MGM - Earnings call transcript Q3 2024 | MGM Resorts International

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Operator

Good afternoon, and welcome to the MGM Resorts International Third 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; 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, this conference is being recorded.

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

Andrew Chapman

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

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

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

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

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

recorded. is Finally, being this presentation

it I will Jonathan now turn Halkyard. over to

Jonathan Halkyard

joining report third Thanks, net and everyone, afternoon, I'm third quarter China. EBITDAR for thanks, adjusted record posted today. Resorts revenue property to Andrew. at and quarter and MGM record MGM us happy revenues Good consolidated that

ADRs are record outstanding to saw to operational outstanding for you our work commitment MGM record every hard testament and Vegas worldwide are Las Regional providing to resorts. excellence. we Additionally, These occupancy at results colleagues Resorts Thank day. our admitted a and to who our in guests service your dedication,

we continue together. us of achieve team on are All to the what senior of proud leadership

As the Vegas a here properties. team, Regional continue our and we to raise in Las bar in

improved And business ever. a EBITDAR that entertainment than Vegas grown EBITDAR new operations doubled has XXXX since a position and time our by is as nearly drivers. to and XX% Regional stronger and MGM attract almost fact, our Las properties sports over result, in its period. We've In has in

our of details basis in quarter while We key up the of was Vegas. during X% with of grew month-to-month the Revenues points property in in Las adjusted X% ADR, including slot strength, first XXX X%. our a and X%, occupancy many to increase results increase metrics handle. EBITDAR demonstrating Turning were up an growth

this In Las million in to ago. X stability last quarter from We're The brings as year's also of for business the more. significant what here Las which, of year the gearing benefited weekends we're slowest to no during large interruption one we're up MGM related fourth FX of not incident cybersecurity year event, while encouraged a the by still seeing. in Vegas properties as historically year, economics been proceeds that Vegas, demand the $XX the has quarter of

Within bolster further organic our story. team activities ongoing focused pricing through our driving will organic combine is strategic operating cost our review model, growth customer and on initiatives. These growth to

property driven Now X%, best of adjusted moving properties. by EBITDAR Regional by while in revenues overall grew handle increased the slot the to by X% days, and our indicators properties. visitation growth strong We to rated

of half in totaling than we Our this funds proceeds. we $XX the regional quarter from proceeds collect insurance quarter insurance The we'll ultimately. million, represent the believe, million business received $XX properties interruption benefited in less

quarter XX% a achieved resulting X%, margin. Macau, third EBITDAR property a China MGM with adjusted rising increasing In and revenues year-over-year in record-breaking XX% net

quarter share market Our XX%. for was the

China MGM $XXX approximately performance dividends Given in to announced dividend, million our outstanding this to total Resorts year, MGM special bringing a XXXX.

encouraged BetMGM's by quarter very In third digital, I'm performance.

iGaming record share. first-time achieved profitability in again, results market a while increase we XX% and stabilizing QX, During depositors

$XXX expenditures results flow about months the operations, a with first year, thoughts million, X million. I'll of cash of our of flow have in conclude, X%, this by on from $X.X cash as approximately algorithm. of always, billion with grown our Through $XXX revenues capital few the generating free free cash

value operations, resort strong gaming license this we from commercial significant incremental outpacing our ahead, long-standing a record the from and interest generation capital, no to escalators in relatively operations, track America build upon through York, from our Digital, rent, augmented our our Looking shares. online U.S. globally of all in value both on and plan rate with with opportunistic fixed International fixed near-term MGM building New maturities here in flat our foundation on growth of repurchasing through North BetMGM organic maintenance by the

you. to over Bill,

William Hornbuckle

the opportunities. I'm that and say great happy in to strong we've Jonathan, Thanks, today a made good These afternoon, strategic have position giving due us transformed choices financial a and MGM unmatched is over to growth MGM past choices decade. the Resorts, everyone. foundation

reach evolving resorts with opportunities XX digital recognized and and addressable a to brands, markets. $XXX our in over our a in global locations, online employees sector. globally including . We more both any other in scale us platforms properties, customers and casino company total worldwide physical enable prime XX,XXX more large exceeding billion, market Our development operate than markets

our As we short in the we value term. continue Las to in bullish drive remain on leading shareholders, position internationally expand to to long-term Vegas our

First, Vegas revenues XX past years conditions. gaming in about of years, with all-time in the those gross over Strip's the has grown plus half even of face consistently records macroeconomic the reaching various

as banquet of in which record saw noted, the in million which groups [ third over being meetings in complete Jonathan the is now saw and ADR As ] the Mandalay quarter, of know, the results market. $XXX and XXXX. reinforcing to a in you Convention have We're we our Bay and industry record catering this strength invested, testament as goal leader Center,

in more meaningful app now than is the Nevada. wallet advantage single, quarter omnichannel launch opportunity third here in single of the with MGM's

our has higher plans Bonvoy [ Delano announced rebrand last our with significant a W gifts week Resort, relationship driving spend exceed ] Tower also to Manley Bay our Our which to recognition. Marriott continues we expectations. to properties. And brand to are

potential has player we're already city Over the to impressive major become stadium saw continues its that game September build in beyond leagues Vegas ] events a home Bowl. track the global the Super America, sports in decade, sold past Las like record. the world, sporting growth [ USC while was out to Allegion in example the major A demonstrates great on many a LSU and the

hosting draw for -- X are NCAA's more to Strip footprint greater and will positions wallet Vegas Vegas These towards the as prime team. organic a our events We're of will Las continue and working and looking share, Final us to visitors are deliver the expansion years the come. ahead capture to Las confident we to an to hopeful are NBA continue growth, to few MLB's many Men's years relocation driving in

environment we across the experience a stable results portfolio, rational by In to backdrop. the regions, a continue promotional and economic stable supported

sources expect with properties capital flow areas regional market we ahead, with of remain almost low relatively of leaders our cash all our Looking properties free in being affluent located reliable operating requirements. to and

robust underscores driven post-pandemic growth Week and In Macau, another the yet to the exceptional general in performance, had recovery positive resilience concluded momentum with just compared economy Golden mass quarter our volumes, record of and region's XX% market the we XXXX volumes which of Macau. by up still

our rooms count position perform across at of we aimed visitation. and Macau's to market our mass share continues in renovation our increasing sustain level, high suite confident long-term capital market in We're premium to These team at remain properties base and by into the include suites, and our of conversion in several [ improvements villas ability organic XX%. a initiatives Cotai ] also mid-teens. Our investing driving and the protecting

in upcoming scheduled MGM the open Additionally, year-end. of creator by excited show, directed by to of launch drive poly and also and Moe Beijing It's are museum by commitments, to around government our Olympics XXXX [ ] MGM Macau our in we on offerings the expand visitation. XXXX we're connection new Johnny And the the produced the excited cultural opening ceremony. new with to further our nongaming

In in digital, enhance continuing customer our business, focused land-based the on same experience. also as to always we're

in single BetMGM the depositors football, to immediate of for a launched first-time account, doubling and and in profound wallet This feature state. the a single results were leading here quarter, Nevada

enhancing our percent We traditional offerings also through weeks bets in XXX from the coming game of parlays. same the X a integrated saw first product point season, and of parlay further the increase basis we both Parley and Angstorm,

are this As encouraging monitoring sustained closely season, and engagement. ensure the metrics to increasingly as we to reactivation growth and deposits, first-time move we retention football

approval. quarter, market. media into to it Latin us insights consumer into XX This Internationally, legal expand Global, as we licensing allows Vegas entered a This our million into to of Grupo venture with pending largest meaningful broader the in markets. January technology in emerging based our is Brazil's MGM's tap strategy to aligns venture aim and leverage launch Brazil. with third to providing in people, America's invaluable group footprint the 'XX globally and We strategic access gain digital

advance our well of submit In to continue construction complete requirements terms are In plan in in and New aiming to the we sometime late progress significant in we middle as development, preparation our main starting year. ground next York, of RFA middle making next year. of the to zoning Osaka,

actively opportunities, our reach we and UAE and future other Thailand. growth and will sources. diversify accomplishments, fuel initiatives these pursuing are our growth Beyond geographic earnings including global These the

deployment positioned Our of balance low are debt spanning we strong and growth cash solid to drive by initiatives to sheet, significant while by and characterized for long sustain a ready returning and momentum success is term, with backed a short, liquidity well strategic pipeline future all medium shareholders.

I'm excellence MGM a X these and possible and be day, service to loyalty hours always always of mindful Resorts guests. our consistently our week. people their days none commitment course, to made of and of dedication Of their grateful the without ambitions and efforts operational a improving can delivering XX for

questions. operator, that, With we'll now take

Operator

Instructions] first question [Operator with Greff Joe from comes JPMorgan. Today's

Joseph Greff

soft looking segment? million a Vegas, reported the that kind table kind rate going we we $XXX the game low are -- quarterly the Vegas. proceeds to forward in continues margins with we more versus that bit less of in go are Can the with Or Obviously, guys ex seeing And normalization broad like of a of that me at I'd we're were Las of sort in tell thinking kind here the bit love this what XXs just EBITDA volume on as on? of in you kind about benefit. little the numbers start Las run little side. here that, the are think what's trend insurance towards mid-XXs, and or XQ you

Jonathan Halkyard

that It's one. Thanks, I'll and Jonathan, address Joe.

EBITDAR of mid-XXs continue of we believe margin an expectation, basis. can in all, operations margins produce Vegas the on our in our Las terms to First that

to [indiscernible] relates it your was customers down not, that question I significantly, largest the our these mean of high-end question, this and the year-over-year it's drop way game your our part clear, is from business to almost first the trips the choice. due And table is entirely our of of this and or timing is business. was pretty As first course, this

year. last just quarter fall did this the have of it expected and fortunes have Then didn't fluctuation have of that some course, in we, has our as we some would so certainly that and varying hold third And -- we as of to year-to-year. it percentage

pretty quarter. note normal third I'd was Although the it during

So do robust would business. There's these forward, of mostly table think timing that issues. we nothing indicate softness at a that, we're that's look that seeing of any still kind business as in games going I our the part

William Hornbuckle

Joe, a color. of of points And couple maybe

on all of and database Our on programs gross the -- I equation, our programming, profit out the the baccarat for was take up and of of the quarter XX%. our balance think balance of

deal I either and great players -- where was between not X substantive mix, of not It it the the X hold out showing think And shows take swing a up. or so for miss. you mix top accounts a between there

you we continuing X line, slot it top ADR, another earlier, top forward. assure about up board XX quarter. the move the had not. talked are strong, fundamentally, and think across I But maybe can ones we're I fundamentals it about to still then the handle things our by of think that did was of [indiscernible] and you revenues of about the think excited for properties up, And to some because

Joseph Greff

of of months And us kind perspective XXXX, games at If some percentage give we baccarat's table trailing sort the they of on to compare margins and comes do overall what the Strip baccarat that, drop rest segment just or if to either to Las were we or XX drop. to the composition total the look within of at on gaming to segment were portfolio? from look Vegas how

William Hornbuckle

exact before. we but the coin, do time that the put I'll from million for this perspective. in of we it's this, business, although like between every side looking maybe hate off down, doing an [indiscernible] and normal was because is it but $XX for year And this XX% the get us. hold we Corey other this number, And

So year. you quantum particularly the to that that versus last comparative can understand of as -- number anything

Corey Sanders

drop our is about If year-to-date, look XX% baccarat. you it's at of

Operator

next The comes Bank question from Shaun of America. with Kelley

Shaun Kelley

wanted ask little Bill or to Jonathan, BetMGM a about bit.

in bit just in operators us Angstorm term, that by sort it some is seen you're a here. icasino medium high-level of like -- evaluating with far. by some walk of seeing the a that we strategy some you're But how the Bill, sort encouraged through the the more on market have question so you're sounds just the can who of focus the context side specifically So maybe KPIs little you success bit the to change of have started fight other to on there. the pivot more of kind of

of resources the about versus there the OSB in X how iGaming seeing term? progressing? So lines, And allocating think how are business do you medium kind you

William Hornbuckle

that into football the and XXXX this, going Yes, and I'll we with year. off. to new quarter coming an product be the was fourth Look, still said believe for lineup investment third particularly kick it we've

new that ultimately is needed and to our this us. faster. think what and has call I I for done Entain the friends do. deliver It product, out it It

parlays hundred basis couple Our a earlier. up points, are I of as indicated

up is to retention line top XX% the quarter. is for we GGR line is up, close Our which very -- positive. The top of the think

to ourselves we continuing to line. top want grow so to the invest And find

we Our ultimately committed different third terrestrial into get quantum as and And iGaming quarter, prepared this we've business fourth [indiscernible] we as commercially well stop both remembering if we our launch, to of take to necessarily. to is substantive. want and recognizing could sponsorships for strategy the couldn't tomorrow, a

pay see terms these in of early it. for studying run they'll in meaningful. think We sure. So on we we they're green think shoots. like the what dividend We long We are

And don't but how up been, -- a period. remember extended the can't an a thing is to it's in it's other XX plus digits. even And I me, know, that -- surprising Jersey iGaming, like that's state said, double state New long I been iGaming

turn growth continue top think, the rest But to done, the us. we're moment we we in. there what for by for of I So to to XX%, substantive think the seeing as well. we're that have be mode And long I that going this our others want grow there as see business is in to, philosophically as year, it's line we're

Shaun Kelley

And helpful. my follow-up, kind maybe That's just just same with the continuing thought. of then

where quarter saw the similar to think was loss think generally, in is year profit investment to the targets Obviously, I the Just second the half pretty first. supposed given the the be imply good. you in I what

of we think, And in should around bigger Brazil? year early in manage or sort So or of next of a investment expect way then timing the dip QX, expenses hit? just some I any the the QX given,

William Hornbuckle

Yes.

as year what earlier going it the So think in I true. is BetMGM, to said we to hold relates

of good way going a market. business. that's think -- launch a we're to in to at terms look big I the And

This advertising equity. in sponsorship Now put not for equity deal. -- remembering standard truly Globo our partner, in put an They've deal. has this dollars a is is

us, meaningful in of not They that, will it of expense looked provide and We while media -- the differently, business. platform. will to part be handled but the do so And what the of at provide technology. they be the differently all terms of

And so we're in country. -- launch to yes, a going but new

a think gray be a And inside product offering its and where meaningful. controls It operated we is Brazil. to of the lot already And number to XX% course where going But of in be so There's time we have love eyeballs many, who to going in of tell Globo year. There's the about be that substantive We the the our many literally up. will probably the market and end millions scale. partner tens ultimately as folks competition. over of -- there. we

Operator

Santarelli comes Bank. next Deutsche The from with question Carlo

Carlo Santarelli

just maybe but Bill, a put we the of just how mentioned kind perspective, toughest we GGR I could presumably swing. as $XX you the about whole wanted think and all perspective, last tremendous about alone sense the quarter, million the the in it's whether thinking as ask you headwind long guys at kind I could some the to you fourth quarter? guess, we look something around Could I baccarat in one of about try to of comparison, had fourth high-end year, customers us with from be recall Clearly, we XQ percentage very luck a should -- give parameters EBITDA for do about time. well, that, that guys

Jonathan Halkyard

or Sure, benefited quarter -- did is the of we Carlo, the we simple $XX the million that the math -- I quarter. XXXX. million memory If or entire quarter million probably Yes, it's The look $XXX on of us that during I -- serves, Jonathan. fondly EBITDAR. quarter by for so during about $XXX think

course, properties, fight to attract including good we're, those our the So to fighting customers of back customers.

mention, bit, healthy other is I healthy seeing thing Vegas December, November group that our talked in look forward, the the system in as forward for pretty then And a as pricing are here look well. Las about as hotel we we've very but hotels though, -- and environment in would we we some

but was number So there to last are some it a $XX offsets that, million year. about

William Hornbuckle

say an Formula catch-up-able. event. the be and And we're X, despite looking if not start helpful, on When comes will I equal, some into not gaming, the it of that's entry that to theoretical better would it at slow rooms

high us in happen excited you in. we coming generate people know, by at at that but of to as anything end, event can terms continues the Now are what least for

Carlo Santarelli

level had in XX% the XX% of the then in like gaming of shooting maximizing of shooting to [indiscernible] last -- nice kind profit third X a reinvestment segment that's going is that as you're around to promotions quarter a that's that year-over-year. it you've the rate, comparison in the of of somewhere within your And go-forward looks gaming to months were you a obviously, business? moving up revenue the for just the nights XX% There's percentage the shift it window first Is year, that hotel for little kind range like and parts. kind -- decent mix in for of the you're that bit. and the period. But pertains the revenues year Great. in given XQ, Obviously, been hold clearly of this room

Jonathan Halkyard

reflects expenses, had say level that's I casino pretty in nights rate. Yes. that good during it's the would safe quarter. a contra going . forward. so of room a is And third the think We level that decent it a but I --

Operator

question David with from comes next Jefferies. The Katz

David Katz

wanted just there. some I sort to back of to progress go the [indiscernible]

Bill think you I versus [indiscernible] if sort to I for repurchasing like think of own the you the could. one in just true stock and it in that's that a sense you how follow-up you've And said wanted powder to get past, if still day, question. context No that? for keeping about all of of dry

William Hornbuckle

your heard -- but David was think Look, I to Yes. question, relationship Entain with some our for it I extremely continues reason, loud. strengthen.

the it in I their be business on call, it's like what productive, good and been will We has think both I I've said and think done. and going change this for the product management direction long haul the we've think last and stating call. the ours. We

of now, we our it. both for all that's them. so are say about like that's improvement we for There's always really sides I'm And room and where with position, this. to going But on

Operator

Grambling from Morgan Stanley. comes Stephen question next The with

Stephen Grambling

the X% of puts about to level quarter? And about we as expenses, year-over-year are when growth in focusing we guess X% next that this need hold think unique Just year, the I think there you expenses Regions, takes consider margins? then operating in as anything there in we out operating proceeds, to what either Vegas. of Was in any and numbers it's on insurance these I adjust around think

Jonathan Halkyard

yes, So Stephen.

the the expenses, both Vegas -- quality casino that expense of credit And items in that In indicates nothing there and just of the looking do, Las over On way There's were in out. third exercise year the the is some It's our at we our receivables. in casino any Las the $XX worked of the million payments a regions. quarter. Vegas, unusual about formulaic there's timing that kind collections or no customers. we had degradation last

on. the of And operational comp then to of had was there a million $XX issue had kind in July, -- in Atlantic regions, was accrual expenses we about a in an and worker's one Those unusual City and related year-on-year. we so

So in the $XX million regions. about

add there's that count down And call I regions, that of would nothing Vegas now. -- -- to X% the the FTE I Las year-on-year. and would our in one also terms flat was next year, really out just for thing. more In OpEx add would that in even in right I

Stephen Grambling

That's helpful.

on just or looked revenue said XX% As maybe clarify what like GGR. a in split OSP? that iGaming was BetMGM, clarify, to think you Can follow-up I you that between growth and maybe

William Hornbuckle

one on second. Yes, hold

you was get on really, me number. par Let ] almost and little XX%, point. It's [ that very iGaming was both same over a interestingly. the Sports at small. They're .

Operator

The next question Dan Wells Politzer comes Fargo. with from

Daniel Politzer

into see I the expect Bill, digital billion that, guess Globo. this about digital direct to talked to could where there? around think on when some And return I I along got dealer, pushed, past, a you sit question, live you I today we $X think, have endeavor. with in business. here relative number? LeoVegas, Grupo that we do a the putting more

William Hornbuckle

don't other in. to BetMGM. it, stuff and relates been anticipate some is to capital We it more as -- which any of as it acquisitions we're we've raw relates the call We we Interactive, LeoVegas capital, in-house, we've in don't any all arm we're told MGM anticipate you Yes, doing. more the

Netherlands launch to markets U.K., And have soon look, be we under Brazil. and three right now,

come lever out front manifest today to all of the to kind of 'XX. just of door, it and earlier, I something us push $XXX could of the will half across next cash think think think. board leading to and itself, as going 'XX, out then some that of that beyond I million of we're the not some that into breaks substantial in year, unless million, $XXX is something I out there's the think turn -- for of and by scale, be think late else of we suggested as 'XX we I And on about I flow the part

expectation. So think that's a I reasonable

Daniel Politzer

And then turning to it. just Macau. Got

lost in a of bit You've little quarter. the share

think was impact the second think I a [ of maybe the there Is think the how kind should is that about Londoner, in row. stage I reopening. of along there's lines, maybe that's any market. introduced the those measurable And or there's see to been there? obviously, we stimulus for to of look which we could When -- in the that if impact quarter be ] the some to

William Hornbuckle

Kenny to or handle one, please? Hubert, that want you

Xiaofeng Feng

Okay. This is Kenny.

I [indiscernible] to think Londoner as Vegas -- Geographically, newer, Cotai and -- Cotai benefit. products guys And of like proved opened us all MGM opened just Week, outstanding benefited. Xx we always market the a commented region. in this as is -- There to smaller Strip. -- the X, know, at is One we more like new Cotai of like and Cotai in performance trying further September. like destination will you MGM become more compared Golden like all products, beginning, -- believe Bill a like more MGM the our Las

Zhi Qi Wang

I Hubert. think -- this that is

we're longer-term stabilize market to that mid-teen share I a at think level. looking around

is communicated this have we the past. So in the to Street what

this we we that confident can number. think are I deliver that

products create incremental projects that I half where we'll with shape, some upside second year. in online in good to second in of year, particularly these coming I completed we half all next that surprise next have think the next think revenue, the be the year, maybe

Daniel Politzer

able see comment then for and that in be might the that's on all And market? to . when stimulus we me. the any And just

Xiaofeng Feng

particularly like, we are overall believe the like I GGR, very can how like mean China we Like the they Macau is are. and as from the like all of -- a regional from we see special know, are visitation stimulus mass, focusing very you premium segment resilient still they like economy, MGM, still the matters, economy on for also unfolding. the

So are we measures measures, run. like see benefit we like definitely, like more all want in stimulus the to will long if there

Operator

Montour Barclays. from question The next with comes Brandt

Brandt Montour

Great.

Vegas. Las on is question First

business I'm quarter but maybe the question, month, at impact the August, just that also any database curious, of that by stable leaving and [indiscernible] quarter? out called Just changes but trend the go and saw Did then on again, the October? and does you about sort had same third different you taking when that months, throughout of X more focusing of And if weather an into just that month business, side. September, you trends then sort look out the on how those July, any thinking you the throughout assuming see

William Hornbuckle

I'll do with start had X -- to they seen due any this days rollover that know battery was a with what with in to heat for a fill a or community, row I-XX of July compounded Look, and for and to you've truck XXX-degree can X it. relatively close pretty days numbers, the that didn't was query the us. seem -- detail know in this in bad know Jonathan I and I was miss. entire including We

of came of note, -- then make substantively leaning better. slots happen. our substantive the well. as We was got produced that quarter some we'd better. August and database July convention into for September So in business was AC, impacted in. And well the hope to some ADR then things casino core all had that Ultimately,

if got... So I you don't know

Corey Sanders

Yes.

last thing X other June. I is, it in The year, days. at add less July -- July UFC year before June would actually in in was so year was the June. have We're was of this -- did weekend it fight end The the

has in big July of we're think fairly the So business international we're missed. been. with that into end pretty see. feels at normal, also even we benefit seeing a there. it what soccer what October, didn't very we game as the get Then what July to we we August, And there's got similar And X pleased I September and

Jonathan Halkyard

Yes.

actually in For and XX%. and pretty seeing properties regional nice here October. Vegas in handle growth are Las slot having October, Revenues strong steady will our are be still occupancy a the our

Brandt Montour

to helpful. really for for sort or And at should asking looking grouping seeing just do is guidance or there's giving follow-up business on movements so things anything, we looking the have any feelings further, all far you full then in, visibility Again, out in or calendar that That's just little what 'XX but where that year? that not you're pace a the for quarters the then And keep convention, purposes? your of obviously, modeling for a -- just changes mind Las Vegas. on

Jonathan Halkyard

Yes.

the Las Super impact I in of we tune XXXX, think cash $XX modestly, calendar had in as And we -- of overall we with us do is -- . The call we month I broadly be Grand other of to Bowl couple of February. a 'XX year-over-year, probably items, you're generally I'm growth. out in to thing the MGM Hotel's see that actually that last look sure standard renovation as already to We million look key will aware rooms. the will $XX this. that started the a would million rates February, of Vegas only

that. I to our So X,XXX that that rooms, those X standard property. course, impact the And migrate a But city. this our it's time will call is although do It's other demand to only would here fantastic of we'll, to the probably out. items our big properties XXXX results, do an best have in in are

Operator

with DeCree The comes CBRE. John next question from

John DeCree

the -- management -- one, growth of off doing. Maybe capital build I the to of some you're comments of about kind CapEx guess,

anything -- was partners of strategy quite Is your For but consideration there is in opportunity all? more been is that has your kind some large an of in a MGM monetize of of to growing, how Vegas a kind financing full renovation, [indiscernible] past, in this of do improvements? well some substance a the stuff or capital utilize larger at the

William Hornbuckle

partners? think I on that. -- what didn't you catch muscled John, the We

John DeCree

Bellagio, expansion There's Your some financing partners. them MGM the big or [ in strategy? monetizing of CapEx your at rooms consideration renovation from at a ] plans Grand, of is the RE growth financial and

Jonathan Halkyard

it's We Yes, a question. are as that for very of ] [ clarification. option. good we Blackstone glad a financing partners great VICI do and at asked look I'm the ours.

that but ready for not us I think sense regard we as help them, of think stand capital. though I if speak that cost to of to in felt made in terms would they

renovation regional the of be X we a expansion Vegas to of we look our that property. not that would go at. the way Las the But we extent would businesses absolutely think I to of or in would markets contemplated something finance an probably

John DeCree

maybe some anything how you get get is you've love the one partnership, about has or kind and going. some well partnership. the And how that? seeing of that -- going how kind metrics KPIs you've us That's as prior Marriott of And thoughts and seeing. that on that helpful, In you're into Jonathan. color expansion well of utilization your just of if of partnership given 'XX, changed kind seen kind quarters, you of what And continued to you look in along of and are as so further updated the that's

William Hornbuckle

off. kick I'll it

week, We're above an come is continues So as day, last room to all-time our a of probably we expectation which in year. record. it's X,XXX pacing group interesting did for the and groups. XX% nights own business The

a of groups I going the not additional folks we utilization, but XXX I that to that, be . And in. seen think cash, opportunity to. already, and we we think it's knew then I and that redemption, because Midwest good like on, the and really not XX% it's we for have bring groups, us XXX -- we're because the might XX% had but in to gotten particularly mentioned they're -- spend business that this that room not stuff in mid-tier, of it's focused huge bring to call, last these otherwise

pleased I we where think, are. we're, So very with

Corey Sanders

at we're and the what Marriott and it I that on think property little weren't W to sell [indiscernible] the able the we brand recognition channel. upside, very in particular the was had is doing

place upside with change think the name, property. we year. on beginning there's the We and occupancy be the the the that that by now in at some of ADRs will of and believe So that

Operator

next The Barry Jonas with question comes from Truist.

Barry Jonas

just sort looking year-over-year I $XX that call? million-ish anything still you has to all Or QX wanted sure EBITDA changed on of at FX, are since make at earnings headwind?

William Hornbuckle

No.

is was when out the The year, last hotels. it first I announced can't replicate number. think relatively that we're still same and looking quickly, particularly our it sold thing we at

that on time type And of frame, were rooms night. for so at the kind we a $X,XXX yield leverage Bellagio selling

And big that X will that carry burden. it's the so really

it the year, seen of you The in or Club this front being was expensed. of some have that the year, other out Fountain said, incredible. to thing last construction be maybe needs That it's experienced, is capitalized, it

X holds. lucky we all combination things think that the you and happen, things really unless together so of we number casino those in And put get the can

Barry Jonas

that's Got it. those Got or some it. looking And opportunities see to UAE if wanted then just international development of you're for a follow-up. I Thailand? any at, on there's other whether update

William Hornbuckle

of continue Holdings. made MGM date like cost going consort doing cheaply the to trip to through will year, place is made next tax. there. that its way by we do third markets. with ratios that legislation, announced. I like through It's trip. ultimately, something In early to what We hear. it. said Thailand, Obviously, in as terms my hope to monitor it's relatively and [indiscernible] we're there We a business we extremely build a investment low. hear We We'll great the The to we've parliament. working their in China other of compared I've be just hopefully,

speak. foundational ] of We other So love we of we opportunity That monitor line. There's bring. we probably in starting out we're opportunities think in obviously forward. Island. a Porto the from finish But to the way that a operating come earnest They're it ground. margin UAE, will away love still is long has our perspective, getting construction come started could couple to and concrete continue as now position pouring I closely. the it from [ an to

'XX And a late so project. that's

-- And do on keenly would what. our it, Dubai particularly love so focused by ultimately, to obviously, I who we'll love And once it. we're see, But we come if would gaming. had Emirate, we decrees the project. it out wants love

Operator

comes Wieczynski question Steve next Stifel. The with from

Steven Wieczynski

trying formal and fully you both us So guidance. -- from you Vegas maybe are think EBITDA able think and think in thinking us be to you can grow Bill, guys look, year, if whatnot out. headwinds high don't guys about called help give the some level help already a you've I that think of understand your But markets? you'll how if understand to about major Essentially, next we you your regional given assets

William Hornbuckle

suggesting get use that those to few be we're massive. and will improve. But we've margins the the an can we're we a to go the I to the on X thinking word started on XXXX, in back ways Look, particularly of It a on we obvious started get that in -- get of we to we've there's we're do think -- get the places are going of think initiative is track revenue markets revenue, getting but $XXX bottom. to And our one I more out that top. million for program, trying hate off

anything And think be margin so to that will else. than we more accretive

at points. We a of think the markets continue grow percentage couple to

run You got other level mentioned. heard at Super particularly room all Jonathan. Bowl. We've things we that and grow But been here. bar long has the of in headwinds. of we have we We have the some at, the we're that got do that We've and go the the set some this to some think

Steven Wieczynski

to what question, terms Is environment And maybe margin probably pressuring if then now at then little And for. If we lower bit, would happening of color there real in the we looking you on in look anything go over bit kind also margin right there there. the little the little back came quarter? second the Macau a than we that's you. more in Got call out a third were of Macau quarter, in a Okay. promotional current just the third quick.

William Hornbuckle

Yes.

surrounded the launching reason, pretty as an well handle it. expense. kick museum, anybody of by for as major about Look, show everybody and end I Kenny me a and/or Hubert this, and museum amazing then a a once It's earlier it's it's in. we're something Let sees mentioned and with could the coming front that's show excited all the expenses

And and some environment in actually that of promise to that the to on made so on the excited was led lessened with the promotional come they hopefully the context year. some while do earlier the been by programming do of government, going in with I've we those we're delivering expense believe is expense. the and

'XX? So it about about think terms for you that Hubert, of talk how and you Kenny and want to in cost

Xiaofeng Feng

Yes.

affect -- are Like dynamic But and payroll They are to and to event Okay. in lag Thanks, is high incentives. quarter, are business. promotions we gaming our we some we Bill. of operating revenue commitment. Kenny. expect But we managing margins. very spend mid- had seasonality, costs entertainment third be fulfill disciplined know, aim be we -- our growth, Industry now margin help hold, still very, XXs. This margin all you But onetime they to a them very factor, continue to cost steady. the to concession to -- related scheduling, a as on

we -- EBITDA think on I our incremental any further? dollars. This Hebert, but still focus [indiscernible] position.

Zhi Qi Wang

Yes.

position product and a the villa suites the on also mentioned Macau competitively high-end I put that gaming conversion that of MGM -- of the some conversion that MGM Cotai, currently, us the in I think at the -- of such Macau As working I our of expansion previously, as at better renovation of at projects we're will think area in MGM this market. with

next fruition to expect we to coming the continue second and in completion projects year, margin the of these improve. When half to

Xiaofeng Feng

Macau to mini very is goal few outlets. the relative and want projects like just and like MGM of quarter our all make XX-year this F&B center Macau add [indiscernible] sure to the or floor also programs little refreshment of products trend a of couple third meaningful development really our reflect the to event gaming old the is a like side, on a for very, particularly year, customers. these The I like bit mid property since a Yes, like we MGM started

done next by projects, we So we to are expecting be are these year. the of -- middle all

So have continue once all are believe lead going market. we all projects to we these to Macau finished, our

of we our end villa project, For year. conversion -- by Cotai finish the are side, villa, not next to projects suite our expected

to going standard XXX XX convert are We suites. about about rooms into

as competitive will like advantage Cotai us the more side give it on well. So

Operator

Today's last Chad with question from Macquarie. Beynon comes

Chad Beynon

ask about demand. Vegas to Wanted

core guests group point? benefit. that Marriott what in deterioration in at You guys is the doing trying noted is any mix But terms guess I what you're terms of this in what the of at Are visitation. to seeing you get of seeing I'm casino

of inventory, importantly, goes when then be travelers? down we with 'XX piece that for growth, business should that, kind casino more Marriott and hoping And guest for the the will and more you're expect replaced group of they'll

Corey Sanders

Chad, this is Corey.

we're years. past seeing throughout with the what what few we've pretty seeing guests solid. pretty think is It's I the casino been consistent

hitting much decent right it are cross-regional envision changing that using I is, database way. We that mix our And now. next we that like I in way We -- a great where a year. the think, on don't functionality in wouldn't

strategy moving year we a As our look really also. that business, and package some at transient out hopefully next be Marriott, and for it's will play

Chad Beynon

the opportunities seems could look anything just on cities bricks-and-mortar things, long-term then has in changed side, the portfolio. kind number spoke Great. like a other iGaming. where potentially of terms as sense the It make assets at M&A retail that of And in fit you or of side big hub and the markets overall of kind there's kind of could of

Jonathan Halkyard

It's Chad. Jonathan. Thanks,

acquire. really the the of additional the Mirage position Our the criteria we Las are We would like assets and terms [indiscernible]. fairly our restrictive acquisition the of in that disposition of Vegas with in

that not would be level and have our market scale we're in. it a is of positioning. be brand make a to It would significant a have to quality to consolidated difference property currently the have As to relates for coherent really it regional with a markets, enterprise

but so operators those -- a properties pretty of leaves to it's remain we regional we are list, set. good possibilities. a we and just that pretty open So narrow small think It's

Operator

question-and-answer would like the session. for concludes conference Hornbuckle remarks. This our to closing turn I Bill to over back

William Hornbuckle

you, Thank operator.

They've again, that throughout evening. the anticipate of Just before and solid indicated, everyone's a to we've are I leave. regional trends, years, And been and this Las we hopefully Vegas thoughts we appreciate solid. couple time continue. as

been to couple to the proud do obviously year, market of expect able dividends. the million continue. see to out and I well. think hope the and And continues share. a are have we're perform -- we've And this demonstrate re-ratcheting to you'll presentation, that that. Macau whole we of meant it's graphs that pulled $XXX we contribute continuing in of -- We're what to

both it's we positive that earnings said we 'XX Our digital of significant on done. to think TAM internationally. business, late think those when a and all and beyond. itself we 'XX in manifests path there's And between feel the into And opportunity both is U.S. and

potential York the of our development in is unmatched New properties pipeline Thailand. and UAE think and I Japan, with

are 'XX. And going its those be fundamentals, the match over company. in met time the opportunities think again, about to incredible I the question is for Las Vegas

about year, size. the cetera, we 'XX fundamental an feel slot of et records While to despite strong was we signs it. incredible the business remains it's good really, ADR, really continue our in handle, whether And Macau, break

and we we're So well hope mid optimistic term, we're long and are well. and our diversified, about Overall, very you near, exceptionally -- as both near long

thank evening. great for your a you we and So time, have

Operator

The you conference has participation. now concluded. Thank for your

You may now disconnect your lines.

MGM Resorts International (MGM) 30 Oct 242024 Q3 Earnings call transcript