MGM Resorts International Q4 2024 Earnings Report

MGM Resorts International EPS Results

• Actual EPS: $0.45
• Consensus EPS: $0.37
• Beat/Miss: Beat by +$0.08
• One Year Ago EPS: N/A

MGM Resorts International Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $4.27 billion
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

MGM Resorts International Announcement Details

• Quarter: Q4 2024
• Date: 2/12/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, February 12, 2025
• Conference Call Time: 5:00PM ET

MGM Resorts International (NYSE:MGM), through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and internationally. The company operates through three segments: Las Vegas Strip Resorts, Regional Operations, and MGM China. Its casino resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. The company's casino operations include slots and table games, as well as online sports betting and iGaming through BetMGM. Its customers include premium gaming customers; leisure and wholesale travel customers; business travelers; and group customers, including conventions, trade associations, and small meetings. The company was formerly known as MGM MIRAGE and changed its name to MGM Resorts International in June 2010. MGM Resorts International was incorporated in 1986 and is based in Las Vegas, Nevada.

MGM Resorts International Q4 2024 Earnings Call Transcript

Presentation

[Operator]

Good afternoon, and welcome to the MGM Resorts International Fourth Quarter and Full Year twenty twenty four 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 Howard Wang, Vice President of Investor Relations. All participants are in listen only mode. After the company's remarks, there will be a question and answer session. Please note, this event is being recorded.

[Operator]

Now, I would like to turn the call over to Howard Wang. Please go ahead.

[Howard Wang, Vice President - Investor Relations at MGM Resorts International]

Thanks, Gary. Welcome to the MGM Resorts International fourth quarter and full year twenty twenty four earnings call. This call is being broadcast live on the Internet at investors.mgmresorts.com and we have also furnished our press release on Form eight ks to the SEC. On this call, we will be making forward looking statements under the Safe Harbor provisions of the federal securities laws. Actual results may differ materially from those contemplated in these statements.

[Howard Wang, Vice President - Investor Relations at MGM Resorts International]

Additional information concerning factors that could cause actual results to differ from these forward looking statements is contained in today's press release and in our periodic filings with the SEC. Except as required by law, we undertake no obligation to update these statements as a result of new information or otherwise. During the call, we will also discuss non GAAP financial measures while talking about our performance. You can find the reconciliation to GAAP financial measures in our press release and investor presentation, Finally, this presentation is being recorded. I will now turn it over to Bill Hornbuck.

[William Hornbuckle, CEO and President at MGM Resorts International]

Thank you, Howard, and welcome to the team. We're very excited to have you join us. Let me start by thanking my colleagues at Emtrem Resorts Emtrem Resorts for delivering yet another exceptional year of record results, including our best ever for consolidated net revenues as well as an all time high record annual domestic slot win, hotel revenue and F and B revenue. Our company is in a solid and enviable position today because of the culture of our employees that built around show and the culture of YES. Our commitment and dedication to guest centricity is reflected in our Net Promoter Scores, which set an all time record for Gold Plus customers in the fourth quarter and for the year.

[William Hornbuckle, CEO and President at MGM Resorts International]

I can't say enough great things about our people here at MGM who drive these great results day in and day out other than simply thank you. MGM is an industry leader thanks to the strategic decisions we've executed on over the last few years. Our strategic plan has given us a strong financial foundation, a proficient operations and unparalleled growth opportunities in both digital and brick and mortar. And we're off to a great start in 2025. Obviously, the Super Bowl was just played Sunday and from a casino perspective was a strong event for us here in Las Vegas and at BetMGM.

[William Hornbuckle, CEO and President at MGM Resorts International]

As we look into the rest of this quarter and the remainder of the year, we are seeking positive indicators, which revenues up we are seeing excuse me, positive indicators with revenues up in our domestic operations in January as well as ADRs on pace to continue to grow for most of the year. All of this great momentum is backed by a solid balance sheet characterized by low net debt and significant liquidity. Our globally recognized brands, prime locations, development opportunities and growing digital platform enable us to reach more customers in more markets than any other company in our sector with over 46,000,000 MGM Rewards members and a total addressable market exceeding $150,000,000,000 including both our physical resorts and online markets. I'm truly excited by the opportunities in front of us in 2025 and beyond and here's why. Our leading position in Las Vegas will be a source of stability and growth in the near term.

[William Hornbuckle, CEO and President at MGM Resorts International]

We are investing in our business and the customer experience. In 2024, we continued a broad improvement throughout Bellagio with the renovation of all of our suites, new food and beverage offerings as well as a refresh of premium gaming spaces. Additionally, the cosmopolitan of Las Vegas was transitioned to MGM Rewards and these regular capital investments into our resort operations drive continued guest visitation and increased spend. Las Vegas December slot handle and slot win were at an all time record level for any month in our history and contributed to the all time quarterly record for slot handle and slot win in the fourth quarter. We are bringing to fruition our goal of being the industry leader in groups and meetings with over 2,200,000 room nights on the books for 2025.

[William Hornbuckle, CEO and President at MGM Resorts International]

Last year, we completed $100,000,000 investment in Mandalay Bay Convention Center and we welcome both new and existing convention customers to the space. In December, we closed on the strongest convention booked month of the record of a record for our company. In fact, the bookings in December were 43% higher than our prior record month, a promising trend for our future. We concluded our first year with Marriott in 2024, which outperformed our original expectations with over 660,000 room nights stayed in the year and higher track spend in the leisure package rooms we look to displace. Importantly, we see further runway to grow in 2025 since all of our properties will be live for a full year of bookings.

[William Hornbuckle, CEO and President at MGM Resorts International]

During the fourth quarter, we also rebranded the Delano Tower at Mandalay Bay to the W Las Vegas, which has significantly brand which has significant brand recognition and will now allow the resort to benefit from the Marriott distribution system and Marriott Bonvoy program. MGM's omni channel advantage is now a much more meaningful opportunity with the extension improvement of the functionality and speed of the app and the launch of single app, single wallet in Nevada at BetMGM. During football season, BetMGM's significant presence throughout Las Vegas drove a 60% increase in Nevada acquired first time depositors versus the prior season. We also saw a doubling in continued play of actives in their home state post their sign up in Nevada, a signal that single lap single wall and is driving customer stickiness. These omni channel players are three times more valuable than the digital only players.

[William Hornbuckle, CEO and President at MGM Resorts International]

Our regional properties are truly best in class and we expect them to remain a very steady source of free cash flow going forward. In Macau, we achieved the best ever full year segment adjusted EBITDAR in the history of MGM China. We continue to be a high performing outlier in the market with exceptional execution by the team. Macau '2 thousand and '40 '9, our first residency show at MGM Cotai and the Pali Art Museum at MGM Macau, which sold over 10,000 people in one day during Chinese New Year's are both important steps to drive non gaming revenues and visitation to Macau. We grew market share in December to over 16% and we concluded the year at similar levels.

[William Hornbuckle, CEO and President at MGM Resorts International]

We remain confident and believe we have proven that we have sustainable market share in the mid teens driven by our strong product innovation teams and the focus on the premium mass market. At BetMGM, our business is stronger in virtually every aspect when compared to a year ago and it drove over $2,000,000,000 in top line growth in net revenue from operations accelerating from 6% in the first half of the year to 19% in the second half of the year. As we look to 2025, BetMGM expects the momentum to continue with net revenues from operating growing to a range of $2,400,000,000 to $2,500,000,000 and EBITDA inflecting positive, which represents an increase of approximately two fifty million dollars year over year. In iGaming, we expanded content and player engagement tools and posted approximately $1,500,000,000 in revenue with over $400,000,000 in contribution. We maintain a podium position in iGaming market share at 22% of GTR, putting us firmly at number three and three times the size of the fourth ranked operator.

[William Hornbuckle, CEO and President at MGM Resorts International]

In online sports, our product experience has improved, driving progress in engagement and the activity KPIs and importantly setting us up to be contribution positive in OSB for the first time in 2025. We expect to see continued benefit of our operating leverage as we grow revenue sustainably with a strong belief that BetMGM is on its way to achieving the $500,000,000 annual EBITDA we've talked about in the future. In international digital, we are inducing a new reporting summit, MGM Digital, which is composed of our wholly owned consolidated online business. This segment consists of three major components. First, the core Leo Vegas business, which is an established online gaming and sports betting operation in Europe.

[William Hornbuckle, CEO and President at MGM Resorts International]

When excluding new brands, this business was solidly profitable in 2024. We've added features to this business such as content development with the acquisition of Push and sports betting with the purchase of Typico's U. S. Betting technology. Second, expansion of the core business through the launch of the BetMGM brand throughout Europe.

[William Hornbuckle, CEO and President at MGM Resorts International]

And third, Brazil, which is a significant market opportunity we are going after through our venture with Grupo Global. We believe in the long run investment of our owned and operated digital business, which collectively can achieve $1,000,000,000 in top line and healthy margins as a realistic medium term target. In terms of progress and strategy, we are completing the progress of integrating Typico's U. S. Sports betting technology through LEO Vegas and we anticipate going live with our own sports betting platform in our initial market as soon as next week with more launches to follow in Q2.

[William Hornbuckle, CEO and President at MGM Resorts International]

We have already deployed the LEO powered portion of the stack combined with our brand against favorable market opportunities in terms of scale, including The UK and Brazil and reinforced our market leading position in Sweden through BetMGM SE. We're also beginning to realize operating leverage against our more mature digital operations at Leo Vegas and Porsche now that much of the cost burden from the infrastructure building of these businesses is tapering. In our development pipeline, progress in Osaka is advancing as planned. Ground preparation is targeted for the completion of this year with main construction set to commence shortly thereafter. The official groundbreaking ceremony is scheduled for April 24.

[William Hornbuckle, CEO and President at MGM Resorts International]

And additionally, the opening of the Umachina Subway in January marks a significant infrastructure milestone, enhancing transportation options for future guests to our resort. In New York, we plan to submit our RFA by the middle of the year and we are actively engaged with the City of Yonkers on zoning. With a strong year in 2024 and good momentum to start 2025, MGM is proving that targeted capital spending for refresh and growth is critical to maintain our industry leading position and our long term expansion. We also recognize and to realize the full potential of MGM's earnings power across the channels we operate in, providing additional transparency to our investor community is important, so we are doing exactly that. I'll now pass this over to Jaffin to provide some additional details.

[Jonathan Halkyard, CFO at MGM Resorts International]

Thanks very much Bill. Before digging into the numbers, I'd like to take a moment to highlight a few important new disclosures that we are introducing this quarter. The first is consolidated adjusted EBITDA, a common metric which we think will provide a more familiar measure to compare our performance across others in other industries. The second relates to our digital businesses. We're now breaking out an MGM digital segment, which Bill touched on earlier, and we've expanded our disclosure of KPIs for BetMGM.

[Jonathan Halkyard, CFO at MGM Resorts International]

With that, I'll move on to our fourth quarter results. In Las Vegas, in the face of comping to a very strong quarter last year, revenues were down 6% and adjusted EBITDAR was down 11%. Excluding the variances related to F1 and hold, the underlying trends remain solid evidenced by several data points, including an all time quarterly record domestic slot win in the fourth quarter. We concluded the quarter and the year on a strong note with December occupancy and ADRs up single digits over 2023 and an all time record for monthly domestic slot handle and slot win. This momentum gives us optimism that MGM's Las Vegas operations can grow in 2025 with the exception of the challenging comparisons this month of February of course.

[Jonathan Halkyard, CFO at MGM Resorts International]

Moving to the regional properties, we grew revenues by 7% and adjusted EBITDAR by 21% in the fourth quarter. MGM Grand Detroit drove a healthy portion of the year over year increase due to strong execution and the recovery from impacts of a labor strike in the previous year. But simply put, our strategy of operating best in class assets in high value geographies is leading to outperformance across our regional portfolio. We achieved the KPI performances we work towards, growth in rated days, table drop and slot revenues, while labor costs as a percentage of revenue were managed lower. In Macau, MGM China grew quarterly net revenues 4% year over year and total dividends from MGM China to MGM Resorts were approximately $200,000,000 in the year.

[Jonathan Halkyard, CFO at MGM Resorts International]

And last but certainly not least, our new reportable segment MGM Digital. Now this represents MGM's consolidated digital businesses. It does not include BetMGM, which remains an unconsolidated affiliate due to its fiftyfifty venture structure. Net revenues at MGM Digital grew 15% in the fourth quarter. While losses are narrowing in The UK from decreased marketing spend, increased spending related to the launch in Brazil will result in MGM Digital's twenty twenty five EBITDAR losses to stay relatively consistent with those we had in 2024.

[Jonathan Halkyard, CFO at MGM Resorts International]

On our last conference call, we discussed identifying approximately $200,000,000 in operational EBITDA opportunities. We expect to capture approximately $150,000,000 of these in calendar 2025. Roughly 35% of Vista's revenue actions and 65% is expense. And these initiatives will be deployed in a way that improves efficiency, leverages technology and is more responsive to changes in consumer behavior. Before turning it back to Bill, it's really important to put our earnings power into perspective.

[Jonathan Halkyard, CFO at MGM Resorts International]

In 2024, we generated approximately $2,400,000,000 of consolidated adjusted EBITDA and that includes $461,000,000 of non cash rent expense. When you add back that non cash rent, it represents a more accurate view of our cash earnings power. We spent approximately $1,150,000,000 in CapEx during the year, both here in The U. S. And in China.

[Jonathan Halkyard, CFO at MGM Resorts International]

After deducting our CapEx, this is the fundamental earnings generation that we deploy to high return investments in the portfolio, unique development opportunities and returns of capital to shareholders. And speaking of returns, we've purchased over 40% of our float since the beginning of twenty twenty one, including 3,400,000.0 shares in the fourth quarter last year and another 8,400,000 shares thus far in 2025, accelerating cash flow per share growth with this reduced share count. With the core brick and mortar operations delivering results, the growth potential of our digital businesses and future contributions from our development projects, we can create significant value for our shareholders. Bill, over

[Jonathan Halkyard, CFO at MGM Resorts International]

to you.

[William Hornbuckle, CEO and President at MGM Resorts International]

Thanks, Jonathan. Before we turn this over to questions, I'd like to double down and take a moment on Jonathan's last comment on share buybacks. We continue to see long term value in our share price and in the continued momentum of our business. And at this very moment, I see significant opportunity in the value of our shares.

[William Hornbuckle, CEO and President at MGM Resorts International]

And if you consider the following simple assessment, you see the opportunity hopefully that I see. The view to Las Vegas will continue to grow as it has over the last fifty years and no company is better positioned to take advantage of that growth than MGM given our footprint and operational capabilities. Add the stability in earnings of our regional properties, then simply take the market value of our Macau stock at face value, ignore the quantum leap we have made in sustainable market share performance, add the expectation that our digital business is already at a tipping point with BetMGM's earning inflection positive in 2025 coupled with the growth potential of MGM Digital and ascribe a marginal value to that segment of the business, you put it together and our business our core business is trading at four times 2024 adjusted EBITDA, well under its historic multiples. With this in mind, we will continue to be aggressive in our share buyback program as we think about near term uses of our cash. With that, operator, I'd like to open it up for some questions and answers.

[Operator]

We will now begin the question and answer session. The first question today is from Shawn Kelly with Bank of America. Please go ahead.

[Shaun Kelley, Analyst at Bank of America]

Hi, good afternoon, everyone. Thanks for taking my question. Bill, Jonathan, maybe since we've got the incremental disclosures, we can just start off with the MGM digital business quickly. Can you just give us a little bit more color on the scale of MGM's digital investment you see in that business specifically and maybe the outlook for near term returns there?

[William Hornbuckle, CEO and President at MGM Resorts International]

Sure, Sean. The reason Gary is here is because he manages his business every day. And so I want to turn it

[William Hornbuckle, CEO and President at MGM Resorts International]

over to him.

[Gary Fritz, President of MGM Resorts International Interactive at MGM Resorts International]

Thanks, Sean. Yes, look, we've been hard at work at MGM Digital the past couple of years. We've been assembling a distribution network and a product platform that we believe gives us a great opportunity to compete digitally. We've completed principally completed our capital deployment program, as I think Bill has mentioned in the past.

[Gary Fritz, President of MGM Resorts International Interactive at MGM Resorts International]

We've spent about $1,000,000,000 against the Leo business, building out the proprietary content development capabilities of Push, and more recently the acquisition of the sportsbook platform via Typico's U. S. Assets. And we're happy where we've ended up with all of that. We're hard at work integrating all of those assets together to create a platform and a set of player experiences that allow us to compete really anywhere in the world.

[Gary Fritz, President of MGM Resorts International Interactive at MGM Resorts International]

We think market conditions are favorable. We should have that integration complete by the end of the first half of this year. In fact, we're going live next week with our first market on the fully integrated stack and we're excited about the innovation that that unlocks and our increasing ability to compete. But what I don't think we want anybody to overlook is that while we've been capability building over the course of the past two years, our core business at MGM Digital between LEO and Push, that's a $500,000,000 plus revenue business. And if we were to operate those businesses with a standalone mentality, they'd be highly profitable, high double digit margin businesses that would be very, very happy with their operational performance.

[Gary Fritz, President of MGM Resorts International Interactive at MGM Resorts International]

But we've decided strategically that we want to augment those core businesses with targeted bets to drive long term value creation. So specifically, we've invested in organic growth against the BetMGM brand in a select handful of markets in Europe, The UK, The Netherlands and Sweden. Our early trading results in 2025 suggest that those investments are going well. Growth is strong and we believe the operating losses associated with the market entries are going to narrow throughout 2025 setting us up with a really strong exit rate and a meaningful opportunity for operational inflection going into 2026. You then have Brazil.

[Gary Fritz, President of MGM Resorts International Interactive at MGM Resorts International]

It's early days in Brazil. We're very, very happy with our partnership with Globo. We soft launched there in January when the market liberalized, and we're scheduled for our full media hard launch next week. We've built a local management team on the ground in Brazil. It's a $7,000,000,000 TAM we believe in Brazil, and we're excited to compete there on a level playing field.

[Gary Fritz, President of MGM Resorts International Interactive at MGM Resorts International]

And then the final piece that we've decided to make a long term bet against is what we call our MGM Live operations. So our live dealer content operation from the floors of our Vegas casinos. We're live already with our dual play business, which continues to grow day over day and we'll have expanded studio capacity coming up in the first half of this year. So when you put all of that together, we feel confident we're largely done deploying capital against the owned and operated digital business. And we are definitely set up for the potential for that business to be $1,000,000,000 plus in revenue with healthy double digit margins going forward.

[Shaun Kelley, Analyst at Bank of America]

Perfect. Thank you. And then Jonathan, probably just one quick follow-up for you if I could. But last quarter, there was called out a little bit of BI proceeds in either the Las Vegas segment and the regional segment. We had a few inbounds on whether or not there was anything in this quarter to call out.

[Shaun Kelley, Analyst at Bank of America]

I didn't hear anything in the prepared remarks there. Thanks.

[Jonathan Halkyard, CFO at MGM Resorts International]

Yes. We did not have any meaningful BI proceeds during the fourth quarter. It was an important quarter though on this front. We resolved the civil litigation during the fourth quarter. We still expect to receive additional business interruption proceeds during 2025

[Jonathan Halkyard, CFO at MGM Resorts International]

to the tune of

[Jonathan Halkyard, CFO at MGM Resorts International]

the numbers that we've talked about previously. So we expect those this year.

[Shaun Kelley, Analyst at Bank of America]

Thank you very much.

[Operator]

The next question is from Carlo Santarelli with Deutsche Bank. Please go ahead.

[Carlo Santarelli, Analyst at Deutsche Bank]

Hey, Bill, Jonathan, everyone. Guys, you guys obviously have put some initiatives in and I think you talked about it a little bit when you talked about some of the sixty fivethirty five split, but I wanted to focus on Las Vegas and the revenue side. As you sit here today kind of or on Jan one, what do you see in kind of a flat demand environment just in terms of some of the pricing measures that you've put in, in terms of the magnitude of the head start you kind of have on the year from some of the various new kind of programs that you've put in for 2025 from a revenue perspective?

[Jonathan Halkyard, CFO at MGM Resorts International]

Yes. Carlos, first of all, January of twenty twenty five was anything but flat. It was a very strong month for us and we can go into a little bit more detail on that if you like. But to answer your question directly, it's in the tens of millions of dollars of revenue initiatives that we have put in place. Most of them actually were done during the month of December so that we hit the year with that head start, but that's it gives you a sense of the magnitude of those.

[Carlo Santarelli, Analyst at Deutsche Bank]

Okay, great. And then I just wanted to delve back to something, Jonathan, I believe you said in your remarks. On the last call, you guys talked about kind of the Super Bowl being, I want to say $70,000,000 was kind of the event magnitude for The Strip on an EBITDA basis. You kind of talked about being able to grow monthly, and you weren't referring to February specifically. But when you think about kind of the impact of the Super Bowl in the first quarter, is the goal to be able to kind of offset that as we move through the year?

[Jonathan Halkyard, CFO at MGM Resorts International]

Yes, we're certainly going to do our best to do that. The impact of the Super Bowl, we estimated back in the fourth quarter or when we were last together on this call, I guess in November, turned out to be about our what we estimated about $65,000,000 year on year. And so through the programs we described through organic growth, it is our goal to be able to overcome that. I'd also remind you that we do have some obstacles in terms of the impact of our renovation at the MGM Grand. This is a really important capital project for us.

[Jonathan Halkyard, CFO at MGM Resorts International]

We've actually already got 600 rooms back online with great response from our customers. So that project is moving well, but it does it will impact us over the course of the year to the tune of about the same amount as the Super Bowl did year over year.

[William Hornbuckle, CEO and President at MGM Resorts International]

And Carlo, maybe one last color point. The Super Bowl interestingly for us on the casino was better than it was last year. Some of that was simple luck, but the bottom line is we ended up in a better place. So the degradation is hotel and sponsorships of note. Same with Chinese New Year.

[William Hornbuckle, CEO and President at MGM Resorts International]

We had a good Chinese New Year's when it was all said and done. And so while I'm sure there's some momentum at the bottom end of the market that people are concerned with and want to watch out for, if you look at our year end projections, we think we can exceed what we've done this year. So that implies exactly your question that we're going to surpass this Super Bowl and more. And so we're I think we're off to a great start. And the January as an indicator was a really good month.

[Carlo Santarelli, Analyst at Deutsche Bank]

Great. Thank you, both.

[Operator]

The next question is from Brent Montour with Barclays. Please go ahead.

[Brandt Montour, Analyst at Barclays Capital]

Good afternoon, everybody. Thanks for taking my question. I also I would love for you to go into January, Jonathan, in terms of non gaming versus gaming. And definitely want to hear about sort of your thoughts on room rates. I know that you sound very positive, but the December, January room rate effect versus October and November ex F1, if you saw any sort of improvement there sequentially?

[Jonathan Halkyard, CFO at MGM Resorts International]

Yes, I guess I walked right into that one, Brand. So I appreciate the question. Yes, no, January, we set some January records for occupancy at 94%, ADR was a record slot handle restaurant revenue. So these were all very strong indicators for us in terms of just aggregate demand. So one of the reasons we felt good about the start of the year, Phil in his prepared remarks talked about the booking we had on the group side in December.

[Jonathan Halkyard, CFO at MGM Resorts International]

Now those are rooms that are booked not only for twenty five, but in years beyond '25. But it gives a sense of just the level of demand from that important segment for our rooms and that's of course reflected in rates. So as we again, except for February, which we've discussed year over year, we're seeing, let's call it mid single digit growth in ADRs in the other months at least in the nearer term view.

[Corey Sanders, Chief Operating Officer at MGM Resorts International]

And what I would add is even in October and November, October was really limited to the first week of the year and those were Jewish holidays and you don't get a lot of convention business in there. The rest of October was pretty solid. Throughout the F1 week, the rest of November was pretty solid. December has been great. As Jonathan said, January will continue was a great month.

[Corey Sanders, Chief Operating Officer at MGM Resorts International]

And then February outside of the Super Bowl weekend, it's going to be a great month for us from an ADR perspective.

[Brandt Montour, Analyst at Barclays Capital]

Okay, great. That's really helpful guys. And I guess the follow-up question is kind of more of the why. Obviously, the convention you have momentum with Marriott and their group engine. But when you look across regionals and Vegas and all the different data you see, is there a sense that your that the consumer just feels better post election?

[Brandt Montour, Analyst at Barclays Capital]

Do you feel like there's a trend change there?

[William Hornbuckle, CEO and President at MGM Resorts International]

Brent, it's Bill. I don't know how to go that far, but I would say this, the Marriott example you brought up is a good one. We didn't have them in play last January, but we all did a year end or beginning of the year launch. And we've now for the fourth week in a row booked over 20,000 room nights with Marriott. And so I think we're about 85,000 room nights for the last four weeks, which if that continues and we have a pace and a goal of about 900,000 this year, that changes the dynamic.

[William Hornbuckle, CEO and President at MGM Resorts International]

It just does. That's just a lot of room nights, which help a great deal underline the foundation of what we do and how we do it and how we leverage the rest of our yielding. So that's been positive. You heard me mention the convention numbers earlier. Now the interesting thing about that is tech business has come back.

[William Hornbuckle, CEO and President at MGM Resorts International]

Obviously, some of it's in 2025, much of it's in '26 and '27. So there's been no sign from corporate America to us that they're concerned. To the contrary, particularly when you think about what happened in December, we put a push on it and the result was just staggering in terms of the number of room nights that we booked. And so I don't know, Corey, your job

[Corey Sanders, Chief Operating Officer at MGM Resorts International]

I would add, our core casino business is very solid and the amount of room nights we have on the casino segment in Las Vegas is also helping us yield the rooms up. So we're pretty favorable on what we see looking forward in that segment also.

[William Hornbuckle, CEO and President at MGM Resorts International]

Our active base, our MGM Rewards database has never been larger. Obviously, that MGM has added to that, etcetera, etcetera. And so it's just all inflecting. And in Las Vegas, down a couple of hotels, not forgetting that.

[Brandt Montour, Analyst at Barclays Capital]

Excellent. Thanks everyone. Nice quarter.

[Operator]

The next question is from David Katz with Jefferies. Please go ahead.

[David Katz, Managing Director at Jefferies]

Hi everyone. Thanks for taking my questions. I wanted to go back to digital, if I may. And I'm just curious the degree to which MGM Digital is engaged at all, aligned or in any way with that MGM in The U. S.

[David Katz, Managing Director at Jefferies]

And how that is affected?

[William Hornbuckle, CEO and President at MGM Resorts International]

David, let me kick that off and I'll turn it over to Gary to clean up any sloppiness I may create here. But we have specifically with content development and with Push, we have created games that they are using. I think Gary can speak to the success of some of those MGM branded games. We will ultimately over time look at some of the live dealer things we've talked about. We think it's meaningful coming from the home of and it's real.

[William Hornbuckle, CEO and President at MGM Resorts International]

And when you see the thing that we all built at MGM Grand itself on the casino floor, it's compelling. And so, Gerard, I don't know if you want to clean that up.

[Gary Fritz, President of MGM Resorts International Interactive at MGM Resorts International]

No, I think that's right. I mean, I think like content creation and content development is probably the area where the MGM Resorts digital capabilities helps BetMGM the best. In terms of the owned and operated BetMGM distribution points and cooperating with BetMGM, We try to we certainly try not to do things that are silly and we try to make sure we can support each other where we can, but those are two very distinctly operated businesses, given the nature of the joint venture agreement.

[David Katz, Managing Director at Jefferies]

Got it.

[David Katz, Managing Director at Jefferies]

And just following up on your commentary with respect to sports betting, is there any sort of back and forth or information share, content share or anything like that?

[Gary Fritz, President of MGM Resorts International Interactive at MGM Resorts International]

We operate those businesses largely independently.

[David Katz, Managing Director at Jefferies]

Okay, perfect. Thank you.

[Operator]

The next question is from Barry Jonas with Truist Securities. Please go ahead.

[Barry Jonas, Managing Director at Truist Securities]

Hi guys. Really appreciate the commentary on the MGM Grand hotel renovations and the impact you expect. Maybe talk about how we should think about the ADR uplift once these rooms come back online and any overall ROI expectations we should think about for the model? Thanks.

[William Hornbuckle, CEO and President at MGM Resorts International]

I had an opportunity, by the way, to walk them for the first time yesterday or the day before. They came out spectacular and I think they are actually a complete change in uplift to the property, more so than any of the renovation we've done in a while. So Corey, you can handle the math.

[Corey Sanders, Chief Operating Officer at MGM Resorts International]

Yes. I think between the convention business and getting the rates we should get for there because those rooms are new, we are going to convert some rooms into suites. We think there's some lift there also both from a ADR perspective and a casino perspective. To quantify the uplift, we'll raise our minimum rates there, but I don't think we put a pencil to that paper quite yet.

[Barry Jonas, Managing Director at Truist Securities]

Got it. Got it. And we get a lot of questions from clients about states increasing sports betting taxes. Governor of Maryland is also talking about maybe increasing table games taxes. So So, I just wanted to get your thoughts, how concerned are you about more states looking to raise digital or land based taxes?

[Barry Jonas, Managing Director at Truist Securities]

And two, are there ways for you to sort of offset this? Thanks.

[William Hornbuckle, CEO and President at MGM Resorts International]

Yes. Hi, obviously, this is something we've dealt with for a very long time. The fact that we're now in 42 states give or take with particularly with digital opportunities makes it more complex. I think for now in Maryland, I think we've cured that moving forward. I feel very comfortable about that because when we sat with the governor of the office and went through the gives and takes and what that meant in terms of employment and jobs and some of the other commitment we've mentioned the commitments we gave to the community, there was a pretty quick and good understanding of that.

[William Hornbuckle, CEO and President at MGM Resorts International]

And so I think we've backed that down. And it's a competitive landscape. Virginia now has not only casinos to the South, but they're talking about one to the North. As it relates to digital, I think it's going to be an ongoing game, if you will. I think there are markets that get it.

[William Hornbuckle, CEO and President at MGM Resorts International]

There are markets that want to see true growth and keep it onshore versus offshore out of black holes. And there's a couple of states I think we'll continue to battle. It'll be interesting to see what states come up next for iGaming and how they think about tax. I do believe it's manageable. I think we've done I think we, the industry, by the way, it's not just MGM, have done a good job so far communicating what's at stake and why.

[William Hornbuckle, CEO and President at MGM Resorts International]

And so never say never, but of all the things that keep me up at night, it's not one of them. I don't know, it keeps you up, I hope, Gary.

[Corey Sanders, Chief Operating Officer at MGM Resorts International]

Certainly keeps me up.

[Barry Jonas, Managing Director at Truist Securities]

I appreciate it. Nice quarter. Thank you.

[Operator]

The next question is from John DeCree with CBRE. Please go ahead.

[John Decree, Director - Equity Research at CBRE Group]

Hi, everyone. Thanks for taking my questions. I just maybe wanted to ask about, you've commented a little bit on how strong the slot business had been in Las Vegas, particularly in December. And curious if you could maybe dive into that a little bit and because of sense if you have an idea of what's driving that, is it kind of how you're filling rooms and just kind of look and see how sustainable those slot growth trends might be?

[Jonathan Halkyard, CFO at MGM Resorts International]

Yes. I think it does have to do with, of course, the casino mix that we had in the business in the fall and into December. I think it also comes down to product. We do have a, I think a very proficient slot center of excellence that does an outstanding job managing our product portfolio and also and doing so I think at very reasonable CapEx levels. But in the end, I think it's just the work that we've done to manage the mix of the hotel.

[Jonathan Halkyard, CFO at MGM Resorts International]

We've also made some important capital investments this year in high limit slot areas. Aria, MGM Grand, the Bellagio is underway and in the regions we've done at National Harbor as well as some work at the Borgata and others. So it's all of those things coming together to really build a robust slot business.

[Corey Sanders, Chief Operating Officer at MGM Resorts International]

And we've also seen a lift from our regionals coming into Vegas also. So that's helped also.

[John Decree, Director - Equity Research at CBRE Group]

Got it. Thanks, Jonathan. And Cory, maybe one more. I know it's a bit of ways ahead to think about F1 this year, but the first year was gangbusters and then we've talked about last year's twenty twenty four F1 quite a bit. But curious on your thoughts if there's things that you might do differently this year for 2025 and ways to kind of keep improving and calibrating the approach to F1 from NVM's perspective?

[William Hornbuckle, CEO and President at MGM Resorts International]

First year was a phenom, it was the first time, etcetera. Our average rates, which really drove our results, are like 800 and change throughout the company. Interestingly, this year though, there were 400 and change, and that is literally 2x the normal. If you all recall, this is the second worst weekend of the year. So we're excited to continue to support it.

[William Hornbuckle, CEO and President at MGM Resorts International]

We're excited to be behind it. We cut back on our ticket packaging this year. We focused on the Fountain Club. We got rewarded for that. But I think if you think about Formula one and going forward, the best news I've heard is they are recontemplating and considering pricing and what to charge.

[William Hornbuckle, CEO and President at MGM Resorts International]

And I think that's meaningful because to the extent we can get a foundation going early, we can continue to build on that. And so I think that messaging has been delivered and heard, so we're excited by that. And then obviously, we and the rest of the city have a three year deal with an extension opportunity. We don't think it's going anywhere. We don't want it to go anywhere.

[William Hornbuckle, CEO and President at MGM Resorts International]

But come next year, we're going to have to obviously sit down and discuss what it feels like going forward from there.

[John Decree, Director - Equity Research at CBRE Group]

Great. Thanks, Bill. Appreciate it, everyone.

[Operator]

The next question is from Stephen Grambling with Morgan Stanley. Please go ahead.

[Stephen Grambling, Analyst at Morgan Stanley]

Hey, thanks for taking the question. Maybe turning to Macau, just wondering if there's any color you could provide on Chinese New Year or how we started the year, just given all the noise from a tariff and otherwise and there just seems to be kind of conflicting commentary out of the industry data so far.

[William Hornbuckle, CEO and President at MGM Resorts International]

I'll turn this over to Kenny here in a minute. I think we had a great Chinese New Year in terms of market share, particularly wind and visitation for our properties. But Kenny, why don't you give some real color, Hubert?

[Kenneth Feng, Executive Director & President at MGM China Holdings Limited]

Hi. Okay. This is Kenny from Macau. I think like we had a pretty solid Chinese New Year. Both properties recorded a strong traffic about like 18% higher than the twenty twenty four Chinese New Year, like the gaming volume was also higher than last year's Chinese New Year and we have maintained our mid teens market share.

[Kenneth Feng, Executive Director & President at MGM China Holdings Limited]

Particularly I wanted to I want to point out, we have noticed a very, very longer tail to Chinese New Year with a high percentage of players arriving post Chinese New Year holidays versus 2024. Actually our business volume was almost in the second week of Chinese New Year was as strong as the first week of Chinese New Year. I think that's a comment from me.

[Stephen Grambling, Analyst at Morgan Stanley]

Great. Thank you. Maybe one unrelated follow-up, if I can speak one in just on Vegas. I know I think you had said that the aspiration is for EBITDA to be positive kind of post Super Bowl comparison here. I guess within that, is there any color you can provide on how to think about run rate wages and any other puts and takes on the expenses for Vegas in particular?

[William Hornbuckle, CEO and President at MGM Resorts International]

Yes. I mean, I'll kick it off and Corey can clean this up for sure, John. I think the biggest thing to think about is remember we're now going into the third year of our culinary agreement. And so June, while there's a step up, it's demonstratively less than it was. I think we went from 12%, Corey helped me here just under 6%.

[Corey Sanders, Chief Operating Officer at MGM Resorts International]

And I think we're It's a little lower.

[William Hornbuckle, CEO and President at MGM Resorts International]

Yes, yes. And we're now in the 4% s. So if we think about wage and inflation increase in that perspective, I think we're in really good shape. I think the team has gotten a really good handle on MTEs.

[William Hornbuckle, CEO and President at MGM Resorts International]

We have been flat now for some time and I think I'm encouraged by it because as I stated earlier, we continue to keep our MPS and our service where we want and needed to be without adding additional staff. And so that piece of it, I think, is well under control.

[Corey Sanders, Chief Operating Officer at MGM Resorts International]

Yes.

[Corey Sanders, Chief Operating Officer at MGM Resorts International]

And what I would add is, some of the initiatives we're running through, we think hopefully will also bring our labor costs down. So the goal would be is to neutralize as much of the increase as possible and feel pretty positive that we'll be able to do that.

[Stephen Grambling, Analyst at Morgan Stanley]

Great. Thank you so much.

[Operator]

The next question is from Dan Politzer with Wells Fargo. Please go ahead.

[Dan Politzer, Analyst at Wells Fargo]

Hey, good afternoon, everyone. Thanks for taking my questions. First, you took a lot of slot share in the quarter, but your rate of promotions was up a tad. Are there any changes in your strategy or promotional environment that you call out? And are you more aggressively going after that slot player?

[Jonathan Halkyard, CFO at MGM Resorts International]

No, no meaningful change in the promotional investment. I mean, we are always tweaking it and try to improve, but nothing no meaningful change either way.

[Dan Politzer, Analyst at Wells Fargo]

Got it. And then just to clarify, it does sound like you're certainly more constructive on the demand environment. Jonathan, you caught up ADR up mid single digits ex the Super Bowl in record January. So just wanted to clarify. So the first quarter, I mean, even with the Super Bowl lapping, it sounds like you should grow and then the same thing for the second quarter through fourth quarter.

[Dan Politzer, Analyst at Wells Fargo]

I just want to make sure we're getting that straight. Thanks.

[Jonathan Halkyard, CFO at MGM Resorts International]

It's going to be

[Jonathan Halkyard, CFO at MGM Resorts International]

pretty difficult in the first quarter with a $65,000,000 year over year headwind. So the way we plan the business is we try to adjust internally for those, not that we give ourselves a pass in terms of growing the business, but we just have to be realistic about that headwind.

[William Hornbuckle, CEO and President at MGM Resorts International]

I think, but save not for that, meaning Super Bowl, ADRs, OCC and all, we feel progressive and positive on. I want to make sure that you understand the rational reason for that is principally and for today given what we've seen to date Super Bowl.

[Dan Politzer, Analyst at Wells Fargo]

Got it. That makes sense. Thank you.

[Operator]

Thanks. The next question is from Robin Farley with UBS. Please go ahead.

[Robin Farley, Managing Director at UBS Group]

Great. Thanks. Just circling back on your comment that you were kind of targeting to make up for that $65,000,000 in Super Bowl for the year. I don't know if we could take that as like soft guide that you think EBITDA will be flat year over year in Vegas. But just wondering, you mentioned the $150,000,000 of the $200,000,000 in opportunity kind of mix of revenue expense.

[Robin Farley, Managing Director at UBS Group]

With that $150,000,000 is that part of what gets you to flat in Vegas for the year or would that be incremental? I don't know if that was sort of a company wide number. Thanks.

[Jonathan Halkyard, CFO at MGM Resorts International]

Yes, that is a company wide number and we certainly don't intend guidance one way or the other. We're just trying to put some of the pieces together so people can understand what our objectives are this year. We have two things to overcome. The Super Bowl, we talked about quite a lot. I mentioned the impact of the renovation of the MGM Grand, which is off to a fantastic start.

[Jonathan Halkyard, CFO at MGM Resorts International]

But we do have a number of things going for us, of course, the solid execution so far this year and then this program that we put in place at the early in November of last year to get ourselves in a position to overcome some of those obstacles. So that's pretty much where it stands for the year.

[Robin Farley, Managing Director at UBS Group]

Okay. Thank you. And as a follow-up, just on the share repurchase intentions, I feel like at times last year you've talked about not necessarily repurchasing shares at the same rate you had in kind of more recent years. How should we think about kind of what level of share repurchase you might be thinking about for 2025? Thanks.

[Jonathan Halkyard, CFO at MGM Resorts International]

Yes, we're really we think there is a tremendous value in these shares right now for the reasons some of the reasons Bill articulated at the end of his prepared remarks. I mean, the fact of the matter is, while we have some attractive investments in front of us, our own shares, the investment we know the best represents such a compelling value that we just think it's the most responsible thing to do to allocate capital toward that. So that's why we made those comments and at these levels we just think it's very attractive. So that's why we say we're going to continue to be aggressive.

[Robin Farley, Managing Director at UBS Group]

So it could be at a similar rate to last year's repurchase?

[Jonathan Halkyard, CFO at MGM Resorts International]

I mean, we did $120,000,000 in the fourth quarter and we've done almost $300,000,000 during the month of January. So you can see how we've picked up the pace on that driven by the really just evaluation of the shares.

[William Hornbuckle, CEO and President at MGM Resorts International]

Robin, I think to double down here, we will remain active and aggressive to the extent the share price is in the realm that it's in. And then maybe look, despite I don't want to even walk away with the flat commentary as flat. Despite the issues that we have, we have projected growth, I'm not going to say how much, in Las Vegas EBITDA in 2025. Obviously, it's a long way to go. We all understand the ups and downs of this business.

[William Hornbuckle, CEO and President at MGM Resorts International]

But fundamentally, we love the summer season. We've got which is always important to us in terms of lineup of entertainment. We've got everyone and their brother coming back. And so we're excited by that. So we remain optimistic and positive.

[William Hornbuckle, CEO and President at MGM Resorts International]

And so I just want to make sure that it's left in that vein.

[Robin Farley, Managing Director at UBS Group]

Great. Thank you very much. Thanks.

[Operator]

The next question is from Chad Beynon with Macquarie. Please go ahead.

[Chad Beynon, Analyst at Macquarie Group]

Hi, good afternoon. Thanks for taking my question. Bill, I was just going to pile on kind of where you left off on that last question. So if we think about Vegas, just the luxury versus the core, obviously, notwithstanding what's going on at MGM Grand, is it safe to say that you and the team still believe that the pricing opportunities and the growth will still probably put luxury exceeding core again kind of what we're seeing in the hotel industry? Is that kind of your view at this point based on group casino bookings and just kind of where you see the consumer?

[William Hornbuckle, CEO and President at MGM Resorts International]

Yes, absolutely. And for us, particularly given the nature of our business and the nature of who we attract and who we appeal to, give you a little off color stat here. If you think about the fourth quarter and you think about premium customers, you saw what we missed the fourth quarter by. There was less than 10 customers that equated to about $80,000,000 of baccarat win year over year difference. And so that can go either way, go up and go down, but it's pretty consistent.

[William Hornbuckle, CEO and President at MGM Resorts International]

And given our scale and scope, we obviously enjoy a nice piece of that, oversized piece of that. But yes, we feel positive, particularly about the top end of the marketplace.

[Chad Beynon, Analyst at Macquarie Group]

Okay, great. Thank you. And then on the digital business, as we look at some of these markets that you talked about that you're growing into, is there a market share goal that you believe can be achieved? Is that kind of uniform across markets? Or is every market different given the number of players and the tax rate and the like?

[Gary Fritz, President of MGM Resorts International Interactive at MGM Resorts International]

Yes. I think we try to calibrate our market share target to the relative maturity of the market and competitive intensity, and whether or not we have the strength of our value proposition in any given market. So it would be hard to say that we have a uniform target across everything. That being said, I don't think we think it's worth attacking or entering a market, if our goal wasn't to get to at least 5% in any given market we entered.

[Chad Beynon, Analyst at Macquarie Group]

Thank you very much. Appreciate it.

[Operator]

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

[William Hornbuckle, CEO and President at MGM Resorts International]

Thank you, and thanks everyone for joining us today. I know it's late, particularly back on the East Coast. I'd love to wish everyone a happy belated New Year. This year marks the year of the snake, which interestingly symbolizes strength, renewal and growth. We see a great deal of strength in our land based U.

[William Hornbuckle, CEO and President at MGM Resorts International]

S. Macau operations and a positive trajectory that we believe will continue well into 2025. Renewal of several storied franchises with fresh capital and rebranding initiatives, particularly here at Bellagio, what we're attempting and doing at MGM Grand and the newly rebranded W at Mandalay and growth. I think you've heard a lot about that today in terms of the change that MGM is expecting to produce and ultimately what happens to the balance of our digital platforms and of course Japan. We think there's plenty of reasons to be optimistic for each of our business segments within MGM.

[William Hornbuckle, CEO and President at MGM Resorts International]

And with that, we thank you all and wish you good night.

[Operator]

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Participants

Executives

• Howard Wang, Vice President - Investor Relations
• William Hornbuckle, CEO and President
• Jonathan Halkyard, CFO
• Gary Fritz, President of MGM Resorts International Interactive

Analysts

• Shaun Kelley, Analyst at Bank of America
• Carlo Santarelli, Analyst at Deutsche Bank
• Brandt Montour, Analyst at Barclays Capital
• Corey Sanders, Chief Operating Officer at MGM Resorts International
• David Katz, Managing Director at Jefferies
• Barry Jonas, Managing Director at Truist Securities
• John Decree, Director - Equity Research at CBRE Group
• Stephen Grambling, Analyst at Morgan Stanley
• Kenneth Feng, Executive Director & President at MGM China Holdings Limited
• Dan Politzer, Analyst at Wells Fargo
• Robin Farley, Managing Director at UBS Group
• Chad Beynon, Analyst at Macquarie Group