Earnings call transcript Q2 2023

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Operator

Good afternoon and welcome to the MGM Resorts International Second 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. Participants are currently in a listen only mode. And after the company's prepared remarks, there will be a question-and-answer session. In fairness to all participants, please limit yourself to one question and one follow-up on today's call. this being that note also event recorded. is Please

turn over to would now Chapman. call to like I Andrew the

Andrew Chapman

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

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

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

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

Finally, this recorded. being presentation is

I Hornbuckle. will to Bill over turn it now

William Hornbuckle

Andrew, and thank to EBITDA the casino be time. high us quarter MGM revenues revenues China with hotel and results handle happy quarter. alongside in I'm Resorts we're net strong you, of that and the seeing level, at a achieved property our across our demand consolidated with for the highest all positive strong in earnings portfolio, forecasted near with At of quarter all increasing We first Vegas drop quarter record up MGM for afternoon. BetMGM. fourth trends an Las to share EBITDA hotel this posted second joining revenues domestic adjusted all-time you record Thank second at year-over-year

we're year-over-year top our quarters. business Strike with basis, great maintaining profit that in on operations, range maximizing regional to to consideration the same the service margins evaluate line products We're store growth and Gold sale Tunica our evolve customer the levels. profit, continuing of of while our In prior we ensure taking into a achieved

employees quarter service for and helping results employees second plus class Vegas and thank to I to regional for our another commitment us business, XX,XXX are Las stated, Macau. the memories outstanding deliver the their Our guests. quarter locations to Simply them want our offering our are world continued in ultimately, best and in and, testament in and

with to we we're certainly of historic first in half, this the achieved announced even the that we the with agreement back are with we've month. frankly what's International results half last While come pleased starting year, Marriott more excited the in term long by

created to it As this collection rooms properties. agreement higher part points we've XXX at of agreement with on in Marriott book ADRs a costs million driving profitability enhance our customer lower than will property more Resorts spend. by and redeem with members acquisition Marriott allowing This Bonvoy earn new mix XX and MGM and better MGM domestic to Bonvoy, and a

section. his can't his By effort, will in in mix XXXX, base like their fall. to segment on Marriott rates. Tony that Jonathan represent hotel partnership wait personally and team meaningful the expectation get we Capuano our this of to throughout thank further business I'd this customer a at started for and and expand our the collaboration is premium case

for all which other for Formula cities City, Beyonce get the fans year. we as the into November, fall well. Looking Vegas are Magic and great at including into we Convention Green will strengthening Raiders home Mandalay among New in the schedule we've travel the a and third also Kansas X Bookings Bay, that great to have the flocking got Pittsburgh, Bay, England at programming, Allegion. of at remainder Hat and quarter, Black have close Center, And

go and already the at have X, last already of Formula still average inventory compared while year, these ticket to and the customers up of rate for all-time are Formula XX% more record company. tickets early books, we to four and portion that A is our our be with the committed. casino credit times front gaming than on early, For an X event shaping will data twice the money suggest to and occupancy

books. Super the room with business XXXX into rates has in led setting rates sponsors pace on Allegiant first to second seeing and is from stronger We're Bowl higher media times highlighted Our to the up well, by Stadium in the typical quarter quarter, Super excuse February. exceptional of quite also early already me, weekend, and that three four the a Bowl

entertainment regular think Allegiant, Golden And fun for Looking season, away are in new Mobile [indiscernible] be fans and possibility at XXX,XXX in on additional midweek destination become for teams adjacent the focus XXX,XXX [indiscernible] one on Las seats that a sports go over represent that sports Vegas, same the the and their to longer the clear an events seat our has world's that proposing three have Cup day. Vegas Champion, see representing X.X directly and Knights stadium, Raiders T are premier should with seeking or tourists The the million Stanley a current the no that the destination. site. The professional Tropicana entertaining different. holding yard year possibilities multiple Las will every excited XX,XXX by Vegas we more to term, to A's literally favorite business. is It's to teams getaway Las during seats properties play. drive the and we're our of who the front a A a shown Stadium,

adjusted we Margins and can a we confident XXXX. the in Macau, great story that EBITDAR for of sustained long posted feel were quarter of the second high performance surpassing quarter the XXs, to be term. property another Turning outstanding

exceptional an has maintain increase outsized seen China, MGM done our job mid-teens Macau execution Our has in the a in hotel the that the market of by during share positioning team in properties significant quarter. the result performance who was incredible at to in supply

QX reconfigured X] MGM and [Pitt tables. weeks optimization of complete our Lotus Cotai few Macau, at and (ph) enhanced at to the a the in expect Room and MGM ago, deployment Just we

branch focused In XXX incremental care to on international optimistic with four property a taking our our office and We're yield; through future destination Macau, are priorities: casino customers activating our changes helping our through premium year. key driving this as being our to tables; to of tourism committed global global mass Florida making maximize commitments beginning we customers; Macau network. shape our the concession of investments

capital Think (ph) continued government cover support. I'd base. their our of the a opportunities, range art and international expansion to thank investments for [Macau] the customer in wide of of including entertainment, and culture, Macau will like

to now BetMGM. Turning

account, week, and announced wallet. track As we're last on with progress made half the the second team are for towards we single XXXX we've pleased single profitability, meaningful

In to live database. this fact, our be XX this we expect in which markets, with of XX% feature cover than week more

announced BetMGM's also ultimately, towards satisfaction tools, step improving a which to and of of drive both acquisition partners is margins. customer our positive refining Angstrom product pricing and, Our we expect

benefits One is import new in MGM that XX,XXX at BETMGM rooms Resorts of Las customers brings the meaningful nightly. Vegas that

Resorts, Nevada. stay. our coming customers marketing had resort product BetMGM or throughout their who've acquires And monthly guests those average, with All from on a with are originated MGM to relationship XX,XXX exposed BetMGM of half of

our single out part omnichannel in footprint single across Las we strategy. unparalleled of BetMGM account, country, As our able be Vegas will the to is activate wallet roll truly

metrics as the get experience state seamless enjoy expect BetMGM We across and players grow app acquisition to engagement borders. a to using

is presence That focused through a acquisition Push of improved on gaming our content, later business fall, quarter also studio. Gaming, last through growing digital internationally announced content We're digital international technology, this we close scheduled distribution. our we And and LeoVegas. an developed acquisition to

lastly, Japan, the next an half we to receive implementation step on XXXX. with central expect the In in which front, New in Now, hope we is development entering the license of agreement the a in also government first York, into fall.

fantastic BetMGM. Macau investments ongoing backdrop opportunities Marriott, be and fixed business The against business escalators. to our entertainment begin with positions into that growing Vegas and profitability supplemented stability the sports domestic by a by of in agreement our leverage our rent EBITDAR will in closing, of create earnings as well outsized operations Las us operating ramps our in our and In

New also LeoVegas. our with Japan tail We developments and longer our and have digital with opportunities strategy in international with York

cash connect fact count MGM China, excluding for we our that flow of add by sheet together, generation we it balance the these beginning tremendously we debt, the our to consider yield. is than of XXXX, each our of flow strength accelerate share cash reduced then approximately you company since believe free cash growth as then the opportunities for and When XX% with positioned more the

the that, detail turn quarter. Jonathan over to With this Jonathan? more for on I'll

Jonathan Halkyard

robust agree domestic another couldn't employees thanking in In best the at record Thanks in I all quarter we to very our said start want Bill achieved their near adjusted hard results. our quarter my much, by all portfolio more. are Bill. for and time work quarter, MGM delivering second I the And strong results property business, remarks EBITDAR China. second earnings of and across the employees our too

a million Based results, we well lower more roughly XXX,XXX to room MGM year. believe replace believe agreement direct fills our with rooms as to a XXX,XXX with on customer lowest approximately Before Upgrading yielding Marriott on I benefits begin brings the XX year. spend. Resorts as brings cost, can nights we yielding we to yielding Marriott and the lower ADR into financial Vegas, property with Cosmopolitan customer nights from higher acquisition get a let these of me the data Marriott with X% room representing X% bookings MGM. the per Las Marriott, In rooms higher

look kicking This once off group, in excited lift. any our Cosmopolitan, with agreement $XX a research night, approximately per or increase October. the to doesn't by all, occupancy in and experience regional Based our profit million in expect include $XX estimate Marriott our upside profit to per operations, annual forward All driving million on room to about and prior we're from with this $XXX further stabilized. we things

Now turning to our results.

consolidated time last up Our revenues all $X.X generated from and EBITDAR billion, of billion. $X.X of adjusted record year XX% businesses

the China to was capital cash the from related activities note that $XXX included cash operating $XXX, were During $XX It's MGM million activities million, quarter. in net free flow cash million. was quarter, flow important $XXX million less from operating in in expenditures CapEx and

to number and level was same a Margins Here XXXX Cosmopolitan, store $XXX X% in of were excluding the Vegas, property to Las revenues adjusted million. property year Mirage a levels. billion were EBITDAR down X%. On above That's for were the Vegas. revenues and Las adjusted XX% basis, good decreased well and prior EBITDAR steady $X.X compared of

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

year-over-year XXXX. in rooms remaining XXXX pace, forward, for which or every month reflects the Looking our books is on beginning in up

this for purpose, of where quarter. it's of define higher properties our coming in terms a are the strength that's approximately the as XX% segment, and of of we our In we that have than segment seeing represents And business. clear rooms ADR it's over strip from our which XX% in which the EBITDAR average our second Vegas, $XXX. luxury This Las

to EBITDAR was In property the down were year down regions, million. XX% revenues $XXX adjusted X% prior of million $XXX and compared to

quarter, of Of Gold we course, have did the the results not this Strike.

same store excluding grew the adjusted EBITDAR X% Strike So property Gold with revenues, X%. decreasing

trends our see We operations. stable in continue regional to

year-over-year While the down which EBITDAR Borgata attributable competitive of of highly is basis, and both on a most Grand to markets. MGM same lead properties, that their store was Detroit, two decline

the margins EBITDAR adjusted Regional XX% in quarter. were

to has back As XXXX XX% since. XX% which our levels we in to of range quarter brought and recall, will in were the amenity properties regional our consistent third margins the to led normal service you

access quarter property Macau, second a created flow of XXXX made compared XX% higher maturity this MGM increase step led We And margin. our when to from to an quarter which of in with profile progress date levels, securing announcement improving revenues extending extension than XXX% and over EBITDAR by important The Gross a XXXX. revolving two of XXXX. was Turning our second through our credit adjusted $XXX revenues July property China's to XXXX an with was exceeded liquidity. gaming main with EBITDAR was win, in new amendment floor the to in our the net and of million adjusted the versus XX% XX% was facilities XXXX. credit

from with BetMGM last first associated achieve $X.X well improvement the million, our In billion the revenues is which to year. forecast billion to XX% operations of compared in an of first net the $XXX to revenues half XXXX, generated on is year. $X half for BetMGM track of of net operations

Our the $XX losses XX% quarter were second of in BetMGM's million. operating

As BetMGM BetMGM you sorry, recall, arrears. -- in one reports MGM month

BetMGM's and So quarter in the our variance March positive EBITDA explains reflects calendar to the through quarter. second reporting May, that

valuation. and allocation capital on close me Let

on million. seriously in As $XXX net behind lapped million time low the picture. our of XX% multiple with of month implies million the impact and the We property of on basis, Backing Cosmopolitan, said allocation capital return youngest which a or the it's EBITDAR the a and these the Gold to attending investment property it a the dispositions out capital. of Cosmopolitan, the all the for made amount execution our of trailing the transactions the to on reflect a less with XX portfolio committed of X.X these change $XXX the of year moves and Las times subsequent cash domestic dispositions million of results of rent the Mirage $XXX we Gold we're us, moves the net another CapEx of $XXX to just and one the Las on a the good and increase with and financial a mark was at a We with This in our transaction Opco’s way, Cosmopolitan Strike. Vegas requirement. Cosmopolitan the now portfolio with from capital is the Mirage here, generated take acquisition lost proud incremental possible. cosmopolitan these that adjusted On Vegas Strike the creation in

remains by in presentation our trading through of program for to at We're purchasing average cost still Using yet we're capital five very earnings levels. today, evaluation shareholders since also our trailing weighted higher China, currently afternoon, than XX shares and times attractive. share shares posted returned year, XXXX, our the million market XX% EBITDA. $X.X resumed This our at the early we over I adjusted value billion. of trading adjusted multiple current consensus EBITDA valuation this revisit estimates trading for of at our current MGM In BetMGM

you. back Bill, to

William Hornbuckle

term term you've loud through heard and the diversification return to us MGM with business investments growth digital, to well rapid profitability, regional as clear. shift opportunities acquisitions through efforts BetMGM optimistic China's Plus, Jonathan. to consistent offers long and repurchases. growth through and earnings properties come our in our sheet and Thanks, near Vegas shareholders Hopefully, international, York balance the as Japan. as as through New case share a ability Resorts Las MGM's expansion and in and make fortified inflection, capital and to allows well

am attractive be as flow suggests is we of level. still in As below deck parts evaluation, multiples we stand providing believe of and at our encouraged Jonathan by will our mentioned, our believe the certainly included competitors some shares shareholders. growth business to to future for And as core priced free at value ability trading I today, an grow the cash them our significantly well we our and

With that, operator, questions. take we'll

Operator

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

Joseph Greff

Jonathan. Afternoon, Bill. Afternoon,

regional BetMGM. Macau, job about the and in lines current Vegas thorough the well fairly as your a did You talking trend operations Las and the as

aspirations just big thought question any a digital strategic question sort of give sort priority could you picture But us of of both York. a in America. on is in is, an any then have of one and or I that questions or international in for my markets big one if how picture digital, first update North and you couple on M&A New So much

follow-up the what’s of two in terms next or regarding is [indiscernible] get big there's licenses or expectation your how for third facilities relates York. steps York. then three York too uncertainty then the could there size And each, here a question maybe contention and the big communications if And license in constrain. New downstate my New the New is around to existing licenses in

in have fairly Bill, you may think New I York recently. been

sure That's you’re So all Thanks. I'm for current. me.

William Hornbuckle

Joe. Thanks,

Let me take those.

As alongside it collective the of partners digital, profitability relates a MGM our and maximize working to LeoVegas. and to with we're on growth focused goal

say. I progress going And of to think we're making that's good both fronts. we're all on really those

it next process one, I'm on we're something so or that has in the hear and I hopeful from commission the think to ultimately second been the rolling. going month get interesting. the

know, As submitted questions. you we've

and not about day specific return got XX, but are happen to hopeful we indication, it to like, actual questions moment begin questions submitted, we XX the shortly process. will believe any us, think do The to the I XX those they that. We've bill the and starts.

either. think, some that hope. on for I licensed then goal time track, nothing would So and there remains from be on XXXX there in our definitive our But getting pushing and

Joseph Greff

Thanks, guys.

Operator

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

Shaun Kelley

Hi, Thanks good taking afternoon everyone. my question. for

bit, So, little or I through into the margin more cost bit just Vegas sort Las want a a a outlook probably to but little dig lens. of

across the year leisure starting other a of oriented the see good businesses, think I such understandable and certainly bit after little it's a So, normalize lots year. across to last just and pretty quarter we're top

of you of the hold from help little normalized level. get leverage think a needs or about of us bit get bit to cost Just either cost a in could or moving revenue margin to leverage bit a kind bit forward what of a more back MGM half kind a of growth

I back X X, half look are think the Formula a more normal. going in bit start little things to to

than What about So you just think are need Could inflationary X% how X% that Would puts do inflation little or on those you need? kind experiencing a think about help the you growth us would the rate? existing front? takes? a lever you you just environment, bit of what and given more

William Hornbuckle

said, Look, repeat it sounds obviously, it, often. and you that's relooked we've of by on feel us unique by off line, it then are And economics is to both my one at kick Formula about the property, individually and a being colleagues. the top and particularly going around as really luxury, by and over go driven for and overall. it rooms second driven X particularly substantial. our the half I spectrum itself luxury like turn forecast up to and That opportunity, year, good ultimately for that the

I impact going us think going the big to ultimately to wage. that's thing is be

the seen or process, in negotiating Las with since This of history them town strike And know, hasn't this. the on which doing decades company have companies the out all Vegas XX’s. all culinary going of You now are and well. is a we

address. going thing I that line exceptionally think there But, reasonable of housekeeping to their there. been the of the I that come are need to labor, a to out so, around issues think, contingency up is we're biggest we'll sits resolve. note again, in And core There holding has people But well. top

So Corey, to… you want I don't know if

Jonathan Halkyard

around current has fourth we growth that of the and schedule quarter as quarter the I'll, Vegas, year, next regional it's the increases I add around digit a properties. increases. of of in margins in because quarter, the prepared fourth Yes. Shaun, the just the interestingly during to maintain non-gaming into seasonal sequentially, we're Las think a for the in points percentage our a I'll in Jonathan. regions our with, full Year-on-year some low But -- go markets, -- FTE that's we'll regional remarks, of counts. in couple we're in other higher course, our order and need dramatic and described of staffing fairly Las things first doing. few dynamics quarter comments. And third, Raiders increase us forward severe, and Not as to mostly Vegas single around FX, we order in levels. you actually And in around in experiencing a become look event revenues

So tends margins well. Corey? that as to help that

Corey Sanders

Jonathan. it, covered he think I

William Hornbuckle

we've we we now land. reaffirmation And Shaun, said on landed, margins, just, I for where would think I would

and pretty there. intend stay that, I -- we think that's to say would history

the adjust to there. where so, margins think the of understand And I just importance the and are want and But we to business we be. And where accordingly. need we we'll we're and continue about

Shaun Kelley

color. helpful Thank super That's you.

As extra a sort small Marriott Jonathan, follow-up, one, agreement. of but, the for my on thanks the detail

net $XX pure one or gross, the outline, you savings out million would for annual one net that So to of after a or million $XX of like in on we just fees that the profit to Marriott the but to meaning, that, to sort are, do the is that cost as costs that? be Just Marriott MGM have whatever that? number the part is specific incremental to

Jonathan Halkyard

already doesn't We and No. benefit benefits high recognizing include operate occupancies, net net -- see very and net as that's number. at markets, in the company also to but in that regional the a of occupancy, we

Shaun Kelley

Really you, encouraging. Thank everyone.

Operator

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

David Katz

talk of We've taking afternoon, and Thanks for top Is pressure? What state pressure far bit. the been you so that just business business? Hi, current regional a some momentary of everyone. this on us state report regional my to is and et regional it just for cetera? right about the there's a your wanted question. I number seen a bottom. operators Can economically of the competitively, the just your give kind outlook business of Is the driven?

Corey Sanders

Yes, It's Corey. David.

business games properties well seeing our table fairly The all The as the bit about we're our think of amenities up that look been area strong I in is summer. of holding have extremely across stable a one would earlier business. non-gaming this mentioned the of decline are that is as in a few Jonathan and business. lines of very the decline a our we little

pretty dialed have a down our well from significantly good our On still labor cost. we're think understanding front, there. We're in FTEs I and of the peak

I is that see the most So business likely quarters. future happening maintaining, in

David Katz

it. Please. Got Speakers] [Multiple

William Hornbuckle

regional behind that, commanding going portfolio but now just free properties all only strong several in major was the well next group the CapEx flow the as the lot to to the as be with which a virtually have couple enterprise market Beau renovation add Water that, which Rivage, the I Club of room over years us. with unique at is are are of ours these a a for is are, conclusion a not the comments, the generators positions, cash point properties extremely as of

important the very because of a for So that. they part play portfolio

David Katz

update to while Jonathan you or investment there is, program, digital topics be on loyalty the MGM's a ways investment measure? in what's Understood. us on in what haven't and Can program. any focusing talked may and about going loyalty And of you benefits and on the one we seeing

Jonathan Halkyard

also Most online. investments they that have They check-in loyalty in enablement through rewards technology for program to benefits Sure. can the can redeem on of can our their the MGM their make and MGM check-in, whereby non-gaming other earn around introducing members, points our well non-gaming they And so the been amenities. reward program et mobile cetera. points as for as reservations amenities

seeing are part go the steady these and quarter-to-quarter. the and is of as benefits of requirement through more progress operational we fairly customers modest. All increasing And just the business. of It's it's program. important with around associated an increasingly rewards investment capital our standards awareness MGM The

William Hornbuckle

Jonathan. to we few a loyalty loyalty gamification, shift we Las allow Cosmopolitan think in help increase which have our us then that And do just just from program. will will other and wallet which our platforms, Vegas will share. changed And points, February to a announced We perspective just the

to forward also. opportunities there looking we're So the

William Hornbuckle

And maybe last comment.

driver points Our is and casino as our mix have a its that. all attributes percentage a of key almost XX been program segmentation The of in up generally.

And the take sign out deal seen Even as in a last if new of we've which is, huge of pickup I've driver good my BetMGM, a so throughout ups. prepared comments, I course year. of said the

growth that in to on want take think up, -- program. I or be XX% off we I'll here, the but you number I have, like, and that XX% If

what obviously, beneficial. means and the -- has rewards, program across awareness, it the MGM so ultimately, awareness (ph) of to going been [Mlive] and the from And portfolio

David Katz

Thank you, everyone.

Operator

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

Barry Jonas

the appreciate margins. I on commentary afternoon. Good Hey.

You've that. properties. believe XXXX domestic margin on the previously talked points have XXX of XXX been you exceeding improvement points about I basis for basis to

right XXX basis it's that little Just range think a or point the curious if you that's range, if still now? tighter

William Hornbuckle

margin I'm closely, the But that comfortable specific I at that We again, terms look appreciate with get very we observation. is time ago. improvement it in a then from. No. of was long very still XXXX coming And range. where

we're now, business comfortable as the focusing that on still we're is it benchmark. with but So, a as

Barry Jonas

any Marriott how color could And Understood. as and lot Okay. a follow-up, more on can MGM you great just you've deal. given just about there? then a the talk bit a with that you Maybe little upside see of integrations

William Hornbuckle

our market customers do it's to the their an their and having to Ultimately, ability and then customers opportunity BetMGM it's to context.

XXX a million We BetMGM motivate today, a you people own. of that and think think going have think get can a a those it'll but be ultimately. we I Bonvoy our program when sits key for that's that ultimately significant folks driver. have I independent with It And and inside points to do aware in product, pretty organization ultimately back within rewarded both they and and it's points things, interesting, Bonvoy

it's pretty all acquisitions for a a to the for up fee they members then straightforward programming whether it's So, open and of deal, to their benefits and us, our members each other.

Barry Jonas

Perfect. Thank so much. you

Operator

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

Carlo Santarelli

same if the you in look maybe ins at some of thought what XXX a kind at I you relative Vegas guys of if about the same But, within better hoping outs. store me we just range kind guys results of still talked to and maybe XXXX. basis was understand but I points, store on the of portfolio Las look guys. down kind could and you margins of the Hey, help

For there starters, no was reference or hold anything. to

was given ended So quarter laboring May. is take of third at well kind end to contracts I the upcoming, took secondly, booking place potential I of of and in there quarter in wanted union that the any with to the the wanted ask that normal. as if reasons might place And the contracts ask incremental

William Hornbuckle

we the differences a year-on-year, in coming terms But Vegas. from look of terms labor. performance performance second experienced margin the of margin of with In as again, lot we the it was quarter fairly what in Las on in year-on-year, consistent

As the we weren't -- in fully we the quarter came XXXX, second out yet into came staffed. of

noted lighter against And XXXX. Hold it are going then of labor a into. of are, getting you in and for that I bag and all factor, been a -- in the But now we're couple of was significant so, was we load were zone margin those none like think, of mixed of quarters. quarter in second of anticipated not worth your And contributed number question, comping we that items, the which have a that to a it. small premise kind of to a

Carlo Santarelli

that. of Okay. EBITDA EBITDA in seasonally cetera. from different BetMGM Thanks. it to and be given an getting calendar what within say, and would a prior then kind perspective, based stronger month obviously the the in be to positive a be XQ, the calendar, that was quarter to positive I general accounting loss slightly that be August possible the weaker the would counting. obviously, is quarter Clearly, to, expected just to tend could on Is June breakeven back months, a XQ? softer And for et sports actually which generally July

William Hornbuckle

prefer to parse mean, the I I'd quarters. not

I terms directionally relative of of the the quarters. correct think in different strength you're

think quarter I we was second second comment. stand by the half calendar profitability result that And terrific.

Carlo Santarelli

Okay.

sorry. And

aggregate half Just the but each way positive. so you as right I'm that not interpret reported second Is that? thinking are clear, quarter to that's obviously guys positive, necessarily

William Hornbuckle

Yes.

in football, got kicking up the third. obviously, You've

is, So yes. the answer

Carlo Santarelli

Yes. right. Thank you, All guys.

Operator

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

Stephen Grambling

bit lower looks what and than BetMGM exactly, BetMGM. Maybe benchmark? call to we try be disclose to but some didn't disclose one things. one may investors thanks. the compare these that Anything can help of EBITDA try if the and it your puts you I out like little peers, you compare but margin can there's closest to they on or know I tell, there a more didn't from know Hey, takes

William Hornbuckle

wallet a think is, prior and -- we've and in Look, finally we Yeah. I this call, great think I the on got news single said motion.

and in with frequency, businesses. and those bets parlay, otherwise. drive big opportunity Angstrom And around think the recency are will more product, more margin game I more

X%. gross at And a so in if I phases you to a I fully think will over a -- little deployed, then there's were break once of through look football. XX through goal come get post probably couple and football know we Angstrom which

of available that versus two businesses the will have we high at more the customers delta And things someone think the so, that of is deploy [indiscernible] biggest product products velocity as (ph) offer if importantly, that's I the We're look bets Angstrom. of margin [DraftKings] for you to offer. the type and more like a going potentially the we offering simply between

Jonathan Halkyard

Jonathan. And it's Stephen,

out sports bode the some very higher markets now excited loyal you pre-XXXX quarter, If mean, profitability in as by margin indicators, the them lower for our second acquisition the those betting, on the leading profitability called in things positive. I costs, that of online of business, improving customers. very contribution well all future. all And look about I KPIs we increased our then earnings play of known our customer presentation, for mean, we're the at

Stephen Grambling

on That's little gross super properties color Any iGaming, properties. on had revenue one regional without. iGaming MGM, those a states weaker It also or Bed were bit kind just And but of looks the BetMGM of with legalized cannibalization assess helpful. how follow-up the than to in that like the gaming specifically? from

William Hornbuckle

Michigan like brick happened Well, a in where I aggregate, think be think in I It's meaningful slight business but a to more mortar. what's a factor, if almost the than XXX% beginning and it look place collectively. gone obviously, and to macro, meaningful you at it's in it's

Corey, share. know, our hold is? whatever We continue market don't what it is, or recently, I XX% it to

Corey Sanders

XX%.

William Hornbuckle

XX%.

So begin property and it tournaments with into in And think totality, other we our in we long level the drive motivate back betterment I and again, mortar. this term. into think get more excited of play, omnichannel we that'll brick case activity once by to people and we're it's to back can

Stephen Grambling

margin Makes free cash sense. And ultimately, accretive. flow

William Hornbuckle

Yes. Clearly.

Stephen Grambling

you. Thank

Operator

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

Daniel Politzer

everyone. afternoon, Vegas. good I guess Hey, one high on level a

you are the color I where of near where laying or we Thanks. good you any calendar of maybe Can guess terms just picture the highlight look You've have a XXXX. past on that and Bowl term of demand you versus the done events Yes, but out and would into outlook, key we group in Super I the look the out guess some further medium as term typically kind are? you job as of pacing great. the be into kind convention

William Hornbuckle

[indiscernible]

Corey Sanders

Yeah.

in a really room XXXX be So, about for perspective X% from our up looks nights. company, convention positive booking will

reminder, remodel. Just under Bay been as has Mandalay a

So here. the nights impacted second in that third we've had of -- and quarter that's number room convention the

XXXX, should booked, rooms the pressure quarters. side in the few in it puts we're being where seeing little legacy at So down have are in which on the difference look as properties pace on convention the make saw we we those up But that some the a midweek. last that bit the we been in

William Hornbuckle

more if like beneficiary carriers net bring their you macro the just The activity. great think events to then, And aircraft. in of terms events, is still news where we're

we at seats or inventory a over were pandemic. a I where XXX% think XXX% pre sitting of we're

as great pick So mentioned, will that's news. been pace. Conventions, Corey

yet from international full We of Las Asia. to the Vegas, see business have to return particularly

some we occupancy customer not a from we've we value across Cosmopolitan. displacement, probably up higher think excited think because a we happened what's it Marietta take that'll place. We're meaningful. think can If do portfolio, -- of an creep little that's to against if seen both, by bit I what stretch but a the

they (pg) final championship several the tournaments, four, four several the game, -- have for final in that, We call bids college whatever [NCXX] frozen hockey. for

and three the not it's has fury. it's coming it Selling a gift I whether later month almost activity. Las that's frozen of others. for event, Beyonce proven highly opportunity this the hour the is nature to a out it's given provides think Vegas event. in in Legion day success or It's a a the And three called be programming,

and T getting And individual keep Mobile as at than as with portfolio, And cetera. more et our fair of those so, community. looks obviously, properties, of things share we a all we our

it. pretty pretty, overall, excited of all So by

Corey Sanders

too, XX,XXX And help then night has people the city. spear with which, the you have entire you to

week, just for I a boxing hosted is us. spectacular coming that last and fight definitely was We think back.

Daniel Politzer

calendar can talk and growth share you it here so look and profitability, the market we digital through inflected your maybe has color. kind for bit, the downwards JV Thanks edge to a level obviously, obviously slides then which pivoting BetMGM, it. And versus as to XQ? Got see data, about at of in priorities the we relates the and if just share the all

William Hornbuckle

things. two It's

them. of on of touched both You kind

XXXs. Our maturing from drive sooner to are little CPAs profitability, they we sooner see seen cohorts come iGaming. XXXs maturing down a in than XX to We've XX iGaming our months, particularly little below a down in -- hopefully, in sports. Hopefully,

And of into disciplined all more in about whom we're and active how there marketing context of that. the there's maturity so, we're

earlier. And I candidly, said it's what back

be. is Our we product not where it want to

moves that begin back. way place partner BetMGM to will Entain get to the with some we're with meaningful making game partner in we'll that or a with to now gain think back the a where and make Angstrom we're be in moves hopefully share going though I as onboarded for us an

it's On betters, migrate simply about sports XX% casino. of them side, casino the to the over

that couple come We're If you forum. the of question games that you that out of not us innovate. we not We've to leave the around a vice go But got over floor but brick-and-mortar they're the jackpots coming reason from the we take back in iGaming that to in extend dominate. have to that of on if new equation and that continue hurting -- we points, down equation, just brick-and-mortar digital going the to naive continue versa. had part after

products out ways the to continuing both to to ends of tie spectrum. both figure together we're so, And promote

Daniel Politzer

Got for it. color. Really helpful. Thanks the

Operator

come will Please question with Montour Barclays. from Brandt go next our And ahead.

Brandt Montour

a if I the you at question. to for wondering in -- And for XX% have us comfortably you able would wanted little range Borgata ended in that up you to color everybody. if was about, the this what and the -- if in more that Detroit happened to regionals fair give were you talked assume if that it's that, to evening, margin Thanks quarter? Jonathan? Good if XX% adjusted you on in

Jonathan Halkyard

Yes, around again, in MGM in property from at of the the range. we're table for being Detroit, forward, couple there into significant some Borgata, was was that of a the it going July. pretty Sure. game moving But comfortable June And events matter a hold issues quarter.

Corey Sanders

Borgata big of was margin. the dragger the

Brandt Montour

That's expertise, helpful. trend in you Macau, own the that think gives you able here? as can the and where your markets hold tell And sort coming you and Great. and over of recovery capacity look be from the own market can is you gotten what and guys from thing share at gains how you'll that here, confidence you that us of you've sort to then Okay. at recovery looking your

William Hornbuckle

of more And to over meaningful it uniquely demise of helpful. now we've properties. junkets, are kick to turn obviously our off frankly, knowing positioned work. with on them network. opened organization I'll it offices, been couple so around go to historically the and day. in that we're seen lives we've And for own that's We've obviously, our decades expanding this our Look, and that who customers shaped and network we way and marketing a Hubert, delivering the every

that think others in and and reconfigurations And and the to to us it now each the then floor the the the we made itself we on I that interesting offer begun the replicate. velocity way is games moves proximity other, have up casino to

course. here was it we may may And month. July so, yet that's and a real, not But take or -- record its are

hold and XX,XXX where I rooms marketplace. the hotel months you've in continue think up into Here we seen seven we share, this, open almost to are

not the deploying second XX we're year. if our think tables that XXX will look, share always the to about with we've got. there's of about think overly as There's to play we a I good done tomorrow, get go. the so more we story of And job tacky XXX we it. But in half do help And

add? to anything Hubert,

Hubert Wang

Yes. also very sales for this Bill. floor Other are to we Thank you looking customer talked acquisition. the that table that going expansion. and think you, be Obviously, than about, optimization is team at our think I important I

Another thing to Resorts network leverage has going to we're the our MGM is that, overseas push that market. internationally

premium that, we these side. Other double count, head a to that projects going and in and have progress, sales at the I think improve of particularly our offices experience, we're areas. element to a think very lot and open capital our marketing remain mass than more and I already enhancement customers' made important people

we're of at to to renovation a looking are are there we that renovate And and we're re-tendering the So example, coming going side, the quarters. at programs -- Macau non-gaming do concession MGM going lot and a in under also commitment. products the either or build for months

on defend a are share. doing there lot and to So our are focusing that market of things we

second are showing results very a of our color KPIs July some recovery, improvement think the on and you robust. a lot I strong, on fronts lot That quarter. continuous vis-a-vis give of to Just is

whether even rates GGR recovery GGR and rate. mass recovery So it's or daily EBITDA

second higher are at So looking we than numbers the quarter.

the of balance Thank the the terms and on results. optimistic in very of year recovery I'm So financial you.

Brandt Montour

Great. everyone color. for the Thanks

Operator

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

Robin Farley

maybe Great. wanted that suggest paying to rooms to a them revenue It mentioned X% just of room agreement. in rooms as a on seems fill you Marriott expect percent it Thanks. from the lowest you're the paying XX-plus from which describe revenues other up would a follow Thanks. of distribution of I share a the agreement. -- agreement, rooms. agreement? great you you franchise the to you Will like share X% Are of

William Hornbuckle

a agreement Robin, is the basically given occupancies. Las whole our given the hybrid, nature Vegas, of

some paying we're yes, all. fees so, on rooms, And not

goes we're And a the so, little here nature just longer, on a of to what look, able is story program. understand which but the we've by, you deeper of been I it long more do, and think This was rewarded it loyalty whether performance. excited and

the the better us, it's you do. general and So of I we the drive better in be But think context hybrid they ultimately, and more they do a It the wouldn't about the nights will more nights bring how room deal. room franchise our they think agreement.

Robin Farley

fill already a you yourself, way that think So that share of not to it? about revenues the rooms on the is

Jonathan Halkyard

of the into incremental go with rooms details we're but terms transaction. We we we've what in the those they of going what basis, Yes. as far pretty go to We're transparent describing deliver feel like as they'll terms a the that's associated been and net think in value of in terms going on rooms deliver, not actually agreement. of to think the they'll

Robin Farley

you. the color. for Thanks Thank Okay.

Operator

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

John DeCree

my taking the Thanks everyone. guys. mentioned about for afternoon, backyard question. for you've In the prepared in your remarks, Good A’s you

are make south starting end the there with and able anchor Is might on in that to opportunities looking, that sense further reinvestment you're consider but for potential that down So little previously? maybe be potential properties things to didn't the do your strip that a might of maybe your there ROI that there you bit now backyard?

William Hornbuckle

John, thanks question. for the

when of the corner spend Las properties is we I hundreds capital a when we keep yes particularly answer three degree. love think need new going mean going folks. to said it's we're deliver we're that MGM thousands of some anyways. Having the measure. sitting in all I velocity on that, of billion Vegas here, in own and years stadium. to It's XX is $X.X old to a

we'd to to much like like yes, not there. right get to and further the there's about on better. the enhanced connectivity on the it we we way We'd worse not property pleased could gets away go think you be particularly an the We're like all work it tell. connects how end work can. where opportunity frankly, think dialogue, We do we'd and will to our And And But that so I that door know of a time from think, front corner. now, to this be the on, the MGM. front the elevators, catalyst

John DeCree

Thanks, remarks. Bill. also And back one to circling prepared maybe the more

piece it bit seeing strip the Is thinking and could maybe it in you there? the color those differential on. could properties or come terms us that as softness some little perhaps in it, that could from opportunities? smaller wide if the needs of luxury a gave are non-luxury If roll color color. are midweek what of luxury what at that to about city just fill properties, just other how you a and conventions strength some There's see a been if to you there you you ups of provide still obviously But that business, could occupancy us kind little back as on properties, of Is call you're properties give a opportunities economic?

William Hornbuckle

But far. I take John, it and enjoying off to this park it would more this by is knows because I'll he year Corey turn best its ever intimately. say

over football up. there. when in when over epicenter Obviously, caliber are kick And activity. And see sports when -- T-Mobile bleed Luxor when from of sits see we'll -- so of bleed Luxor's we sports conventions with it the kicks back

year. enjoying decent New a York is

a it's So of bit little bag, Corey? mixed generally, but a

Corey Sanders

Yes.

that general to in comes they've the in on there. plenty demand Luxor fill midweeks. to when impacted the at you just there's going Mandalay's Excalibur, I properties. look rate been It And and over construction particular, on by think, of

nights. flow had So the they those haven't from convention over room

heard we are but been conventions occupancy those we're we're we've on pricing not happy from even in convention at us, -- seeing still at for the a low little power business, those there When pricing the properties. our just in with but what competitors, has have from But there. bit some of town, even summer the

John DeCree

guys. much, so Thanks Great.

Operator

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

Chad Beynon

questions. afternoon. for Thanks Good my taking

the quarter, about $XX wanted repurchases, I share ask First, your million four was quarters. in to in the highest that

the about wondering you're of then through repurchases we back Just of pace thinking year beyond? get half the and Thanks. how as the

Jonathan Halkyard

to other be aggressive, of although not for the the more capital but continue the that a company. question. of Thanks an the as terribly we has market was the allocation own some now is for will over important first also we part by been as try Yes. It two our value shares We program. opportunities than pace dictated compared our and so have to our upon be capital This the allocation quarter to consistent this approach estimated where see depending And years. of the before as will well part opportunistic This us. be of quarter.

sheet. now, billion the still repurchasing excess own $X one balance is best shares. one close -- But the for we the to our of that valuation of we capital on have right of think homes our best do And cash

Chad Beynon

to back July measure the wanted quarter State China. and that a direction. Macau go published hear And Great. then We've Council to the recently expand about in the consumption to that XX-point right Thanks. to in I seen trending Hubert. Nice potentially to is

for all traveler that visitor, think we've or the out waiting to come further market. a resumption I non-Guangdong to been of back

that. two-part question a So on

current you then customers have results be be? catalyst given gets you with come you are in or the pretty Thanks. you're the First that that that And showing them secondly, now, off, happy do going? think to And could customer properties? would your that do you this what back need right your

Hubert Wang

Yes.

a I question. think that's great

is segment. think lower mid in stimulation of the be to I government another package going that longer-term mass. This so segment all premium broader the that, be are the that much the I the But the a will all just recovery programs think by think driven China, far for push the frankly, -- that concession spectrum think mass of instituted at the to I particularly with end non-gaming I market, it's areas mass and implementing. than broad growth particularly spectrum

lower that mid-end to think I will from of that demand will lot the from come a mass. of come -- the the

So think the bodes that, everybody well in market. for again, I

we about recovery. moving us, beyond for I are But MGM, think recovery. we For talk already actually,

growth. We about are talking

So segments. we are on focusing all

premium mass. that, will given the think I footprint, profit course, lot supported every Of the be a by mass, of on of focus programs we cetera, but segment et

in months So bodes growth. quarters the business that think the as I us for well coming for well and

Chad Beynon

Thank you it. Appreciate very much.

Operator

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

William Hornbuckle

Thank operator. you,

Just XX% of which before from Las all a and Jonathan's I led event strong by quickly, you've we you luxury, story comment, earnings to think again, we in top activity, continue really It's sector. -- heard, have are go, by luxury led to look, coming line the our it's segment Vegas.

world's talk just what heard and million members with our properties. programs us the hospitality ultimately organization largest we with our We've think to partnered XXX tied directly to about Marriott about just You did. and

inflection point. an at now is BetMGM

and talk going retention us margin margin heard stabilization forward. You about

and to at and regional, continue think towards in both the want we'll I we're to end. work be should numbers we Las and Vegas that

view, the presents our being it sits about multiple in particularly in very balance loud shape opportunistic and shareholders, value clear. to great given but the sheet that remains that we're it at there heard You and trading our

So evening. for that, thank you have I for a great and your support all

Operator

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

now You lines. may your disconnect

MGM Resorts International (MGM) 2 Aug 232023 Q2 Earnings call transcript