The operator introduces the MGM Resorts International Fourth Quarter and Full Year 2023 Earnings Conference Call and announces the participants. The call will include forward-looking statements and non-GAAP financial measures. Bill Hornbuckle, the CEO and President, thanks everyone for joining.

In 2023, MGM Resorts achieved record-high adjusted property EBITDAR in Las Vegas and MGM China, with seven domestic properties setting individual records. The company's employees also received record NPS scores from customers. Las Vegas has shown resilience and evolution as a sports and entertainment capital, as demonstrated by the success of hosting Super Bowl 58 and the inaugural Formula 1 race. The company's partnership with Marriott has also had impressive early results.

Marriott Bonvoy customers can now book rooms at select MGM properties in Las Vegas. In Macau, the company had record adjusted EBITDAR for the quarter and full year, with strong market share and successful digital performance. The addition of 200 table games and reinvestment in amenities contributed to these results. Looking ahead, the outlook for Las Vegas operations is strong, with positive metrics and initiatives such as the Marriott relationship and Mandalay Bay Convention Center refresh. The company expects to see growth from the return of Far East baccarat play and increased group room nights. The branch office network and recovery of international inbound flights are also expected to drive customers to the resorts.

The company is seeing strong gaming demand for their Annual Chinese New Year celebration at Bellagio and Aria, and their regional outlook for 2024 is stable. They are committed to improving their operational model and generating free cash flow. In Macau, their exceptional results from 2023 have carried into the first 45 days of 2024, with successful events and strong visitation to their properties. The Macau government has set a target of 33 million visitors for 2024, and the company's focus is on implementing strategic adjustments to optimize yield, prioritizing their mass and premium mass customers, and actively driving international tourism. In terms of BetMGM, they will soon be live in 29 markets and had a technology achievement in January with the approval and migration of the Entain platform in Nevada.

In this paragraph, the company discusses their plans for integration of a single account and single wallet in Nevada, as well as their successful KPIs in the UK. They also mention their development pipeline in Osaka and New York, and their plans to generate free cash flow through 2028. The company also expresses gratitude towards their employees for a successful quarter and year.

In the fourth quarter, our consolidated businesses generated net revenues of $4.4 billion, a 22% increase from last year. Net income was $202 million and adjusted EBITDAR was $1.2 billion. Net cash from operating activities was $716 million and free cash flow was $387 million. In Las Vegas, same-store net revenues increased by 10% and same-store adjusted property EBITDAR increased by 3%. In the regions, same-store revenue decreased by 7% and same-store adjusted property EBITDAR decreased by 22%, with disruptions from a strike and cyber incident impacting certain properties.

In the fourth quarter, the regional property trends remained stable and there are opportunities to increase revenue and drive organic growth within the domestic portfolio. Initiatives such as adaptive pricing and improved segmentation are expected to drive RevPAR growth in 2024. MGM China also saw record adjusted property EBITDAR and increased market share in the fourth quarter, driven by casino revenue and main floor segment table games win.

In the digital sector, BetMGM met its 2023 targets by reporting positive EBITDA and reaching the upper limit of its net revenue guidance. The company closed on an amendment and extension of its senior secured credit facility, increasing its capacity and extending the maturity. They plan to use their free cash flow to fund investments and maintenance projects, while also allocating excess cash for international digital acquisitions, high ROI capital projects, and share repurchases. The company sees great value in its shares and reduced its share count by 14% through a $2.3 billion repurchase. They believe share repurchases are a good use of their capital and discuss their enterprise valuation.

The article states that the company's share price and market capitalization have increased, but their enterprise value is lower due to debt and investments. The CEO praises the company's resilience and success in the luxury market, particularly at the Bellagio. He also mentions the growth of their database through BetMGM and the success of their operations in Macau.

In the fourth quarter, Bill, Jonathan, and other executives discussed the EBITDA contribution from F1 in Las Vegas. They mentioned the success of BetMGM and their goal to be in the top three in the market. They also acknowledged pressure on regional margins due to events such as the Detroit strike. They expressed excitement for future investments in places like Japan and New York, as well as their digital business. They believe the company is undervalued at 4.9 times and opened the floor for questions.

The speaker discusses the financial impact of the Super Bowl and Formula 1 events in Las Vegas, stating that the Super Bowl had a larger impact on revenue. They also mention plans to be more cautious with pricing for Formula 1 at certain properties.

Corey Sanders and Joe Greff discuss the financial impact of recent events on Las Vegas, particularly the Formula 1 race and the Super Bowl. They mention that the lack of activation at the South Strip during the F1 race may lead to treating it like a normal weekend in the future, while the Super Bowl had a positive impact on all properties. When asked about potential large-scale digital M&A, Bill Hornbuckle states that the focus is currently on BetMGM. Carlo Santarelli asks about the impact of hold percentages in Las Vegas in the third and fourth quarter, but Jonathan Halkyard explains that they do not provide specific numbers for hold impacts.

The company experienced a good hold in the fourth quarter, but this was partly due to a higher hold from a customer segment and expenses associated with that segment. The results were positively impacted, but there were also offsets such as player-related expenses. In Macau, the market share and results were good, but there may have been lower flow-through due to expenses and efforts to drive tourism. The company has done a good job going after expansion opportunities, such as hosting a concert with Bruno Mars.

In Paragraph 14, the speaker discusses the record-high performance of MGM China in Q4 and the continued growth in January. They mention the Chinese New Year celebration and how it has increased visitation and revenue for MGM China's two properties. The speaker also notes that their margins are impacted by not having a large retail segment. They expect to maintain a 21-22% level of contra revenues in the future.

The speaker is responding to a question about the future of BetMGM and whether 2024 will be an investment year with potential profits in 2025. The speaker confirms that it will be an investment year and explains the reasons for this, including the need to improve the product and gain more market share. They also mention the acquisition of Angstrom and plans for a single wallet. The speaker does not directly answer the question about controlling the entity, but suggests that BetMGM will continue to develop and make profits in the future.

The speaker, William Hornbuckle, is asked about the possibility of MGM Resorts acquiring another company. He declines to comment on any further discussions at this point. The next speaker, Stephen Grambling, asks about the growth of Vegas in 2024 and how it will be more focused on lodging and F&B rather than gaming. The company expects top line growth through yielding, pricing, and partnerships, but there will be an increase in OpEx due to a new labor agreement with the culinary union. They plan to offset this with productivity improvements and leveraging procurement activities.

The company expects a low to mid-single-digit OpEx growth rate this year and is actively buying back shares, although at a slower pace than last year. In the fourth quarter in Las Vegas, same-store revenues were up 10% but margins were down 200 basis points due to various factors such as accruals, cyber impact, and hold. After accounting for these factors, the company estimates that the margin was only boosted by 100 basis points.

The company expects margins to remain in the mid-30s for 2024. There are several upcoming events, such as concerts and sporting events, that could contribute to growth in Las Vegas. The Sphere and T-Mobile will also help drive business. Easter may have a slight impact on the convention business in March, but it will be picked up in April.

The executives of the company are discussing the performance and potential growth of their properties in Las Vegas. They mention the impact of convention business on the flow of customers to their other properties, and their efforts to increase revenue through pricing. They also mention their plans to invest $1 billion in various areas, including international and digital, with a focus on transformative partnerships.

Hornbuckle discusses the four key pillars that MGM Resorts has in mind for setting up their own shop, including the recent acquisition of Push Gaming and plans for a sports technology deal and live dealer games. He also mentions their focus on expanding in other countries, such as Brazil, and growing their BetMGM business. When asked about potential future acquisitions, Hornbuckle says they are staying focused on their current plans. Another analyst asks about Macau, but the question is not repeated in the summary.

The speaker discusses the increase in OpEx (operating expenses) in the fourth quarter, which may be due to a 10-year commitment to spend $1.1 billion on driving tourism. They also mention the addition of 200 tables and increased FTEs (full-time employees) as potential factors. However, they emphasize that they have tight control over OpEx and have maintained a stable EBITDA margin in the high 20s. They expect this trend to continue in the next few quarters.

The speaker asks the company's CEO, William Hornbuckle, to comment on the newly announced partnership with X and its potential impact. Hornbuckle states that the partnership has just started and they have high hopes for it, with 100 million people being exposed to the offering. He also mentions that the deal is structured efficiently and the demographic fits well for their company. The next question is about the regional properties and the recent declines in January, which Hornbuckle attributes to bad weather. The speaker asks if the core customer in these markets is stable, and Hornbuckle does not provide a clear answer.

The executives of a company are discussing the impact of weather and calendar on their business in January and February. They also mention that their properties in Springfield and Empire were affected by the weather, but they saw pockets of strength in January. They also mention that during COVID, they eliminated low-end play and are now seeing stability in players from all age groups and spending levels. They are positive about February and believe that the weather-related impact in January will not continue. They are also asked about the timeline for a potential A's baseball stadium, and they mention that they are waiting for zoning decisions and hope to have something awarded by the end of 2024. They also mention that they have been thinking about the potential impact on their adjacent properties and their CapEx plans.

The speaker discusses potential investments in MGM and the current state of the property. They also mention their interest in the U.A.E. market and the potential for a casino on Yas Island. The speaker also mentions their current project in Dubai, which does not include a casino.

The speaker discusses the potential for Abu Dhabi and other Emirates to grant general licenses, and the company's hopes to be positioned for Dubai or Abu Dhabi. They also mention a potential digital lottery and the impact of the strike and National Harbor on regional revenue. In response to a question about the recent partnership with Marriott, the speaker states that it is too early to tell if there will be any changes to their previous expectations.

John DeCree from CBRE asks a question about the consumer trends at the regional properties of the company. Jonathan Halkyard responds by saying that the company has directed its marketing efforts towards higher-worth guests, resulting in increases in these properties. He also mentions that this is similar to the trend seen in Las Vegas, but for different reasons. DeCree then asks about the company's growth CapEx plan for the year.

Jonathan Halkyard, MGM's operator, does not anticipate any major disruptions in their projects or assets. The company has successfully managed through disruptions in the past, such as room renovations. There were some factors that impacted margins in the regional markets in the fourth quarter, but the company believes they can achieve 30% margins for the year. Labor cost increases may affect margins, but the company has tools to address this.

The speaker, Bill Hornbuckle, thanks everyone for joining the conference call and highlights the resiliency of their company during the past year. He mentions that 2023 was an all-time EBITDA year and seven properties broke records. He also mentions their strong position in Macau and their success in the digital market. He is excited about the future and mentions the development opportunities, including the recent acquisition of a unique opportunity in Japan.

The speaker is excited about the potential opportunities in New York and hopes to have a successful year in 2024. They thank the audience for their time and the conference has ended.

This summary was generated with AI and may contain some inaccuracies.