The paragraph describes the start of the MGM Resorts International Fourth Quarter and Full Year 2024 Earnings Conference Call. Key company executives, including CEO Bill Hornbuckle, COO Corey Sanders, CFO Jonathan Halkyard, and other executives from MGM and MGM China Holdings, are participating. The call is in listen-only mode and is being recorded. Howard Wang, Vice President of Investor Relations, introduces the call, noting that forward-looking statements will be made and that actual results may vary. The call will also cover non-GAAP financial measures and their reconciliation to GAAP financial measures is available in the press release and investor presentation on the company's website. The introduction concludes with Howard Wang handing over to CEO Bill Hornbuckle.

The paragraph highlights MGM Resorts' successful year with record financial results and high Net Promoter Scores, attributing this success to its employee culture and strategic decisions. The company has a strong financial foundation and significant growth opportunities both digitally and in physical locations. With increasing revenues in domestic operations and high ADRs, MGM is optimistic about continued growth in 2025. Their extensive customer base and market reach, supported by a solid balance sheet, position MGM as a leader in the industry.

In the paragraph, the speaker expresses optimism for future growth opportunities in 2025 and beyond, highlighting the stability and expansion of their Las Vegas operations. Key investments include renovations at the Bellagio, transition of the Cosmopolitan to MGM rewards, and significant capital spending on their resorts to enhance guest experience and boost revenue. Record achievements in slot handle and slot win were noted, emphasizing the success of these investments. The speaker also mentions strong growth in the conventions sector with substantial bookings for 2025 and recent investments in the Mandalay Bay Convention Center. Partnerships, such as the collaboration with Marriott, have surpassed expectations, contributing to further expansion. The rebranding of the Delano Tower to W Las Vegas is expected to leverage Marriott's brand recognition and improve distribution and rewards system participation.

MGM has enhanced its omni-channel strategy, particularly through app improvements and the launch of a single app, single wallet in Nevada, leading to a significant increase in first-time depositors during football season. These omnichannel players are identified as more valuable than digital-only users. The company also reported record segment adjusted EBITDA for MGM China, driven by strong execution and non-gaming initiatives like Macau 2049 and the Poly Art Museum. MGM grew to a market share of over 16% in Macau by the end of the year. BetMGM experienced substantial growth, generating over $2 billion in net revenue, with expectations for continued momentum and positive EBITDA in 2025.

The paragraph discusses the growth and strategic developments in MGM's iGaming and online sports betting divisions. In iGaming, the company achieved $1.5 billion in revenue and holds a 22% market share, ranking third in the industry. They aim to be contribution positive in online sports betting by 2025 and foresee revenue growth enabling significant EBITDA in the future. The new "MGM Digital" segment integrates the LeoVegas business, features advancements like Push content and Tipico sports betting, and plans to expand the BetMGM brand in Europe and Brazil. The company is finalizing the integration of Tipico's technology, with plans to soon launch their sports betting platform in new markets.

The paragraph discusses MGM's strategic initiatives and progress in various markets, including the UK, Brazil, Sweden, Osaka, and New York. MGM is leveraging its digital operations to gain operating leverage and expanding its infrastructure, notably with the upcoming groundbreaking in Osaka and improved transportation access via the Yumeshima subway. The company plans to submit a Request for Applications (RFA) in New York and is working with Yonkers on zoning. MGM emphasizes the importance of targeted capital spending and transparency with investors to sustain growth. Jonathan Halkyard introduces new financial disclosures, including consolidated adjusted EBITDA, to provide clearer performance metrics for comparison with other industries.

The paragraph discusses MGM's financial performance across various segments for the fourth quarter. In Las Vegas, despite a slight decrease in revenues and adjusted EBITDAR compared to a strong prior quarter, the company set records in slot performance. MGM expects Las Vegas operations to grow in 2025, despite some challenges. Regionally, revenues increased by 7% and adjusted EBITDAR by 21%, driven in part by MGM Grand Detroit's recovery from a labor strike. MGM China's net revenues grew by 4%, contributing approximately $200 million in dividends. Additionally, MGM's new digital segment, excluding BetMGM, saw a 15% increase in net revenues for the quarter.

The paragraph discusses MGM Digital's financial outlook, noting that despite narrowing losses in the UK, increased spending in Brazil will keep 2025 EBITDAR losses similar to 2024. MGM has identified $200 million in operational EBITDA opportunities, expecting to capture $150 million in 2025, primarily through improved efficiency and technology. The company emphasizes its earnings capability, highlighting $2.4 billion in consolidated adjusted EBITDA in 2024, after accounting for non-cash rent expenses and significant CapEx investments in the US and China. Additionally, MGM has repurchased over 40% of its shares since 2021, boosting cash flow per share and shareholder value through core operations and future digital and development projects. Bill Hornbuckle plans to emphasize the importance of share buybacks before addressing questions.

The paragraph discusses the perceived long-term value and growth potential of MGM's shares. It emphasizes MGM's strong position to capitalize on the growth of Las Vegas and the stability of its regional properties. The paragraph suggests that by considering the market value of MGM's Macau stock, the breakthrough in market share performance, the tipping point of digital businesses like BetMGM with expected positive earnings in 2025, and the growth potential of MGM Digital, the business is undervalued, trading at four times its 2024 adjusted EBITDA. MGM plans to continue its aggressive share buyback program, using its cash for this purpose. Following this, the operator opens the floor for questions, with Shaun Kelley from Bank of America asking about the MGM Digital business.

MGM Digital has been focused on enhancing its digital capabilities by building a distribution network and product platform. They have invested around $1 billion in the Leo business, proprietary content development through Push, and acquiring Tipico's US sportsbook platform to create a competitive player experience globally. The integration of these assets is nearly complete, with the first market launch imminent. Despite capability building, the core businesses of Leo and Push generate over $0.5 billion in revenue with high profitability potential. Strategically, MGM Digital is investing in growth through the BetMGM brand in specific European markets like the UK, Netherlands, and Sweden to drive long-term value.

In the paragraph, the company reports strong growth and promising early trading results in 2025, expecting to reduce operating losses and set up a strong exit rate for 2026. The company is optimistic about its partnership with Globo in Brazil, where they've launched operations in a $7 billion total addressable market (TAM). They have also invested in MGM live operations, including live dealer content from Vegas casinos, and are expanding studio capacity. Overall, the company feels confident in its capital deployment for its digital business, anticipating it to reach over $1 billion in revenue with double-digit margins. Additionally, there were no significant business interruption (BI) proceeds in the fourth quarter, but civil litigation was resolved.

The paragraph features a discussion between Carlo Santarelli from Deutsche Bank and Jonathan Halkyard regarding revenue initiatives for Las Vegas in 2025. Santarelli inquires about the impact of new pricing strategies and programs on revenue in a flat demand environment. Halkyard responds by stating that January 2025 was a very strong month for them, due to revenue initiatives implemented in December 2024, amounting to tens of millions of dollars. Santarelli also questions the financial impact of the Super Bowl, which was previously estimated to generate $70 million in EBITDA for the Las Vegas Strip. Halkyard acknowledges the challenge but expresses commitment to offsetting that impact as the year progresses.

In the paragraph, the discussion revolves around the financial impact of events and projects on the company's performance. The Super Bowl was initially estimated to have a $65 million impact year-over-year, which the company aims to overcome through organic growth and other programs. The renovation at MGM Grand is also expected to affect earnings similarly. Bill Hornbuckle mentions that the casino's Super Bowl performance improved, partly due to luck, but hotel and sponsorship revenues declined. Chinese New Year was successful, and the company remains optimistic about surpassing previous performance, as early indicators from January are promising. The conversation concludes with a transition to questions from Barclays' Brandt Montour, who is interested in the breakdown of non-gaming versus gaming revenues and room rates in January.

The paragraph provides insights into the strong performance in room bookings and rates, highlighting record occupancy and ADR (Average Daily Rate) in January. Jonathan Halkyard discusses how high demand, particularly from group bookings extending into the future, contributes to positive market conditions. Corey Sanders adds that October and November were solid months for room bookings despite certain limitations, with growth continuing into January and February, aside from the Super Bowl weekend. Brandt Montour inquires if there's a sense of consumer sentiment improvement post-election that might be contributing to the positive trends.

The paragraph is a discussion between Bill Hornbuckle and Corey Sanders about the positive impact of their partnership with Marriott and the strong performance of their core business segments. Hornbuckle notes that they have booked a significant number of room nights with Marriott, adding up to 85,000 over the past four weeks, and they are aiming for 900,000 room nights for the year. This partnership adds value to their operations. Additionally, they report a strong comeback in the tech business for conventions scheduled for future years. Sanders highlights the solid performance of their casino business in Las Vegas, which is helping in room yield improvement. Hornbuckle mentions that their MGM Rewards database is at its highest, aided by BetMGM. Brandt Montour and David Katz also participate in the conversation, with Katz indicating an interest in discussing digital aspects further.

The paragraph discusses the relationship between MGM Digital and BetMGM in the US, highlighting their collaboration in content development, including game creation, which benefits BetMGM. Bill Hornbuckle initially addresses the topic, mentioning the creation of games used by BetMGM and potential future developments like live dealer games. Gary Fritz adds that while they collaborate in content creation, MGM Digital and BetMGM are fundamentally separate entities due to their joint venture agreement. David Katz inquires about any information or content sharing regarding sports betting, to which Gary Fritz responds that the businesses operate largely independently. Lastly, Barry Jonas asks about the anticipated impact of renovations at the MGM Grand hotel on average daily rates (ADR) and expected return on investment (ROI).

Bill Hornbuckle and Corey Sanders discuss the positive impact of recent property renovations, emphasizing improvements in room quality and the potential financial benefits from converting rooms into suites. They anticipate an increase in average daily rates (ADR) and positive effects on their casino operations but have not yet quantified this uplift. Barry Jonas shifts the conversation to concerns about potential tax increases on sports betting and table games in various states. Corey Sanders acknowledges the complexity of managing taxes across multiple states, mentioning their recent discussions with Maryland's governor to mitigate tax increase impacts. He feels optimistic about the situation in Maryland due to mutual agreements on community commitments. Sanders notes the competitive nature of the gaming landscape, referencing Virginia's casino developments, and views tax-related challenges in digital markets as an ongoing aspect of the business.

The paragraph discusses the success of MGM's slot business in Las Vegas, particularly during December, attributing it to several factors. These include the casino mix, effective management by their slot center of excellence, and reasonable capital expenditure (CapEx) levels. Jonathan Halkyard highlights that the growth is also supported by strategic investments in high-limit slot areas at various MGM locations like ARIA, MGM Grand, and The Bellagio, with similar efforts in regional areas like National Harbor and Borgata. Overall, these efforts have contributed to building a robust slot business.

In the paragraph, Corey Sanders and Bill Hornbuckle discuss the impact of Formula One (F1) events in Las Vegas from MGM's perspective. Sanders notes an uplift in business from regional participation in Vegas events. Hornbuckle highlights the outstanding success of the first-year F1 event, mentioning the significant room rate increase compared to typical weekends. Although there was a decline in rates in subsequent events, it still remained well above average. They made strategic adjustments by reducing ticket packaging and focusing on the Fountain Club, receiving positive results. F1 organizers are considering pricing adjustments, which Hornbuckle sees as beneficial for establishing a solid foundation. MGM has a three-year agreement with F1, with potential for extension, and they anticipate future discussions about the partnership.

The paragraph discusses the performance of the company's properties during the Chinese New Year, particularly in Macau. Bill Hornbuckle and Kenneth Feng note that the Chinese New Year was successful, with both properties experiencing an 18% increase in traffic compared to the previous year. Gaming volume also increased, and the company maintained a mid-teens market share. Feng highlights an extended period of high activity following the Chinese New Year holidays. The conversation then shifts to Las Vegas, where there is a focus on achieving positive EBITDA post-Super Bowl. Bill Hornbuckle mentions upcoming changes in expenses, particularly in relation to their culinary agreement, which will see a smaller increase compared to previous years.

The paragraph discusses a company's financial outlook regarding wages, inflation, and labor costs. The company has maintained stable full-time employee numbers without adding staff, maintaining their service levels. They have initiatives to potentially reduce labor costs. During a call, Dan Politzer from Wells Fargo asked about slot share and promotional strategies, to which Jonathan Halkyard responded that there were no significant changes. Politzer also inquired about demand projections, particularly regarding growth expectations for upcoming quarters, given challenges, including a $65 million headwind in the first quarter.

The paragraph is a discussion during a conference call about a company's business strategy and financial outlook. Bill Hornbuckle and Jonathan Halkyard address questions from Robin Farley regarding the company's financial targets, specifically related to a $65 million impact from the Super Bowl in Las Vegas. They explain that the $150 million mentioned is a company-wide potential and not specific guidance for Las Vegas or overall EBITDA. They also refer to overcoming challenges like the Super Bowl impact and ongoing renovations at the MGM Grand. The company has strategic initiatives in place to meet these challenges, and there's a brief mention of share repurchase intentions without further detail.

Jonathan Halkyard and Bill Hornbuckle discuss their company's strategy regarding share repurchases. They see significant value in their shares and believe that investing in them is a responsible allocation of capital. Despite having other attractive investments, they plan to continue repurchasing shares aggressively, as they see them as compelling value at current prices. Halkyard mentions that they increased their share repurchase pace, completing $120 million in the fourth quarter and almost $300 million in January. Hornbuckle emphasizes their intention to stay active in repurchasing as long as the share price remains favorable, while also expressing optimism about projected growth and the strong lineup for the summer season in Las Vegas. Robin Farley seeks confirmation about maintaining a similar repurchase rate as the previous year and receives an affirmative response regarding their active approach.

In this segment of a conversation, Chad Beynon from Macquarie is inquiring about the performance and pricing opportunities in the luxury versus core segments in Vegas, in comparison to trends seen in the hotel industry. Bill Hornbuckle confirms that there is a positive outlook for the luxury segment, particularly due to the nature of their business and clientele, highlighting the significant impact a small number of premium customers can have on revenue, specifically mentioning how less than ten high-value customers accounted for an $80 million difference year-over-year. Additionally, Chad asks about market share goals for the company's digital business expansion. Hornbuckle responds that market share targets vary based on factors like market maturity, competitive intensity, and their value proposition strength, rather than having a uniform target across all markets.

In the concluding remarks of a conference call, Bill Hornbuckle expresses optimism about MGM's future, highlighting strength in their U.S. and Macau operations, and a positive outlook extending into 2025. He mentions renewal efforts and rebranding initiatives at properties like Bellagio and Mandalay Bay, along with anticipated growth in digital platforms and Japanese ventures. He wishes attendees a happy belated New Year and invites optimism across MGM's various business segments before the operator ends the session.

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