Earnings call transcript Q4 2022

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Operator

Good afternoon, and welcome to the MGM Resorts International Fourth Quarter and Full Year 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. [Operator Instructions] Please note, this conference is being recorded.

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

Andrew Chapman

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

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

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

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

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

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

Bill Hornbuckle

thank Las joining announce fourth Thank all Strip for EBITDAR that you, regional year our Las Resorts Vegas full today. of to quarter well International MGM year-over-year. you our Andrew, drove increased growth our record XX% resorts. our as What's more Vegas I'm property proud more, and for and adjusted us and than focus results the becoming in gaming outstanding premier entertainment property EBITDAR company. operations evidence adjusted on are vision by optimizing strategic world's These business of as

guests go also These our our an beyond create and above will our day great testament customers. every loyalty outcomes take experiences, who among a of and are employees which amazing, to care to drive

financial record enjoying. scores improving of them are be satisfaction story, results we these to proud I heroes we celebrated. couldn't this of Our delivering steady employee be guest alongside the true and employees are and for need

the expect performance look many our XXXX. into drivers we XXXX As we for forward, continue to of

variety a the Importantly, portfolio. long-term MGM's environments, weathering given are well positioned inherent benefits on of of diverse we

ownership we're of the BetMGM, in is important profitability. and both to footprint return reach. content digital and and significant space as opportunities our is is one of making leader expanding further pursuing substantive financially and BetMGM other balance most gaming capital areas digital ultimately, the using which And repurchases. continued on of LeoVegas, our grow allowing including to leading York, ownership both betting regional consistently scale towards we're in business the segments nation, two, internationally what and integrated of diverse to offerings. number Strip real EBITDAR the -- a million have profitability; properties premier of organization see pre-pandemic U.S. and we this from brand the beginning most distinct of our creates all we diversification produced are resorts profitability; our and three, strategy a gaming eight domestic of This number that in offerings our over Las market well-balanced very strong in to now pieces with as two cater that that are And and the MGM's our iGaming, our LeoVegas well U.S. nine Macau, And the and the in XX% digital are such, a overall host return Vegas benefits fact, our highest to generated business digital progress just $XXX segment invest in Japan, distinction that extend the In space. one, share the as its sports via brand New operators. and in international funding with sheet, flexibility

our know, program. announced have you approved that repurchase Board $X just we fact, billion as In another

us we confidence days ahead relentless opportunities expense opportunities management, with free growth a a us. Looking are best control momentum focus business, per that ahead, operating great our and disciplined our our we gives coupling believe see margin multiple share, cash these of flow which for on model, in our and

'XX, for walk properties. me the business case Let through with starting U.S. our

the in success infrastructure. by and we we On encouraged double-digit of early acquisition. annualized an EBITDAR period migrate growth MGM into The basis, are Resorts have Vegas revenue of reported Cosmopolitan the we the to Las compared business as First, the prior XX-month to

system. beginning customer trend are hundreds This of Cosmopolitan we properties and expand to market that database saw already Vegas, integrate with continued The other for from New to our MGM sister mass at driving Las cross-property players produce and we attending Year at Rewards MGM events we the high-end as expect The the our celebration Lunar to win play We a into is in millions properties. and Cosmopolitan Resorts

X month, XXXX. CES last setting Next, we are the has and have to up in a Madness, up we in next games have the strong in Elite XXX,XXX XX,XXX to history. And Sixteen calendar Sweet CON/AGG best us and be is Together, Vegas. hotel Vegas. best to Las March have a month, CONEXPO coming believe, our is the the positioned Las attendees in from ever. revenue March calendar event month

South in and to properties. value driving is even expected billion advantage spend, events in visitors, also million Allegiant the bring city, and we economic X the which take end X.X Vegas visitors XX more Formula over are significant to Stadium, even events to brought to has we higher positioned bring $X Las XXXX, XXXX to best Las expected in Additionally, believe Vegas has of. particularly at quality is our which

capacity of Reid in growth growth first with the XX% XX.X XXXX. XXXX flight LVCVA is XXXX, million of the recover further passengers tailwind of international hosted visitation. a Harry domestic and seats. ongoing reach XXX% to in record The in quarter Airport expects available Another XXXX

Starting tremendous Outside opportunities stated growth. of China, is Macau with fully back. our we domestic business, see also for

an COVID when loss in in well our rebound experiencing are XXXX, results. operational were Macau negatively our operations impacted in as overall they a lifted force causing did our Las guests we But that in are impacted Vegas As that restrictions XXXX just here. know, restrictions returning you

within we excited China's combined report company. are earning the properties our quarter-to-date, fact, highest In to MGM that are businesses

results recovery strong to and our low markets Lunar which China, allow these process, committed January. were gaming part long-term retendering we the have XXX which new as to Those during to renewal MGM to drive confidence early concession with we drivers tables bring events events our visitation share us And commitments of the the validation entertainment secured New our the combined are upon Year of mass part and of as should concession, end Macau we our to to nongaming We unique into additional in property viability and positioning, premier at As were see mid-teens. market to built. Macau.

compares the pre-pandemic. market single-digit of during January, market to month fact, share high XX%, shares which was In our

team's our strategic to the efforts was floor product also events, gaming marketing by the for performance decade, two receive of outstanding position producing in the efficiencies. levels us focus Chinese for promotions renovation, plus optimistic growth hope we nongaming Macau. operational in in long-term collective licenses strong prospects reason be that well complete our hotel the near full a a about light this remainder driven This We've the and growth delivering These new of into gaming to and business customers service mix story various of targeted team, in in improvement especially our future. shows MGM efforts

in of our is existing our incremental our RFA this for thus tables instantly once in advantage the have One the this to floor to submit the we over tax response state New approved to ability add near hope half for market for casino expect year, first future. in competition and almost and we revenue We York in license. the

spend to in expect of We the about two York New inclusive bed license fee.

and such property program But and now, space. improvements our as a overall extensive an the we're expecting right fine-tune covered in will offering, parking new casino food opportunities, increase planning. and significant entertainment We floor beverage

a soon. but generate are you has months resort, to ago. for we government, in we for an international the may in to for compelling Unfortunately, the tourism will the time Japan future These flow free projects standard. approximately that in returns Resorts we from XX also will upon so As ORIX, weighed region. I in of may the well excited RFP cash be same and growth mentioned above operator I'm integrated opportunity sole submitted hear extremely still all that recall, decisions, future. yield. partner, are and ROI offer expected market investment some resort to Osaka develop just to patient which response our an are believe the integrated we We're license operate MGM develop a our capital which the with presented we our waiting for Each current being in

see beyond. will was year we're we In and XXXX MGM a progress confident closing, XXXX into Resorts, for and phenomenal

that, turn and quarter the on to more With color I'll over the Jon year. fourth for this

Jonathan Halkyard

very Bill. Thanks much,

some of a we Before colleagues with an here exceptional I financial year. results outstanding financial I'll my you share me let also the into MGM achieved. for Resorts at now and results, truly amazing dig quarter that the thank

the excluding last X% set and for in up the basis XX% XX% handle into drivers. record records driven strength same-store which Mirage, quarterly well in last The by quarter, grew was where with the continued that's Several metrics and XX% all XX% Cosmopolitan month the fourth on other quarter strong points pace last of remains Las exceptional compared demand occupancy entertainment our occupancy and revenues, fourth year. Las as to was with in seventh Fourth Vegas quarter rooms and customer Demand were year. fourth Las double was year-over-year Strip consecutive and The during rates $XXX booked offerings XXX across EBITDAR Vegas its ADR adjusted us year. digits our slot quarter. Vegas and as so segments, property grew volume grew The in set over record up January,

In quarter grew year-over-year. adjusted X% revenues property and the grew EBITDAR regions, fourth XX%

the versus in this normal line While is EBITDAR down fourth with decline quarter, quarter. X% third seasonality sequential the for was

as Importantly, highs approximately labor historic and below NPS achieved current sequentially remains XX% and levels, of all revenues customer satisfaction. while was expense flat headcount other a in indicative we our XXXX percentage

transaction excluding was to which stock of the million, quarter, $X $X million. $XXX includes related fourth of MGM million corporate and global compensation, In China, costs million development $X costs expense,

million million decrease corporate anticipated million in of million, from $XX and expense for XXXX MGM the related to year Japan this forward, MGM's XXXX. million and Included in York. is be development $XXX approximately China year expense full approximately expense we corporate to for to $XXX $XX New Going million $XX $XX expect to approximately a

York Water the we to continue will and X.X decrease average Club renovation. XXXX, age room New years, as years by and of York-New our room room the XXXX, this renovation Since in over in room million of spend the age our the of Borgata's roughly since our year, We in we've Maintenance this our completion reduced room approximately and refresh year. $XXX offerings. million invested it CapEx compares intend domestic Bellagio to includes Tower, approximately CapEx And $XXX the be in capital to this will in remodels invest this XXXX. $XXX million Spa coming

remaining to connecting that capital, and Center remodel, customer in pedestrian ease a XXXX to Bay The Convention experience, better technology growth Mandalay Vdara CapEx investments and Cosmopolitan drive in The is projects include engagement. bridge the new

the and license awards. the Finally, XXXX will development $XXX expect on to upon million only material the this New $XX to $XX in fee, the be York front, timing year contribute million depending million in BetMGM the we license -- investment of

with a comments allocation. our conclude capital on I'll just strategy few for

the First debt strong against our we'll by cash see billion. concluded as we for in domestic enterprise. sustaining that adequate domestic maintain with today, we of presentation $X.X of billion foremost, $X.X posted XXXX you and liquidity sheet balance a can And

in by the after December cash bolstered year of disposition Our Mirage for $XXX were net proceeds million The resources tax. in this

Next the after sale tax. will million on of expect the $XXX Gold to which net in in Strike close in Tunica, proceeds we week, be

our prioritize shareholders. to capital we'll return investment the for deliver Next, highest

Las of end into expanded Our of market. high Las Vegas the our acquisition of Cosmopolitan The the Vegas reach

our strategy. acquisition LeoVegas Our jump-started international of iGaming

and Our internationally team in and we'll number are Gary expect more in that of digital a to content opportunities new area, development. Interactive, should our shareholders of Fritz in grow be iGaming MGM deploying the President evaluating his this brand capital and

going to return And capital shareholders. finally, to we're

of our million $XXX to repurchased not through reduced for share $X.X billion. million a XXXX we total billion the count XX of million and done. have $X.X shares. yesterday, During we've XXXX, Since for XXX repurchased And shares we're beginning

share billion Bill Board additional program. mentioned, As of yesterday $X our Directors approved an repurchase

well share available company of that In I own before strategy, are a I profile and also as us. number our cash opportunities yield development But our the shares. factors, free the flow including consider liquidity consider evaluating repurchase the M&A the as of in

$XXX had So adjusted expense $X.X Las the adjusted as billion. EBITDAR from from rent property $XXX cash China. I corporate of $X.X regional CapEx domestic was operations that, domestic following: we million. conclude, related billion to was Consolidated last billion and Vegas and $XXX From consider cash about approximately And totaled on was and $X.X our $XXX of but million basis. includes cash million taxes MGM interest million, an year that annualized

BetMGM. into a of significant taking ownership course, which repurchases position double-digit But contribute yesterday includes cash our value this our accretive billion; company see in billion; a of of but and is I shares, our approximate cash which capital. when all stake also earnings in that reservoirs It's XXXX. I our excess not in $X.X has did of see in of of lot an This had use of and yield responsible share account, opportunity our MGM why as value China, a over $X.X numbers,

to Bill, back you.

Bill Hornbuckle

with we that ultimately about our been time Jonathan. all towards hope you've company, as comments I've beyond. excited business I -- have and In present future year our right excitement the am the now. my Thanks, I the and never all more this that conveyed

stronger, agile, win. with determined I ever that, more And and questions. focused think take than we're more your happy more to to we're

Operator

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

Shaun Bank America. from of Our Kelley then be will next question from

Shaun Kelley

Thank color. and you for all detail the

of huge of collecting want I could a before, walking So cash interest you start balance yield liquidity with to lot still but the than places a Jonathan, at start, a different on one. not a robust high-level, a better either position, lot sheet through we ended a that's but yield. really strategic on

and that in there, more you the stand-alone or your could the ownership partner stake a in give know maybe one. you online international all big of discussed, BetMGM those but that remains around how latest us if there interest around get thoughts kind of one upping strategic maybe And there's we you with that expansion? question your in fold value comments organic being the areas obviously, the So the we time a

Bill Hornbuckle

of it the answer for Shaun, on simple the definitive think little moved give just is part to time step I'll first Thanks, And question. of and The I be in a give it's kind on. Entain and because we've no, direction.

we see sure business capabilities. interested While studio We're our in BetMGM's grow, highly expansion remain and with we the and like on in we Entain we great continues said that to their I've partnership that, business through content also focused their potential technology frankly, proven making platform there's business, before, team. business BetMGM. LeoVegas leadership We've we we at real with over in combine our there. dealer effective expansion directly purview. product a great other think time, And markets brands play like that seen live under our and of brand own and when the and the global

with the the move as forward us BetMGM. Entain. right value to the different now, down a drive not help no, person we going begin got world, motive, this We think and right But we're own for is the forward. We the value go to lead right to it We within the to capital. rest Entain. of Fritz relationship direction, Gary comes allocate answer going with our and So proposition. We're has to

Jonathan Halkyard

of And look $X.XX comments, capital couple do allocation forward. at we around X%. broad in just Shaun, strokes a the have billion a March, We maturity as

$XX. billion present plan at almost repurchases the of bonds will $XX were quarters. million So business. for of those past spent cash active to free redeem We $X to, capture in share $XX We flow and course, price is three that about of just the about a

ambitions, of to as we're that our So be predominantly capital market a which significant of And be those through activities for is what but funding M&A we'll we'll described, continue but which shares, course, well. reserving amount moderate Bill will then, our upon conditions. depending repurchasers of interactive

Shaun Kelley

to to we be the of but are around options? don't greedy could made more that to drive hit you still just want Or parameters I investments expand up theme follow-up here, some the be Or stay And us platform-level time kind to opportunity my that with are just on then, and I'll could M&A. meaningful Jonathan, give same business? thinking be -- directly it bolt-on base to the you there

Bill Hornbuckle

of technology It's that live other on up relatively talk you of When business de stepping you a minimis. talk and studio to to our South the But as have combination it's marketplaces, small. opportunities over America we'll now, is thereof. these dealer, view rest take about it's more Europe, relatively aspect on a whether that unfold. time even or for different When scale, or bolt-on

Operator

for of And back question, the JPMorgan. from Greff next move we'll line to the Joe

Joseph Greff

now? you me Can okay hear

Bill Hornbuckle

Joe. Hi,

Joseph Greff

about between trend basis Vegas, you And Maybe Nice Las FTE growth you offset and how you you're Las wages. speaking sort Vegas? do In expense on talk need of growth kind thinking right. FTE same wage break up a All about can year? both one. revenue well they'll just with another count you. payroll got it I’ve this as of as could and how what to expenses in

Bill Hornbuckle

I kick will it open I'll it and to Corey.

Vegas we're all this work with contend look of on just have back which you since go way wage And FTEs, we negotiations inflation on you XX% looking depending 'XX and the to the through. XX%, Obviously, with later so forward, in about substantive If has our particularly XX,XXX same to against labor property. year our we're down and we're from at to anywhere XXXX, Las page, have going crept. colleagues,

second just of And so scale... maybe the Corey, part it,

Corey Sanders

FTEs, increases. on It think I from be from will standpoint of will the a perspective, be fixed all there variable. of levels cost no

we properties, levels catering revenue guests component we're today. there's business, it. So the it comfortable our if that think pretty at and I match at could our that service we're banquet of additional But would service

I don't you take want if Jonathan, know, to then And revenue. the

Jonathan Halkyard

running full room are during now we're revenue There's a with on weekdays. basically think growth the the weekends. I of if on occupancies side, bit Yes, the that

as I adequately. in And opposed Vegas. digits, gains through it to largely if increases should occupancy any Las we will in really, think single able pricing need payroll to cover the low So to come in that's be

Bill Hornbuckle

I to think the think mean, sustain our are is margins we I going think answer to that. overall, I the guide, really

Joseph Greff

that And company sure just along bit January, Can you I I understood today on then dealing and Or or earnings those so that? led explain a your -- release as call about well, being little your give in Bill, another make with it month detail more profitability want that? Macau talked to in comments the comment you lines. the back we're of prepared something

Bill Hornbuckle

Yes, around these Hubert then worked guys at line, years. and I the can it, for have a hard we put have on color little this three

bit I'll little talk the So come January business. X, look, let a was, him about rebound the But fairly interestingly instant.

think I the peaked were day. I XX% all we share. a our prepared mentioned, million mass little 'XX a reasons X mentioned Year, piece, over our volumes XXX% New for making in my us, I during Chinese for over comments, And levels.

where talking about about have. we tables the activated from, new But here. XX have we're we XXX XX Now from very company, days. We're what's first days the come in whopping a happened particularly we XXX for to excited

any And would maybe color other helpful. so Hubert, be

Hubert Wang

for Thanks, Bill. Thanks, Sure. the question. Joe,

the For of observers. I -- many growing been back the of exceeded market has year, the beginning think and the since participants expectations has and

is us. both of the for seen segments. in January, has us, Bill direct VIP reached very high our XX%, the on mentioned, recovery average in the a healthy, above have for gaming mass month And January, share record which market market as For we and side,

XXXX to that February segment It volume into Year, during with on mass extend of level New VIP the rate very par rolling also Chinese year's And see that week encouraging encouraged exceeded level Chinese as first of well. terms month we exceeded run direct daily far last far also is was to Our New the so the Year level January far. see XXXX in January actually. are GGR for of

So solid this we market are very recovery beyond. all year confident in and and a in sustainable all, Macau of

Operator

The next will be question from Jefferies. Katz David from

Cassandra Lee

on on Cassandra David's This want margin term. longer to is expand Macau's behalf. I

direct, and VIP costs increased your believe competitors labor and from in about I labor junket to increased think utility. shift called shortage have we mix also some As the out

term? margins So the Macau think how should in we longer about

Hornbuckle Bill - A

-- kick Well, you, I mean, the margin to again, done, everyone XX% when comment my all I'll it business, only junket and a but is said business. believe this, knows this was initial it I was

the great business I the volume all a a it market, vehicle was of and us there assure was while obviously, that for deal margin, -- to you. into in didn't so accretive can capital and And we help

want know and broader Mass think environment about Las I you So don't generally Remembering to Macau. the been network do is for is anybody market. almost to over, more we've if branch it and now it work VIP, taken else But our will I talk that to Vegas, years of and doing we're where what happen like XX in for than system into you benefit there. directly positioned VIP. We've the put

Hubert?

Hubert Wang

Yes.

network in we that but early in to have XXs, Chinese in in you terms the strength customers. think of the some growth observed the business, too the of but I high-end I beyond, there But terms of in the junket probably still to concrete in and of -- direct, numbers. conversion the very XXs. margins, year global Year particularly end business in we that I we're we'll wide are space, and and at our the of it's this expect the in Resorts terms of really of that MGM high confident direct that given think And think of side New in in higher January reach direct from any give certainly,

Cassandra Lee

about recession, I ADR a Vegas. or do is on if you a favorable here that than think be? has think looking resilient sustainable? may that very shift how bullish higher Great. ADR And especially been beyond substantially levels. should follow-up, the lot And 'XX were Do for you if we're The There of pre-COVID and Las thinking commentaries.

Corey Sanders

Yes, is sustainable. Corey. this Yes, I it's think

weekends our good what now, event the pretty booking and at we forward-looking rates look have on we we're pacing and As further calendars visibility at out.

better. only our convention but our On convention not business the getting city's we better, midweek, business the see whole -- getting

to the we're today, able we today. given where seeing is should that economy So be sustain, pricing the

Operator

The is Bank. Carlo Santarelli from from Deutsche question next

Carlo Santarelli

the few that I'm what your kind moving firm of And gaming delta, widened pretty is that disclosure Cosmo between a Las some kind looking all that with Just last is has kind forward? of that in revenue delta Vegas and of trying of to casino the is the much quarters. net at decipher hold in assuming revenue related coming mix online? range, will and

Bill Hornbuckle

Yes, yes. Carlos, market, hi, Bill, to -- we obviously, database, might needed question a we've I to went the of sustained do active marketing is answer and COVID think We the note things segment away. Very got the group that through we because other casino and entertained with in sector, personalization our it.

And helped mix to our year. back XX% that think about is the I so carryout come is and Obviously, it's think to tremendously. of is But XX%, convention way sustainable business business. it the now this going

Carlo Santarelli

then, the double topic done made were believe digits. that a at And were on convention Great. bookings that on mix, Corey, comment of just you that, done, I the earlier,

business the business of XXXX, to group kind of entirety from about kind books it? or look targeted guys perspective, to does a on on how however, you the at year-over-year that think or relative group the look you books the the If of want pricing

Corey Sanders

-- XXXX. contracts place in were Yes, over many those of I XXXX, think look,

booked bookings. at opportunity are have where we rates XX% price there. escalators they based the just an look as it's us business. But a of It's reminder, is new The our of on for think as getting I today. future convention business in area probably future in

Carlo Santarelli

a pricing that the believe, should like it think perspective XXXX, pricing on aside, be believe just overall, thinking visibility equal look a Okay. that that year-over-year economically things And about basis? taking you about there from you it provides all and when power through macro do do you you the as same-store you

Corey Sanders

Yes.

some should be book our and the on think pricing power based amounts foundation bookings. on we have have we I there the in the

Bill Hornbuckle

do And out strategically back midweek. and one we decided more thing to business Carlo, is weekends push of have into remember,

opportunity where luxury overall an company's raises in play Bellagio. us has Mandalay, it we to continue ADR, brings but convention overall gives ADR. we across because ADR down see, in Cosmo, that more upside, frankly, the the Aria, so see Obviously, And MGM, it real the it particularly segment, and

Operator

from is question Morgan Stephen next The Stanley. from Grambling

Stephen Grambling

out that to was that turning still Japan, is Maybe referenced there. another you one

on either like any flow some you a sounds above waiting still updated cash yield. just free Wondering for of You're expectations when if of your even your timing of return approval for it and evolved that that's could elaborate the market looking that's the but the and be from could the on when proper out start to terms of ground.. the construction coming anything transaction,

Bill Hornbuckle

through that that hear over XX et to October. tell Steve, a MLIT, to be had we whether agency government, while going through get and cetera. the of efficiently we with is the a February hoped that, some consistently been about said and this Osaka, of Yes. got next would having we to for having The we believe thinking the here in But questions heard. et might, now. asking us NDA careful the process about we because that like today days. we've project, contract think government We the with the but cetera. Time little to not government in Obviously, is sit lies now with

it the think that As excited I'm to we player. only to macro, may be look, relates

in Japan And other we're tremendously so about not favor, instead the talking train, has see our us, larger of a yen much people, taken places, from end value our we away looking has so Tokyo, XX still we're in only particularly at hit a by gone hours market million the et X.X market. of it's journey times cetera, Having high-speed many but upside. it's for like partnership, of has then of on the think the can timing, Inflation project, maybe bring at and then XX% that at some, a billion we overall We're cash the a looking goal plus And mature. flow $XX to return project. but since before in going there. soon if close a get But XXXX. thing -- getting challenged was decade open -- be the there's now we to hear with to don't that to we're bridge this it and in

Stephen Grambling

capital being given That's guess, just understand make at you of to JV put helpful. sure year, anticipating additional into out, this point? on are correctly. or kind you beyond any follow-up I targets for this that maybe profitability standalone far the a And I BetMGM, but

Bill Hornbuckle

states If starting identified. year, business particular of substantively. generally, There million yet think none of it to No, are should gives It's in $XX no. or no, care It every is rational hit to all we've our us We should call That BetMGM and for M&A But left. $XX-odd this additional some go the There second I half million the gets million, product, the its business the take to it, profitability six maybe. But into no to players. $XX well, large-scale itself. identified. believe have there's capital. -- reason target be year. been collectively, begin make but growth that mend have to we've

Operator

question from Chad Beynon is Macquarie. Next from

Chad Beynon

the Bill, another Bill, how segments events diverse with just these help obviously, little core. compared in given core. think breaking the moving nights probably portfolio see your it Can kind know wave is a in bit but -- I luxury, but luxury help way Vegas, group lot luxury you broadly I out, and to and just 'XX, on should kind one the of 'XX? against and just of more other those said the which where to of -- each city-wides us about compression trying in not just Jonathan, think you're a you

Bill Hornbuckle

best... you're Corey think I

Corey Sanders

group fantastic Bay year Bellagio, Yes. as In of Vegas and XXXX, Grand. they, capitalized Cosmopolitan here Aria, the driven course, by growth in MGM the the XXXX. fourth to Las was Vegas. a nights I had majority of the the Mandalay Las as an XX% on room fourth group in versus just were quarter, mean of the the quarter business about the up of example, our return

We just is be no And -- But you, really portfolio luxury players. going We've here strategy generators flow several are tell from a skewed of Vegas the over businesses, doing those the growth these York-New segment. invested York capital rooms in right properties I all from are we're So it the New very luxury in will next important has properties. cash the question, certainly some But role in coming year. to Luxor we Las perspective, solid years. in expect, the to the now. last the

Chad Beynon

bit Vegas, about out and of BetMGM wanting come see to little that how the progress that your more events, opportunities in should stands one of more the it's now given and the years a important And Las with 'XX? kind back of then players your omnichannel can you driving just some of probably players where talk from to

Bill Hornbuckle

context, So players It's is becoming The And I I answer interesting. XX% the two, both of the in simple touch more. more. that of spend the brands. about thousands say when think players that obviously it's have combination now

but XX% kind that's intuitive Now is more of interesting.

XX% to are players of whether or sporting it's that thing that events, other The under years the the is otherwise, events, plays XX old. sports

of with and us so thousands reaching network combined combination a activity. the and now we're when that brick-and-mortar that to spend have people propensity player, younger bringing And both have is bringing in. them more who coming And date to us digital

We've them. both set up fairly elaborate captures that at ultimately, systems, BetMGM here hosting and CRM a program

desires And one-to-one certain dialogue VIP wants their and so players about what there's are. and needs,

our them. of we will, network have of like the would if branch offices, to care substance, set of they when up that so rings any phone we've and somebody we're treat take And treated you

system. exciting. over all by for MGM BetMGM loyalty pretty between to it. connectivity excited more, and it time its automate so and between now, the the there's But the focused the on high We spend, system need ultimately true Rewards use end So that and numbers,

Operator

next from Farley UBS. question from Robin is The

Robin Farley

a being the in as down -- little And gaming on bit bit some ask the wonder kind options the quarters? is lower what's to trip? a are kind there wanted give I color spend world? year-over-year think few it is Or just sort of you little gaming because in could more it in per XX%. trips QX last you that driving same-store showed about if I in with consumer quarters. last us Or well. that of of the down Is revenue you in of two I was the do breakdown happening fewer about Vegas what think

Jonathan Halkyard

Vegas. and No. growing in drop handle and We've seen same-store win Las modestly

of the that we've same-store the in side. majority the it's been question, growth seen hotel no basis, a on this there's Although quarter on

healthy same-store is the Vegas, So healthy on in -- a is mostly but higher-value the by gaming basis. it's here it customers, gaming Las very customer our driven

Robin Farley

of the sort player? from the With you're Or -- player saying up, broader decline? just coming higher-end it's to where -- Jon, sort it's they're the declines the -- same-store gaming with holding mean you are market the

Jonathan Halkyard

slot and game game talking win I'm -- table handle and table and we're about and our slot No, what drop win increasing.

Robin Farley

looking casino the out, slide slide. properties revenues I your from I XX% Okay. properties down just your showing there was at number in but and QX. using some was Kind on basis same-store a of were in know

Jonathan Halkyard

on basis be Yes, of that those a net accounting players. the that comped some for are after hotel will of rooms cost against

same-store describing gaming at are the a think is, the And actually that basis. of what in impact of Robin? so on gross gross consider sense, look and gaming customer I I is that on customers That's the we're make of when these is metrics Does having volume what the kind way revenue, behavior terms which gaming that it's But an the about revenue. basis. the growing to the of is on health

Robin Farley

Okay.

to was obviously Okay. I your position not dividend? the helpful. given it cash why that just that that's the going, liquidity I have number, curious, I'm and was a -- small is just the you and this point. strength was just certainly trying what clarify liquidity And Also, curious suspend when But only remaining issue? you suspend I dividend at why realize of

Jonathan Halkyard

mean was some we we've in to itself, substantial to solve. Board we expect that was burdensome. to the make it that a mostly which not. at share de repurchases. We it It it dividend did the of practice how That continue dividend much a minimis it and more but would it's not just and against reconsider doing, Yes, our continue. so point, administrative capital doesn't measured It an was just issue. or wouldn't it and than returned, of administrative was an that the a that through wouldn't of was really need felt complex. dividend, reconsider was minimis the And It form return size we de

Operator

from John is CBRE. question from next DeCree The

John DeCree

Robin's a quick on Jonathan, follow-up just, Maybe question regarding casino revenues.

higher So to ADR that what's amount need now of causing accounting essentially net kind just to revenue clarify, you against dollar decline? is the that casino with the

Jonathan Halkyard

issue not just which casino is of but about. Yes. That ADR, is the it's we that are dynamic the topic And this major also the -- talking the size segment that causing generally. that's major

John DeCree

question. XX pretty for additional picture, you and digital comments a on international, the Bigger how consider, that clear Gold Vegas give growth but portfolio if you'd we moved Strike. regionally kind I just opportunistically, follow-up so, you know the Las could potential Maybe Curious I last were Las side? as you'd think And Okay. or think, on to M&A Vegas? was a doing you've But some big about in other front, us the months upgraded it clarity. lot Understood. there's base of York for the think And chairs you New both opportunities anything today, buy or investments, or markets Thank in domestic M&A either divested feel if and open. on make more and plans where target you if about sense. the in of might to that sell, asset and

Bill Hornbuckle

we've particularly let the after we've the kick A, we portfolio me Well, I enjoyed it made, truly that off. think, moves have.

transition We're And we regional Las in want has resort. own of kind fashion. right marketplace, love the Detroit, strip, obviously, and City we love to whether Vegas, integrated think We leaders Allegiant to our tend percent in and of productive. it's Mississippi, there. a to We that A, to positioning. have We opportunity the been product of our just what's this try at Vegas out of there's XX-odd particularly regionals, south it that game or otherwise. do we're an obviously, the to the lead of to happened end a resort and the big markets, most to here. market tie When different we we in integrated properties via terms Las offering, In Atlantic get the customers to comes

don't never acquisition. but or have suspect there of always, I There's or plans on an I here never designs say any substantive would asset be on sitting I that immediate any today. might anything we interest, M&A here think

opportunities open, always but And are to going the we've through development I was. think an have if defined, specific there tell we've got you defined nothing ear come seek. will that that an opportunities I and eye our yes, to date nor would there's growth actually through digital we -- the and

John DeCree

Fair enough. Fair enough.

engaging strategy. Bill. it, Just the Appreciate

Operator

Truist. Barry question the from And Jonas next from is

Barry Jonas

point XXXX higher? what right go how of out? Or point pro that on pre-COVID sort think based number Guys, to portfolio? Is about strong is the strip point And with reported outlook place year forma that, then end the high XXX still XXX could shake it can you starting basis for remind the given 'XX, you the to is expansion, just the basis here? a or could me of the margin

Jonathan Halkyard

XXXX to Yes, when improvement, sustainable we margin points XXX XXX use that the points we're basis basis referencing year.

will to it that that that We're for not And all just far pricing be be it. compares XXXX. range in with dispositions mostly for domestic we're that within acquisitions -- and environment. at we're but to So adjust comfortable that trying of pretty exceeding properties exceed our very the getting or past we can comfortable the possibly or that it point. driven across our by because we're back

Barry Jonas

And Great. just then a Great. follow-up.

curious able iGaming seen seem taking iGaming, say, I'm the that is a more to what us you impact and having we're with you've could gaming. if how you more I on is threat? and recently industry Michigan, help of that Not hearing about push. but land-based think the be puts some think can some you're would to understand you of quantify what takes cannibalization the -- sure

Bill Hornbuckle

you now smoking longer tell and through gone nonsmoking. the last in a interesting to and was restrictions, in when anywhere well that. else. come opportunities The there part there the I middle have million you, is Detroit, to where we policies most COVID GGR. smoking customers I'll made about best market-leading both will lasted outsurpassed off has Yes, Digital example of brick-and-mortar digital. point, GGR. It's we an we've of COVID digital it brick-and-mortar, approaching in want some They're year. we've than do look XX%-ish. doing its is XXX obviously some XXX Michigan, business for who allocations now by The have market for still terms that. of it's in market-leading last months because three your the in those million Obviously, and of take almost concern over at early that smoking

grow stabilized, continued Our only in Detroit. to numbers but not it have

while we're there's pick player in come on. like things experience that in and that brick-and-mortar -- that left of ultimately I'm on focused that going leave to things brick-and-mortar digital, off bonusing or can And home, chance the subset a simple have jackpots a playing I contiguous I play reward up at and amount highly So as with I recognize. connect where it's obvious a and the that is

be these it's that. been other a great we've of in continue opportunity. And to nothing great best Michigan can Michigan, that we forward, have it seen so we some shape. going -- states, are one. that confidence us think any can I be We we'll the we think laboratory replicate of -- think gives And in we in

Operator

from Steve The next question is Stifel. Wieczynski

Steven Wieczynski

the a softness guys same meaning to seen of of to that So there hasn't down. that start so we've heard understand, want of slow world really consumers actually there, in And could lot just your some no obviously, peers your I investment point, as any weakening? far real there yet. to you these about the And out And there's fear some been regional at I from ask want fundamentals a have assets.

of And amenities going forward? much headwind that how present margins just the I'm impacted potential could of quarter. were inclusion then margin also, by more nongaming those in the wondering,

Bill Hornbuckle

can speak So take margins. you the top that and Corey, me of let the end to

kinds We regional different have properties. several of

reawakening It's and all-time what of own my it's Oceans, with had happened and property to getting -- making Rock $XXX competitive do Hard of did. City, market, Empire Atlantic COVID. always particularly well. been place has I'm dream kind it and at through I interesting. no major kind it January, of any has Springfield activity mentioned, It's the EBITDA. shows. out do marketplace up all same we're and to this that highly and did. dirty competitive our to I it fantastic. a traditionally done seen We of continues been. It it came know and a as an given little folks, some. continues Detroit, holding We million, the obviously, saw think that set matter property looks enhanced the and date, with of will the until haven't was Maryland over then of recession softening where I that we the year so some say, and And just and Look, And I record be will but improving. it. But as

Corey... So

Corey Sanders

Yes.

in third where increased many on think the regional mainly to what level comfortable we're we're the the have guests. we of we On quarter, I other our And properties, nongaming amenities. for our with

February are additional an December I up. from January what of in had mentioned, far a Bill bit performing our markets extremely seeing as margin so regional there's just So and little impact all we're but on on as that, And business. softness, then of don't the think there. much

Steven Wieczynski

or which, so, New sure that or Bill, Year. million you second still hear not if you, X look, I was Good this day back And Chinese know then in Chinese I here. you Year, you're you. think it, real call more said going again, I'm it's and this, But a ballpark? Hubert And about say days to New sounds question to you follow-up Bill doing let's did Macau, quick, or somewhere I even Hubert, after of that during hear. like, a were said only, but -- it Got X it's but

Bill Hornbuckle

New it place. but at pace we me. during X -- I Chinese great a are Year, great no but a million was and Yes, said

And last still X it's Having it's so been good. extreme. whatever said very or but -- that, it's and that's it's been, but X no, days this profitable, been days,

-- one but happens New And it's Chinese so I mean, once -- environment, no, Year year. is a it unique a

Steven Wieczynski

I sure was going Yes, to... Okay. making I just not was

Bill Hornbuckle

X do XXX. million day a Don't times

Steven Wieczynski

done. Thanks, already guys. It's

Operator

And Wells from question Dan will be Politzer our Fargo. from next

Daniel Politzer

XX% that premium been in you Macau. or called driven that that's mass to if think And the the on and So for the It's VIP what you has of math, just that MGM maybe out, direct sustainable? extent share in China of I highest a growth well guys much The step-up question. earning out, should mass two-part or business together do then $XXX And parse first question, I quarter? how first versus comment from you I can back interpret about kind pre-COVID. quarter-to-date I company. million some pacing that should go over piece properties, if EBITDA the that they're -- mean of

Bill Hornbuckle

No, no.

quarter, Not month. the month. the For for the

for system. would we the in about be -- think highest about So put had we if it EBITDA you Way could month the property to it. it together, them think our

can here. you the living Obviously, this forward. in Hubert, going of so every And you're on continuity kick day

Hubert Wang

definitive in answer as we asked, it's are things it's these the not, have you that, question along deployed fully Dan, or because reconfiguration. floor additional you some casino of And share in know, to Yes, haven't whether with sustainable process we but early, tables, XXX tables the but of us market give they terms or you that almost a ahead all doing additional tables. yet. We're too the of

tables to So first quarter. by that's think the one. we number that, all I these end plan deploy And of

approached our also to Chinese visitors traffic. by think, because to for that just the of Year X drive a of some XXXX of, Year, lot of on covers that earning restaurant occupancy And accretive actually seeing hotel do in a give I also lot XXX% mean, New us. longer and customers. nongaming Number additional a in incremental the stay that mean terms of commitment you investment, I will our nongaming offerings own retendering lot a And these is think events And and side the I level. projects. concerts was New exceeded all we I color that we're have Chinese that our

amenities, we help that or share invest I with the market in will nongaming level. more road down that well, sustain that at our think these as growth

Daniel Politzer

then Got this is follow-up, my And just for it. for Jon.

what kind the quarterly more of it I trends $X would billion pace of extent giving you outright obviously, On very sounds you the if a pace buybacks. encouraging. comfortable of like have new authorization, buybacks, stable, feel I not mean, mean to are

quarters mentioned last also, And a you a pace ago, I think of or then maybe couple decelerating it kind of quarter buybacks. was of

So given about the there can run outlook a we on rate Vegas, think is here? of kind

Jonathan Halkyard

pace four to want our a the pace. you over quarters. preceding think give don't I look quarterly do I at can

actually a we bit in third I did the fourth did quarter more than the think we in quarter.

And authorization company in the be of healthy hope active that us has we an a continue was is remarks, from Board. allow so I going to prepared the the say we communicate is I value able our all we to position despite I before see have repurchaser. And the the would to liquidity share the have to us, during opportunities shares. all

Dan, don't any want give that, just Beyond outlook. specific to more I

Operator

final will be Securities. JMP Jordan from our And question from Bender

Jordan Bender

-- this Vegas? like in year from then play Las Can Far talk contribution point? during quarter look about you from just for this at East play the bookings the Far do And what this East for or point

Bill Hornbuckle

Year? New Chinese quarter or You're referring to fourth the

Jordan Bender

as quarter-to-date then, guess, well. and I quarter Fourth

Bill Hornbuckle

I Chinese can year, Chinese lean I'll This XXX. year, New number fourth just the Last was Corey, know sale. I under on XX well. we that Year, about Year in number quarter. -- the New you for had fairly million

what that Xx opportunity this so was And year opportunity was year. the us provided and what it last

back at meaningful. It or And so while not 'XX levels. the levels was 'XX

Jonathan Halkyard

the quarter. East fourth was quarter, And XXXX pretty much and growth the in the over quarter international of fourth it X/X during about the play least constituted of all the play during fourth at Far up our

encouraging. very So

Operator

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

Bill Hornbuckle

to want I for everyone it late operator. East joining us gets on just you, Thank I back know thank Coast. the today.

thoughts. growth to in in our particularly Obviously, product, organic Vegas, Just continue our premium a couple luxury brands. of show Las we here

billion Bellagio about last that that sustaining. cash see made and flow, hopefully in think you over Aria we If $X.X year and

our extra think throughout the and XXX now this difference make You of tables returning a about course Macau think and year. the will I

about think pipeline. our You development

Vegas, regional would disparaging location, competitors, we and the Las domestic are about prepared most location, without our think to of both comments balanced growth. You say, that balance brick-and-mortar for we think digital, international, well about any the I digital.

net debt. We have no

I together got we've shares, different Jonathan about of And joined We have decades an billion -- liquidity. and of its back put many on we're amazing the experience team at back of have that's and over many the over $X.X extensive cash in jurisdictions. roles, the bought XX% since it senior here of has that company all sitting

excited would be to so And I'm understatement. an say by our future

and you thank your importantly, for most I support. all attention your

you. thank So

Operator

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

You may disconnect. now

MGM Resorts International (MGM) 8 Feb 232022 Q4 Earnings call transcript