Earnings call transcript Q1 2023

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Operator

Good afternoon, and welcome to the MGM Resorts International First Quarter 2023 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 Resorts welcome XXXX First and Call. Earnings afternoon, the International MGM Quarter Good being on broadcast investors.mgmresorts.com. is call This live the at Internet We've release SEC. press also X-K furnished the to on Form our

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

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

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

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

presentation this Finally, being is recorded.

now I Hornbuckle. over it will Bill to turn

William Hornbuckle

afternoon, City of Ed our the reach the development diversification. our getting forward to resort strategy and Japan. development in we central the and and today. the honor, all Thank Japan, make to and Osaka, Japanese and partner, of that MGM the the to one I'd good the certified Osaka, be the us Plan begin which to major fulfill grated to steps would our truly is and in for after you many geographic our us recent start first like look you, team and global by highlighting It's our to Area government for our that joining dozen increase this on helped an employees way likely Development forged government This who to what thank started Andrew, officially us news great to this the perseverance of final than and partnership Osaka reality. process development is increase create we in pave I'd recognition like years. our Bowers more a thank the a have of Orix, of local

Turning driven health MGM is Resorts just an at lift quarter posted restrictions. start of recovery experiencing XXXX another policy outstanding China by Las China. recovery rapid to public a Vegas quarter the to following MGM MGM significant of results. record our financial performance and

Our in of result to share ready put well-executed the a by first preparation are market in who upon Macau we is our quarter drive outperformance direct ensured and reopening. plan meticulous team results MGM China together that capture and

generated our our year I'll EBITDAR. reflect the XXXX impressive first point Macau. $XXX adjusted or property XX% million of few properties the of in to a KPIs quarter, In adjusted to to EBITDAR MGM property China start quarter our first

tables floors. Our the in XXX market our and part was XX% additional in MGM fixed returns sustain one, added place increase of our share in further key in table on quarter, we refurbishments This we use fully the be in a a market including: concession gained confident during casino are with and our an XX% renewal process. as we incremental as the put complete tables to advantages, are for Currently, will we the ability demand structural of and the tables remaining represents share half as allocations.

property. on villa suites at property to high-end floors our XX premium on Cotai We casino adding remodels mass Macau with and enhanced both MGM along MGM and also the mass focus at our Cotai and

we international branch addition, the network. global our advantage sales of have marketing In also

our to bring actively customer database properties. global leveraging We are customers to our

world share with customer in property for we China center along that them as the positioning recognize alongside to leisure. Macau a we will Macau's SAR market, thank look to hotel their supply forward the a believe, our government and drivers, support like working from partnership, maintain teens. the to we leadership, I as and these I'd for MGM understanding tourism also deep will additional While enter allow its

quarter. once Las employees. with to Vegas have exceptional we first record the of a thousands record-breaking and our in again it we stateside, dedication our hard seventh results marks EBITDAR, work consecutive of This all and Moving owe achieved quarter of

This quarter's fantastic Sweet the was events, Strip city. throughout a convention and hosting performance Madness calendar fueled other Sixteen sports our properties time, entertainment and and first the by for including, March at and events

strength entertainment The time at offerings. of is our a quality Las November. for will Vegas programming for come permanent example been and to this transformation you and which, sports has FORMULA consistency than Vegas This better throughout first the and know, no Las and MGM Resorts and the of X, as catalyst demand

in full our high-end This for reopened laser-focused Privé games are our on is to enhancing of Spa we we capital a remodel addition newly table three-year suites gaming the offering renovation. and Tower. Additionally, Strip. a rooms with in with handful a completing a remodeled Bellagio, our on At Club projects all invest our Baccarat just with continuing are high-end properties Lounge of and after to and customers

We have bridge Bellagio a connect Vdara. Vegas Cosmopolitan Las and of with to begun construction pedestrian The

way, a initiatives Mandalay of undergoing MGM significant and bars, customer Club flow. spend soon drivers Bay Water Center We will MGM Convention full brand. at outlets along free carry be and our of alongside room at loyalty remodels their and and our entertainment the are These restaurants, Borgata. ultimately flag By Borgata's New York-New will upgrade with future numerous cash the York,

in to strong is our to profitability. growth team specifically is executing Rivage consistent top customer remodel, well which Beau XXXX on portfolio, with congratulate I'd response. them very beautiful line and On a regional and like for a year-over-year stable the which recognize completed seeing showed room

with its make joint Ohio far, fiscal quarter, footprint XX. of guidance bringing to expanded profitability towards and billion track to and offering our later to revenue partner, to Massachusetts, active In year, total continuing continuing product thus is BetMGM Entain. to billion. while also expand on 'XX all $X.X we to markets our this first venture our $X progress by improve the hit on now remains launching Based results Turning BetMGM. in BetMGM

at we that the long-term are this we As look encouraged into profitability. economics translate improving business, by will

our on optimizing decrease and players, increase the NGR mature growing to As will on we ultimately a and will bonusing reminder, GGR profitable NGR, as CPAs profitability. driving converting most overall from states focus retention, and focusing

its gaming of first several LeoVegas over content Push investment the we that subsidiary, to provider industry-leading digital with as they their operators offers will an a by to that announced our proprietary extend game acquire a allow grow today library markets. LeoVegas of major presence the to Gaming. majority new LeoVegas, Push Internationally, globally. games entering developer in Push agreement is to games XXX

through half plan to in New process are application and We next our in response official receive front, summer York. development we to the by the working year. first of hope RFA the a submit On this

our expect outlets, license we property casino in continue York, York new to approximately New to covered new win be licensing improvements is as to total theater, for We And New increase should of parking extensive an and a $X space. such floor food billion, and spend inclusive beverage fee. plan the the overall X,XXX-seat a to

share more submission process continues. will of part our specifics We as

Japan. to back Now

XX opportunity. progress, transit see we of time in great a within Yumeshima. X-hour As Osaka site million has approximately people our we

gaming closer its major is Osaka integrated for offering integrated believe Japan. other will given than resort the also flow market. high-teens proximity some that, yield. to minimum in to in generate remind be Considering resource this our time Northern countries. likely for other drive And Japan to any Asian We tourism cities site many expected international in will Osaka project first will we all cash Our a I Chinese to offering is free that

and development steady offers operations earnings the existing it Macau and significant MGM through growth power in Putting digital together, business, opportunity through brands, Resorts opportunities. plus world-class all our our recovery our

sheet shown billion excluding in of $X.X MGM presentation. with balance boasts the as strengths cash, impressive Our China,

Now quarter. to detail Jonathan more on for the

Jonathan Halkyard

of Thanks, quarter. another Bill. employees teams want this and wins recognize results. their also Macau too delivering both to our I like quarter and our congratulate for thank financial I'd for in outstanding Japan to And record

XX% An numbers, impressive of our even quarter, revenues last consolidated flow. generated cash was year, more into billion and story of businesses our this $X.X EBITDAR Digging billion. $X.X the adjusted up free from

capital that During note the It's operating was of important cash from million flow million. from activities expenditures, million. cash net in cash $X was Less $XXX million to and free $XXX $XXX activities the quarter, flow to our CapEx only This due was MGM of operating also particularly quarter. related a CapEx. China in taxes, of strong not results and timing cash flow ramping to but payments free quarter in operating interest

our results to a ramped certainly in main operating team executed XX% China Macau at from $XXX XXXX. win of of quarter. revenue Gross the reopening first quarter MGM million China margin increase quarter and or was or EBITDAR reopened XX% their gaming the than levels, on in which $XXX recovery. XXXX less property to plan. This MGM Our XX% XX% exceeded first at in as compared levels driven recovery floor million, our GGR, market-wide to compared XXXX Adjusted was was by XXXX XX% and GGR first benefited

Vegas, quarters. million EBITDAR These representing expense year-over-year pricing $XXX testament and several property performance revenues of and of million, the On Las flow-through a our a to in strategy remained last our results are adjusted XX% margins properties, line Here the in a XX%. with for of grew controls. leadership grew our basis, market our our $XXX

XX% year-over-year. ADR was and was $XXX, increase occupancy quarter an First of XX%

year-over-year for rooms, every which reflects pace, forward, November. month is from our Looking booked until on now up the

group quarter this benefited highlighting year-over-year. XX% is a revenues banquet as one revenues, year increase Gold grew percentage businesses, Food from Strike, in X% restaurant our the a beverage excludes the spend, and margin it adjusted up EBITDAR worth point highest covers. XX% property with quarter also our due of versus is beverage and first to in increase recovery grew ago. segment up that the XX% occupancy and Food XX which and in In XX% were same-store regionals,

in quarter betting, and, gaming $XXX share operations which market XXXX. states increase BetMGM XX% representing the operates. revenues in across BetMGM's generated million blended the with was had sports in a XX% it online U.S. XX% first net from when iGaming in share over market of

of share $XX the acquisition is launches Madness expected a first which losses plus heavy two BetMGM operating states. of quarter was year and Our as with our March million, period Super highest XX% represents loss Bowl the in

course At optimization to the Same-store BetMGM increased remains NGR strategy. and bonus showing robust and a the quarter on cohort first in online from economics XXX% the profitability in successful XXXX. is later level, player sports data

financially. to a financial and back it an enviable algorithm position turning We're with cash free Bill, generally. few in conclude, more as our I'll observations Before on flow our usual,

ample Our and year. Vegas, turning collection growing flow of toward fully is generates superior of performance now, with rapidly from capitalized BetMGM together in regional cash portfolio, this operations. free our later operating domestic our properties Las profitability the stable

operating is near already pre-pandemic levels. Enterprise Macau Our at

approximately had balance billion Our $X.X and as and we sheet presentation, highly the than position of the At a end excluding liquid. quarter, is cash the $X.X cash in more debt, strong of of creating cash, net China, billion. shown

to and All invest count. delever reducing this steadily us share repurchase shares, our of growth, allows for

from international we first we interest, the our receivable of enable expect the million quarter, investor the us, a was completed connectivity the our in National offer and transaction. morning, $X.XX strategy. received the we augmenting acquisition flow estate sale In for in land X% free of repaid going April, of early excess attractive We $XXX York properties economic Push Strike Vegas the the million prepayment among New to we to $XXX these between paid Tunica and cash purchase Circus $XXX to Harbor of to in In We as shareholders. And lie gross The proceeds. for Gaming, billion for them of and the our The before Gold minority by and notes. opportunities of digital development Las announced forward. yields secured result million Circus note our Japan their real that we this sale Cosmopolitan agreed Bellagio a

per repurchased we've our cash we'll count excluding shares, our share. tax, for XX that our growing continue capturing cash million, free yield free share represents $XXX today, shares flow count. and through share of to X% million year, shares, and flow reducing on And the This excise repurchase

Bill, you. back to

William Hornbuckle

of got say, extremely to and arguably It's for open one Jonathan. of ever. I our proud comments, up team. of questions. Thanks, then best couple A it we'll the I'm quarters entire

the then are and mentioned, exceptionally York, of to about Macau, Vegas, inflection business major just development think Jonathan things and LeoVegas BetMGM grow pursuit continue we there. Las had our in intent, push on our If is it's our you the digital an news And Japan, an point. going international obviously, New scale. performance, well through overall we

of are almost We into obviously year our now a acquisition Cosmopolitan.

in here the position be so we Vegas. Las resorts And leading happier in with couldn't the we have

Las We still that to And only fortifies future. shares of have terms we here, X fortified markets back back company's appropriate to have we regional four of sending allow the we country's to effort and people casinos a continues those our but which not top that balance that in the the invest have performance, buy sheet think us in Vegas.

With that, questions. we'll any operator, open up it to

Operator

the And first from will JPMorgan. Greff Instructions] [Operator from be Joe question

Joseph Greff

looking terms you bookings and you're up month that Hope well. Can in your the Then pace comments, Las lower talk higher . follow-up. is the ahead how every and I end your Las of have even between about talking midweek how interesting a comment. between very performance Vegas November, Jonathan, about year-over-year through and even now in and how or end Vegas in weekend? it's

Jonathan Halkyard

his supported Joe, in add perspective really well. been real but has has But in But mostly comments, I'll the weekends. of That's event Bill growth Sure. been driven invite been his has the mostly, in -- during we strength where to Vegas and Las by we're seeing rates. well. It's saw rates been. remarks. real then certainly schedule I'll the the from a as the pricing by Corey the not quarter, power room strength midweek entirely, weekend as still certainly The make couple referenced

pretty the any on the forward, pacing the fall. books during terms we outlook a the on balanced in have say, deeper the building. that going summer bit are way the a on of terms it's The typically lighter groups the then that by differences the driven And group But months than say books. of even they is pace in would customers I are are, into is

Corey Sanders

I would agree.

Joseph Greff

Can been in Macau Great. far and thus in news time And state April. talk then a the obviously, this you performance we in market-wide has market-wide coming. you've a on what about recovery morning Obviously, guess, got we long recovery. quarter? to significant good and see grind in talk more in the maybe, base far you're April what us, second I an or recovery the market industry-wide of mass from you seeing what about terms performance is, Can seen thus

William Hornbuckle

Hey, going Hubert to I'm on got to it Joe, phone. over him. we've turn the

Golden But over do kicked Kenny Hubert. speak leadership team, you and how us it's to Their recognize Hubert, a moment I of just want I great been that gotten thank Pansy to though, April has has can amazing. place. Before a Hubert, note. you, on Week, Maybe off. to

Hubert Wang

All right. Thanks.

Macau, XX% that January Inbound look it level. travel XXXX the XX% is at averaged daily on visitor at the think of the month-after-month April we visitation been has to I rise daily steady about first quarter after since in and lifted. restriction was already count

bustle you can hustle if the Macau around atmosphere pre-COVID in integrated walk has results see you streets. and already So street, and the reemerged

more We and daily customers travelers recovery, make gaming So first in Week. that Macau. think in we their and continue pattern terms to Golden have market similar to trip of leisure more recover the particularly seen of and the terms GGR March April in post-pandenic as towards recovery, will the leading and

recovery concessioners attract concerted Another players. by to the source is efforts overseas of

I think that recovery the market in obviously, pace. a led Now has MGM

as has For XXXX be continues example, into exceeded level. to April already GGR our at Bill the The noted. daily elevated mass level, trend

terms we're In XXX% of XXXX mass, mass of already level.

Joseph Greff

in think market the from final you one you the share XQ far on that... maintain one And thus April? Do gains

Hubert Wang

share the think I market stable. number yesterday, seen think and I -- that being released Yes, have we the was

William Hornbuckle

XX,XXX earlier, And take, lost Joe, give not reflecting look, on in It's my Macau. to us. left open on comments it's rooms, or probably

first X.XX you've recognize the EBITDA But April. over demonstrated. has in rooms market. of that and will of well We're drive have mass the think just XX%, do been to ability Week, both And I Golden that. in we're share arguably, hit people fair seen team's couple GGR And days some into of more million our there's impact. so under the getting go. . to And and VIP than high-end an XX,XXX we But

Joseph Greff

And one EBITDA If level sort property hold we normal I about follow-up my allotment of was going Great. one that know performance? one here. then what just Macau, I'm in question. adjust for of quick VIP

William Hornbuckle

Hubert?

Hubert Wang

XXX, think I was it EBITDA.

Joseph Greff

It's VIP then? hold we that XXX hold, VIP with for normal if property adjust table

Hubert Wang

Yes.

William Hornbuckle

It's the Joe, $XX is million, answer.

Operator

from question America. next be will of Kelley the Bank And from Shaun

Shaun Kelley

results news the specifically of on and Congrats out Japan. the

wanted discussion into milestones? And broad prepare to and milestone needing specifically, Japan go So obviously, with just start little if this about Bill, to key capital I maybe financing the working for help commitments for a a it? when you've very should may, the to time. investors like, I think on plans you start level Can around project for remaining project. been long about us ground

William Hornbuckle

kick part last Jonathan, Sure. the I'll leave me to off. let but it

the the was by certification across big get outstanding the and accomplished. been line, Area the finish and Plan national obviously, Development just the to So government that's item

lease, have municipality quarter, have land done. those agreements with and have we done. We we that Presuming the various a next get to will get this

we're going work That of build. go. million. open and quarter-ish, boring. between It's looking next some ground terms $X a It quarter to to -- probably in first $X year And a X-year manmade or to million this There's I year. either being a done. million $X -- was of first of island time is got so million be said, second part $X.X it's we've to it late break wish of lot obviously XXXX, not

financing, so the that's general around Jonathan? And timing it. On

Jonathan Halkyard

that be some bank Yes. time. already for project. financing, work putting our has the We actually a underway financing partners, and for of will period together Orix, been That

and late at this XXXX, Our XXXX, the completion we'll for really project. into tapping equity investments will begin be through financing in in which into point earnest of XXXX the

Shaun Kelley

on be would gears, online. switch to just follow-up, my then And Great.

sort operating move year? about as the little talk still side you million a bit loss the the You reiterate joint we cadence $XXX you of GGR/NGR and throughout the little the bit a as that going. And the is commitment need Could that be gave just how to year? some in Is of great here play? of around tweaked can for contribution today? KPIs sit does Or about full some we color

William Hornbuckle

Look, two think we No, about we a with about investment March Actually, you I if and football our Shaun, hoping Super into little it came under obviously, I'm in opened not. last Madness, plan. Bowl, year, year, think own states. this

had going and substance. recently, we one think to cash in done. capital think put any we're don't so We we're more have And hopefully more to of I

back show some look this we half to EBITDA. to year, so And forward beginning of the

nothing I changed, has your answer So think, to question.

Jonathan Halkyard

just go mean our you we that we we'll I we're would venture. the turning that and And And do profitability, reach of expect year. the plan, we add towards second through the year of the under half to putting during that EBITDA as anticipated, the going under pace, investment in the into terms be that

Operator

The next David Katz question is Jefferies. from from

David Katz

added is I BetMGM, going better a with wanted the I database drill BetMGM, going a very offer. coming And deeper the to to layer lot I'm in back and obviously out, as just not sort and a to productivity just customers cetera? go we work both trying benefits to JV, those down. itself well. the are I'm which look which when BetMGM at right, in the bigger gets, MGM its than through here, on When that have little partnership about conjunction of to we planned, make and another think of really the with that question investors that going how et arrangement is, does you asking, the are get ponder suppose and

William Hornbuckle

amount exciting business we year, Look, created, billion think is top obviously, excited all of what's for us. David, $X line showing to time, could profitability, we're a been have after about signs is this which of this very

over are million of that and omnichannel driving, thousands basis, We on forth. have of a customers back year tens $XXX an

work. so to that business of in to starting is And click part the and starting

Pennsylvania be We like like New have in really product. and York. to places on work do We single need to Maryland, New single wallet, account places Jersey, effective

XX% to sports work the on do some got gaming share. we've market-leading at we're product. So Obviously, in

And so trying. but mindful to no even are one we're that, comes people close that

very focused it. on we're So

a to going go not we of So I'm with where precursor this. have all

shape. We've great where it in then couple of years to this And it mature and we'll another we're see ends got think I there. business from up. take

David Katz

be with on as what how help how settles that with about If question that enough. we and, mix one in this appreciated. mix we just year. questions what can and being returns Fair ultimately, much margin Macau might revenue out, turns a Any and I theorize of at progress direct would that how through follow the VIP there

William Hornbuckle

Yes. part the handle cleanup. don't that, do try of you to and I'll Hubert, why first

Hubert Wang

right. All

So business, little margin the of terms component total David, of I XX%, XX% probably is premium bit on I think of that VIP neighborhood. a around number. we'll [GI] margin, direct XX% total the that think higher the And that around see in to in probably

to add? Bill, anything So

William Hornbuckle

Now obviously, we're into David, look, leaning mass.

the suggests XXX% to in that. of former drive arguable EBITDA. I formula of way do this, the cheap margin a own took could terms totality on business. margin junket to XX% of The line. will fact over We going the business that to somewhere we at now were doing GGR mid-XXs when settle out But obviously, think land the of XXX% overall. there's they operators a XX% business think top mean, It's in our not believe or with. that we the business, total look the do the the in, the I that's of business levels, of under lot we're

there. XX but a and terms group in been do rest significant of had to We do a coming Thailand. years very unique, it and the driving We because in not by have knowing It just at branch our have live where from was customers we've they XX Malaysia only we office of and driven Asia. special opportunity

it's ultimately, margins we would think the were they once a And be the junket net given advantage. our so of business. better we think And nature

Operator

Morgan from question next is our Stephen from Stanley. Grambling And

Stephen Grambling

partnership you breakers something bolt-on And that even continue or you be with generally are to criteria transformational? we side, transaction expect them or global? potential priorities aspirations of you the the referenced deals? more any to focused digital to contemplate Sticking more Or you're could do some deal worldwide. expand think what as are there the on What

William Hornbuckle

business. we've Well, a to now, build strong for been fundamentally looking try to

with LeoVegas, We do. could in else a nature, saw that we so business news good later, a the is or we liked saw So lot. something that cloud technology of versus that months we And nine still a the grow lived team frankly, into dot-net leading they've three easily. We to the and Push, interesting, the several world, games get ultimately context it's content they scale pillars. other had We in in business, the and the want created. have of with that of things

So potentially that from . by and and we're to versa. ultimately, a transforming that brick-and-mortar play those think games vice digital excited long-term We there's and there.

live nothing given our We're business. that suggests, we that interested of There's should not in in that nature business, be the dealer.

so for that. BetMGM betting I as own opportunity have now to a think sports does get LeoVegas, our an ultimately do I and we'd LeoVegas, well aside live to at it's to third-party, technology to that And at take there's through from of rest think currently but place dealing a world, like discussion.

Look, meaningfully. things, so will built part look there. Gary I big hopefully, two do Obviously, of there. we're team with it's been I'm ways we've from he's a And to at be we've things and by Fritz at reflection, some the three the build a the LeoVegas, are would substantive we when something business front, got back, out the But are. that has trying years continue tell. of to so. it's too to looked or Gustaf We've and with early these There team we this. to upon one where excited and everything. go.

Stephen Grambling

thinking FanDuel profitability to about a EBITDA Makes And had in sense. side as a the mix beyond, follow-up seasonality and March sports. we given think and the saw ran year then of a and thereafter the the maybe positive and lumpy U.S. on through ago I digital bit

consistency, skew some towards how EBITDA contrast then positive and the to maybe Given flip the to that magnitude compare peers? of much of iGaming, and your

William Hornbuckle

of little us a for showed quarter think bit point. Look, second last I the a year profit. you make good

If will you always promotional bounced the the everyone, more football. are big suspect Obviously, football, much. at quarter all disciplined. beginning up third there we few bumped may that become into a recall, a like is of don't or which to a lot I push players. We've change

a think in. the little think I bottom I will line but it be be lumpy, will going

a states, half which second totality. meaningful to for is X for key are thing, X in recognizing we're of the it's year, The us. states, in of obviously, X going profitability And iGaming us show

Operator

next The Barclays. from be question will from Brandt Montour

Brandt Montour

I wanted the most Las I Joe's But any Vegas question and pricing understanding lower-end properties just driving up you're curious follow difference if first also properties between the higher-end to of was on seeing recently. is about room it. weekend and that rates in elasticity the

Jonathan Halkyard

of all been end. higher-end I The Aria since the think say one growth the at are seen Excalibur. properties. Bellagio, different tough or some properties apply in Bay properties a like for it's the growth. we Price us has really segments more mean Cosmopolitan, from here Luxor, have the in our customer the the higher But concept certainly, luxury have elasticity, properties ways to Mandalay

we I of the can properties. say, are weekends the matter, we're But And drive attempting each properties. greater would we where power luxury general in the price have in and to wherever so these at pricing

Brandt Montour

Okay. That's on really And follow-up Las helpful. then one Vegas.

you, If there? think Anything it years? if to comment you'd Jonathan, on for seasonality this pre-COVID year, might care Vegas than out call be different Las would the you out

Jonathan Halkyard

difference seasonality. I in wouldn't there's say any

anything, reduce fourth some of and that's year calls, with all stronger as if idiosyncratic bit face. year-over-year. much quarter seasonality our Just to first last probably the quarter, we We've of called with just differences we're in already, strength this reasons, But a for issues event and year, during last. and on segments, XXXX not against the might different previous the sophistication which the being seasonality that marketing the really increased the as just the calendar out

William Hornbuckle

the see will billion we'll Valley, meaningful X bring 'XX, hopefully. that obviously have if obviously to our will FORMULA going, of fair Raiders share middle the future. estimates tell the gotten it take $X of, XXXX more Time quarter, COVID. didn't you which And fourth until There's for will the start is. to then back the foreseeable In how than go ultimately in just

is extremely So consistent programming strong. that and

the So ought to quarter what us. look in time it X, the But average brings than tell, pre-'XX. ultimately, better fourth where will FORMULA

Operator

Wells is The next Politzer Dan from from Fargo. question

Daniel Politzer

First, of should that an benefit it you we're hold in guys time should time? is year, there know some and to trend say as where but look in forward? about the be we I need you leverage for add? Macau, of would I count last on this go there the talked you tracking say you're as there ramped quarter, rate additional margin head lot but above think Or how seems was to would exit you'd terms fully be that high-XXs a like that. you over of

William Hornbuckle

Hubert, you don't it? take why

Hubert Wang

Yes.

I think the same. growth our remains

There should of high-XXs. recovery driven that, the of the tables of margin further deployment the also floor. continuous are a be Our the in market mass our mass the things and few in incremental favor onto

business. will help this mass high-margin generate to So

Some some period management particularly are we permanent, play. to games innovative also further be mass at of will at from And the COVID labor level. savings looking attract

things So that will be these the are helpful.

increased will understaffed think I side, I some X% new savings gaming for contract. through labor the of the under think do concession we on rectified But tax And know the the that that recruitment be situation. flip

issues. will the margin believe be to we some fill our maintain this But increase high-XXs. So to able in of I service to the year, I address in half the overall, because labor will that have that think second we vacancies cost do

Daniel Politzer

to New Got it. And turning York. then just

might forward type flexibility target pull kind you billion about and it But come the think VICI, through is think know there. this options able then agreement I sale where you kind to you Or I timing there of go you out would is an the cash of moving finance in there to of be any as maybe is place? get have that to about CapEx of it to leaseback? build mentioned here. forward a $X and

Jonathan Halkyard

Yes.

that's the as speak sense ways way best certainly doing make VICI, the plan allocate and And I a of that fantastic planning. is leaseback for our they think there of to some some with which lot in sale to will project us, Not are capital, of could of partners but VICI ours. flexibility. and our think for at we course, point a finance part it for we about and

Operator

Macquarie. Beynon question next is from Chad The from

Chad Beynon

out the and slot and segment just about and detail strength X additional drop, in looks pointed handle terms talk Slide you there Is the On in it like, anything really as deck, the couple within anything call to in table the in the Has Any kind strong of of kind X regional out of market we've out for end consumer frame the past or to your quarters? is end? low that help expected continued at weakening of where database? else to the high at within Vegas.

Corey Sanders

we're of areas less increases younger Corey materially. increase, They're than bit both the customers. here. but most impacted Gold trips ones in are Plus be We is it's around little numbers customer. And Yes, probably not a in continuing trips strength also but we've more one increase. some a Those strong to our seeing seen, their seeing we really that our and where in spend. those may significantly. especially continue but in our pretty Chad, not we're to play database, hosted nothing Yes. are in only database, are area little their may XXX and bit be The see seeing plus, anything

William Hornbuckle

high-end up, final over still miss months. this how see Asian/Chinese one be point, next the itself we maybe interested Chad, the then, one to manifests I'll the six With China to three segment gamer. is And reopening

We've time play, those international visitation you up like the and made Baccarat. from something particularly like gotten so players when play. tell. of about about think will of But back XX% our And XX%

see manifests given it it we an going But restraints. yet how capital given focus on drive. as know opportunity. I don't we're so itself policy, I do as see it to And trying to something

Jonathan Halkyard

Las segmentation Vegas more add, to or quarter X seen XX-plus the Final but, around number thing just age our X it's we've of nice just in Chad, is for sufficient for importantly of say the players each increasing their in a that it, steadily a return which XX quarters, here regions, trend, I'd plus. trips now last quarters, is the

Chad Beynon

positively Okay. operators both gaming, that digitally? the to responsible negatively this win you in or of that a your look about it paper, And expectations, global soon, market market markets in conclusion other seems excitement, given of UK you'll then terms change in and just for anything and your a like or Does general. white the be grow the timing as

William Hornbuckle

piece of excited VIP the out. protecting look, that legislation finally set of in it folks. a to it fact, harm time, that let good there it's we're same the I enabled think up a was was any I matter It's don't yet, continue. overview. and but obviously, for standards, think good it. A contrary, piece At of

are opportunities. that a you there that of some At promotional to if remember, all there activity. point, stop you one so And would was have consideration

now I For look market a presents market real the excited and think to go as with opportunity to push we're us, into that on. at itself, LeoVegas, potentially, push

bottom enables progressively. to to It of it but it to a our accomplish, responsibly. modified, And was so think, think others what point forward continue does like line, done go was needs still it it I I and to businesses

Operator

And from the next Farley is question UBS. Robin from

Robin Farley

Just this in you mentioned Japan, year, ground becomes line, helpful. out really you ask wondering it's and of but somewhere, at in frame. where now become the I just a breaking sort investment potentially between which I'm know commitment. it later I time it that about full then, just in where terms I'm capital committed there. what wanted you're wondering laid does was time a point of to assume

William Hornbuckle

going this Yes, in to The we're Robin. contemplate. reverse committed. idea something hard Look, of would I think fairly at point, be

of sign and have documents the given of therefore, government Osaka, nature, to we the that nature we're have definitive of and lease. sign to other We And the with in paying lease cash. land the given think they're out I the City

next ever it's And so get. within the hard months, don't just as three

to forward go And going we're so with from excitement some that.

Robin Farley

think, other then grow it Great. revenue, a think room of words, COVID-driven Okay. haven't like in kind then out is the revenue course, third another you kind of and bump you a look for But your back Vegas and trend of, this sort down, my your there when and quarter the a revenue from this consecutive curious, growth. follow-up, on strength I'm profitability, quarter hurt COVID at question kind of resets so and obviously, and same-store slide, strongly. just same-store where the that again it's Vegas, declines maybe we've And with I break that of and, come then you gaming the was casino had back resetting I do to it year there? as that in will So there's just goes of anniversaried

just we should So how think that? about

Jonathan Halkyard

think have the them. complimentaries we that as that way and about The beverage of those retail. of to but food are provide there's certainly those for at priced net that are against gaming the is that portion The to gross generally increased that we these price revenue, dramatically. players, has customer rated well. largest And rooms, And

XX%. Our ADR year-over-year grew

So the reflected therefore cost, casino which up. assessed revenues, has to in and goes been the in that,

has earn demand complementaries so business these guests to the the gone cost And but rooms provide of the segments, to higher our has for those gaming we been in never across that up.

gaming. operations the beverage the being as in much and revenue our not associated profit and and it, is the So at with hotel margin, and in monetized food profit

the not on customers weekday which at for is But any the that company. the to of and So decisions maximize and I we're reduction making segments as that of weekend have property the it interpret about the trick demand margin, on is, side. profitability gaming right to would

Operator

next DeCree CBRE. from from the question is John And

John DeCree

nongaming has Maybe those that price? that I obviously, the us F&B? customers up. of, to that or just cost the That's recovery of into back and particularly How and really But in it you new would been timing consumer in opening coming customers F&B much you markets some the seen you spend. on back mentioned But to spend additional response while? Is spend nongaming hours with nongaming strong. of markets? if you on think additional spend? opting last restaurants in in has haven't in is coming the quarters, How driven gone give it the could a more couple things types that strong insights obviously, of by recovery. the are Jonathan, is your last the curious so the a one, characterize longer regional been U.S. regional tail Or the

Corey Sanders

is Yes, Corey. John, this

Beau both room. in I Rivage think quarter, constrained on were full In year first this accessibility, quarter, we especially Bill rooms. mentioned, regionals, in bigger last as Borgata hotel and, brand-new our the in in the had boxes we the

food have demand customers, that rooms new customers been a Beau seeing we're year. huge it's last of but and and hotel significant and not beverage the So there revenue also revenue amount would current driving in Rivage from

John DeCree

the how maybe gaming best earlier that it. gaming about back part I Corey, Got you're in and Chinese well, play potentially as now Maybe Cosmo, portfolio if is don't a of a good-size previously. us which had guess, of that to then your I business revisiting agent or remind Asian comment could if know question from a pre-COVID big coming wasn't Vegas. you Las was kind person, business, a the or the they of if context

be customer how get much that come there if a more to does could sense of opportunity Just back?

Corey Sanders

John. Yes,

of QX XX% 'XX, we looked have about -- our at currently made of that of that. XX% time. would rated that win So They're at customer about if XX% up

particular, So X/XX if Korea what they pretty in From that is pretty comes Cosmopolitan, it's very a do. and strong perspective, Far back, them. from international meaningful. big are about for East the markets size business the in we Their that are of and,

William Hornbuckle

John, you back And $XXX it's in about if 'XX, baccarat think line. million like top

Operator

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

Barry Jonas

for I extent to your And of able more to integration to Mirage, Cosmo is on to what components the been Yes, non-same-store redirect How Vegas. I expectations? color have your remaining could you the get going then or ramp was revenues hoping relative properties?

Corey Sanders

is with is very results to we're continuing Yes. Corey. extremely This business is the strong. We're happy be Cosmopolitan going well. The there. The seeing operation

are to MGM We be now them converting of the will process over in Rewards. we when finding

customer We a perspective and will will sure, a perspective, smooth be it make employee from transition.

upcoming in that on quarters. come to more So

The when we interesting Mirage and for customers other is put started our starting convert seeing income sale, we properties. to over up to

what obtain with we're pure been Mirage happy are there customers. able our obviously, that state But Mirage general, are general, business. we've in in in So customers pure to

Jonathan Halkyard

to EBITDAR, and after I Cosmopolitan Mirage from for importantly, fantastic we a as at freed the has of the kind more versus the shareholders. And we that, tape transactions set the the been that rent and this just which up sale that EBITDA, of the capital and applied of MGM incremental the with rewind associated look

Barry Jonas

And the think you just of then That by gaming Dubai? in what's sounds great. project curious Dubai, your Wynn? follow-up, as an matter, any will other come on been announced that point get or at beyond just can if we to I'm some update for a Emirates

William Hornbuckle

take I'll Yes, one. Barry. that

the yet continues Dubai, evolve. we That gaming ultimately pylons. managers, property but the were to to As government doing decide. and the the in owners property, want Abu to upgrade relates again, still to national I Dhabi We with But are it mind. it's to up think,

converted Obviously, approve into given themselves ideal. passed is, it thing. on we're of A, there We it think the would in take the Dhabi of nonstop to to We it open focused first Abu could year, XXX,XXX then passed, the Whether trying feet up. and ground them. a niche the be to Emirate will if open each be happens Dubai, on XXX,XXX people There will space Well, had when be opportunity rulers up the of it the if up it have projects. to the then Emirates. since of to upon ultimately, our basically such square other to and that understand

hoping hear and not believe find both more as I markets, Abu we'll there, compelling. Dhabi that. the tell fulfills right day." summer of between to to the But on "any time the as given both But to of we're saying them those We're got no itself, news either. location in We airport

Operator

Steve come question And our from today from Wieczynski final will Stifel.

Steven Wieczynski

in I'll of field, it be going but left call. to I'm my question Most obviously late one. answered, the this ask there just in have anyway. ask been but questions It's very way might out And

and had you the it, the near age So what point if to be eventually get guys going And let's Raiders, It of at we're just wondering periods. visitation in XX and the slower you but typically about future. home we might probably games city, visitation the about, or think might talking Knights, there. this call have some have thought now see about that know, impact all you're too type to the on maybe the so at if impact early to

William Hornbuckle

number. have. about given the it folks obviously, think That's the is the looking bunch of by could it We park, created otherwise XXX,XXX bring and T-Mobile sits, wouldn't a location at which to conversation a to it. that's reasonable where year think tourists obviously a bridge Valley a come. of And number a pedestrian We from we the that's that been

so And that think we is part accretive.

the for happen, it We're to will the the not tax governor's be ultimately I yield a will that by like overall We this. and believe said, state visitation. that Clark accretive be into put fan dollars of it done All any and this responsibly will position more assume County. and for

Operator

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

William Hornbuckle

I'll Thank quick. late. us. everyone thank I I it's be want know joining Again, operator. to for you,

thank and of the on Macau quarter, my fronts. this so employees, earlier to Just the that quarter progress team particular we've all for happier many And be want again, I comments, particularly our on about made our couldn't launching. we successfully

as well. next be be Deutsche JPMorgan's I'm in York I'll to doing in Bank going with couple participating month, Toronto a forum and Jonathan in meetings with New of

hope of speaking couple you I thank all Thank in you forward everyone have to for months. you. a Hopefully, their look a evening. to time, guys great and

Operator

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

disconnect. may You now

MGM Resorts International (MGM) 1 May 232023 Q1 Earnings call transcript