels as occupancy returning The year-over-year. driver our quarter, in proposition The groups had business in XX% supports a increase more of record to and value ADR conventions Vegas. $XXX Las pricing return. of which power group is the an midweek gain

business. mix We to optimize hotel continuously the in our work

direct points the up experienced programs increased we've drive and mix years, has business rate high to casino mixed decrease transient XXXX this each. casino And two the in the of past the that percentage several and marketing we myth Over in offset convention and helped effectiveness XXXX. loyalty our by

margin but $XX were it higher average business, our this and a spend. less important displacing profitable, comes higher as still mix Now between business with convention at catering typically returns leisure convention higher brings generally to rate $XX

grew revenues regional X%. quarter while EBITDAR third X% Our property adjusted net declined

ward's rated highest increase the theoretical win. best segment days remained both with daily performing and our casino greatest in During the quarter, our

visitation XXXX. last quarter Our pandemic. pre frequency grew casino and again customers the this aged XX But still to and it reached above as hasn't compared year

local continue address and drive to efforts will growth. Our important these to cross property further segments

dip points were improvement margins headcount to stabilized with maintain margin a year. points low approximately XXXX. we digits. This third decrease quarter is increased the commentary. XX%, of double margin basis EBITDAR as compared market of result employee And a XXX We've consistent last the XXX our basis our prior property by Adjusted to versus expect XXX

faced market. loss environment the we're and to are due property to EBITDAR had fully levels return third visitation related outlet XXXX adjusted Macau, policies $XX we but now In was the for fully XXXX, to open in million a and a number closures During of limiting closures, which difficult service of of COVID-XX we and a a staffed, the hiring property quarter known.

continued positive. BetMGM, seeing is On the overwhelmingly we are improvement in business this and growth

our share XX% million EBITDAR is adjusted unconsolidated with the of for calculation. in to year. remain line the of $XX $XXX contribution our losses This and million, a our which narrowed quarter Our loss affiliate we guidance for year-to-date as million, brings a of comfortable $XXX part third the to the reported

exhibiting year-over-year associated growth iGaming disciplined markets, management $XXX last strength quarter BetMGM as betting within million XX% Net revenues and the continued by led sports approximately as third operations year, team. the reinvestment this were with well quarter, from an by the new

operations on track well revenue them their which $X.X Through months have first of puts surpassed a of year billion to nine the over BetMGMs associated the this billion year. achieve dollars, with target

BetMGM app wallet reach and future of tailwinds the growth of Looking look behind MGM to XXXX. functionality improved launch a their forward, over the impact during design business and of as omnichannel to growth single its and profitability we

compensation in Our the quarter corporate to do offerings, efforts included and of our related quarter $XXX investing transaction to expense, improvements corporate transaction and mostly related New including remain including expect share to corporate sale. elevated the and based infrastructure, to was $X mostly expense We're our IR million, million areas third development to our Japan strategically digital Mirage We growth in LeoVegas. IT costs fourth due York. costs resources which enhanced

follows; a sheet liquidity. are And priorities balance with first capital allocation as strong our we'll maintain adequate finally,

return our invest allocation advantages year. shareholders. we have priorities for decisions to returns where our in this cash and exercising shareholders. our manifest measuring we'll major clear we’ll Second, And These finally, prudence are prospective

our Vegas We We bolstered our Goldstrike. and the portfolio long product strengthened our the announced shore the or which of strategic into our an with through Cosmopolitan acquire term market of to the Mandalay improving closing announced VICI of of and And three the capital Convention remodels deployments share. the group sales Bay our Las refresh Mirage major across Center liquidity of properties. existing room making up transaction

returned We share through cash to repurchases. our shareholders

or billion per or market the embedded down repurchase valuation we shares of years, From and beginning the I XXX escalation to million our XXXX of leases stock our $XXX for cap. even XXX million made XX And attractive strongly feel million for During XX attractive the count with next results, $XX through and X% million. market the our domestic in operations BetMGM cash, quarter, share I MGM quarter, third yesterday, levels. at XX% shares growth of record more in brings trades pretty repurchased This shares. now, I driving limited cashflow shares. X% China, about for the case leading think activity share Last to our X.X we for

We plan to growth to and York, as our continue capital through will New And projects such as Japan continue well we moving to invest buy our authorized as and program. stock M&A. also back strategic forward

back Bill, to that, With you.

William Hornbuckle

great about Jonathan. working. optimistic We year-to-date. What a is I'm doing forward. deal Thanks, we've are believe accomplished our we path

Our grow to another existing a operations in by about quarter outlook thinking as Las positive with and record continue beyond. evidenced Vegas, October

in no is all is in sheet MGM growth net as of than achieve have to track during almost X balance a on Our tremendous more on XXXX. strength billion remains with firing and domestic cylinders liquidity But we demonstrating debt. position profitability

our I and We Japan like growth for well some and markets digital work licensing to again for represent future productive we employees commitment hard are positioned also signals. our in LeoVegas, expect showing company. thank respect And global New believe growth development our to continued to renewals. Macau company. and York further opportunities MGM, would China the with we're Also,

up that, we'll this for with questions operator. open And

Operator

And will Instructions] Greff from question first Please our from Joe ahead. come go [Operator JPMorgan.

Joe Greff

that whoever the convention everybody. group I question. and your a relation What if next Vegas. do visibility the just what in to or to want where Good little it at nights now? business about year, afternoon, is right look books into have year take hoping Bill, Jonathan, to Las of you XXXX? on you talk And at in anticipated more was to room you wants this bit could this are price percentage relative

William Hornbuckle

Sure.

of over it my probably kick off to I'll me turn Let here. colleagues and both it

able XXX,XXX Bay market through I my recently off it's mentioned weekends. XXXX. high mix. a We've and preview comments, were doing Mandalay complete about underway, been received. is remodel, which nights We've as targeting, XXX,XXX couple it A undertaken things. of room and IMAX. XX% in to We highly taken got of as well as off-line. been room we're We're nights We've So

with bit the the and casino think, ultimately. very I positive And weekends, strength to in talk, business, higher-rated on want ability we're the you Given ADRs little drive our to digits. then if Corey, through leisure particularly a percentage. mid-single

Corey Sanders

we books, usually yes, Yes, are XX% the now. on right about

where we are. on feel think I good we pretty

In we where also place addition are at convention. we that, to looking

lot convention room the had on in past, of we So a nights weekends.

could do by placing So we that weeknights. strategically on we better of flow cash think some business not

that also. see probably because mix little come you'll So our down a of

Joe Greff

of of investment, your once in you. us thank complete the anticipated And get once case, the timeline then to and spend with Great, you start to remind all respect you scope the the timing approval.

William Hornbuckle

New said you correct? Joe, York,

Joe Greff

York, New yes.

William Hornbuckle

Yes, yes.

request. independent So hopefully, debate X. we it, have issue window issue hear by licenses that. license. or they'll something January some means -- all if hoping being a X obviously, issue or can once we're for awarded we get if a There's at 'XX they X at which terms in all this they They RFA to go XX-day over of will once of But

let's expansion, $XX say is If till just be -- the that given billion in $XX to million. $X.X looking the million which on spend fee billion going the licensing initial end and about you probably factor the to between a and $X investment, at takes we're it

Joe Greff

Thank you.

Operator

Our from come with Deutsche next will Bank. Please ahead. Carlo Santarelli question go

Carlo Santarelli

year things the and room pull a and OTA the target afternoon. lot as the kind of this good guides everyone, target was of at is year. casino group to color you running kind the hit about of provided within is group of mix, you think on obviously what FIT XX% kind pace just like you what Jonathan, trying some of a what of and of a for casino that. and percentage year on do channels, how out guys of But next the next Hey,

Jonathan Halkyard

Corey in as and effectively, well. certainly midweek. as by mix business of was invite room my I'll yielding the particularly and I business. year of I'll around strong casino comment leisure nights. very profitably that even to us terms XXs some been the pretty couple The has ago, during a make has in for has be Casino business work XX%. since It's A of the recently but our comments, more in low of noted high to that overtaken group casino stable. lot room comments been just A

mentioned, other about is year up that's direct it channels growth bookings thing I is proprietary XX% times ago. three of which And important our are the our a this quarter of The our the versus through nearly overall bookings. web rate

is this really the have other marketing our So one we've and MGM that well even through as drive made helped the business leisure of areas proprietary which in to as rewards the channels. through program our efforts our improvements

Corey Sanders

our on room sure really goal it agree, to I the shift business. casino making be customers business most we group our that we Jonathan have weekend, would them, rated I we lowest about want comes package nights their this business, where as got mean as the a back profitable

Carlo Santarelli

if moving respect parts of going in follow know an year. the you target north circus mind. if to target remain and obviously, to I lot I Thank you both. to XXX for Vegas, this kind basis we're going with later Great. similar With consolidated, segment. four could guys relative for And XXXX of have kind XXXX, that to one just range basis points a in city acknowledging then up, Jonathan, regionals you've and a apples-to-apples going of back to Mirage was coming of XXXX, Circus center On out cosmopolitan being out, mentioned, then

Jonathan Halkyard

increments the better that Las portfolio have the of here the but regional prospectively increasing than the yielding. that for the driving I also actually we made in at in the Mirage, I sale reasons than that Vegas, effectiveness do of margins and with properties. mentioned, to will just comfortable of we'll higher described the stabilize some feel demand I of or course, you for which number part is, in think that can a we've changes

Carlo Santarelli

it of is say influence safe to to XXX four plus in operational out? and it's kinds big those assets the of Okay, XXX of kind coming

Jonathan Halkyard

would minimum, say minimum. At At a yes. a I

Carlo Santarelli

Great. much. It's Thank you helpful. very

Jonathan Halkyard

Okay.

Operator

Our next question of America. with Please Bank will come go ahead. from Shaun Kelley

Shaun Kelley

Hi, good afternoon, everyone.

area with It little know margins, settle to sticking be side. it probably point, the seems casino more at it's things strong into I normal but behaviors, And wanted for Jonathan, looks back mix on growth been you've and just Vegas still robust. expecting an a specifically moment. about continued ask maybe Just like a been some bit Las pretty like maybe has where this really sequential to

little there, what does just color you So in look share saw the how bit dynamic then you us quarter trending because, that might about again, you that could market-wise to give sort you the see and for more things relative market. market a be doing the strong and of both

Jonathan Halkyard

not the a in our Yes. in our recently of going to I but X the demand course, yield -- Las only in ability dynamics of the has margin And our seen here. more Vegas. properties of number other it performance also but properties, most important we've been is, luxury it, into on room here

to I been So in strength the the it main the hotel would yielding. has contributor say

grown past Las had us growing market customers the we NPS market and retention profitable think because Las in their businesses get help for in quarter. And Vegas. what the share here And scores X are the But and those hopefully, scores that And experience there. those going with it margin, customers us is been about really Vegas about And markets in we've service on clearly that's We reflected that both that we all associated for are customer share intended. and impact have to the long-term It's telling signaled that here. important our pretty past. in in regional labor also our we've some it's intentionally. in our done our

Corey Sanders

a probably from the seen demand, groups events from is this on the East to back come the piece some intentions don't side, that starting play. And And Far major We've casino Singapore weekend the groups with we're see really is here add we down. wanted Shaun, would that what some to We've Hong still missing, back. Allegiant, but Kong. every see is between had major I from X showrooms of here, the weekend just arenas slowing come

optimistic Las front So we pretty I on think in casino the what we're see Vegas. in

William Hornbuckle

Stadium We Elton And a color. the some Allegiant Shaun, thought was to maybe here interesting in Tuesday like XX,XXX just strip is me was XX last final, It absolutely of could Allegiant plus night, of the south put on do he events. John end night. benefiting. kind

And a I to particularly it's core that at have huge end of going do people that's of which you more. to Las year if the nature in obviously the think strip that saying, visitation south a case, is the to people Vegas days think driving about neighborhood. XXX activity that like

foundation we're different historically. think so We that it underlines by And ever puts us at a just a than it. been pretty we've excited place

think this we've So seen that's the Luxer substantiated in one amazingly company. great of growth ADR the October, particular month throughout reasons has I had This been Excalibur months.

Shaun Kelley

much. Thank you very

Operator

will question Jefferies. Katz from with next David come Our Please ahead. go

David Katz

you Good for giving recall, those and Thanks any I the and Are Rewards you're to this can able taking afternoon, questions. about players. time? MGM of Jonathan, folks. In out talk land-based my MGM past, some

William Hornbuckle

It's part continues. actually take of The very David. strong. it I'll omnichannel Look, that. idea of still is Bill,

MGM key has just foremost, BetMGM. Rewards that folks XX and about been million -- XX We driver the in our database. to surpassed get First has

double third other between to industry XX% in base. of BetMGM XXXX number you've inverse terms last in XXXX the of some We've we've quarter close The of quarter with supplying customer numbers heard on just customers. are the seen And its we then of of folks activity. know about supplying spend. I -- omnichannel come that of and new happened our that third is so the seen in what And XX% we're have in year versus that

time. to extremely and we're we're interestingly, to positive it. and we excited things of the LeoVegas continue that internationally into nature indicate to brings opportunity overall that by us of to in that channel want the nothing that project over So the some there's do not And

And exceptionally it's so working overall, well.

David Katz

be the about about could that or helpful just follow-up a you LeoVegas. be capabilities specific or Understood. was more it question within what going And And bit transferable United if may to States North. brings you be my

William Hornbuckle

that States clear, province the Well, to note, and to be United America Canada of be specific, is BetMGM. of North the within domain and Ontario

And open -- LeoVegas partnership. up of that case that opportunity of so rest and activity was that an the with would JV that all remain to world.

its be going it And million to about It's in team. some, the the to scale opportunities. the probably business Sweden a $XX operating it's there. cash We system the so comes full got small, of of has. has, slate is its relatively flow. love love iGaming while environment it We benchmark, about XX% from

we've betting a sports product. But got

all to to add So with it's got at the added look studio this dealer. on could live tools. thing. be that of to We on looking it increment a We're

as and to do sports is vehicle We a us And so talking world. we If leading potentially, and it betting like hopefully and just casino see that think to which for as and and that. activity that a more Brazil, we of about see grow opportunity a about places more rest cornerstone gaming.

David Katz

Okay. you Thank very much.

Operator

Wells Politzer Please Dan next go ahead. question from Our come will with Fargo.

Daniel Politzer

Hey good on detail afternoon think about some everyone. Jon, valuation your you how stock. for you gave

of your rent How normalized $XX called out you billion sixth have of share some about of obligations. I you comfortable do the given is one cash, elution feel on think What think that think with, you $X you per and the you the of balance the $X.X billion liquidity. CapEx here macro cash and given cash balance the and the do sheet.

Jonathan Halkyard

working we we cages, about in have financial $X.X have There's And and so will that's etcetera. which to to required established $X.X so-called billion. our million in our capital available billion policy revolving us addition or that credit, $XXX is approximately a

think our way $X.X So the be cash. million considered minimum would we it. that's about

Daniel Politzer

as my Vegas. Got And on then just it. follow-up

called competitors there saw one-offs on in call there side? your your out Was anything or that such of out have quarter you that utilities. the as Some you'd

Jonathan Halkyard

quarter. largely -- largely Not No. utilities through bought -- the costs our through of bought We our end the are energy XXXX. third the in

So suffer any didn't there. meaningful we increase

slight have we decline unusual programs had fact, our usage. no, But is in opposite energy In nothing the there's a efficiency continue in that really Vegas.

about hold but have regions, third XX in was there of was of basis of And points proceeds the XX we the the unusual were when third we There unusual X.X hurricane had points. did the increases it impacts the also items year probably In minor in the items. prior a couple about look quarter-over-quarter, quarter, in points. margin rest we labor quarter. basis some quarter, regions Most of some in

Daniel Politzer

Thanks Got it. so much.

Operator

from Beynon question Macquarie. will ahead. come next Chad Please Our with go

Chad Beynon

Hi good on track for afternoon, thanks Jonathan, still that, projection. mentioned question. firstly, billion you're And for know the in taking guess, you year. $X.X I coming Bill, the is I than BetMGM better revenue my losses the on

not You did profitability that mention there's to XXXX expected. expect be that you still in big going But given in at point. in than some California, coming better to a achieve is everything launch XXXX.

not is goal as be offer if your reasons there might hit that Just potentially able hold why given Thanks. the you expected? to product, maturation of where you currently are the markets earlier

William Hornbuckle

go year, profitable our far this our we I should time projections Look, and a Chad, wouldn't so next that prediction to by in change as be scenario.

as very We indicated new opportunity opening we stay that point of up. I So The we've think integrated on in our as channels. X We're doing casinos some the the things have our across real will want there. the iGaming well marketplace interesting jackpots omnichannel stretch kinds where only at digital on that. to we're we markets and have

share know this And the so three you NGR lion's all that I the in is we've by. of are to we're excited going universe, exclusive, or out got be think coming actually. and whole And iGaming products two

And I so but no, don't -- want of to ahead ourselves. get

We particular it sports from iGaming betting. grow. both We business. like to to want in in see we invest the ultimately We have, continue the in positioning and

Point we're And on is so not investments. taken. it on sales now. get right California going will to take our head well some But

Chad Beynon

the to zero should where of And stand should burn current back things of respect not, Okay, on? changed picket Thanks. policy about could anything now. right And then COVID the of or kind Has when and China if we turn then market. terms thanks. with in that how expectation in think rate this in your

William Hornbuckle

in chime our and in this got and property say would Hubert is Cotai to are which zero all ultimately Hubert I eVisa do it XX we own up tolerance, in timely. let obviously, of is Shanghai message and now because week at can a accessible the speak they've at moment. convenient province. I'll was demonstrated that. opened of this here coin to side provinces the Also, the All every other and

we're And Macau. it the for by really means and encouraged signal so what

way is performance. it Macau obviously is SAR, obviously but in an part China shape considered every of broader

as think trying doing to to a project I that, to get support, time, I maybe in all when so it's us. I'm with to road. just curves we It's us But the sentiment think, more is time over the lockdown. And place. different to give I been, So where don't going you talk if can are that this any want me, hopefully, talk particularly, Hubert, not meaningful and many By you know it. know, is. about

Hubert Wang

visa Yes. the entire and Thanks, nation policy group also to question. recently Chad, for application up loosened that the your application Bill, and thanks, The eVisa Macau. for

zero with in still definitely place. that's gradual term, -- and positive. it's we process cold maybe to a I a Short between due long-term think the dynamic fluctuation probably ramp-up will policy

been that in just think I in cases. an give Macau, example, have there recently, you to So some

in we reopened the operation will and seen today. and reopen single and yesterday shut has to we quarantine to -- have just there and case were we border down crossing So are three cases tightened. for X Cotai, there days, had case, And MGM the measures been

from over these it's time, policy time types a run, place. is So things the I in happen But think to overall, still if long positive. of could the

looking think your I of a X.X that million we're question that bond day OpEx in rate terms range. at about us, USD In for the of on

Chad Beynon

you. Thank

Operator

ahead. with next Farley Robin will UBS. come Our question from Please go

Robin Farley

Great, that your lead flat promotional. mentioned is promotions non-gaming anything to growth starting that gaming given that to the seeing regional thanks. bit I little things. some margin I'm if factors a know you of the terms if revenue the much in Thanks. markets, down about labor costs marketing coming being and anything the from you talked curious of just in with with regional and pretty was just you're was

Corey Sanders

it's Corey. Robin, Hi

market a stayed our reinvestments. right City, a general, tough general, we in saw have think most consistent. ramp I seeing now. Atlantic in little our But -- in of market bit a regions, we're pretty some of reasonable reinvestments is that

for, a As asking have profitability component other against some be of will that in which those see in amenities, our comps departments gaming which we revenue, give would it'd it regional add you areas. but would players the been of go flat, why these that reason

Robin Farley

premium anything versus just And you. the of Are Vegas I'm difference in at for there? of thank in different terms if more your seeing of properties demand are you're market. sort curious trends that you follow-up, Thanks. broad in Okay, resorts more the properties seeing terms demand any the

William Hornbuckle

although and some comments, we've our I context Casapalca the a again, that for due dining, at part I It's entertainment generally our Bellagio. properties the general was like Robin, But ability ilk. places October to tied of may something in surprising mentioned Mars bit our a that to was of it's said It's yield programming Bruno affirmative to average rates fine up it tied Aria, experiences speaking, to be Look, tied it think is or earlier. probably in of to legacy to of tied the luxury.

a have not seen the slowdown so to in just contrary. And that fact we

what to of in -- what's date open And all of happen higher-end -- through phenom we're particularly the our happened Las October, so it pretty mean and not eyes Vegas, continues, we're and here. doesn't for by properties that. excited wide on may But

Robin Farley

much. very you Thank great. Okay,

Operator

Please from come with will John ahead.X DeCree CBRE. go question next Our

John DeCree

Hi, Vegas Convention picture my more your Maybe a everyone maybe about taking bigger Las thank group question. one questions. you for bookings, in

Corey, we attendance see get forward XXXX, various of the events? or look by big start got guess, bookings back seeing big through grow closer per XXXX lot smaller or as XQ, I Are Or to levels you be more events going overall can sales big similar we've attendance to are ones maybe other those to when guys XXXX? events you then they you more to kind conversations. and might departments. a see attendance the it to of have pacing, in is driven As you and

So if that any yet? curious have you on visibility

Corey Sanders

Yes.

The you'll of reach in, industry, attendance the think are is events all to on answer coming depending bigger of I lot have the domestic groups still an and But they type see the that actually. levels they that them smaller were not. come they're a groups book in international especially maybe medium-sized more if of also before, seeing also. component, and we're yes

for now perspective. definitely business that dynamic of demand lot business year is lot the from demand for right So a also. in seeing that We're seeing for a the the where that business, year we're of

John DeCree

housekeeping think, Macau. charge, was billion the a over little Thanks amortization subconcession And one. In release, Jonathan, $X maybe press to related there Got a Corey. I it. in

maybe we've remind for? questions. on accounting got last of a talked I about this think couple of Could what's that you that quarter, and we've but the us

Jonathan Halkyard

recorded that in majority accounting new with back firm, MGM our between it's We've concession. post to to When through that released June, outside be and a beginning in related the amortizing the XXXX. we, intangible purchase When intangible December. auditing position the we Yes. came China XXXX we an concession MGM was XXXX, law Deloitte, to the a been went in together conclusion that we'll to

So intangible concession towards which end needed the the of existing life, this amortize on which to was the is life by or its of year. we based, that the end its

in the charge quarter a small took quarter. relatively and then in we the So the fourth taking second and third we're amortization the remainder

And so is. that's what that

John DeCree

clarity. Got it. Thanks for thanks Understood, that everyone.

Operator

Barry Please Our Jonas ahead. Truist Securities. come next question will from with go

Barry Jonas

you. Thank Great.

going costs. quarter. level more a There Or in follow-up fluctuate a little forward? was a in that higher out Are the now a the margin bit XX-Q we normal item for on at the line advertising Just strip call there? could

Corey Sanders

XXXX, a XXXX than were but we it's back higher XXXX. little, spending Yes. we It's than cut in because lower

Barry Jonas

it. Got

then just... Okay. And

Corey Sanders

comfortable, where of or normal future on in new a forward also. we minus probably It's feel going Yes. the pretty plus

Barry Jonas

Okay. That's great.

ask over walk as you follow-up, some if profitability about help and Wondering some next possible, there. could BetMGM, for think setup the to deals and the wanted a maybe I maybe partnerships if ROI of lower has years Just that BetMGM drive roll of few sponsorships off the made. us through the

William Hornbuckle

Barry, into answer So different We markets, try go things. The different is is this Bill. yes. we

of are deals. Some access them

You of motivating licensed cases, cost partner and help some the in sponsor get to ultimately the et you state, even through a get-go. need terms from and a get in and cetera. legislation get

not market as. you'll yes, they this, just very The of who level, certain get at per year build a base about on like. team But been cost on them I efficient may most allocates more from opportunity depends going what market, it begins up all us, anywhere that. plateau to depends have think and Some CPA the But get X. percentages some and clearly knows that profitable, forward. exactly to range them everyone as see we a are. feel deals to we of there's a Those all and are It notable single reasonable smarter including what sponsorships an at those customer

Barry Jonas

Thanks Great. much. so

Operator

with Our next question will Stephen come from Stanley. Please Grambling go Morgan ahead.

Stephen Grambling

In thanks. deck, I in mention experiences, physical/digital the associated and investing you advanced Hey with program. loyalty did marketing think, the

monetization in or program you about As opportunities center? you the million XX profit I invest up loyalty to or members thinking how think even to around, are fund said reinvestment continue partnerships make engagement, a you ramped and

William Hornbuckle

our to like time into existing We it's did we Carnival with around bring we'd as with Rewards several with actually Look, well. and it. opportunities, Hyatt partnership BetMGM that just over something have expanding different MGM whether

there so Vegas. Marriott a -- with deal we have And at the are Las obviously Cosmopolitan of

to members we push and to forth go that. are There's at active. have trade that. And And on so to now that on real back obviously, continue a XX we'll million opportunity something

spend. As essence MGM for up, Rewards whole rewarding all as remember, gaming just spend, versus we've the MLive behind opened opened we've up not

set us. a It's so retail And to different of a introduced introduced it's higher-end customers customer.

to other town. things that some things FX and gets I think expanded like by that are coming

structured that. our first going of coming got some at. we're you and We'll we'll we've -- begin to going focused been initial some here firm And where indicators on team a doing actually. very give But begin pretty to and hit year whole of forward And where so the here we're metrics we've full exactly up. about are

thinking. the So general

Stephen Grambling

for helpful. follow-up. in bit that market BetMGM is terms good. it on point. I market unrelated at opaque other ramping how here? Sounds side from U.S. The and a seeing That's what how in might of online the the evolve One versus guess, in it's you Canada are this

William Hornbuckle

that -- Surprisingly well. don't I and market And Ontario gray or actually more. market say in And is they that's share. ability a for decade note a maybe so of publish been obviously, that's why per our

done doing. we're things, well. So we can't We've have exact exceptionally but know I what

exposure for customers it part those is to XX we've think database, years. Ontario/Detroit I had of our and

of we're we betting, in sports if fortunate context taken note. he's were in a iGaming leading, enough so damn And real place iconic. have just share. we're have the not we of to [ph] early. board get with on close position And And Wang-Getsky And real we

so, we competitive of really about before confidence surprisingly what's highly feel so entered. good great gives happened And a we deal there. us And a which in market

Stephen Grambling

you. thank one, Great

Operator

with Please come last Credit from will Ben ahead. Suisse. go Our question Chaiken

Benjamin Chaiken

I going? it how’s missed Hey, if it. Sorry

lower how of a XQ, this XQ margin taking in of if at the adding much for you kind Revenue to on Vegas example, sequential how so differently. headcount, it. in margin regardless compression think of sequential about is If existing this Thanks. Vegas, we how I Just margin is improved sense. revenues and much business And didn't out? from it mix you another called that the swing out. called mind, compression make also of EBITDA margins. dynamic, cut as can this which you With try

Jonathan Halkyard

all some increased right. but impossible around question that mostly additional much. your also been sequential, over the opened to how the or know that's past of year-over-year I has We've and outlets labor and required closed volume some minor to Jonathan. No, some overstate having final extent, that's to sequential, almost and is labor. had here, X. resources. activity just year addition -- do with was It of this mix It's a is It's

both really have which caused dynamics, So of that. it's those

Benjamin Chaiken

disconnect be And a then highlighted but one to seems your there There you. think valuation. Got -- just in. to few be you've in more to seems times, a I squeeze

from OpCo is structure in discount. the it? appropriate got strategy? high You've an level, the I guess, phrase of a do if ever and the like desirable most kind you've balance the sheet that's just think liability of structure, you the this would lease still asset With on way consider kind EBITDAR the got then Or mind, you to pivot multiple

Jonathan Halkyard

agenda, Gold did acquire I nearly our when when at I on structure strategy. same XX And escalations absolutely you I it's the multiples. to the what structure. And considerations that ARIA during perpetual time, XXx It's the been are not next with one of do probably refinance. able look we this not the years. valuation are that to moment, EBITDA third M&A these and the for and -- too businesses have to a capital a difficult And to X% think at aside accomplish it Strike is over respectively. them what look paid that we quarter. sold I multiples of is $XXX million to sub-Xx EBITDA love out X% we've at It right the tease Cosmopolitan the XX Mirage the we've at and capital

with for here. in demand structure, leverage at the that regional value on are combination integration think capital going our the just and is the it very clear opportunity there's with So Cosmopolitan I disconnect is these other whole cost valuation described fantastic dynamics creation. really the in look operating our I getting the still when started this But backdrop what it's and its event of businesses fact I think cross-property to early we've efforts just a

change. wouldn’t I So

Benjamin Chaiken

Thank That’s helpful. you. really

Operator

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

William Hornbuckle

Thank and attendance for your thank operator, you, your obviously, all interest. you and,

our business comments strong and we some feel But Las Just by Vegas. obviously in excited again. highlight here very

things want the we GGR. of and Cosmopolitan Macau, $XXX of to despite the Again, see in of of to do. Las and customer and couple growth like the both just opportunity of come October, a to We fundamental we Las position and like asset really the of did other think changes place mix, context Mirage Vegas. been tribulations, some desire in month the all million Vegas the trials a we the continue of the to with in our changes the strength for there's are in its where You

So annualize long marketplace potential that and about think term. its and that

And term. really year-end. do We in and well have so get by deal a we're to think confident great Macau are we'll that safe I of positioned relicensed long

obviously equally, into success our excited, direction. ultimately leading BetMGM. we're for not world vehicle if in rest push the It's heard more the in tracking the and for with way. right And Resorts MGM You of LeoVegas, absolutely that

most also significant The should relevant enough downturn think be go our about resources If and sheet. resources is amazing. opportunistic. point balance more I we two Jonathan's ultimately to into liquidity we've us a things. gives is to got It sustain obviously, the

compelling years. so very And next the exciting that us, the very we about is opportunity we balance sheet as and for think think, couple of presents

focused keenly assure are on We margins. I can you.

backwards will more go We to -- to are they at this not would we do will from We a place and where are. said to they point. they back work, -- want do come we continue

room You a one-off Las Vegas there's a that hit properties And potentially opportunities couple us. places, for and and couple in enhancement have despite a the things of some on of commitment regional I that. think

marketplace. X% the compelling. of and New And Japan is we to versus now rent what's pipeline obvious for those The love the right opportunities in reasons. our growth on the going of ultimately, open around York that -- -- both -- cost X% The Horizon with

that then be to couldn't of as all and our And those of with table so I I advantage colleagues the ultimately, and happier the think performing. to places team we're crew well positioned the And at how of it's in both take well.

us today. Have you thank night. you joining a great appreciate and So all,

Operator

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

now disconnect. may You

MGM Resorts International (MGM) 2 Nov 222022 Q3 Earnings call transcript