MGM Resorts International Price & Performance (MGM)

On this call, we will be making forward looking statements under the Safe Harbor provisions the federal securities laws. Actual results may differ materially from those 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 talking about our performance. You can find the reconciliation of GAAP financial measures in press release and investor presentation are available on our website. Finally, this presentation is being recorded. Will now turn it over to Bill Hornbloke. 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 MDRIM 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 have 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. 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 this strategic decisions we have 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. 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 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 reward 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 Our leading position in Las Vegas will be a source of stability and growth in the near [indiscernible] 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 Las Vegas December slot handle and slot win were an all time record level for any month in our history 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. 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 book month of the record of a record for our company.

In fact, the bookings in this 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. During the fourth quarter, we also rebranded the Delano Tower at Mandalay Bay to the W Las Vegas, which has significantly brand which had significant brand recognition 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 MGM. 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 app single wall and is driving customer stickiness. These omni channel players are three times more valuable than the digital only players. 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 EBITDA in the history of MGM China. We continue to be a high performing outlier in the market with exceptional execution by the team. Macau 02/1949 our first residency show in MGM Cotai, and the Poly Art Museum at MGM Macau 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. 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 with 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 2.4% to $2,500,000,000 and EBITDA inflecting positive. Which represents an increase of approximately $250,000,000 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 GGR, putting us firmly at number three, and three times the size of the fourth ranked operator. 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 in annual EBITDA we've talked about in the future. In international digital, we are inducing a new reporting segment, MGM Digital, which is composed of our wholly owned consolidated online business.

This segment consists of three major components: First, the quarterly OVEgas business, which is established online gaming and sports betting operation in Europe. When excluding new brands, this business was solidly profitable in 2024. We've added features to this business such as 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 and third, Brazil, which is a significant market opportunity we are going after through our venture with Brobo 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 next week with more launches to follow in Q2. We have already deployed the Leode 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 MGM SE. We're also beginning to realize operating leverage against our more [indiscernible] building of these businesses is tapering. 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, and additionally the opening of the UMichina Subway in January infrastructure milestone enhancing transportation options submit our RFA by the middle of the year and we are actively engaged with 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 that 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 Jafan to provide some additional details. Thanks very much, Bill.

Before digging into the numbers, I'd like to take a moment to highlight a few important 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 MGM.

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 flat 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.

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. And last but certainly not least, our new reportable segment MGM Digital. Now this represents MGM's consolidated digital businesses. It does not include Bet MGM, remains an unconsolidated affiliate due to its fifty-fifty 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. On our last conference call, we discussed identifying approximately 200,000,000 We expect to capture approximately $150,000,000 of these in calendar 2025. Roughly 35% of this is 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. In twenty twenty four, 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 We spent approximately 1,150,000,000.00 in CapEx during the year, both here in The U. S. And in China. After deducting our CapEx, this is the fundamental earnings generation that we deployed 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 2021, including 3,400,000.0 shares in the fourth quarter last year and another 8,400,000.0 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 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 And if you consider the following simple assessment, you see the opportunity hopefully that I The views of 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 operational capabilities.

The stability and earnings of our regional properties and simply take the market value of our Macau stock at face value, ignore the quantum leap we have made in sustainable market share performance, At the expectation that our digital business is already a tipping point, with BetMGM's earning inflection positive in 2025, coupled with the growth potential of MGM Digital and ascribe a margin of value to that [indiscernible] 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 we think about near term uses of our cash. With that operator, I'd like to open it up for some questions and answers.

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

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?

Sure, Sean. The reason Gary is here is because he manages his business every day and so I'm going to turn it over to him.

Thanks, Sean. Yes, look, we've been hard at work at MGM Digital in the distribution network and a product platform that we believe gives us a great opportunity to compete We've completed principally completed our capital deployment program I think Bill has mentioned in the past, 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 typical 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. 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 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. 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 setting us up with a really strong exit rate and a meaningful opportunity for operational inflection going into 2026. You then have Brazil. It's early days in Brazil. We're very, very [indiscernible] 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. 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 operations from the floors of our Vegas and our floors of our Vegas casinos. We're live already with our dual play business which continues to grow day over day.

And will be 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 the 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.

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 the Las Vegas segment and the regional segment. We had a few inbounds on whether or not was anything in this quarter to call out. I didn't hear anything in the prepared remarks there. [indiscernible] we did not have any meaningful BI proceeds during the during the fourth quarter. It was an important quarter though on front. We resolved the civil litigation during the fourth quarter. We still expect to receive additional business interruption proceeds during 2025 to the the tune of the numbers that we've talked about previously. So, we expect those to Thank you very much.

The next question is from Carlo Santarelli with Deutsche Bank. Please Hey, Bill, Jonathan, everyone. Guys, you guys obviously have put some initiatives in and I could you talked about it a little bit when you talked about some of the 65%, 35 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 of the magnitude of the head start you kind of have on the year from some of the the various new kind of programs that you've put in for 2025?

From a revenue perspective? 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.

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 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?

Yes, we're certainly going to do our best to do that. The impact of the Super Bowl, we estimated back in 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. 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.

And Carlo, maybe one last color point. The Super Bowl interestingly brought us on [indiscernible] 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. We had a good Chinese New Year's when it was all said and done. And so I'm sure there's some momentum at the bottom end of the market that people are concerned with and want to watch out. Watch out for, If you look at our year end projections, we think we can exceed what we've done this year. So that implied exactly your question that we're going to surpass this Super Bowl and more. And so we're we're I think we're off to a great start. And January, as an indicator, was a really good month.

Great. Thank you, both.

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

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 on room rates. I know that you sound very positive. But December, January room rate effect versus October and November, except one, if you saw any sort of improvement there sequentially? Yes. I guess I walked right into that one, Brent.

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 at terms of just aggregate demand. So 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. 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.

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's been great. As Jonathan said, January will continue was a great month. And then February outside of the Super Bowl weekend, it's going to be a month for us from an ADR perspective.

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 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, do you feel like there's a trend change there? Brent, it's Bill.

I don't know that go that far, but I would say this, and I the Marriott example you brought up is a good one. And 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. It just does. That's just a lot of room nights, which help great deal under under underlying 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 Obviously, some of it's in 2025, much of it's in 2026 and 2027. 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, Cory or John, I would add.

Core casino business is very solid and the amount of room nights we have on the 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.

Our active base MGM Rewards database has never been larger. Obviously, that MGM is added to that, etcetera, etcetera. And so it's just all inflecting. And in Las Vegas, down a couple hotels. Not forgetting that. Excellent. Thanks everyone. Nice quarter.

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

Hi, everyone. Thanks for taking my questions. I wanted to I wanted to go back to digital.

If I may. And just curious the degree to which MGM Digital is engaged at all, aligns or any way with BetMGM in The U. S. And how that is affected?

Yes, David, let me kick that off 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 think it's meaningful coming from the home office. And it's real. And when you see the thing that we all built at MGM brand itself, on the casino floor, it's compelling. And so, Gary, if you want to to clean that up.

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 Bet MGM the best. In terms of the owned and operated Bed MGM distribution points and cooperating with Bed MGM.

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. Got it. 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, anything like that? We operate those businesses largely independently. Okay, perfect. Thank you.

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

Hey, guys. Really appreciate the comments 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. So 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, can handle the math. 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've put a pencil to that paper quite yet.

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 kind of just wanted to get your thoughts how concerned are you about more states looking to raise digital or land based taxes? And two, are there ways for you to sort of offset this?

Thanks.

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. Feel very comfortable about that because when we sat with the governor, the office and went through the gives and takes and what that meant in terms of employment and jobs the other commitments we've meant to the commitments we gave to the community there was a pretty quick and good understanding of that. 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. 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 a 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. 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. Keeps you up, I hope, Gary.

Certainly keeps me up. Yes.

I appreciate it. Nice quarter. Thank you.

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

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 the sense if you have an idea of what's driving that? Is it kind of how you're feeling rooms? And just kind of looking to see how sustainable those slot growth trends might be?

Yes, I think it it does have to do with 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 I think, a very proficient slot center of [indiscernible] 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. We've 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 it in 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 slap business.

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

Got it. Thanks, Jonathan and Corey. Maybe one more. I know it's a bit of ways ahead to think about F1 this year, but although 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 MGM's perspective? Yes, I'll take that. This is Bill.

Look at 40,000 feet, first year was a phenom, it was this first time, etcetera. Our average rates, which really drove our results, are like 800 and change. Throughout the company. Interestingly, this year though, they were 400 and change. And that is literally 2x the normal, if you all recall, the is the second worst weekend of the year. So we're excited continue to support it. 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 reconsidering and considering pricing. And what to charge. And I think that's meaningful. Because the extent we can get a foundation going early, we can continue to build on that 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. Come next year, we're going to have to obviously sit down and discuss what it feels like going forward from there. Great. Thanks, Bill.

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

Hey, thanks for taking the question.

Maybe turning to Macau, just wondering if there's any color you could provide on Chinese New Year, how we started the year, just given all the noise from a tariff and otherwise and the seems to be kind of conflicting commentary out of the industry data so far? 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 Wynn and Visitation. For our properties. But Kenny, why don't you give some real color? Hubert?

Hi. Okay. This is Kenny from Macao. I think like we had 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. Particularly, I wanted 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. Ex business volume was almost in the second week of Chinese New Year, was a strong as the first week of Chinese New Year.

Think that's a comment from me.

Great. Thank you. Maybe one unrelated follow-up, if I can sneak 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 there any color you could provide on how to think about run rate wages and any other puts and takes on the expenses for Vegas in particular? 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 demonstrably less than it was. I think we went from 12 Corey, help me here, just under six I think we're It's a little lower.

Yes. And we're now in the fours 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 FTEs. 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 NPS 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.

Yes.

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. Great. Thank you so much.

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

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'd call out? And are you more aggressively going after that slot player? 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. Got it. And then just to clarify, it does sound like you're certainly more constructive on the demand environment. Jonathan, you cut out ADR up mid single digits. Ex the Super Bowl and 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. I just want to make sure we're getting that straight. Thanks. It's going to be 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 to adjust internally for those, not we give ourselves a pass in terms of growing the business, but we just have to be realistic about about that headwind. I think, but to save not for that, meaning Super Bowl, ADRs, AUC and all, we feel progressive and positive on. I want to make sure that you understand the rational reason for that is principally for today given what we've seen to date Super Bowl.

Got it. That makes sense. Thanks.

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

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 $150,000,000 of the $200,000,000 in opportunity kind of mix of revenue expense. 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 that's sort of a company wide number.

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. And we have two things to overcome. Super Bowl, we've talked about quite a lot. I mentioned the impact of the renovation of the MGM Grand, which is off to a fantastic start.

But we do have a number of things going for us. Of course, 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.

Okay. Thank you. And as a follow-up to Phil Nie, share repurchase intentions. I feel like at 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?

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 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.

It could be at a similar rate to last year's repurchase.

I mean, we did $120,000,000 in the fourth quarter and we've done almost 300 so during the month of January.

So So you can see how we've picked up the pace on that driven by the really just the valuation of the shares. 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. All understand the ups and downs of this business. 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 And so I just want to make sure that it's left in that [indiscernible] Great. Thank you very much. Thanks.

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

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 at MGM Grand, is it safe to say that you and the team still believe that That the pricing opportunities and the growth will still [indiscernible] put luxury exceeding core again kind of 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? [indiscernible] 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, it can go up and go down. But it's pretty consistent 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.

Okay, great. Thank you.

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. 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 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.

Thank you very much. Appreciate it.

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

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. S. Macau operations. And a positive trajectory that we believe will continue well into 2025. Renewal of several story franchises with fresh capital and rebranding initiatives 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 the change that MGM is expecting to produce and ultimately what happens 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. And with that, we thank you all and wish you a good night.

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