MGM - Earnings call transcript Q2 2024 | MGM Resorts International

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Operator

Good afternoon, everyone, and welcome to the MGM Resorts International Second Quarter 2024 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; Gary Fritz, President of MGM Interactive; Kenneth Feng, Executive Director and President of MGM China Holdings; Hubert Wang, COO and President of MGM China Holdings, and Andrew Chapman, Director of Investor Relations. [Operator Instructions]. Please note, today's conference is being recorded. At this time, I'd like to turn the floor over to Andrew Chapman.

Andrew Chapman

Good afternoon, and welcome to the MGM Resorts International Second Quarter 2024 Earnings Call. broadcast furnished the Form our the being and at X-K is SEC. also we've press call live internet on investors.mgmresorts.com, to This release on

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

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

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

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

is this being Finally, recorded. presentation

now turn to Jonathan over it Halkyard. I will

Jonathan Halkyard

good Thanks, everyone. Andrew, and afternoon,

Their I team like into of employees another would performance more great Before quarter of the I proud is couldn't results, to this be and our congratulate businesses. level quarterly I all our our thank all clearly evident for high of get across quarter. in for of execution results, and our

Turning to we line both comparison. Vegas, year-over-year In our results. bottom both strong X%, and Net and quarter against a grew driven occupancy. Las growth revenues top by achieved rate second higher

night bright. Our The is future to Marriott now bookings our room Las contributed XXX,XXX strategic Vegas rooms, book. with with for relationship performance this over quarter in hotel

and books every up up and in room digits quarter, pace, are over the our at the the for of the in rest mid-single rooms Vegas ahead on month on pacing group XXXX for for Looking XXXX. books Las a year rates are third

responsible meaningfully see for quarter vast resorts, which our in we for invest strip of profitable in offerings We top Las the was luxury our in is most our this where growth. underpinned by the growth line the luxury as success Vegas. majority Our are opportunity

focused across suite on will these domestic are portfolio. XXXX at and room Vegas remodels, capital Las which now properties. of XX% underway updates fact, includes our property Grand In This be budget our MGM the

completed enjoy Cosmopolitan into On now to allow which Rewards we've Cosmopolitan MGM and benefits members program, versa. the our the our at will technology integration Las side, full of now of MGM Vegas vice the Rewards the

In regions, remained relatively net flat our markets. handle across by of share revenues our year-over-year holding the market driven stable, each with steady

We at recovery improving through labor were we also vigilant MGM range midway which revenue as effectiveness expanded variable a it just program, initiatives, XXs have executing full were our as many all of Margins one our charter faced on air headwinds year. examples. we and Detroit, low know within targeted of since seen last our the such on

grew year-over-year, quarter, million reached Macau, margins a increase achieving the XX% China with property In XX% MGM for net share Adjusted $XXX a EBITDAR XX%. XX%. at of revenues market marking

facility. offering During due extending borrowings $XXX with maturity of profile pay proceeds the the the this issuance The notes quarter X XXXX. credit to new MGM China's strengthened under a X our and balance million were outstanding sheet revolving down of used by

investing grow last we I'll share share maintenance payments, our per than a our and with reducing cash algorithm remarks annual we count. interest growth conclude algorithm Simply through rate flow enables capital XXXX. put, to compound that on cash for thoughts growth our pace escalators, to free expect while flow rent a introduced EBITDAR quarter. faster my some mid-teens achieve and at taxes, free the us An

China. generating market from focus a Vegas by a cost our including New in resort maintain flow an operating from Las share We'll expansion generate to market-leading regional incremental we'll operations markets, recurring the into optimizing free properties achieve model luxury, savings. and the realize our revenue in growth MGM First, cash our our and we'll grow with reinvestment York through on growing positions dividend in

anticipate cash in where an be inflection years BetMGM from coming on investing Japan the provide other point growth reaches free and distinct development We'll market as in and for brand Next, digital generating its long-term our expertise businesses markets our advantage. also numerous and flow entries. a we LeoVegas delivers awareness

around X our strategy XX% close Finally, shares. shares share we'll an repurchase approximately XXX in has own using excess for decreased from reduction our our our count float share to years. Through cash of million, repurchases, just million to in XXX

even in from you. result XXXX, Taken a in flow and share Bill, growth count a compound rate cash mid-teens in annual free increase Japan. cash contribution per MGM reduction share together, would free to without by the flow over

William Hornbuckle

our and Jonathan, and challenging of all through wage a management on has inflation amazing, environment. to in I'd attention continued congratulating Jonathan's comments it good guest by afternoon, like our continues scores also on service, down been start into and show detail everybody. NPS identify thank in Thanks, Their second and teams take to to to a our employees. doubling just

you've XXXX. everybody I think we great remind of part margins, all the this now I most job And the will half our of that as lapse go into their of through second managing seen increases through first year. done they've a way those

in creating post competitive evolving to to continues our year. post-strike market And continue to against great very exceptionally returned We regions demand. see quarter, last space. is had and fully and hold line as by marketplace China seeing driven is top Detroit mentioned, The leveraging earlier market. Vegas, MGM strength, a group Marriott finally in transient the going to and Bay cyber integration its Mandalay 'XX it's hold on excellent -- Turning a well, continued results efficiency we its margins Las prowess strong that against Jonathan updated comparison. its

on continued particularly we the increase, MGM. space Marriott its top again to benefits mid-XXs. mentioned, by and Vegas the the 'XX line 'XX, Las growth pace, Vegas, Mandalay group program in refreshed continue believe maintain in up In is and margins from Las only at as unique side, Group anchored will to the

the the organic optimization And off We same-store have Cosmopolitan, nights the the approximately dynamic now see yesterday. on in, X.X closing integration of Tropicana stepping lower growth through X driven with taking labor in got room X finally of Again, million the further circuit. is particularly by database years a increases. favorable contract we'll supply which of just Mirage we with

by we're So excited that. very

Noting the in proved successful think third be quarter, that the I cyber all should back, know quarter, you remembering last the of in had and us. to we for but year this, attack third

think I the of fourth is our and rates, through some you in Formula showing However, quarter, room this see softness. One many

about potential we're records the make event Overall, that fourth Vegas rate in headwind on a focused second to of this are think can that for little quarter. be, to the I up. presents at We we pace all but will to of point where are you Las trying it believing exciting hoping best pretty us. that given But continue this see and that can that a into the is compelling pretty though, quarter and think

established market with steady $X.XX properties we real environment, to the against margins consistent business share, an generation. at free holding a and regions, and promotional providing with To stable flow best-in-class plus leading a cash remained continue have

with We're strength our in Macau, outstanding of performance believe, market, drivers the I starting, that the and leadership continues. team. story

market on things clearly phone. leaned We share. impact our has have in the Kenny that Hubert and Pansy many on ultimately, in market. property the our and

they thankful And that. many tactics And deploy. that there are for so we're

I truly wants our base real without outperforming. from and our we're think market and thing obviously left this And where is the understand capital the needs. compelling customer, any most enhancements customer that's XXXX, we their in

like side, to overall, only only ultimately, something still the now is Peninsula steal invest continue that. is on share. of for top keep see opportunities market in to to proud we're market, we're ultimately And Well, to MGM something for above in We position so recovery. property. producer we'd well additional the remembering going into Macau the a that growth and MGM the returned -- position us a to has but XX% not in

turn I on to you've who recent more to Fritz, Interactive, over business. I'd about talk BetMGM's MGM Before to this in like yet, not announcements comment domestic Entain's Gary Matt,

been we've the a that by Stella Group. as Entain I'm excited BetMGM's with product created the progress focus equally the and that's David I'm by team with First, interim the Chair. by made the and CEO by excited key now enhancements relationship the

and and market. I relationship And addition Isaacs CEO comforting, MGM do as someone great known is he'll Gavin not have for a for now I of ultimately, the think that recent the have time, And wonders long a business.

in also I'd BetMGM's reported and to comment Monday on space. some like the green make release promising competitors by a shoots general

acquisitions iGaming, XXXX invest sports growth. and we sports growth that and have was in for we've position heavy saw shares overall continue would impacting leading market product decided an our both be in we lost and that recognizing long to invest that customer righteously share iGaming stated year, so market our investment it to as into in We market

quarter the For the by about overall to record, second the our iGaming business. of million contributes in business, which BetMGM $XXX annually 'XX, was also profitable driven

is piece improving with product. deploy football made substantial We've the and variety whole our products of new sports a Angstrom, second steps we'll season. The into

the single in a We deal to omnichannel back think to for business state. customers wallet single a it's their as for carry well account, As establishing big wallet efforts. funds Nevada, with and our

invest obviously trying on product the customers new win these fall we'll sports. so into And to back with offerings,

development our brand. we long-term what a enjoy done the picture, In during for this equally love having and the on stage that focused is business. big the partner we BetMGM has We prospects, love

We business of and are now long belief patient into in this the and the have a growth strong future.

on interactive to rest activities bit talk world. turn Gary? I it is the focus going Gary. in really little a other Gary over to MGM's the to about but of BetMGM, want

Unknown Executive

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for A LeoVegas. acquisition was management that MGM executing. only of the plan did but first that were cloud-based. tech we we exceptional tech parties. with its third achieved is in through on scalable an to and buy reliant have pillar acquired that we XXXX technology, Not we been strategic The ecosystem aggressive ecosystem not this We own an so our team

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The this Gaming secular our was We property. of through content in found with unique intellectual our acquisition XXXX. own to strategy our iGaming of proprietary Push

branded Push to create games also have other to exclusive the highest can are Resort operators. ecosystem. games to in Our marketed our strategy that operated our Push but our titles with not platforms, titles to been and only acquisition, is that performing develop Since owned MGM be

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We Kingdom United Netherlands, and have the and we soon early the to brand great enter results, America. in the plan already launched with Latin

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already thrilled launched online and positive from customers. are response, MGM the Grand both and our have live Bellagio We and at with

game significant Gaming at games involves We of the among of term, constructing years future businesses third-party will X next a LeoVegas we In double-digit and near all MGM The featuring momentum. see investment, table these space core a in from Push stabilized beginning brands. the by yield the XXXX. believe phase at Grand long-term with to synergy starting pillars positive show shows dedicated after returns, and return the well-known

platform on sports markets. the next owned making our in investments Back new further and to will owned operated and Bill. years, operated focus and few Over we fully expanding BetMGM -- you, our

William Hornbuckle

and interesting this and and piece the scaling business, Nevada, the to Thanks, think, exciting in Gary. by obviously, all look progress, live to we And dealer unique I particularly us. format. here is excited

just Before I position a open couple overviews. of Las in to think turn Q&A, enjoy a Vegas. I we this magnificent Again,

$X building in over X We made properties put in the the Principally into last significant in We've on our have capital investment Bellagio. luxury. we're our years. focused billion

now rooms amenities. new our suites of have All redone many other been amongst and

the explore Cosmopolitan to the heart meaning connect continuing to and Bellagio, Strip also further Vegas Las We're Aria of ways together.

Some the the of of was seen a of plans that over weeks, may have set county submitted you couple last here. to

will to special we are in see of something of nightlife unique We run. create well have that begin itself as component other will something must to here as and nightlife with in bring we that and deserving, retail be midst Bellagio up something experiential have an the that the to entertained trying that things Bellagio, fab long believe the some marry ultimately component, components

more So by quarter We'll launching that. by and content several the the of hopefully, next But of we're excited those for terms pricing. have to we're here. product, in that plans months over excited announce next

properties, free excited flow our them, to stable market-leading. cash Many again, properties are about within I we do and to and regional portfolio. think reiterate we're their I have As know, of generating, the that our as you want

We a new I growing our think, now, have demonstrated our of to and performance. EBITDAR have economic set Macau, shown ability and in prowess whole plateau

for the BetMGM. am and excited, I for coming are by football idea the omnichannel season of We this

their go places share. that database finally unlocks take still wallets I Colorado can think like and have and and to funds enables to people home they it our

excited the middle next digital from of Gary and of nicely. start opening. returned moving equally laid hope with overall and May in we launch we state pilot year strategy target or I June that a out. There XXXX ground just still by to am as speak, that by for I along recently it's Japan has the

about the New note, Dubai in and some in think, finally expansion, the and there. that I Yonkers submissions We And we've our project of I by to York, there has with been community love local we're in situated think XXXX. our we accomplish least the have and what the ideally think in are, at as position think New move I I been to make of and about York, end I all our progress able UAE along.

good as in I date. think, we're this and know standing of I

I that. So to forward look

ultimately And to additional look forward markets.

that, finally, provides. venture I'm And in information Next but looking a in. month, if news, excited consistently do at China we're by Holdings. is of interested some MGM myself Ho do it news, the that will not or and opportunity. then we'll through Pansy That of Thailand be the that we some Jonathan And

we have balance think amazing I an sheet.

We have low net debt.

long-term still pipeline here a We things of I And various we deploy, whether think value cash have or some have ultimately excess to of into short-, propositions. creators. able against it's and middle-

With operator, turn that, will to over questions. I this

Operator

[Operator Instructions].

first Our Joe comes from Greff today JPMorgan. question from

Joseph Greff

also the and the hoping Las beyond to I the start the afternoon, off I'd bone maybe you Las Good give partnership relates Bill, everyone. from with Marriott little to Bill, Marriott the regions. was us in can Jonathan strategic and connectivity. like realize is Vegas, respect bit I Vegas. contribution on to It a more meat

is you I sort inception the for booked nights think, Jonathan, quarter? make to Or outset, mentioned quarter, that were XXX,XXX was the room the at that since of the sure priority. of the

go annual you've you that million $XX the in guess a months the you of that line hit a number experience. that to, kept I given $XX steady-state at slide to you which had to of think that I'm But changed million where deck. has an I Does basis trying level contribution of in could know time on EBITDA

as a delta softness follow-up, some that Formula for One be shouldn't more offset about all of connectivity? related then softness. think that's the has mentioned When And than the And One you by Formula me. we Marriott benefits the year-over-year to Bill, that

Jonathan Halkyard

are facts few production. over we're room of But that, months. all, date regarding to The booked out reservations stayed year we next of of the measure for for just first XX% Marriott, numbers to it so maybe out here. ago. And by seeing couple a that days nights or have of of XXX,XXX remainder a the few just the clarify -- a couple a of of So production nights

the so And production that's level.

One, incremental terms displacing. rate at those it in we're comes which the room Marriott to places. from compared of is, benefit, It are X as the customers paying that nights

We about This occupancy. occupancy are was about operating already yield. was growing XX% at growing not

per of measure the increased room The Roughly from we by about spend the second to comes $XXX the through from that rate those charges benefit $XX folio. premium daily the spend is the customers property. while on and night comes increased

it's pretty proxy. together, measure, perfect So but a good it's the Marriott And benefit those are not rooms. from incremental a

the time cyber started February the of little our because end bit line, terms we this incident. we for when during In most got XXXX. of the a until We didn't of of on originally start later properties anticipated

So I the think even estimate it's still for a calendar though good a benefit we XXXX, started for late. bit

William Hornbuckle

principal Joe, against increases point, that although could argue And relates then, goes get revenue the FX, as to things. I of insurance, or a labor it other bunch we

last advanced I had Formula to to think we of off the where with it's start issue a a compared year soft One is as real pre-bookings. lot

I our are ADRs down. of can some you see think

XX%, If you or we're charging look give what at take.

I have NFL we is think game. the good an news

So the year. the south of that in only the last XXs ran end strip

anticipate feel big actual which we think It the one in but is Aria, feels Bellagio. important event X, more soft. room meaning soft of But that doesn't I just rates gaming, filling important the pieces. itself and doesn't case, this up. the It the at piece, in Cosmo most

overall the hoping enough, last. make it's think a year and sure we're feels of can we I back concerned up it I'm this versus again. yield and between enough it distinction impact point So to see. will. worthy But we'll later I'm

Operator

Kelley America. question Bank comes from next from Shaun Our of

Shaun Kelley

kind about row But about Vegas the talked of seen you of Las also obviously, to the on story core as Vegas of kind side with I Marriott. question the in revenue little quarter non-room the second a I some little we, a follow-up but gaming continues of bit, wanted drive to kind be we've narrative, as just the where ask down this maybe Las and on a would in a bit then digital. think metrics

of at customer on at strip where around gaming the out the of focus what terms what just you're be the moving of seeing of core about So targeting so us the this to cons some drive give can in gaming an you're you point? customer And kind forward? that might post update your kind moment

Corey Sanders

the on and the to is gaming we pretty the perform the particular, Shaun, Probably high-end extremely in continue in solid. revenue Sure. to mix. convention our But side shift still well. core midweek the change the tied customer see slot in is

to we well. database weekends customer. maximizing And be especially focus extremely right better the there's think performed opportunities continues in customer where to the during up on Our the room, to the our yield

Shaun Kelley

digital you're follow appropriate or cash for further you Great. think overview any he if total, venture on would on And then launches, thank for here the take is Brazil? these Gary, digital meaning whoever positive where on think areas it's of you're about of new rest to to up it, maybe maybe of be kind when MGM, in wants about sort push, of have so taking kind need ventures with self-funding, investments, there where was, we market reinvest. core dollars the to invest that the we you're think What we what's Is excluding like a was able strategy. let's kind of if in kind KPI spent. I largely curious of the going sort we like, exclude But some that net about as of the of acquisition some or to especially you

Unknown Executive

we definitely for I Push Gaming say of individual core and it's say would the investment LeoVegas market around are launches. a question. businesses would to have make portfolio, at modest I we the profitable. have definitely importance of which Sure. the as especially Thanks level

Sort scale we've done of at of here MGM U.S. the the in about nothing what at

Operator

Carlo Deutsche Next Santarelli comes from Bank. question from

Carlo Santarelli

revisit of for ahead as back the wanted how some months, in I about to around One. the up XXXX. Coupled between around XQ half you commentary talked your XQ of year? you the Formula XQ and statement guess for previously, growth I and of EBITDA resonates obviously kind favorably we the of see Jonathan, obviously is dynamic feel kind that look favorably. commentary with bookings of each the the sets

Jonathan Halkyard

different in the another probably comparables Sure. one really quarters important the is are quite from distinction. The terms X most the of

the not the everybody during There's it and as on. But third is last outlook our noted, our the what depends going performance that ultimately fourth FX. performance pretty The greatly an last strong room quarter, quarter, on in of the we revenues knows fourth Third was It's things only quarter. driving experienced lot important I quarter. year. the thing year driver on our business a of in

grow. that FX would And out performance But the of so does for the feel realistically, the the moment, quarter depend good of upon quarter I the event. very kind third the fourth about their and carving say we to and fourth just risk ability

Carlo Santarelli

Okay. release I into I back about kind this BetMGM. then you of the if the some know of to next just and week on circle was whatnot. and When And about looking in mindful out balance could anything guys kind that should of the year, Is be that we think in Great. the else year the investments in contributions funding earlier of of talked and of terms debt forward there development the entity? that

William Hornbuckle

No. Carlo, no, think I don't so.

important sufficient. And I was time in more to is out earlier, we something important think precious we us, release and into were tell. else, we continue properly lose put mindful relaunched pay to with products the we we talking and it because of and debt, share appropriately to What's it need than we what what's But is about be do when for frankly, it. spend to and that us is that iGaming we expenses. effectively don't

that's an estimate. Now

going to see even more invest bigger how out. of the Let's it we question money are plays itself that. into But

we've not I think identified and of I what do money, is that. plenty anticipate

Operator

question comes Jefferies. David from Katz from Our next

David Katz

its own I own from of thing. world better about talk path, digital rest doing right, the some to wanted the degree, set, the understand hear more issue a while of to its is you BetMGM strategy is, just holistic on own perspective. with sort or its

right? necessarily day? having in And the require How them one converge is same one Or converge possibility? your day, to of brand. Does do Some even most all right? a value end, the that that stock of that they it, which have for capturing

William Hornbuckle

and into just are that the what's David, what where with We enjoy and conversation we're stroke. comment to broad the on of relationship Entain, do them. going kind in to with that of not obviously, leads we

hopeful will share. very fall. frankly, the business to ability and come We for are our this to it's to regain what And pivotal

understand understand LeoVegas guys markets. We on the an the in Gary find. eyes at exercise, Netherlands have a have we launched South said, term. launched the very we Obviously, think with strong We've That U.K. was his and diligently Brazil. America and exceptional success. long team They're great We've our we worked team.

real there's already there and in an so that's upshoot And real money to be organization money. made making

want that, could So of the live opportunity to excited XX% to we by we I'm down notion we the the right the I'm to of extent to these emanating now. celebrity it a longer-term frankly have real to can road actually it. dealer, think BetMGM And bets long with dealer. with some question, of play the from position answer that places, from excited about and we think live real not it term. I here with And is tying just get compelling make on fun But all are the

Operator

Our next Morgan Stephen from Stanley. comes question Grambling from

Stephen Grambling

the we commentary. with of the investment peers. cost guess follow-up a I of a your on compares some questions structure Just on lot how here BetMGM get

and promos think and So operating then longer the could look on love about what marketing you composition any color term. perhaps about expenses the as get would like there product we of I versus to think have the flow-through

Unknown Executive

Sure.

with a looking should the product and more because especially the towards extension are having higher a sports impact markets and funnel gross have deliveries designed hold against end itself the the at impact we're is the that certainly, significantly what of more into of at down for then on cost And BetMGM year on of Angstrom that the structure rest this think certainly margins. positive product gaming P&L I trickle in of top something with you're that look, has the So that handle. the

the portion season. at football product rationale of behind the see So coming to going is that the releases a huge we're that of beginning here

Stephen Grambling

other quick maybe Got one it, follow-up.

missed loan, but Is bank being I this, maybe where on financed parent? Just either I guaranteed guess out the that that by is being of?

Jonathan Halkyard

and this That would would kind nature again, under at discussion. at parents any is facility But credit facility. would of BetMGM bed the credit amounts the a, a underway, the of or own it it MGM be and still from but still level, support their be level be is

Operator

Our from question next Barclays. Brandt Montour comes from

Brandt Montour

Las in leisure well your the strip X point, us sort you question is it? you that's So across where mentioned supply of got prepared versus -- what out to coming excited the you're seeing could if first through curious on properties of versus just I'm group price Bill, remarks proximity the walk Vegas, it, mention you enough

William Hornbuckle

Corey, can this. Tropicana. follow about on particularly talk it's up But you look, much when not group, as

play It value think clearly there, was I proposition. on leisure it's a a pure that.

several with York, Excalibur have also We there Luxor New and New York.

some group And it's so not but we was activity Mirage, There extensive. think a pure there. leisure play

of I other if in MGM. or other the you couple again, to one facilities, go room a I leisure seen MGM think you think, about places portfolio that think think into think that lot customers. nights MGM given that I we're but database. particularly of Remember, part we of positioned, we And -- pop-up we've interim, I I think about maybe think have our stuff that. those lead those in retained the ideally mid-market of know we a

into we think leaning so move them them able being And to meaningful. and is over,

will for at undefined Hard Tropicana Rock inventory, be just completely point. X out probably we understand, this as And is years. generally,

it's to the go so the once. of Fountain time. inverse teeth substantive but And other nice of know Blue, the with into I gone a for period we've way it's

Brandt Montour

back XQ many helpful. even That's for then guys mass MGM step on watermark question down a hit And your a took measures slight slightly. And high unit slowed yet by you production into margins. China, the market a for and

that anything Just call there and you for through out are yield to curious, But performance? assuming hotels what full your can were else is I'm there? managing. you see

Zhi Qi Wang

Yes.

focusing I both what on economy like doing. we focusing the on or China scale merit. We, dimensions very investments China, are CapEx and many we on Basically, the should when population talk are MGM with be think the customer-centric about we and the on at OpEx. and there to innovative are size,

our our still we quarters. share revenue property previous July, with basically, In is is the our at mid-teens. to maintained consistently visitation And

Our in percentage. is still margin high EBITDA

where now. right that's we think I are

Brandt Montour

Hubert, And go I any ahead. know, I reason mean, think the color on margins? for the I but

Zhi Qi Wang

towards that, On of disciplined and the and very of the as all, reinvestment margin, think margin the increased, component the revenue mix increment I helps approach the think well. mass I with that also first

Operator

Our Wells Dan from from Politzer next question comes Fargo.

Daniel Politzer

growing other slowly. F&B, maybe Are couple any group that quarters, to and the On more spend seeing revenues the that growth high we've as Can growing room a different entertainment, ancillary been bit? seen that unpack the whereas buckets? of low it surface has under piece this relates business there in percentages, you're last Vegas, these of single, of in kind trends you the double-digit

William Hornbuckle

I'll set to it up it Corey turn and Look, over then you.

I to ability our return driving and marketplace of is of proven in The room that is think rates. rates. yield driving former those the conversation highs around off convention room our Marriott our to

down driving look all-time Other beverage, spend, high, leisure and but at when you over food X% entertainment look covers. with starting prevalent and actual X%, food and total some more you beverage the is the entertainment side restaurants, coin think and is of banquet is and it. I When the catering at then on

Corey Sanders

X%. No,

William Hornbuckle

on come. they fair And people do the up, single comes is And now, digit, we've so it's of it it's entertainment, most think what to if will rates based so come, when I foreseeable overcome not all when I look, Vegas Las that, extract? it, can underlying we've you yes, and has do that seen it. to and I but of always been how the But and some will story assume softness. story. beverage, much they been think what set for the room into The think food story, never future,

Corey Sanders

I add, what restaurants. it's would more halls Dan, convention being we're feeding It's where just mouse. definitely fed. or in they're Whether

track really there. from X is their We're a the are market with has the buildings little sure a The a that there customers performances. So on and the food able their in lot puts and lot a and we focused beverage is And our a making supply. entertainment It to are of day. of bit those XX,XXX side is out change looking that have lot shows in pressure just for seats right misleading the probably that spirit perspective. a acts of on supply

Daniel Politzer

of think $X.X in the an kind go prolific pretty then about cash But of mid shares. where kind willing free the And of think to million in you the in this been excess flow buybacks, add -- tapering mid-teens. Jonathan over terms where scenario out should about helpful. $XXX growing That's would And and or of the here kind time? about on there I be two. kind finance repurchases? you year that over Or know as of you've think laid Is we I to share down it. we in a balance we have the next repurchasing cash the repo. remaining Got debt of billion

Jonathan Halkyard

I'll thoughts. a of couple Well, offer

on looking in value. of $XX First the worth mean all, these I probably $XX per is MGM our screen, a very are attractive stake values,. shares just or at share. China believe our still We

look the so cash yield and appealing mention not at you a digital the businesses, the just of investments. to free kind when of our And value MGM very operating flow at it's

additional out right, flow we've 'XX, that And with called cash about of a share things being excess the it $XXX license we for out free you're like put right for does That end million up But to potential York a expansion, open the the now. grows fee New repurchases. generation. in cash said, possibility when

time, think additional be values, And fund consider I financial purchasers. its leverage finally, bit, aggressive to tapers we'll a would these repurchases. So over still it we do but off

lease remarks, to still debt is coverage close the X. And in opening growing as net noted Bill is Our nicely.

that, below So we right to limits and but consider leverage would we doing our we're well don't have now.

Operator

next from question Jonas Our from comes Truist Securities. Barry

Barry Jonas

on Wanted to just FX. follow up

properties? year Or you top seeing high we've for some plans softness year are Given chance a hopefully at little focused, and non-luxury enough balanced. the see you're the this the just performance that at of up concerned make not last end more to to today you heard was the might so make be a X Do for properties?

William Hornbuckle

strip. yes. that weekend, support We've and tremendously we've game Raiders And if is the once schedule in is my occurring are announced. earlier. already I town the answer that, don't got heard seen the the said that of will that know with already end south you comment the The we've

Last during in was we traffic. people out job -- was year, think the Obviously, amazing no of I an of fascinating, scaring it event, did there hell traffic. terms the actual there was

bringing particularly still end you'll by And is focusing the idea them here are game, I the come on so of think town, the see critical. strip of that to life. driven the the south to And some back people values of

too, or of it want stake I'm terms I plus million-ish to quantum, in $XX here. in at talking what's put minus.

let's stake we are sits and think the keep at aggregate I'm and of at room the in But when for comment the quarter, today, overall are sales it company said that, So far perspective. soft. ticket all as we're from therefore, about signaling having giving it what's we sales the soft, about think up.

Corey Sanders

we've consistent of heard lot I from other high X, weekend to normal compared This would be us fairly it. an there's weekend. for is a for what year And say markets, average good will it's a

in comparison was luxury Just properties. so rates at last FX the to on especially substantial, the year

Barry Jonas

ask it. Got and regionals play. just the follow to segments for kind database rated you're on across up it. Got what the of And seeing wanted and then

softness more continue We underrated, some the focused. at obviously, luxury are but about low end to are your guys hear

Corey Sanders

still a May that challenging. strong. what majority weekend database softening. April of It bit play, X of bit. more was slightly start. pretty extra regionals on had pretty also, end day. the, bit had and The the lot The to come seen weekend a of then call lower high we Yes. strong, still the that end end would in has interesting saw a then are middle that's The and but visiting And June by a the the unrated quite down back April little we driven little day less X was of customers, an

Operator

CBRE. DeCree from question next comes from John Our

John DeCree

got development the shift conversation about guidelines your the the to Maybe licensing to some GCGRA pipeline first process. from We've on recently the UAE.

of probably And so elaborate realizing can lot there's detail you on. a

the high-level or another last that over weeks level your enthusiasm that is changed one for couple a you've Bill, that of months learned of there, So or for information way seen anything or prospective new opportunity. question,

would discussion those specifically of And then gaming. be in guidelines the quite about a there's online follow-up bit

our And you conversation others IR and with so most of have been potential opportunities. around

digital with to that that interesting that gaming come international looking for opportunity you're with that at? up? something be were if business market, So online curious MGM? your And Is in

William Hornbuckle

great defined. UAE, for will that they've is say encouraged they roll announced I Yes. that of out as I'm the which With now the Thanks, is do. news the John, think question. that something lottery, the we'd this rest

into to timing this Now imagine of or Dubai. for the It what can't unknown. is keeps the kind potentially But it by We're what Abu next, We're specificity obviously is with of other some of we addition and know Dhabi it. won't then I it moving quarter around. end Emirates. still early umbrella by by excited means language as relates excited all in around

isn't facility facility calls we partner right and a casinos. several our speak, mentioned combination for have driving an a amazing we property We're pylons think the that under construction I large-scale And as on now. that way. I've by there

the of So region. there's a opportunities lot throughout

I would will its Probably But have to believe. license. the a is going initial own that to be Emirate I for, issue spoken opportunity each license suggest

for we'll that place so And as to closely, on from. Gary Dubai spent know minutes continue to I follow and that, a a emanate particularly more couple of

Operator

question next from Farley comes UBS. Robin from Our

Robin Farley

talked gaming takes some declining to of look then you ] when middle your kind you've But QX softness of economist Or revenues normalization has in about over circle of some low [ to view, picture your end, that what's markets, different at that pre-pandemic in is hat comments kind Or counts do to that you're back and about, could think to tougher would the back the in when Just getting time? I the trends. in change here, regional your high, lot and the of QX the consumers. macro a puts in making there, kind know X growth? the with to wanted some Vegas QX. return of just at our big things you on you it's you factors before think maintain put or of look

Jonathan Halkyard

Sure, Robin. I guess the we're customers. I of take disagree of some a couple question, is premise to with Jonathan. a which that out mean, strength examples. the seeing I It's bit would of

mix were in But that a of much down drop shift record quarter about couple slot, casino due nights casino up was Vegas in customers. for games a Those room bit room from The because a group table little down points in sure. for second just nights Las and XX%. us to were quarter. in We the in were was a of that's

contributes So that to it. mix a lot

we regional or the know our side, X% rated most rated customers, On the quarter. our loyal was or so the best day, X% customers during up

So consistency some we see did and strength.

dislodge that gaming. Speaking seeing for any I growth would could kind of -- really really we're the see factors don't myself, that macro in that

increased to interest seen terms yet have show and rates growth. amount months customers past of rest over XX nice Our rates in have continued the and a the fair higher and hotel

way your the I'll guess, answer I question. that's, So

Operator

from question comes Beynon next Our Macquarie. from Chad

Chad Beynon

maybe out the cetera, non-gaming in the food the laid particularly et and items stability a room on in offsetting have beverage, gaming and guys growth, different side, of number of You Las Vegas rates, the business. some

Vegas has terms are near to growing. margins guess, kind maybe And is anything terms what the grows. changed non-gaming if non-gaming hold last, in in I you margins, labor. kind side particularly the of of think how just or seeing manageable now inflation we of maybe So expense under beyond business, Is core of in in that of that should and the term Las about separately, as piece then

Jonathan Halkyard

mid-XXs. with Las Vegas comfortable Chad. been in the Thanks, operations the couple speaking, where Broadly margins are last quarters, where it, in call we're let's our of they've

quarters, labor to of in some have collective much over that bargaining our past X We due costs or unit increases X experienced the agreements.

Las think labor of managing fantastic about quarter, couple last in job points in markets corporate down FTEs this X% team a done were office. couple A a and the of in the regional points Vegas. our expenses, has in particularly I

a offsetting job increases. we've think I those So done at good

that they've than over be in those quarters, his and past will in increases unit mentioned incurred labor we those lapping as forward, now of Vegas. just new lower those labor the to been some we're few due Bill remarks, costs Las not increases in Going agreements

we margins comfortable can we're this in area. that So that's maintain why

Chad Beynon

months? with core guys defer in in Okay. doing you And you defer customer-facing it with just there any the given Bay. you about at current bill from with make coming stands Bellagio Vegas in then maybe contemplating, to about situation portfolio terms of Or and this where Are next standpoint would the think that you're time. XX otherwise capacity Mandalay room a of talking mid-XXs, sense and the maybe the the renovations XX of projects outside maybe some kind mentioned out complete, market what it running of you that Bellagio to some does were other

William Hornbuckle

remodel as is XX ourselves I doing We're That always think spoke. maintenance think under look now said, with and I particularly challenge touched while. look, away that, that. our in it's MGM we our and we allocation goes at, our back has a But we years capital finally. average it's is been capital something room because not just this Aria

goods. So we own those

-- next next year in later me, year starts earnest. process excuse that So

those big ones to so the And come. are X

of rest and furnishings the with out think I as it the Excalibur. disagree. of there. relates get the hear don't you inventory, We're transferring going to to I creative MGM We're

one if to continue on are. rerate things. than you don't where of the wake continue creative day so cycle, rooms do a proper up you that those are challenges to one But you And you

anticipate so levels. I wouldn't off coming much And those of us

of will $XXX year terms cap. a $XXX it think down true the some. road I maintenance million in come million, down going

Corey Sanders

those right enhance able where push room that into that enough And out are buildings and sure minimize we our the of make to also will I business spaced that some buildings. think we're disruption remodels

Operator

from next comes Stifel. from Wieczynski Our question Steve

Steven Wieczynski

guys you want stay service? moving share properties, Jonathan, that there's to does Trop beyond comment that about prepared assets bit which take mean understand little in on market comment the I to come noted further Mirage, to take guys that given a out making as those investment want know talked to your shutting of I in just Vegas And in Or your I think essentially there. expect better. So real forward, share your But remarks, does down? share you you Vegas quick. you continued

William Hornbuckle

I'll make headline comment. the

us think There's aggressively. share that more a there's go after to retail seen like see to I'd further high-end take. I nightlife

some of mean I just the And has I club think lost some I luster. mean, in ours, scene don't its of general.

in And this do, things building. so particularly think there's to I

think note. to next I Cosmopolitan, things in door do there's Aria of

within As we this no anywhere. just convince to reason amenities the folks -- think compound about staying that compelling the the properties there's ways to impressive idea go enhance of and is with that and

And continue going so we're jump to to on that.

better is foster we personalization making beginning continue the of that I And I and we by and that, buildings. sure on more to we of as also things perfect data yield that get at program keep all to believe can yield, think

Corey Sanders

of we're aimed luxury the Jonathan gaining portion market making really I at mentioned a investments the would previously. goal share, achieves customer. the that And I add that think, are

able that we as an the additional look regain competition and talking there or what wallet about. out we're and we'll Bellagio look additional trip, get we that to at is be market could share but So

Steven Wieczynski

where in to switch at we and segment, essentially business, getting the way tough to point to makes out pretty hope trying point. offensive you which you. make that And away be if the investing the Bill, if in the decision seems over to quick. real instead second I I and a undervalued ask Got a this digital get not point aren't pivot the here. more from And that Okay. I'm But that then of might us out answer this aggressive there like that you question, of you at an get sense. it's some core would with there is you future, digital won results

William Hornbuckle

invested, itself? hard at learning yes, scale. iGaming say We've that. flow? Yes. in businesses, a we're some give But I how or I never sports both think on past things. of major look I understand versus at on BetMGM does take mean relative the How point. this the scheme And those of grow I you would chase course, some something much point, at never. investment XXX-ish, look, At point, call it, iGaming do point, of

a LeoVegas is putting so but believe, we're billion our any hopefully of a yielding by and stretch. this giving about We doing We're a we're lot. we've of company, not created several any And out in, other acquisitions, is key But places. only industry. component going proven understand I of be not growth, X.X some the on would that. off it's -- been that it's we've in within the and of and all that not And up think digital question. more I And different Gary forward, within just been -- the still core what

to be it patient for while. are with We going a

Operator

JMP. And comes question Jordan our next from from Citizens

Unknown Analyst

on, years players to properties touched when place other in but back improve in came company to cross-sell to years a maybe they was the help big drive that? setting of sort you Can was just the can not Vegas. in you that just several point Jonathan, that want the between by future and your It today progress further seen frame opportunities you've recent assets you

Jonathan Halkyard

our external question. they're while talking to both I you're guess, here been ability customers' optimistic share spend for if if appreciate in about our about, that And the and the, Las of capturing I you're never internal Vegas. do all, first And in-market about I've reasons. of more talking

particularly properties, the here connect our invested Internally, in strip. to we've capital center

just of and ways other encouraging and done portfolio. our the marketing that our made to of teams disposition the Culturally, we've many the to there positioning really entire our casino drive Of course, so better them be for it within one, are stay customers the convention no acquisition or that geographically investment work where our of our Strip portfolio in as the Cosmopolitan team possible. our FX, presenting T-Mobile and of Mirage sales better, in South ace, place and things is many much that to And or portfolio. Vegas be on, much the going is in than there's to the externally, activity whether in internally even Las the within center NFL

comes to back of gain coming years. to our over ability about optimism those share all reasons, this and my for the So

position and I to do in doing a that, great are been we we've that. think already

can results. You that see in our

Unknown Analyst

Great. targets. forward MGM around hitting And just those for the and long-term and the you quarter, for confidence about talked just the the follow-up path with Last some of online. targets

and other from in day to integration it's terms the step the investment, that today, of whether in further outlook competitive a from With given what changed back just announcement the there slight the out, just or on of perspective? anything to kind opine April perspective in is competitive an

William Hornbuckle

take I get to think what is it with to extent front in and changed people. understood was begin product of back gain to sports. back share for what the right outlook in the it the would

go, And the of not -- it's here just to so and guys. back. Frankly, if estimates. pull going a It's are we're working, is those bucket not money

each are those going we're so watch And that day to closely and every off. very make and very and sure investments paying diligently

business time key see it's the that sense and company perform the for the X understand to into begin all I we I a and for it, So and or in next X to BetMGM concern share months space. the

Operator

over that, And session. to to back ladies I'd like remarks. Bill any Hornbuckle for with closing gentlemen, and today's the turn concluding question-and-answer floor we'll be

William Hornbuckle

Las kind in think that all proud you and where of case. we're environment. It's doing meeting compelling, Like company most of I And is and think on broken. Vegas I the We're in by we're excited operator, Gary digitally all what this the thank maximizing activity term challenges to we hope records to of we every some be the and Thank of about joining to proud for business, We're here. of have about several you, of continue going to I today. all us end to started. you still that. where think of and longer those think will

with all, so you that I evening. And great a and said, thank have

Operator

today's call we'll Ladies We conclude for presentation. conference and you thank gentlemen, that, joining. and with

may now lines. your You disconnect

MGM Resorts International (MGM) 31 Jul 242024 Q2 Earnings call transcript