MGM Resorts International Stock Price: Quote, Forecast, Splits & News (MGM)

Perplexity Finance

MGM

MGM Resorts International

MGM

NYSE

Market Open

Wednesday, May 21, 2025

$32.46

-$0.45

1.35%

May 21, 11:00:49 AM EDT

Change

-$0.45

1.35%

Financial Profile

Prev Close

$32.90

Market Cap

$8.83B

Day Range

$32.14 - $32.53

Open

$32.42

P/E Ratio

14.5

52W Range

$25.30 - $47.26

24H Volume

$32.95M

Dividend Yield

0.00%

EPS

2.24

Earnings

Report Date

Apr 30, 2025

Reported Revenue

4.3B

Miss -0.16%

Avg 1d Change

10.89%

Report Period

Q1 2025

Reported EPS

0.69

Beat +38%

Implied Move 1d

6.8%

Transcript

11m 6s

And welcome to the MGM Resorts International first Quarter twenty twenty five 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 and Howard Wang, Vice President, Investor Relations. Participants are in listen only mode. After the company's remarks, there will be a question and answer session. In fairness to all participants, please limit your to one question and one follow-up. Please note this conference is being recorded. Now I would like to turn the call over to Howard Wang. Please go ahead. Thank you, Gary. Welcome to the MGM Resorts International first quarter twenty twenty five Earnings Call. This call is being broadcast live on the Internet at investors..com, and we have also furnished our press release on Form eight ks to the SEC.

12m 13s

On this call, we will make forward looking statements under the Safe Harbor provisions of the Federal securities laws. Actual results may differ materially from those contemplated in these statements. 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 when talking about You can find the reconciliation to GAAP financial measures in our press release and in our [indiscernible] are available on our website. Finally, this presentation is being recorded. I will now turn it over to Bill Hornbuckle. Thank you, Howard. And before we get started, on behalf of everyone at MGM, our condolences go out to the family, friends, colleagues and all those who are impacted by the passing of Alexis Arment beloved and longtime MGM Resorts Board Director, and the first African American to serve as U. S. Secretary of Labor. Alexis was an incredible woman and a tireless champion of our company and our culture.

13m 21s

Helping us to ground every Board deliberation with her compassion, her sound judgment and valued business expertise, She was always so generous with her time, proving individual career mentorship to myself, many other leaders at MGM and throughout our community. As a public servant, she will always be remembered for her hard work to secure low unemployment, safe work conditions, and a global standard for child labor opening doors for individuals individual pursuits, advancement of livelihoods. Her life's work touched so many and she truly will be greatly missed. We at MGM are fortunate to have a foundation built on exceptional employees and leaders, And I'm pleased to share with you today that their efforts have driven yet another strong quarter of financial results highlighted by an impressive turnaround at BetMGM. Make no mistake, our ability to deliver outstanding experiences to our customers and strong results to our shareholders start with my colleagues across MGM Resort. We've maintained record level Net Promoter Scores for our Gold Plus customers once again this quarter. Their collective hard work culminated in a notable milestone this month, when our MGM Rewards program cost 50,000,000 members which represents growth of over 50% since 2020. An achievement that reflects the staying power of MGM's iconic brands and our powerful customer insights, which can amplify the Marriott partnership and drive omnichannel opportunities, particularly with BetMGM.

14m 48s

I'm confident in saying no other mature gaming company has seen the database growth as strong as we have over the same period. As we navigate the balance of the year, our business is on solid footing. Led by our luxury offerings, we delivered an elevated experience to more guests than any of our competitors on the Las Vegas Strip making us prime beneficiaries of a strong citywide events and convention calendar. Our business is also equipped with ample liquidity, a strong balance sheet and operational agility, specifically our experienced operators and leaders have shown the ability to adjust quickly in varying economic conditions, which have presented themselves throughout the company's lifespan of nearly forty four decades. We ended this year on offense with a $200,000,000 EBITDA enhancement plan already in motion. We now believe we fully can implement more than 150,000,000 in 2025, We are also seeing continued growth from our existing exclusive Marriott collaboration, which we still expect will account for 900,000 room nights this year up from the 660,000 last year. Adding to these, our diversity in geography and market mix is once again proving to be a strength during these times of volatility. To set up in Las Vegas remained steady with a favorable room supply dynamic.

16m 2s

As current rooms under construction represent only 1.6% of the existing existing supply among the lowest of the top 25 MSAs. Additionally, second quarter twenty twenty five airline capacity at Harry Reid Airport remains scheduled at record levels. Domestic flight capacity in each month from April to June is up 2%, with 14 of the 25 largest metro markets increasing capacity into Las Vegas. Las Vegas Strip resorts were solid despite the prior period's benefiting from the Super Bowl and the full room capacity of MGM Grand given its current room remodel program. As we approach the April, we continue to see a resilient operating environment with key metrics in line with what we would expect in the ordinary course of business. In fact, April will be a record hotel month for our Las Vegas Strip operations. In our regional properties, operations remain steady, only a modest decline in revenue due to some inclement weather. Importantly, we ended the period strong with records for the month of March in RevPAR and slot win. Also, we have once again shown the ability to generate segment adjusted EBITDA margins at or above 30%. Switching over to China, MGM China is maintaining mid teen share, ending the quarter at 15.7 even with new supply ramping up in the market.

17m 20s

We continue to be proud, and we're able to debut 10 new villas at MGM Macau today with another 18 opening by the end of the year. At MGM Cotai, we're in the process of adding 60 new suites that are targeted a first quarter twenty twenty six opening. These are welcome new room products that will help support demand from our premium gaming customers. As solid as our various business segments have performed, the spotlight shined brightest on BetMGM this quarter. The venture reported an increase in net revenue from operations of 34% for the quarter and EBITDA of $22,000,000 representing a tremendous improvement of over 150,000,000 from the prior year period. IGaming net revenues for operating grew 27% and online sports net revenues from operations grew 68% each on the heels of strong engagement improvement. We have previously discussed the focus on iGaming and a more thoughtful and profitable approach towards customer acquisition, and the team has executed on it impressively for the year over year turnaround. MGM Digital, our consolidated international digital business that does not include the BetMGM venture, made great progress during the quarter as well. With the launch in Brazil our first deployment of sports betting platform that we acquired from Typico last year.

18m 34s

In Brazil, we have seen evidence of early traction with healthy retention rates. Also having a fantastic media partner like Grupo Globo provide flexibility in marketing, allowing us to be very deliberate on entry. We are focused on executing our marketing plan throughout the second quarter as this business continues to ramp and we're excited to launch our live dealer platform from the MGM Grand later in May. In Japan, we've made meaningful progress earlier month, we entered into an agreement with our general contractors to proceed with construction activities as planned, and we held an official groundbreaking ceremony in Osaka on April 24. Stateside, we remain on track to submit our RFP in New York over the summer, continue to expect to hear back on our licenses before year's end.

19m 21s

Overall, MGM is well positioned for the future have market leading operations in Las Vegas and the regions, and the resorts have received significant investment and care over most recent years. Our digital businesses in The U. S. And beyond are growing and turning profitable and we have an inevitable pipeline of future project opportunities in Japan and hopefully New York as well as a durable financial profile, including ample liquidity and a very solid balance sheet. I'll now turn this over to Jonathan to provide further details on the quarter.

19m 51s

Thanks, Bill. I'd like to echo your comments about our team here at MGM Resorts We've delivered a really strong quarter of results despite a difficult year over year Super Bowl comp and overall market volatility. These results are a testament to the strength of our operators, the team who support them, and our employees who execute with excellence every day. So a huge thanks to the team.

20m 14s

In Las Vegas, performance was solid. Particularly when taking into account our expected year over year impact of about $65,000,000 related to the Super Bowl last year plus the impact from the room remodel at the MGM Grand this year. Which we discussed in our last call. Segment adjusted EBITDAR was down $17,000,000 and included $37,000,000 in business interruption proceeds during the quarter. When considering the puts and takes of the quarter, we more than made up for the headwinds. The value of the Marriott strategic relationships was notable this quarter, helping to achieve record first quarter occupancy. The incremental customers also helped drive record first quarter slot win which was up 7%. The regional operations held in well, and when adjusted for the $12,000,000 of business interruption proceeds we received, the EBITDAR decline was mostly attributed to challenging weather at the start of the quarter. The regional operators ended the quarter on a high note, as Bill mentioned, with record March slot win. RevPAR in the regional hotel portfolio impressed hitting monthly records for each month during the quarter. In Macau, margins held in at 28% due to strong OpEx control and other efforts to maximize the efficiency of our assets.

21m 32s

The result was also notable given the advent of several very successful initiatives to drive tourism, including the Macau two thousand forty nine residency show at Cotai and the Poly Art Museum at MGM Macau. Importantly, MGM China increased its dividend payout policy to 50% of distributable profits, up from 35%. And earlier this month, MGM China closed on a new larger revolving credit facility, which provides about $3,000,000,000 of liquidity and represents approximately $1,000,000,000 of increased capacity and extends maturities for four years to 02/1930. BetMGM continued its acceleration in the first quarter positive $22,000,000 of EBITDA that's up 154,000,000 from last year. And it's worth noting that the prior year was impacted by a number of headwinds, but these results reflect the strong execution against the strategy and the start of its returns. The business is healthy, it remains on track for its guidance of 2,400,000,000.0 to $2,500,000,000 in net revenues from operations this year, and positive EBITDA. And recall that the BetMGM results are reflected one month in arrears when recorded in the MGM Resorts results. MGM Digital, which is our consolidated digital business and it doesn't include BetMGM, continues to make progress. Revenues in this segment were impacted by adverse effects of regulations in The Netherlands and some tough comps in our largest markets Sweden, that we've seen some meaningful recoveries starting in April.

23m 11s

The year over year segment adjusted EBITDAR decline for MGM Digital was anticipated due to additional headcount for strategic growth as well as costs related to the launch of BetMGM in Brazil. Where we've increased our marketing momentum to start the second quarter. We note that this quarter, we provided quarterly historical data in our investor presentation for the MGM Digital segment to help with your In Japan, MGM's equity commitment has increased to $428,000,000,000 yen of which we now have remaining about $392,000,000,000 yen to invest for our future 43.5% ownership stake. Despite the increase driven by updated spend estimates as we finalized our negotiations with contractors, we still have a high conviction and a high teens percentage return on this project and remain on time to open in 02/1930. One item impacting corporate expense I want to highlight is a $9,000,000 charitable donation that we proudly made during the quarter for an important City Of Las Vegas initiative that makes the balance slightly elevated, but otherwise this line item is consistent with our historical levels. We remain dedicated to continuously improve our business, Recall, we estimate the collective impact of enhancements that we announced last year will boost EBITDA by a run rate of $200,000,000 and we're now pacing to capture more than 150,000,000 taking effect this calendar year, 35% of which comes from revenue actions.

24m 45s

And 65% from cost savings. Now I view our cash flow generation as our consolidated adjusted EBITDA plus our non cash rent minus our CapEx. And this not only provides us the ability to remain committed to all of our capital but also take advantage of any dislocations in our stock price as a result of market volatility. Like we did in the fourth quarter, we saw significant value in our share price in the first quarter and we took advantage by repurchasing shares. When you strip out the value of MGM China at its market value, and assign a consensus value to our BetMGM venture, you end up with an implied multiple of just 3.3 times trailing twelve month adjusted EBITDA. To say nothing of the value of MGM Digital a business we know is capable of $1,000,000,000 in run rate top line with double digit EBITDA margins. We think the current price represents an attractive opportunity and have continued to buy back stock. We repurchased nearly 15,000,000 shares for about $494,000,000 in the first quarter, and we purchased another 8,000,000 shares in the second quarter to date for $215,000,000 As we end April, our share count is nearly 45% lower than it was when we began our buying program.

26m 9s

And we've received board approval for the ability to repurchase another $2,000,000,000 of shares. I'll turn it back to Bill.

26m 17s

Thank you, Jonathan. When I think about our business, it starts in Las Vegas, which remains on solid footing with our luxury offerings driving key results. This is complemented by the stability of the regional operations and MGM China, which clearly is now out punching its weight and maintains mid teens market share. We've also witnessed significant improvements in our BetMGM venture results, with the MGM digital debt Digital segment is showing good early traction. And as Jonathan once again articulated, we see a dislocation in the markets for the combined value of these businesses and are taking advantage by repurchasing our own shares. With that operator, we'll open it up for questions.

26m 58s

We will now begin the question and answer session. If you're using a speakerphone, please pick up your handset before the keys. To withdraw your question, please press star then 2. As a reminder, in all fairness, please limit yourself to one question and one follow-up. The first question is from Brandt Montour with Barclays. Please go ahead. Hello, everybody. Thanks for taking my question. Thanks for all the details. Today on the call. First question is about Las Vegas. You know, obviously, really reassuring commentary about April, and how that's tracking. Was wondering if you could just unpack that April comment, in terms of the major KPIs. You know, of those KPIs are growing stronger? Which are a little weaker? How do think about April?

27m 55s

Sure.

27m 55s

Jonathan, do want to kick it off? Sure.

27m 57s

Yeah, I mean, the first thing that we look at is just overall demand, as evidenced by things like hotel occupancy and rate. And so, as we mentioned in our prepared remarks, April in Las Vegas is shaping up to be a record April for the company, which is we think a very positive. Another area that we look to is group performance and event And also, we've seen very strong response to events here in the market and our properties specifically as well as groups. And the actual number of group participants that materialize and come here and spend. The final thing I'd add is that Marriott, the Marriott partnership for us is performing exceptionally well already have just through 440,000 room night that have been booked. And I'll do the math, it's over 20,000 room nights a week are being booked through the Marriott channel. And these are customers that we think are very accretive as compared to the customers that they would that they've replaced.

29m 12s

So couple of thoughts on that. Bill, you have anything? Yeah, one other thought, Brent, that kind of puts it into some perspective. Normally, book about 40% of our business thirty days out. That window has extended both in March and April to, like, forty three and forty four something of that ilk. But we still got to the desired result. And then in April, we in the rooms department beat that both combination of occ and rate of note. And so while it may be coming in later, based on obviously the overall economic condition of people's mindset in the world, it is still coming to Las Vegas and we're still the beneficiary of it. So we feel we excited by that, as we think of exciting about the right word given the environment we're in. But we're encouraged by that given as we think about the balance of the year.

30m

And the only other thing I would add is our slot volumes continue to be positive as we saw in the first quarter.

30m 9s

Great, that's all really helpful. Everyone, And just following up on that, and maybe you could just square this with everything everyone sees on the news, etcetera, but specifically with regard regarding international inbound, you know, it's been pretty well documented that that inbound from Canada has been soft and some other major source markets that you guys get business from. But, you know, specifically regarding your higher end, which we would think would skew even more toward that type of business, how are you able to make up for that?

30m 43s

Well, on the higher end it's not really having any impact at all. Actually, we just had an amazing event in April with our higher end component of it. It's really the leisure type business, the Canadian business that is down, but we've been able to make it up in our Marriott blocks and in our casino blocks.

31m 3s

WestJet's the biggest carrier. They're down about 15 but we're only down about three or four. Obviously, it's down and we all understand what's happening again. But again, Marriott large scale casino base, BetMGM consistently omnichannel pounding, ultimately, a once in a lifetime baccarat term of $10,000,000 you know, helped.

31m 29s

Excellent.

31m 30s

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

31m 38s

Hey guys, thank you. It looks like [indiscernible] obviously some of your payroll and labor and the year over year increases appear to be less than some of the escalators. Could we kind of read into that, that part of that is the efforts as part the $150,000,000 that you expect to achieve this year. Or is that kind of in excess of or is this kind of a separate initiative, I guess I should say?

32m 11s

Generally, yes, you can read into that, that that's [indiscernible] I guess, really a result of our continuous efforts to manage our costs here. It is It's certainly true that we've been able to manage growth in FTEs across the company. In fact, in the first quarter, we were down in FTEs across our regions, Las Vegas, and our corporate office. So, it's not we can't tie those numbers to any specific actions we've taken the fact of the matter is that we're always managing our labor expenses, and you're seeing a reflection of that.

32m 53s

And Carlo, I think in the front end of our business, we've seen a we're beginning to see more and more digital interaction. Whether it's concierge or call centers, people calling down for, want a pillow from my room, And so, the digital interface is probably carrying 80% of the traffic now, at least initially, and ultimately a small spattering, although we're going get more and more [indiscernible] Is proven to be very productive. And so we're going to continue down that track. Great. Thank you, guys. And then just a clerical kind of follow-up. As it relates to the business interruption insurance, is that in revenue and EBITDAR or just EBITDAR? And could you give us any color, I know this is hard to handicap, but on any further proceeds you might expect receive later in the year or in subsequent years or is this kind of wrapping it up?

33m 44s

Yeah, it is it's an EBITDAR. It's not recorded as revenue. We have now collected over $100,000,000 a lot in the third quarter last year and then another good slug this quarter. We're not finished. We're still in active discussions with our carriers. And we do have significant claims remaining. That being said, I think we have received the majority, I would say over 50% of what we expect And it will be I think, lumpy from here on out and not as significant as we've collected so far. But we're really we're very pleased having brought hundred million dollars in for our shareholders over the past six months.

34m 29s

Great, thank you guys.

34m 32s

The next question is from David Katz with Jefferies. Please go ahead. [indiscernible] I think. I wanted to just follow-up on the comments regarding Japan. And it says that you've sort of locked in with your contractor just in the context that you know, materials availability and cost has become a discussion point. It it What variability is left in that you know, from this point forward, given the size of the project? Yeah. We thank you for the question, David. We've been hard at work with our partners, with the contractors to of course, define the the project itself, get it designed and nail down the major contracts.

35m 23s

On the one hand, there will be some variability in terms of cost as we go forward related just to overall input costs. We've done I think a good job of building in contingency into our budget for that potential. On the other hand, unlike other parts of the world, really before we even commence on a project like this in the coming quarters, the project will be fully designed. So in terms of scope, we don't expect that to be a factor at all in any changes the cost of the project. And just a couple more items, We, together with our partners, work going to be looking as we go forward for opportunities to be as cost efficient as possible in the construction And then finally, for our equity commitment, we've already hedged over half of our commitment in the forward yen to lock in some of these favorable exchange rates against with the dollar and the yen. So we're all fully hedged through the middle of twenty twenty seven in terms of our equity contributions.

36m 38s

And then David, on the other side of the equation, because we haven't really focused on this in some time, we've said in the prepared comments, high teens return Look, if we use Singapore as a proxy, a couple of interesting stats. Five times more the population if you just think of the Kunshai Basin, never mind all of Japan. We have the same number of table games. We'll have twice the number of slots Singapore just did over $600,000,000 in the first quarter. To think this thing can't five years from now or four and five years from now, it's 02/1930, do over 2,000,000,000 in EBITDA in return [indiscernible] we're excited by what the opportunity could ultimately be there.

37m 21s

Noted. And just following up quickly on your comment regarding the Bonvoy partnership. It sounds like it's going obviously quite well. I don't know if that's exceeded or meeting your expectations, but any possibility or thoughts about expanding that in some fashion going forward that you might be willing to share a little bit with us?

37m 46s

It's exceeded it. I think you know this by the deal. We've obviously committed to W. Over the first ten years, we have yet another property here in Las Vegas we need to commit. And so we're spending time and energy eventually thinking about that. And then Tony and I have talked briefly about the notion of international. And potentially where this relationship could go, whether it's Japan or other places. So we'll spend some more time thinking about that, but there's nothing definitive But notionally, that'swe love this partnership so far. And so, all things considered, I would, David, I'd just add there has been one I consider it an important expansion in the partnership recently, which is the inclusion of group customers here in Las Vegas where now if you're coming as part of a a big meeting or convention and you're staying with us, can get your Bonvoy points. That makes us a very appealing destination for meeting planners, and not to mention the participants themselves. So I think that's going to really help turbocharge the production out of the Marriott deal. Got it. Thanks and good evening.

38m 56s

The next question is from Shaun Kelley with Bank of America. Please go ahead.

39m 2s

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

39m 5s

Bill or Jonathan, wanted to expand just to maybe wrap up on Japan since we were talking about it. Could you just remind us of the overall budget either in dollars or in yen for the project as we sit here today, just sort of a housekeeper there and the let out of your equity contribution there just again for kind of modeling. And then the strategic question would be on New York. We obviously saw one of the large participants in the market here. Sort of change their programming or planning around that. We've definitely heard other people discussing sort of their strategy to that market. Where does MGM sit as it relates to New York?

39m 43s

Thanks. [indiscernible] Yes. So our, in terms of the overall cap table for the project right now, our commitment of $428,000,000,000 sorry, billion yen, is about a 43.5% equity interest Our partner is ORIX and then minority shareholders make up the balance of that. And then we have a $530,000,000,000 credit facility on the project. So that's the cap table as it right now. We expect our contributions to occur over the next four years, including 2025, about $600,000,000 to $700,000,000 per year, And then the credit along with our our equity partners, And then the bank facility will kick in at that point. In 2028 and carry the funding through to the opening in 02/1930. So that's just kind of a rough overview.

40m 50s

And then on New York, we are planning to make our submission at the June. Which I think we all understand is the date. We haven't changed appreciably the plan. We like what we came up with. I think we're comfortable with the city. We've We're going through and got most of our environmental impact study done, etcetera. And so, we really haven't changed the plan. It is of interest. We watch where the others are going in potentially where they'll go. It's our anticipation there'll still be three licenses. We'll take a unique position, I think we always have there. And so it's all things being relative, and see what happens, you never know, it is New York. We'll make that submission next month or end of next month.

41m 33s

Thanks so much. And then, just to change gears for a second on MGM Digital. I think I caught it. It sounds like you're going into a little bit of a marketing phase there in Brazil. Could you just remind us of maybe the cadence of investment around especially this year as I think it's a little lumpy as you're kind of building out that business versus kind of what maybe your exposure or your processes for the year after? Help us think about the investment period Yes, thanks. Things are starting off terrific in Brazil. We've been live since Q1. Terms of the pacing of investment, we believe that the first half of this year probably bleeding over a little bit into Q3 is the core of our marketing deployment. We probably got off to a little bit slower start than we anticipated, so that may shift out by a month or so. But principally, the marketing the real marketing dig against the business will occur over, let's call it, the next six months. And then we'll see those investments begin to tether. That's the current plan.

42m 43s

Thank you.

42m 46s

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

42m 52s

Hey, thanks.

42m 54s

Think over the past four years, your repurchases have been about almost now 95% of the current market cap. [indiscernible] on the domestic business. So I'm curious, are there other opportunities to create value either by monetizing assets or simplifying the story that you're thinking about or that you would think about if in a stock stays range bound? [indiscernible] You know, thanks for that question, and We have seen a tremendous opportunity recently just in repurchasing our own shares. I mean, we put a page in the presentation this quarter that we've done from time to time, but really the situation with the trading in the stock has just presented us with we think, fantastic opportunity repurchase shares for the shareholders. I mean, you brought up ways to kind of monetize that You could look not not too far in the past where we were able to sell Goldstrike in Tunica for I think that was about 11 times EBITDA the Mirage for I think it was 14 or 15 times EBITDA. And now, you know, we can buy the Bellagio and Aria for three times EBITDA. So we think that that's a pretty good, pretty good use of capital And that's why we've been so aggressive in the past four months.

44m 24s

And then, Stephen, remember, I suspect you do that Northfield Park in Springfield are ongoing. Discussions. So those are assets that we've been talking about for a while. [indiscernible] Makes sense. And maybe one quick follow-up. Just on the digital side, I guess, is there any way to think about the contribution from an omnichannel standpoint the benefits that you're getting outside of just [indiscernible] individually, but how it may benefit the the retail business as well or the brick and mortar business?

44m 57s

Yes, well, look, we certainly see beyond just the direct benefits between the marketing synergy and the synergies with our host teams here in Vegas helping BetMGM. On the regional side, I mean, it's just like another reason for folks to be an MGM customer in region is the fact that they can continue that relationship with us, both in their on property play, and play at home. And we've built the rewards ecosystem to underscore that.

45m 26s

Have event programming around that to encourage customers for their play in both channels. And that's really borne fruit in markets like Detroit and in the capital area as well.

45m 39s

And what we have seen definitely in this quarter in particular, our trips up pretty in our spend. It's on a little bit lower base, but they're pretty significant numbers we're beginning to see out of that channel.

45m 52s

Great, thank you so much.

45m 55s

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

46m 1s

Hi, good afternoon everyone.

46m 3s

Jonathan, maybe for you to piggyback on that last question. Can you talk a little bit about how you think of share repurchases going forward as CapEx starts to ramp up? I think if I heard correct, correctly, your equity contribution for Japan would be up 6 to $700 per year beginning this year and New York maybe around the corner, if you're lucky enough for that opportunity. And so how should we think about your approach to balance sheet management and repurchasing as that CapEx steps up a little bit? I guess the specific question there is, would you let leverage go up a little bit to take advantage of all the opportunities in front of you if they should stay this way?

46m 44s

Yeah, I've probably been saying for six quarters that our pace of share repurchases was going to was going to come down slightly and we haven't really done that just because we've looked at the math some of which I just went through and said this is a really compelling opportunity. But that being said, our Japan equity investments are now closer, New York coming closer. So, it will be important for our own planning to reserve some capital for those investments. I would not be adverse to letting leverage tick up a little bit in order to fund some of these opportunities We do enjoy the diversification of our operations here in in Las Vegas in the regional markets. We a nice dividend flow at MGM China. And we are really not investing any more capital in that MGM or MGM Digital for that matter. Those investments are are behind us and those businesses are really primed to grow. So but I do think that for the remainder of this year, we'll not be as aggressive as we've been in the first four months, just recognizing some of the things that are in front of us right now.

48m 1s

Got it. Understood. That's helpful, Jonathan. And then if I could for a follow-up change gears to Macau. A little bit. I know we've asked a lot of questions on this call and previously about VEGAS and indicators that you see there as it relates to domestic demand. We probably have similar questions as it relates to Macau and the Chinese consumer. So curious if you could give us any insight as to what you're seeing really since the beginning of the month when the tariffs went to effect, if there's been much change in how you're booking business in visitation levels you're seeing in Macau? Anything you could share would be helpful.

48m 38s

Danny, you're living it every day. Why don't you take this Yes. Okay. Thanks for the question.

48m 46s

So far, we are not seeing any material impacts. And we are continuing to closely monitor the situation. In Q1, our business was resilient. And we saw our market share. As we all know, China government is taking all kinds of measures [indiscernible] To spur the economy. Macau is resilient Macau market is resilient. It's unique. So, we see our business as quite stable.

49m 24s

Actually, we just had like today is the first day of Golden Week. And we had a pretty good stronger pre holiday week. And today is the first day so our booking is pretty strong. We feel confident. For these upcoming holidays. Thanks, Kim. I appreciate. Thanks, all.

49m 55s

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

50m 1s

Hi, guys. With the likelihood of higher tariffs could you talk a little bit more about how that could impact operations and budgets for some of your domestic development pipeline?

50m 18s

Right now, hard to see how it would have much of an impact on the development pipeline We've been focused more in the near term on its potential impact on just cost of sales and operational considerations, and it's quite a small impact. We've We've We've done virtually all of our slot purchase for the year. We have alternatives as it relates to some of the consumables that might be subject to tariffs. So, we think we can manage that impact considerably during the year. Same goes on our technology investments. We've done a lot of that in the past eighteen months, things like PC refreshes and those types of things. So, that will be a very limited impact. And I don't really see much of an impact that's going to have on our development ambitions. At least in the next year or so.

51m 16s

I mean, Barry, only thing on the obvious horizon is New York, that would be domestic. We're not building a high rise, so even steel will be de minimis.

51m 28s

Got it. Got it.

51m 29s

Okay. And just for a follow-up, Bill, I saw you were out in UAE recently. Can you maybe talk about next steps there for the hotel in Dubai and any gaming opportunities? And then just also interesting to see Barry Diller was with you. Is that strictly from a Board perspective? Or there maybe some ways you can work closer with IOC? Thank you.

51m 50s

Well, we've worked closely with IAC ever since the inception of their investment. I mean, Joey has been in in some of our digital business, and Barry, ultimately with creative and the content pieces of our business. And so it's always been integrated in that context. They're very active Board members and we enjoy that. Actually, Paul Salem, Barry, and myself and one other individual on our team, who's been kind of overriding this thing for the last couple of years, a gentleman named Ari Castradi, went out there Key mission was to see the prince. And to update him on our project, tell him the that we thought it could bring, not only in the context of a fully integrated resort like we're building MGM, Aria, Bellagio, but the potential gaming could bring to not only UAE, but Dubai specifically, the whole notion of entertainment and the kind of unique things that we could bring to the city, And it was a great conversation. It's completely in their hands. This is just like the states. It's in the province of any one of the, individual rulers to determine whether they want gaming or not. They haven't said yes, they haven't said no.

52m 57s

We are building an environment that can accommodate it. And that building is due to complete third quarter of twenty seven. We're literally up on the Fifth Floor of the MGM Tower as we speak. And so, it's a pretty exciting building. It's an exciting project. A truly interesting resort, with all kinds of features. And so hopefully, we'll get to add gaming. But the ball truly now having made this, taking this and them taking us, receiving us is in their court.

53m 28s

Great. You so much.

53m 31s

And the final question today is from Chad Beynon with Macquarie. Please go ahead.

53m 36s

Hi, good afternoon. Thanks for taking my question. Just wanted to circle back a little bit on some of the Vegas comments. Around, non gaming. So you mentioned the impact from from Marriott, just from kind of a a qualitative level. But were non gaming KPIs up if think about excluding the Super Bowl from year over year standpoint, whether we're thinking about January, March or just kind of taking out that $65,000,000 impact Just trying to get a sense of if you're seeing any sensitivity given where prices are on some of the food and beverage, shopping, etcetera, at your properties? Thank you. Really no change in trend during the quarter as it relates to non gaming spend. Things like entertainment spend kind of ebb and flow with the number of events that are going on in town. And as it relates to spend per cover, in our food and beverage or retail, those those trends were all pretty consistent during the quarter.

54m 45s

You take the Super Bowl out of it, our revenue per occupied room is actually up about 3%.

54m 52s

Okay, perfect. Thanks, Corey.

54m 56s

Sorry, go ahead.

54m 57s

No. Maybe just add one Please finish.

54m 59s

One thing on programming, because I think it's important look, we all have eyes wide open on where all of this could go. But if I think about the calendar, we have a half a million more seats available in the market this next coming quarter, the second quarter. Than we did the first quarter between events at Allegion, T Mobile, Ed, all the big block event houses. So we're adding a half a million seats everything from Post Malone to Gaga's coming back. We're hosting an Inno Way fight, Coldplay, and I could Beyonce, I could go on and on and on. So activity case is ripe and good.

55m 31s

Better than 24, replicates somewhat 23. And so we're excited by that. Time to tell. When, like I said earlier, 44% of your bookings in the last thirty days you don't know until you know. But we like the programming. We like the momentum. We like our ability to control expenses. I think we're in good shape there. And what we've been able to do, with labor and other costs, think, collectively put us in the position that we're in.

56m

Great. Thank you. And then back on the tariff one of the other competitors in the space paused a major project in The US here just because of uncertainty around cost and just getting the materials in. I know you're far out from planning anything major like New York in The U. S, But as you think about regular CapEx or maybe even a little bit further on some of those bigger projects, do you think this will change how you're thinking about ROIs to the point where maybe something would be off the table or or it's still high enough above above the cost of capital that it that it's kind of a no brainer still? Thank you. Well, yes. If you take New York out, and I think our capital issue is about $800,000,000 of which couple hundred million dollars in what we consider true growth capital and there's about $600,000,000 core issues tied to IT, to room remodels. This year, as you know, we're doing MGM. I think next year is ARIA followed by Cal Cosmopolitan in 2027. Where we source for those projects, meaning those room remodels, because that's the biggest thing I think could be tariff related, we'll have to pay close attention to.

57m 10s

But unless something happens more macro with the environment and our balance sheet, we wouldn't change our thinking around those significant remodels. And so no, guess the answer to the question really is no, other than that.

57m 24s

Great.

57m 25s

Thank you, guys. Appreciate it.

57m 28s

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.

57m 37s

Thank you, operator. And again, I'd like to thank everyone for joining us today. Think maybe to reiterate have a best in class high quality portfolio of assets, both digital and physical. We think we'll generate and continue to generate meaningful cash flow enabling us to take advantage of just about any opportunity whether that's building in Japan, or buying back shares at attractive multiples. I think we need to reiterate what Jonathan walked you through. Understand the macro environment, but we are literally trading at 3.3x multiple in our core business. And we see significant insight, ultimately with our digital businesses. As we look ahead, we're confident that our experienced management team has adapted to numerous economic cycles, will further provide the ongoing resilience of the business we've had so many times before, Obviously, we have seen this. We're all veterans in many of these activities. Good, better or worse. And we really think we're in a good space. And a good place. And we do think Las Vegas is resilient, and it's proven itself to be And so we like where we are, generally speaking. So thank you all for joining us today.

58m 42s

The conference has now concluded.

58m 44s

Thank you for attending today's presentation. You may now disconnect.

Key Insights

MGM delivered a strong Q1 2025, highlighted by record Net Promoter Scores, MGM Rewards membership surpassing 50 million (up 50% since 2020), and a significant turnaround at BetMGM, which reported a 34% increase in net revenue and $22M in EBITDA (up $154M YoY).
Las Vegas operations remained solid despite tough comps from last year’s Super Bowl and ongoing room remodels; April is tracking as a record month for hotel performance, with strong group and event demand, and the Marriott partnership driving over 20,000 room nights per week.
MGM China maintained a 15.7% market share in Macau, increased its dividend payout policy to 50% of distributable profits, and secured a new $3B revolving credit facility; new luxury suites and villas are being added to support premium demand.
The company is executing a $200M EBITDA enhancement plan, expecting to realize over $150M in 2025 (35% from revenue actions, 65% from cost savings), and continues aggressive share repurchases—buying back nearly 15M shares for $494M in Q1 and another 8M shares for $215M in Q2 to date, with board approval for an additional $2B buyback.
Forward-looking: BetMGM is on track for $2.4B–$2.5B in net revenues and positive EBITDA for the year; MGM’s Japan project remains on schedule with a high-teens percentage return expected, equity contributions hedged through mid-2027, and New York RFP submission planned for June; management remains confident in liquidity, balance sheet strength, and ongoing investment in digital and physical assets.

Recent Transcripts

MGM delivered a strong quarter with record loyalty growth, BetMGM turnaround, and robust Las Vegas performance.

MGM delivered record results in 2024, with strong growth in digital and Macau segments.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$5.2B	$9.7B	$13B	$16B	$17B
Cost of Revenue	$3.5B	$5B	$6.7B	$8.6B	$9.4B
Gross Profit	$1.7B	$4.6B	$6.5B	$7.6B	$7.8B
Gross Profit %	33%	48%	49%	47%	46%
R&D Expenses	$0	$0	$0	$0	$0

2020

2021

2022

2023

2024

Revenue

$5.2B

$9.7B

$13B

$16B

$17B

Cost of Revenue

$3.5B

$5B

$6.7B

$8.6B

$9.4B

Gross Profit

$1.7B

$4.6B

$6.5B

$7.6B

$7.8B

Gross Profit %

33%

48%

49%

47%

46%

R&D Expenses

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$1.3B	$1.2B	$207M	$1.3B	$1.1B
Dep. & Amort.	$1.2B	$1.2B	$3.5B	$814M	$831M
Def. Tax	$18M	$242M	$496M	-$117M	-$85M
Stock Comp.	$107M	$65M	$71M	$74M	$80M
Chg. in WC	-$624M	$142M	$128M	$153M	-$237M

2020

2021

2022

2023

2024

Net Income

-$1.3B

$1.2B

$207M

$1.3B

$1.1B

Dep. & Amort.

$1.2B

$3.5B

$814M

$831M

Def. Tax

$18M

$242M

$496M

-$117M

-$85M

Stock Comp.

$107M

$65M

$71M

$74M

$80M

Chg. in WC

-$624M

$142M

$128M

$153M

-$237M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$5.1B	$4.7B	$5.9B	$2.9B	$2.4B
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$5.1B	$4.7B	$5.9B	$2.9B	$2.4B
Receivables	$560M	$858M	$925M	$1.1B	$1.3B
Inventory	$88M	$96M	$126M	$142M	$141M

2020

2021

2022

2023

2024

Cash

$5.1B

$4.7B

$5.9B

$2.9B

$2.4B

ST Investments

Cash & ST Inv.

$5.1B

$4.7B

$5.9B

$2.9B

$2.4B

Receivables

$560M

$858M

$925M

$1.1B

$1.3B

Inventory

$88M

$96M

$126M

$142M

$141M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice.

Market Cap: $8.8B
IPO Date: 5/2/88
CEO: Mr. William Joseph Hornbuckle IV
Fulltime Employees: 60K
Sector: Consumer Cyclical
Industry: Gambling, Resorts & Casinos
Country: US
Exchange: New York Stock Exchange

Peers

Wynn Resorts, Limited

$92.99

WYNN

0.84%

Caesars Entertainment, Inc.

$28.91

CZR

1.7%

Melco Resorts & Entertainment Limited

$6.23

MLCO

0.73%

PENN Entertainment, Inc.

$14.99

PENN

1.41%

Las Vegas Sands Corp.

$40.64

LVS

0.74%

Red Rock Resorts, Inc.

Watchlist

Earnings

Report Date

Apr 30, 2025

Reported Revenue

4.3B

Miss -0.16%

Avg 1d Change

10.89%

Report Period

Q1 2025

Reported EPS

0.69

Beat +38%

Implied Move 1d

6.8%

Transcript

11m 6s

12m 13s

13m 21s

14m 48s

16m 2s

17m 20s

18m 34s

19m 21s

19m 51s

20m 14s

21m 32s

23m 11s

24m 45s

26m 9s

And we've received board approval for the ability to repurchase another $2,000,000,000 of shares. I'll turn it back to Bill.

26m 17s

26m 58s

27m 55s

Sure.

27m 55s

Jonathan, do want to kick it off? Sure.

27m 57s

29m 12s

30m

And the only other thing I would add is our slot volumes continue to be positive as we saw in the first quarter.

30m 9s

30m 43s

31m 3s

31m 29s

Excellent.

31m 30s

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

31m 38s

32m 11s

32m 53s

33m 44s

34m 29s

Great, thank you guys.

34m 32s

35m 23s

36m 38s

37m 21s

37m 46s

38m 56s

The next question is from Shaun Kelley with Bank of America. Please go ahead.

39m 2s

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

39m 5s

39m 43s

40m 50s

41m 33s

42m 43s

Thank you.

42m 46s

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

42m 52s

Hey, thanks.

42m 54s

44m 24s

44m 57s

45m 26s

Have event programming around that to encourage customers for their play in both channels. And that's really borne fruit in markets like Detroit and in the capital area as well.

45m 39s

45m 52s

Great, thank you so much.

45m 55s

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

46m 1s

Hi, good afternoon everyone.

46m 3s

46m 44s

48m 1s

48m 38s

Danny, you're living it every day. Why don't you take this Yes. Okay. Thanks for the question.

48m 46s

49m 24s

49m 55s

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

50m 1s

Hi, guys. With the likelihood of higher tariffs could you talk a little bit more about how that could impact operations and budgets for some of your domestic development pipeline?

50m 18s

51m 16s

I mean, Barry, only thing on the obvious horizon is New York, that would be domestic. We're not building a high rise, so even steel will be de minimis.

51m 28s

Got it. Got it.

51m 29s

51m 50s

52m 57s

53m 28s

Great. You so much.

53m 31s

And the final question today is from Chad Beynon with Macquarie. Please go ahead.

53m 36s

54m 45s

You take the Super Bowl out of it, our revenue per occupied room is actually up about 3%.

54m 52s

Okay, perfect. Thanks, Corey.

54m 56s

Sorry, go ahead.

54m 57s

No. Maybe just add one Please finish.

54m 59s

55m 31s

56m

57m 10s

57m 24s

Great.

57m 25s

Thank you, guys. Appreciate it.

57m 28s

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.

57m 37s

58m 42s

The conference has now concluded.

58m 44s

Thank you for attending today's presentation. You may now disconnect.

Key Insights

MGM delivered a strong Q1 2025, highlighted by record Net Promoter Scores, MGM Rewards membership surpassing 50 million (up 50% since 2020), and a significant turnaround at BetMGM, which reported a 34% increase in net revenue and $22M in EBITDA (up $154M YoY).
Las Vegas operations remained solid despite tough comps from last year’s Super Bowl and ongoing room remodels; April is tracking as a record month for hotel performance, with strong group and event demand, and the Marriott partnership driving over 20,000 room nights per week.
MGM China maintained a 15.7% market share in Macau, increased its dividend payout policy to 50% of distributable profits, and secured a new $3B revolving credit facility; new luxury suites and villas are being added to support premium demand.
The company is executing a $200M EBITDA enhancement plan, expecting to realize over $150M in 2025 (35% from revenue actions, 65% from cost savings), and continues aggressive share repurchases—buying back nearly 15M shares for $494M in Q1 and another 8M shares for $215M in Q2 to date, with board approval for an additional $2B buyback.
Forward-looking: BetMGM is on track for $2.4B–$2.5B in net revenues and positive EBITDA for the year; MGM’s Japan project remains on schedule with a high-teens percentage return expected, equity contributions hedged through mid-2027, and New York RFP submission planned for June; management remains confident in liquidity, balance sheet strength, and ongoing investment in digital and physical assets.

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

Go Deeper

Recent Transcripts

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights