No bad stock

MGM Resorts International
CEO : Mr. William Joseph Hornbuckle IV

Quarterly earnings growth(YoY,%)

Period	Revenue	Operating Income	EPS	Release Date
2023 Q2	20.7% YoY	964.7%	-86.8%	2023-08-02

William Hornbuckle says,

Record Q2 Results

• MGM Resorts achieved an all-time record for consolidated net revenues in the second quarter.
• Strong earnings across domestic portfolio, with near record second quarter adjusted property EBITDA at MGM China and first quarter of positive EBITDA at BetMGM.
• Strong demand trends in Las Vegas, with casino drop and handle up year-over-year and increasing hotel revenues.

Partnership with Marriott

• Announced a historic long-term agreement with Marriott International, creating a new MGM collection with Marriott Bonvoy.
• Allows Marriott Bonvoy members to book rooms and earn and redeem points at 17 MGM Resorts domestic properties.
• Expected to enhance profitability by driving lower customer acquisition costs and higher average daily rates (ADRs).
• By 2025, the expectation is that the Marriott customer base will represent a meaningful segment of the hotel mix at premium rates.

Upcoming Events and Bookings

• Strong programming in the third quarter, including Black Hat, Magic, and Beyonce.
• Bookings are strengthening for the remainder of the year.
• Formula 1 occupancy already twice that of last year, with four times the average rate.
• Pace into the first quarter of 2024 is setting up well, highlighted by the Super Bowl and Allegiant Stadium.

Outstanding Performance in Macau

• Posted another outstanding quarter with adjusted property EBITDAR surpassing Q2 2019.
• Margins in the high 20s, confident in sustaining this performance for the long term.
• Focused on activating incremental 200 tables, making optimistic changes to maximize yield, and driving international customers through global branch office network.

Progress and Opportunities in BetMGM

• On track for second half 2023 profitability.
• Expect to be live with single account, single wallet feature in 14 markets, covering over 50% of the database.
• Acquisition of Angstrom to improve product and refine pricing tools.
• MGM Resorts’ 37,000 rooms in Las Vegas bring in new customers nightly and expose them to BetMGM marketing.

Hubert Wang says,

Expansion of Sales Team

• MGM is planning to expand its sales team to improve customer acquisition.

Leveraging International Network

• MGM Resorts will leverage its network to target the overseas market.
• Progress has already been made, and the company plans to open more offices and double its headcount in sales and marketing in these areas.

Capital Projects and Enhancement

• Improving customer experience, particularly in the premium mass segment, is a priority.
• MGM Macau will undergo renovation in the coming months and quarters.
• Non-gaming programs and products will be renovated or built under the re-tendering concession commitment.

Strong July Results

• July results show strong and robust performance with continuous improvement in various key performance indicators (KPIs).
• Daily GGR, mass GGR recovery rates, and EBITDA recovery rate are all higher than in the second quarter.

Optimistic Outlook

• The company is optimistic about the balance of the year in terms of recovery and financial results.

Q & A sessions,

Events and Conventions

• The company is experiencing a positive trend in events activity, with carriers choosing to bring their aircraft to their locations.
• Inventory seats are at 115% or 116% of pre-pandemic levels, indicating strong demand.
• Conventions are expected to pick up pace, although the full return of international business, especially from Asia, is still awaited.
• The company expects Marietta to attract higher-value customers and potentially displace other properties.
• There are several bids in for major tournaments, including the college championship game and the final four for hockey.
• Legion programming has been successful in attracting popular artists like Beyonce and driving high occupancy rates.

Drive to Profitability and Product Improvement

• The company expects cohorts to mature in 24 to 36 months, particularly in sports, and hopes for earlier maturity in iGaming.
• Sports betters have a migration rate of about 30% to the casino, impacting iGaming growth.
• CPAs (Cost per Acquisition) have decreased from the 400s to below 300s, indicating improved marketing strategies and discipline.
• The company acknowledges the need to improve its product but believes that partnerships with Entain and Angstrom will help regain market share.
• Innovation in tying digital and brick-and-mortar gaming together is a focus for the company.

Marketing and Casino Floor Strategies

• The company has historically focused on knowing its own customers and delivering them to its properties, and the network previously utilized by junkets has proved beneficial.
• Additional offices have been opened to expand the network.
• The company’s changes in the casino floor configuration and game offerings have been replicated by others in the market.
• The company continues to hold share and perform well despite increased competition and the opening of thousands of hotel rooms in the market.
• The deployment of 200 tables has been successful, with 150 currently in play and 50 more to be added, which is expected to enhance the company’s share story in the second half of the year.