Q4 2023 MGM Resorts International Earnings Call

Operator: Good afternoon, and welcome to the MGM Resorts International fourth quarter and full year 2023 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, Kenneth Fang, President and Executive Director of MGM China, and Andrew Chapman, Director of Investor Relations.

Good afternoon, and welcome to the MGM result, resorts International's fourth quarter and full year 2023 earnings conference call.

Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President.

Speaker Change: Corey Sanders, Chief operating officer, Jonathan half yard Chief Financial Officer, and Treasurer kind of thing President and executive director of MGM, China, and Andrew Chapman Director of Investor Relations.

Speaker Change: Participants are in listen only mode. After the company's remarks, there will be a question and answer session.

Operator: After the company's remarks, there will be a question and answer session. In fairness to all participants, please limit yourself to one question and one follow-up. Please note, this conference is being recorded. Now, I would like to turn the call over to Andrew.

Speaker Change: In fairness to all participants please limit yourself to one question and one follow up please.

Speaker Change: Please note this conference is being recorded.

Speaker Change: Now I would like to turn the call over to Andrew Chapman.

Andrew Chapman: Good afternoon, and welcome to the MGM Resorts International fourth quarter and full year 2023 earnings call. This call is being broadcast live on the internet at investors.mgresorts.com. We've also furnished our press release on Form 8K to the SEC. In this call, we will make forward-looking statements under the safe harbor provisions of the federal securities laws. However, actual results may differ materially from those contemplated in these statements.

Andrew Chapman: Good afternoon, and welcome to the MGM resorts International fourth quarter and full year 2023 earnings call.

Andrew Chapman: This call is being broadcast live on the Internet at investors that MGM resorts Dot Com. We've also furnished our press release on form 8-K to the SEC.

Andrew Chapman: On this call we will make forward looking statements under the safe Harbor provisions of the federal Securities laws.

Andrew Chapman: Actual results may differ materially from those contemplated in these statements.

Andrew Chapman: Additional information concerning factors that could cause actual results to differ from these forward-looking statements is included 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.

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.

Andrew Chapman: Except as required by law, we undertake no obligation to update these statements as a result of new information or otherwise.

Andrew Chapman: During the call, we will also discuss non-GAAP financial measures when talking about our performance. You can find the Reconciliation to GAAP Financial Measures in our press release and in Mr. Hornbuckle's Presentation, which is available on our website. Finally, this presentation is being recorded. I will now turn it over to Bill Hornbuckle.

Andrew Chapman: During the call. We will also discuss non-GAAP financial measures when talking about our performance you can find the reconciliation to GAAP financial measures in our press release and Investor presentation, which are available on our website. Finally this presentation is being recorded I will now turn it over to Bill Hornbuckle. Thank you Andrew and good afternoon, and thank you all for joining us today.

William Joseph Hornbuckle: Thank you, Andrew, and good afternoon, and thank you all for joining us today. MGM Resorts achieved outstanding results in 2023, delivering all-time high adjusted property EBITDAR in Las Vegas and at MGM China. Notably, seven of our domestic properties set individual records for adjusted property EBITDAR for the full year.

William Joseph Hornbuckle: MGM resorts achieved outstanding results in 2023, delivering all time high adjusted property EBITDAR in Las Vegas, and at MGM, China, notably seven of our domestic properties set individual records for adjusted property EBITDAR for the full year.

William Joseph Hornbuckle: These outstanding accomplishments underscore the resilience and the agility of our team in navigating a complex operating year. In fact, our employees earned record NPS scores from our customers throughout 2023. I want to thank all of our dedicated employees who consistently strive to deliver world-class service to our guests.

William Joseph Hornbuckle: These outstanding accomplishments underscore the resilience and the agility of our team in navigating a complex operating ear in fact, our employees earned record N. P. S scores from our customers throughout 2023 I want to thank all of our dedicated employees are consistently strive to deliver on world class service to our guests.

William Joseph Hornbuckle: The strength and resiliency of the Las Vegas market have been particularly impressive. Strategically, you've heard me talk a lot last year about the evolution of Las Vegas as a new sports and entertainment capital of the world. You saw that fact proven out again Sunday as the city proudly hosted Super Bowl 58 right in our own backyard.

William Joseph Hornbuckle: The strength and resiliency of Las Vegas market has been particularly impressive strategically you've heard me talk a lot last year about the evolution of Las Vegas, as a new sports and entertainment capital of the World you saw that fact proven out again Sunday, that's the city, probably hosting Super Bowl 58, right in our own backyard. The game was another strong.

William Joseph Hornbuckle: The game was another strong hotel and casino event for us, with ADRs near 1,000 and posting three of the top five room revenue days ever recorded and near record event gaming volumes. The game weekend is typically a strong event for MGM Resorts, but having the game in town amplified those results dramatically. The game on Sunday followed our inaugural Formula One race in November, which was also an incredible success as the largest city event in our history.

William Joseph Hornbuckle: Cherilyn casino event for us with a D ours near 1000, and posting three of the top five room revenue days ever recorded.

William Joseph Hornbuckle: And near record event gaming volumes. The game weekend is typically a strong event for MGM resorts, but having the game in town amplified those results dramatically.

William Joseph Hornbuckle: The game on Sunday, followed our inaugural Formula One race in November which was also an incredible success as a largest city event in our history. Additionally, we glean valuable insights from the event and specifically and how to better price and program all of our resorts and streamline the preparation work for future years.

William Joseph Hornbuckle: Additionally, we gleaned valuable insights from the event and specifically on how to better price and program all of our resorts and streamline the preparation work for future years. With both F1 and the Super Bowl, our brand was on full display. Our proximity to Allegiant Stadium, the F1 track, and, of course, T-Mobile Arena affords us the opportunity to expand our reach during these citywide events. We have also officially launched our partnership with Marriott with impressive early results. Marriott Bomboy customers can now seamlessly book rooms at select MGM properties in Las Vegas, with 16 brands set to be introduced by the end of Q1.

William Joseph Hornbuckle: With both F. One and Super Bowl our brand was on full display a proximity to Allegiant Stadium. The F. One track and of course T mobile arena afford us the opportunity to expand our reach during these citywide events. We also officially launched our partnership with Marriott with impressive early results marry up onboard customers can now seamlessly.

William Joseph Hornbuckle: Book rooms at select MGM properties in Las Vegas, with 16 brands yet to be introduced by the end of Q1.

William Joseph Hornbuckle: In Macau, we ended 2023 with an all-time record adjusted EBITDAR for the quarter and the full year. A robust market share was comfortably in the mid-teens and continued its upward trend in January. The strategic addition of 200 table games coupled with the agile operations of our team and the reinvestment into many amenities has collectively driven these exceptional results, and Digital, but MGM made its four-year 2023 targets in both net revenue and second-half profitability. They also made significant strides in the technology roadmap with the launch of a new app design and with single account, single wallet capabilities being available now in most states. Looking ahead, our outlook remains strong. We're encouraged by the metrics we've seen in our business, including room and rates on the books and in-the-year group attendance and future bookings, as well as a robust event calendar for the city. Our Las Vegas operations would represent within 70% of our U.S. brick and mortar.

William Joseph Hornbuckle: In Macau, we ended 2023 with an all time record adjusted EBITDAR for the quarter and the full year a robust market share was comfortably in the mid teens and continued its upward trend in January. The strategic addition of 200 table games, coupled with the agile operations of our team and the reinvestment into many amenities.

William Joseph Hornbuckle: And collectively driven these exceptional results in.

William Joseph Hornbuckle: In digital but M. G M made at full year 2023 targets in both net revenue and second half profitability. They also made significant strides in their technology Road maps.

William Joseph Hornbuckle: With the launching of a new App design and with single account single wallet capabilities being available now in most states looking ahead, our outlook remains strong we're encouraged by the metrics, we've seen in our business, including room and rates on the books and in the year group attendance and future bookings as well as a robust event.

William Joseph Hornbuckle: Calendar for the city of Las Vegas operations would represent within 70% of our U S brick and mortar adjusted property EBITDAR in 2020 three will benefit from a number of key initiatives in 'twenty. Four for example, our transient segment will grow as a result of the Marriott relationship, which will bring a new customer base. It will be acquired at lower acquisition costs.

William Joseph Hornbuckle: Adjusted property EBITDA in 2023 will benefit from a number of key initiatives in 2024. For example, our transient segment will grow as a result of the Marriott relationship, which will bring a new customer base that will be acquired at lower acquisition costs, higher rates, and more spend on property. On the group side, the Mandalay Bay Convention Center refresh is nearly complete, and we're poised to benefit from an increased 100,000 plus group room nights on the strip.

William Joseph Hornbuckle: Higher rates and more spend on property on the group side, The Mandalay Bay Convention Center refreshes nearly complete and we're poised to benefit from an increased 100000, plus group room nights on the strip.

William Joseph Hornbuckle: With MGM's casino segment, we will drive growth from the return of Far East Baccarat play, which is still below 2019 levels. We will leverage our branch office network to drive customers to our resorts in Las Vegas and expect to see further recovery of international inbound flights, which are still only 75% recovered from Asia. Later this week, we will host our annual Chinese New Year celebration at Bellagio in Aria, which is already seeing strong gaming demand, stronger gaming demand, excuse me, than last year. Our 2024 regional outlook anticipates demand to remain stable.

William Joseph Hornbuckle: With Mgm's Casino segment, we will drive growth and the return to far East Baccarat play, which is still below 2019 levels, we will leverage our branch office network to drive customer store resorts in Las Vegas, and expect to see further recovery of international inbound flights, which are still only 75% recovered from Asia. Later this week, we will host our annual.

William Joseph Hornbuckle: Chinese new year celebration at Bellagio, and ARIA, which is already seeing strong gaming demand stronger gaming demand.

William Joseph Hornbuckle: It gives me than last year.

William Joseph Hornbuckle: Our 'twenty 'twenty four regional outlook anticipates demand remains stable that being said we are committed to consistently improving our operational model sustained margins and foster steady generation of free cash flow. Our regional portfolio has historically proven to be highly defensive thanks to the exceptional high quality assets, we operate the diverse set of non gaming amenities.

William Joseph Hornbuckle: That being said, we are committed to consistently improving our operational model, sustain margins, and foster a steady generation of free cash flow. Our regional portfolio has historically proven to be highly defensive thanks to the exceptional high-quality assets we operate, the diverse set of non-gaming amenities we offer, our strong market share positioning, and overall customer loyalty. Looking ahead in Macau, our exceptional results for 2023 have carried into the first 45 days of 2024, driven by successful events, including a Bruno Mars concert at the MGM Kotai, driving strong visitation to our properties. Demand in our properties for Chinese New Year, which is also going on now, is also very strong. As we look further into the year, the Macau government has set a target of attracting 33 million visitors in 2024, reflecting a 17% increase year-over-year. It's a testament to our team's continuous innovation in crafting compelling experiences for our predominantly premium mass clientele. Our focus on the New Year in Macau remains on three priorities.

William Joseph Hornbuckle: We offer our strong market share positioning and overall customer loyalty.

William Joseph Hornbuckle: Looking ahead in Macau, our exceptional results for 2020 three have carried into the first 45 days of 'twenty 'twenty four driven by successful events, including a Bruno Mars concert at the MGM Cotai driving strong visitation to our properties demand at our properties for Chinese New year's which is also going on now is also very strong.

William Joseph Hornbuckle: Well look further into the year. The Macau government has set a target of about 33 million visitors in 'twenty 'twenty four reflect reflecting a 17% increase year over year.

William Joseph Hornbuckle: A testament to our team's continuous innovation and crafting compelling experiences for our predominantly premium mass clientele. Our focus is on the new year in Macau remain on three priorities.

William Joseph Hornbuckle: Implementing strategic adjustments to our casino floor and existing room offerings to optimize yield, prioritizing the needs of our mass and premium mass customers, and actively driving international tourism. Turning to BetMGM in 2024, we will soon be live in 29 markets with the launch of North Carolina next month. We had a noteworthy technology achievement in January with the approval and subsequent migration of the Intane platform in Nevada.

William Joseph Hornbuckle: Lamenting strategic adjustments to our casino floor and existing room offerings to optimize yield.

William Joseph Hornbuckle: The needs of our mass and premium mass customers and actively driving international tourism.

William Joseph Hornbuckle: Turning to bet MGM in 'twenty 'twenty four we will soon be live in 29 markets with the launch of North Carolina and next month, we had a noteworthy technology achievement in January with the approval and subsequent migration of the <unk> platform in Nevada. This sets the stage for integration of a single account single wallet in Nevada later, this spring which is.

William Joseph Hornbuckle: This sets the stage for integration of single-account, single-wallet in Nevada later this spring, which is critical to our omni-channel thesis and will fully unlock one of the key differentiators for BetMGM by fully leveraging our Las Vegas properties. Within our international digital space in the UK, LeoVegas and MGM's KPIs have exceeded our initial projections, demonstrating again the strength of MGM's brand. In fact, by leveraging the MGM Resorts balance sheet, we now offer the highest jackpot payouts amongst all competitors in the U.S., making our offers even that much more compelling. Turning to our development pipeline, in Osaka, we successfully began liquefaction countermeasures in the fourth quarter, maintaining our trajectory to commence preparatory construction efforts in 2025 on time for the 2030 opening. Additionally, in New York, the request for proposal process is currently underway.

William Joseph Hornbuckle: Critical to our Omnichannel thesis with fully unlocked and well and will fully unlock what are the key differentiators for bet MGM by fully leveraging our Las Vegas properties.

William Joseph Hornbuckle: Within our international digital space in the U K legal Vegas, but M. James Kpis have exceeded our initial projections demonstrating again the strengths of M. James brand in fact by leveraging the MGM resorts balance sheet. We now offer the highest jackpot payouts amongst all key competitors in the U S. Making it offers even that much more compelling.

William Joseph Hornbuckle: Turning to our development pipeline in Osaka, we successfully began liquefaction countermeasures in the fourth quarter, maintaining our trajectory to commenced preparatory construction efforts in 2025 on time for 2030 opening. Additionally, in New York the request for proposal process is currently underway we anticipate.

William Joseph Hornbuckle: We anticipate submitting our full application to the government by the middle of this year, with a decision expected shortly thereafter. Putting it all together, our company is in a great position to generate free cash flow through 2028. We will deploy this free cash strategically into development projects such as Japan and New York. Additionally, we will reinvest in our existing portfolio through maintenance and growth CapEx, which is specifically focused on enhancing and expanding our luxury-oriented offerings, and the repurchase of shares at attractive levels, an investment which we believe will still continue to generate strong returns. Jonathan, it's over to you.

William Joseph Hornbuckle: It's paid submitting our full application to the government by the middle of this year with a decision expected shortly thereafter.

William Joseph Hornbuckle: Putting it all together our company is in a great position to generate free cash flow to 2028, we'll deploy this free cash strategically into development projects, such as Japan, and New York will reinvest in our existing portfolio through maintenance and growth Capex, which we are specifically focused on enhancing and expanding our luxury oriented offerings and the.

William Joseph Hornbuckle: Joseph shares at attractive levels and investment, which we believe will still continue to generate strong returns Jonathan over to you.

Jonathan S. Halkyard: Thanks, Bill, and before I dig into the financial results, I'd like to join Bill in thanking our employees at MGM Resorts for an outstanding quarter and a truly great year. While I certainly focus on our exceptional financial results, we accomplished that and so much more together. Our consolidated businesses in the fourth quarter generated net revenues of $4.4 billion, up 22% from last year, net income of $202 million, and adjusted EBITDA of $1.2 billion. During the quarter, net cash from operating activities was $716 million, and free cash flow was $387 million. It's important to note that $283 million in cash flow from operating activities and $18 million in capital expenditures related to MGM China were included in the quarter. For the full year of 2023, free cash flow is expected to be $1.8 billion.

Jonathan S. Halkyard: Thanks, Bill and before I dig into the financial results I'd like to join Bill and thanking our employees at MGM resorts for an outstanding quarter, and a truly great year, well I certainly focus on our exceptional financial results, we accomplished that so much more together.

Jonathan S. Halkyard: Our consolidated businesses in the fourth quarter generated net revenues of $4 4 billion up 22% from last year net income of $202 million and adjusted EBITDAR of 1.2 billion during the quarter net cash from operating activities was $716 million and free cash flow was three.

Jonathan S. Halkyard: $187 million. It is important to note the $283 million in cash flow from operating activities and $18 million in capital expenditures related to MGM, China and they were included in the quarter for.

Jonathan S. Halkyard: For the full year of 2023 free cash flow was $1 8 billion.

Jonathan S. Halkyard: In Las Vegas same store net revenues, which excludes Mirage from the prior year period was $2 4 billion up 10% over last year on previous calls we've talked about the fact that our operations in Las Vegas skew towards the high end with approximately 80% of our strip adjusted property EBITDAR coming from our luck.

Jonathan S. Halkyard: In Las Vegas, same-store net revenues, which excludes Mirage from the prior year period, were $2.4 billion, up 10% over last year. On previous calls, we've talked about the fact that our operations in Las Vegas skew towards the high end, with approximately 80% of our strip-adjusted property EBITDA coming from our luxury property. Interestingly, this year's revenues from our luxury properties increased mid-teens for the quarter in the year, representing approximately 90% of our absolute top-line growth. And this further highlights the prominence of the higher-end segments in our business here in Las Vegas. Same-store adjusted property EBITDA increased 3% or $29 million year-over-year. Margins were about 36% in the quarter, well within our expected range in the mid-30s. In the regions, same-store revenue, which excludes gold strike, was down 7% year-over-year, with same-store adjusted property EBITDA decreasing 64 million, or 22%.

Jonathan S. Halkyard: Sri properties Interestingly this year's revenues from our luxury properties increased mid teens for the quarter and the year, representing approximately 90% of our absolute top line growth and.

Jonathan S. Halkyard: This further highlights the prominence of the higher end segments in our business here in Las Vegas.

Jonathan S. Halkyard: Same store adjusted property, EBITDAR increased 3% or 29 $9 million year over year margins were about 36% in the quarter well within our expected range in the mid thirties.

Jonathan S. Halkyard: In the regions same store revenue, which excludes goldstrike was down 7% year over year with same store adjusted property, EBITDAR decreasing $64 million or 22%.

Jonathan S. Halkyard: It's important to note that approximately $60 million of the decrease year over year came from Detroit and National Harbor, where those properties were impacted by disruptions related to a strike related to a strike and some high end play not returning respectively.

Jonathan S. Halkyard: It's important to note that approximately 60 million of the decrease year-over-year came from Detroit and National Harbor, where those properties were impacted by disruptions related to a strike and some high-end play not returning, respectively. There were also some lingering cyber incident challenges that specifically impacted the regional portfolio, given that promotional offers were not available to our customers for the first half of October. Beyond these specific property circumstances in the fourth quarter, regional property trends remain stable.

Jonathan S. Halkyard: There was also some lingering cyber incident challenges that specifically impacted the ratio portfolio given the promotional offers were not available to our customers for the first half of October.

Jonathan S. Halkyard: Beyond these specific product pretty circumstances in the fourth quarter the regional property trends remained stable.

Jonathan S. Halkyard: As we look to drive future growth within our domestic portfolio our centers of excellence and property leaders have identified opportunities to increase our share of customer spend and drive organic growth, we see plenty of both near term and medium term opportunities to enhance revenue per occupied room night, even beyond the benefits of.

Jonathan S. Halkyard: As we look to drive future growth within our domestic portfolio, our centers of excellence and property leaders have identified opportunities to increase our share of customer spend and drive organic growth. We see plenty of both near-term and medium-term opportunities to enhance revenue per occupied room night, even beyond the benefits of the Marriott partnership. For example, adaptive pricing will maximize throughput within our high-demand outlets and will further enhance our ability to drive upsells and new product offerings, such as bundled packages with room, show, and food and beverage offerings.

Jonathan S. Halkyard: The Marriott partnership.

Jonathan S. Halkyard: For example, adaptive pricing will maximize throughput within our high demand outlets and will further enhance our ability to drive upsells and new product offerings.

Jonathan S. Halkyard: This includes bundled packages with room show and food and beverage offerings. We expect these initiatives to drive rep or growth in 'twenty 'twenty four improved segmentation will allow us to increase personalization and enhance the guest experience, while driving increased M. P S and overall customer lifetime value.

Jonathan S. Halkyard: We expect these initiatives to drive revenue or growth in 2024. Improved segmentation will allow us to increase personalization and enhance the guest experience while driving increased MPS and overall customer lifetime value. Omni-channel purchase behavior by our MGM Rewards members will be enhanced by a single account, single wallet in Nevada later this year.

Jonathan S. Halkyard: And omnichannel purchase behavior by our MGM rewards members will be enhanced by a single account single while in Nevada. Later this year once in action our customers will be able to open an account here in Las Vegas, and bring that wallet home to continue their experience with MGM resorts, allowing us to drive targeted marketing and outreach to further.

Jonathan S. Halkyard: Cross sell.

Jonathan S. Halkyard: Once in action, our customers will be able to open an account here in Las Vegas and bring that wallet home to continue their experience with MGM Resorts, allowing us to drive targeted marketing and outreach to further cross-sell our digital and physical assets. Moving over to MGM China, our record adjusted property EBITDA of $262 million, a 42% increase compared to the fourth quarter of 2019. This was driven by casino revenue, which increased 31% versus the fourth quarter of 2019, and more specifically, our main floor segment table games win, which increased 74% from 2019. Margins were in line with the first three quarters of the year at 27%, market share was an all-time record in the fourth quarter at over 16 percent, and for the full year, our market share exceeded 15 percent, which is 600 basis points above our 2019 performance and 300 basis points above our table fair share.

Jonathan S. Halkyard: Our digital and physical assets more.

Moving over to MGM, China, a record adjusted property EBITDAR of 262 million was a 42% increase compared to the fourth quarter of 2019.

Jonathan S. Halkyard: This was driven by casino revenue, which increased 31% versus the fourth quarter of 2019 and more specifically our main floor segment table games win which increased 74% from 2019 margins were in line with the first three quarters of the year at 27%.

Jonathan S. Halkyard: Market share was an all time record in the fourth quarter at over 16% and for the full year, our market share exceeded 15%, which is 600 basis points above our 2019 performance and 300 basis points above our table fair share.

Jonathan S. Halkyard: On the digital side bet MGM successfully met its 2023 targets by reporting positive EBITDA in the second half of the year and reaching the upper limit of its net revenue from operations guidance of one $8 billion to $2 billion.

Jonathan S. Halkyard: And let me close with as usual with a brief walk through of our capital allocation strategy and our valuation.

Jonathan S. Halkyard: On the digital side, BettMGM successfully met its 2023 targets by reporting positive EBITDA in the second half of the year and reaching the upper limit of its net revenue from operations guidance of $1.8 to $2 billion. And let me close, as usual, with a brief walkthrough of our capital allocation strategy and our evaluation. First off, we successfully closed on an amendment and extension of our Senior Secured Credit Facility this week.

Jonathan S. Halkyard: First off we successfully closed on an amendment and extension of our senior secured credit facility. This week. This expands our capacity by approximately $600 million to $2 3 billion and extends the maturity of that facility to 2029.

Jonathan S. Halkyard: The commitment from our relationship banks of ours allows us to sustain our financial policy of a minimum $3 billion in liquidity, while deploying incremental cash for further high return investments including share repurchases.

Jonathan S. Halkyard: As Bill mentioned, we expect to fully fund the equity contribution in Japan, and the commercial gaming expansion in New York with our free cash flow.

Jonathan S. Halkyard: This expands our capacity by approximately $600 million to $2.3 billion and extends the maturity of that facility to 2029. The commitment from our relationship banks allows us to sustain our financial policy of a minimum $3 billion in liquidity while deploying incremental cash for further high-return investments, including share repurchases. As Bill mentioned, we expect to fully fund the equity contribution in Japan and the commercial gaming expansion in New York with our free cash flow. Domestically, we intend to invest maintenance capital of approximately $600 million this year, or 4% of revenue, which is consistent with our historical trend. Major maintenance capital projects this year focus on luxury-oriented offerings, examples being the remodeling of the Bellagio Tower Suites, the Cosmopolitan Chelsea Tower Penthouses, and the MGM Grand Main Tower Room.

Jonathan S. Halkyard: Domestically, we intend to invest maintenance capital of approximately $600 million this year or 4% of revenue, which is consistent with our historical trend.

Jonathan S. Halkyard: Major maintenance capital projects. This year focused on luxury oriented offerings examples being the remodeling of the Bellagio tower suites, the cosmopolitan Chelsea tower penthouses and the M. G M, Maine Grand main tower rooms.

Jonathan S. Halkyard: As of the end of 2020 three we had liquidity of $4 5 billion when excluding MGM, China, excluding the cash that we keep on hand to operate our business in keeping with our policy, we have $1 billion in excess cash, which will be allocated to international and digital acquisitions high ROI capital projects.

Jonathan S. Halkyard: And share repurchases, we can see continue to see great value in our shares and during the year with a 2.3 billion dollar repurchase of our shares we reduced our share count by 14%.

Jonathan S. Halkyard: As of the end of 2023, we had liquidity of $4.5 billion when excluding MGM China, excluding the cash that we keep on hand to operate our business. In keeping with our policy, we have $1 billion in excess cash, which will be allocated to international and digital acquisitions, high ROI capital projects, and share repurchase. We continue to see great value in our shares, and during the year, with a $2.3 billion repurchase of our shares, we reduced our share count by 14%. To close, I would briefly like to discuss our enterprise valuation and why we still believe share repurchases are a remunerative use of our capital. Consider the following. As of yesterday, our share price was $47, and we had 320 million shares outstanding.

Jonathan S. Halkyard: To close I would briefly like to discuss our enterprise valuation and why we still believe share repurchases are remunerative use of our capital consider the following.

Jonathan S. Halkyard: As of yesterday, our share price was $47 and we had 320 million shares outstanding this equates to a market capitalization of $15 1 billion and if we add our quarter end domestic net debt and subtract the market value of our 56% stake in MGM, China and analysts' consensus estimates for the <unk>.

Jonathan S. Halkyard: Value of our 50% of bad M. G. M. Then we have the enterprise value of our operations less China and bet MGM of $10 6 billion.

William Joseph Hornbuckle: This equates to a market capitalization of $15.1 billion, and if we add our quarter-end domestic net debt and subtract the market value of our 56% stake in MGM China and analyst consensus estimates for the value of our 50% of BetMGM, then we have the enterprise value of our operations, less China, and BetMGM of $10.6 billion. Divide this by our 2023 EBITDA adjusted for corporate expenses, and we calculate an implied current trailing trading multiple of just 4.9 times. We think this multiple represents a discount to the value that we see in our future cash flows, which gives us further conviction in returning capital to shareholders by repurchasing our shares at these levels. Bill, back to you. Thanks, Jonathan. You know, before I open it up for questions, maybe just some general comments on the year. And you've heard me say this and use the words resilient and luxury a couple of times.

Jonathan S. Halkyard: Goodbye this by hour to 2023, EBITA adjusted for corporate expense and we calculate an implied current trailing trading multiple of just four nine times. We think there's multiple represents a discount to the value that we see in our future cash flows which provides us further conviction and returning capital to shareholders by.

Jonathan S. Halkyard: Purchasing our shares at these levels Bill back to you. Thanks, Jonathan Yeah before I open it up for questions, maybe just some general comments on the year.

William Joseph Hornbuckle: And you've heard me say this and use this word resilient.

William Joseph Hornbuckle: And luxury a couple of times, if you think about particularly this last quarter.

William Joseph Hornbuckle: We were on our heels with a cyber attack you all understood what that did to us and so as we entered October to think we'd end up having the quarter. We had I just I couldnt be prouder of the organization and it particularly shown through in luxury Bellagio. After 25 years had its best quarter in its history and its best year in its history.

William Joseph Hornbuckle: And so it does prove that and continuing to invest in these properties in the right place at the right time does make a difference and so we're very excited by thinking about that.

William Joseph Hornbuckle: If you think about this last quarter, we were on our heels with the cyber attack. You all understand what that did to us. And so as we entered October thinking we'd end up having the quarter we had, I just couldn't be prouder of the organization. And it particularly shone through in luxury. Bellagio, after 25 years, had its best quarter in its history and its best year in its history.

William Joseph Hornbuckle: We continue to go forward.

William Joseph Hornbuckle: I think about what happened with Beth M. G M and ultimately our database a M. Jimmy Woods database now has over 44 million participants.

William Joseph Hornbuckle: Driven by bad M. G M and ultimately the Omnichannel effective that long term will begin we think to pay dividends.

William Joseph Hornbuckle: A cow is doing amazingly well I know some of our competitors are wondering what we're doing Kenny and the team broke through 20% in the month of January for market share I'm, not suggesting that is sustainable but I will tell you I think we have repositioned those two properties and we're prepared to compete on an equal basis with anybody in the marketplace.

William Joseph Hornbuckle: And so it does prove that continuing to invest in these properties in the right place at the right time does make a difference. And so we're very excited about thinking about that as we continue to go forward. I think about what happened with BetMGM and ultimately our database. MGM Rewards now has over 44 million participants driven by BetMGM.

William Joseph Hornbuckle: Yes.

William Joseph Hornbuckle: When you think about bet M. G M. The original goal five years ago was to get into the top three because we thought it mattered and we have we realized he was focus on product. There's some things we need to do to maintain and keep market share and we think moves by that team with angstrom and other things I've done that for us.

William Joseph Hornbuckle: And ultimately, the omnichannel effect of that long term will begin to pay dividends, we think. Macau is doing amazingly well. I know some of our competitors are wondering what we're doing. Kenny and the team broke through 20 percent in the month of January for market share, but I'm not suggesting that's sustainable.

William Joseph Hornbuckle: We realized particularly this quarter, there's pressure on regional margins we.

William Joseph Hornbuckle: No what they did but remember what Jonathan said 60 of the 64 million was tied to two events Detroit strike and ultimately a player in our National Harbor, a company didn't come back a year over year, we find ourselves when when the best balance sheets in the industry, which well positions us to invest in.

William Joseph Hornbuckle: But I will tell you, I think we have repositioned those two properties, and we're prepared to compete on an equal basis with anybody in the marketplace. When I think about BetMGM, the original goal five years ago was to get into the top three because we thought it mattered. And we have. We realize there's a focus on the product. There are some things we need to do to maintain and keep market share, and we think moves by that team with Angstrom and other things have done that for us. We realize, particularly this quarter, there's pressure on regional margins. We know what they did.

William Joseph Hornbuckle: Places like Japan, and New York were looking aggressively at the UAE and Gary Frits and the digital team has constant things in front of us in terms of growing the balance of our worldwide digital business and so we're excited by all of that and then obviously if again you follow Jonathan's map like every CEO, we think we're under trade at 4.9.

William Joseph Hornbuckle: But remember what Jonathan said, 60 of the 64 million was tied to two events, the Detroit strike and ultimately, a player in our National Harbor company didn't come back year over year. We find ourselves with one of the best balance sheets in the industry, which well positions us to invest in places like Japan and New York. We're looking aggressively at the UAE.

Speaker Change: But obviously you all will be the judge of that so with that operator, I will open it up for questions.

Speaker Change: Thank you very much we will now begin the question and answer session.

Speaker Change: To ask a question you May press Star then one on your telephone keypad.

Speaker Change: As a reminder, in all fairness, please limit yourself to one question and one follow up.

William Joseph Hornbuckle: And Gary Fritz and the digital team have constant things in front of us in terms of growing the balance of our worldwide digital business. And so we're excited by all of that. And then obviously, if you again follow Jonathan's map, like every CEO, we think we're under-traded at 4.9 times. But obviously, you all will be the judge of that. So with that operator, I will open it up for questions. Thank you very much. We will now begin the question and answer session. To ask a question, you may press star and one on your telephone keypad.

Speaker Change: First question comes from Joe Greff with J P. Morgan. Please go ahead.

Joseph R. Greff: Good afternoon everybody.

Joseph R. Greff: Starting off with the Las Vegas, Bill Johnson, and whoever else is in the room there.

Joseph R. Greff: Can you talk about maybe isolating and in the fourth quarter. The EBITDA contribution from F. One.

And then you might be still counting the money from from the Super Bowl.

Joseph R. Greff: But do you think the superbowl event in Las Vegas is made up of a larger magnitude than.

Joseph R. Greff: What the EBITDA contribution from F. One wasn't.

Operator: As a reminder, in all fairness, please limit yourself to one question and one follow-up. And our first question comes from Joe Greff with JP Morgan. Please go ahead. Good afternoon, everybody.

Joseph R. Greff: It was in the fourth quarter and then.

Joseph R. Greff: Turning to the topic. That's one bill you mentioned about but have you had a better price F. One this year and in coming years.

Joseph R. Greff: Do you think your chew can be bigger than than year, one or does it have to level off before it can grow.

Joseph R. Greff: Starting off with the Las Vegas Bill, Jonathan, and whoever else is in the room there, can you talk about maybe isolating in the fourth quarter the EBITDA contribution from F1? And then you might be still counting the money from the Super Bowl, but do you think the Super Bowl event in Las Vegas is of a larger magnitude than what the EBITDA contribution from F-1 was in the fourth quarter? And then sticking to the topic of F-1, Bill, you mentioned maybe how to better price F-1 this year and in the coming years. Do you think year two can be bigger than year one or does it have to level off before it can grow? Let me give some broad strokes, and then Corey and Jonathan can both kick in. Look, F1, when you balance it out year over year, was between $50 and $70. It was actually a $70 million increase year over year. But if I excluded the year before, it was about $50 million. We didn't run lucky the year before. You know, the Super Bowl was amazing.

Joseph R. Greff: Let me give you some broad stroke, and then Korean dropping both kicking look F. One one in when you.

Joseph R. Greff: Balance it out year over year was up 50 to 70, it was actually a $70 million increase year over year, but if I neutralize the year before is about $50 million, we didn't run lucky the year before.

Joseph R. Greff: Super Bowl was amazing it did we were always concerned we do great Super Bowl parties here will it be the kind of event that will drive given the additional expense of the tickets et cetera.

Joseph R. Greff: The answer was hands down, yes, and particularly rooms and it drove them across the board, Unlike where F. One was isolated to a premium properties Super Bowl drove it across the board we had thousands of people in all of our ballrooms and the MGM Grand Garden, enjoying the game and enjoying the festivities and so it was a really successful universe.

Joseph R. Greff: Lavette Las Vegas showed up and I think we all did a tremendous job hosting it in where I was skeptical going in I would look to clearly want to host this again.

William Joseph Hornbuckle: We were always concerned, you know; we do great Super Bowl parties here. Will it be the kind of event that will draw, given the additional expense of the tickets, etc., etc.? The answer was, hands down, yes, and particularly the rooms.

Joseph R. Greff: I think on pricing when it comes to Formula one and we're gonna be more cautious with some of the outlier properties that we have we got paid for Bellagio ARIA Cosmopolitan along the track and we got paid well I think if you go further away you got from the track with a couple of exceptions M. G. M held in there well because of its adjacency.

William Joseph Hornbuckle: And it drove them across the board. Unlike where F1 was isolated to our premium properties, the Super Bowl drove it across the board. We had thousands of people in all of our ballrooms in the MGM Grand Garden enjoying the game and enjoying the festivities.

Joseph R. Greff: The panic.

Joseph R. Greff: There is opportunity to do that better and get more off and get more people back into the town.

Speaker Change: What I would add Joe on that point in particular, the south strip and in particular, we would treat that probably more like a normal weekend going forward cause.

William Joseph Hornbuckle: And so it was a really successful universal event. Las Vegas showed up, and I think we all did a tremendous job hosting it. And where I was skeptical going in, I would look to clearly want to host this again. I think on pricing, when it comes to Formula 1, we're going to be more cautious of some of the outlier properties that we have. We got paid for Bellagio, Aria, and Cosmopolitan along the track, and we got paid well. I think if you go further away from the track, with a couple of exceptions, MGM held in there well because of its adjacency to the paddock.

Speaker Change: Because of the lack of activation there. So we think there's opportunity there.

Speaker Change: And on Super Bowl I mean every cash register from food and beverage 10 Entertainment was ringing. So it was much more widespread at every property compared to half one which was isolated to the luxury.

Speaker Change: Great and.

Speaker Change: Don maybe this is a good chance for you to.

Don: Revisit any updated thinking and the board's thinking on any kind of large scale.

Don: Digital and M&A has anything really changed or evolved since the last time, you made public commentary on it.

William Joseph Hornbuckle: There's opportunity to do that better and get more people back into the town. What I would add, Joe, on F1 in particular, the South Strip in particular, we would treat that probably more like a normal weekend going forward because of the lack of activation there. So we think there's opportunity there. And on Super Bowl Sunday, I mean, every cash register, from food and beverage to entertainment, was ringing.

Don: No look I was at ice last week I met with stellar our partner, we're still very focused on making sure everyone's focuses on bet MGM and particularly this is a critical year I think for all of us are.

Don: So it's about product product product and focus and so that's that remains the focus for now.

Speaker Change: Thank you very much.

William Joseph Hornbuckle: So it was much more widespread at every property compared to F1, which was isolated to the luxury sector. Great. And Bill, maybe this is a good chance for you to revisit any updated thinking and the board's thinking on any kind of large-scale digital M&A. Has anything really changed or evolved since the last time you made public comment? No. Look, I was at ICE last week.

Speaker Change: The next question comes from Carlo Santarelli with Deutsche Bank. Please go ahead.

Carlo Santarelli: Hey, guys. Thank you and and I respect that you've talked about this previously and not really breaking out kind of impacts from hold but but clearly in Las Vegas in the third and fourth quarter, you you've experienced much higher than at least what we're accustomed to hold percentages and I was wondering if a you.

Carlo Santarelli: Could perhaps provide some impact in the fourth quarter in Las Vegas from from the hold and B, maybe just talk about more quantitatively.

William Joseph Hornbuckle: I met with Stella, our partner. We're still very focused on making sure everyone's focus is on Bed MGM. And particularly, this is a critical year, I think, for all of us. So it's about product, product, product. And so that remains the focus for now. Thank you very much.

Carlo Santarelli: What's driving it and how sustainable are what you would think if you had to go back and do it again normalized hold is in the current environment.

Speaker Change: Oh, Hey, carloads, Jonathan Yeah, we've tried to get out of the of the business of Av.

Carlo Santarelli: The next question comes from Carlo Santarelli of Deutsche Bank. Please go ahead. Hey guys, thank you, and I respect that you've talked about this previously and not really broken out kind of impacts from hold, but clearly, in Las Vegas, in the third and fourth quarter, you experienced, you know, much higher than at least what we're accustomed to hold percentages. And I was wondering if, A, you could perhaps provide some impact in the fourth quarter in Las Vegas from the hold, and B, maybe just talk about more quantitatively Hey Carlo, it's Jonathan.

Speaker Change: Giving of quantifying hold impacts because as you know there's a lot of things that cut both ways when trying to isolate.

The impact of hold it is it's certainly true that we experienced a good hold in the fourth quarter, but I would also say that first of all with this customer.

Customer segment that drove some.

Speaker Change: Some of those results you know the nature of the play is such that it can lead to higher hold anyway. So the whole the whole idea of what a normal hold is a little bit different and then second of all.

Speaker Change: There are there are expenses associated with with these customer segments, including of course, the normal complementary as well as in certain cases discounts in order to induce.

Speaker Change: More more rapid.

Speaker Change: <unk> of markers and alike.

Jonathan S. Halkyard: Yeah, we've tried to get out of the business of quantifying hold impacts because, as you know, there are a lot of things that cut both ways when trying to isolate the impact of hold. It is certainly true that we experienced good hold in the fourth quarter. But I would also say that, first of all, with this customer segment that drove some of those results, the nature of the play is such that it can lead to higher holds anyway. So the whole idea of what a normal hold is is a little bit different.

Speaker Change: But it look it was a it was it positively contributed to the results Theres no question about that.

Speaker Change: And but I would also highlight that there were offsets to that including player related expenses as well as some other things we incurred in the quarter.

Speaker Change: Okay. Good enough I appreciate that and then just just one follow up.

Speaker Change: On Macau in and perhaps kind of.

How you're thinking about things there obviously the results were very good market share results continue to be very good.

Speaker Change: The flow through in the period was if we looked at it on a sequential basis was was a little lower and I'm wondering if that has anything to do with which is kind of expenses that you're incurring or if its concession related programming things of that nature. If you can give some color on how we should think about.

Jonathan S. Halkyard: And then, second of all, you know, there are expenses associated with these customer segments, including, of course, the normal complementaries, as well as, in certain cases, discounts in order to induce more rapid retirement of markers and the like. But look, it positively contributed to the results. There's no question about that, but I would also highlight that there were offsets to that, including player-related expenses, as well as some other things we incurred in the quarter. Okay, good enough. I appreciate that, Jonathan.

Speaker Change: 2024 through the context of a flow through in and topline growth.

Speaker Change: Let me kick it off Kenny I'll turn it over to you. If some of it's simple activity case to your point I mean, we have done like all the awkward is a good job going after some of the and I'll use.

Carlo Santarelli: And then just one follow-up on Macau and perhaps kind of how you're thinking about things there. Obviously, the results are very good. Market share results continue to be very good. But the flow through in the period was, if we look at it on a sequential basis, a little lower.

Speaker Change: Our concert that we just had as a great example of an expansion in overhead item, but to drive overall tourism I would Bruno Mars et cetera, So part of it adhering to that Kenny why don't you give some more color there.

William Joseph Hornbuckle: And I'm wondering if that has anything to do with the kind of expenses that you're incurring, or if it's concession-related programming, things of that nature. If you can give some color on how we should think about 2024 through the context of flow through and top-line growth. Let me kick it off, Kenny, and I'll turn it over to you.

Speaker Change: Yeah.

Kenny: Thanks for the patch and actually liked as you can see like in Q4 was a record high end game, China HP.

We are happy to see our January performance.

Kenny: You took it out.

Kenny: No actually our January performance exceeded even October levels across all segments, including EBITDA and market share.

Kenneth Fong: In some of its simple activity cases, to your point, I mean, we have done, like all the operatives, a good job going after some of the—and I'll use— Our concert that we just had is a great example of an expense and an overhead item, but to drive overall tourism with Bruno Mars, etc. So part of it's adhering to that. Kenny, why don't you give some more color there?

Currently we are in the middle of Chinese new year.

Kenny: Uh huh.

Kenny: Basically <unk> has about a day celebration.

Kenny: Two the C T as two and that's where the visitation to the city.

Kenneth Fong: Yeah, thanks for the question. Actually, as you can see, Q4 was a record high in MGM China's history. We are happy to see our January performance has continued to grow. In fact, our January performance has exceeded even October levels across all segments, including EBITDA and market share. Currently, we are in the middle of the Chinese New Year celebration, which has about eight days of celebration, to the city as to the visitation to the city has reached about 90-95% of the 2019 swing period levels, and to MGM China, two properties combined. The visitation, Please count the table drops. The slot handle, as well as the VIP hangover, have all well exceeded the 2019 C-interior level.

Kenny: It reached about 90, 95% of 2019 same period levels.

Kenny: As to MGM China.

Kenny: These combined.

Kenny: The visitation.

Kenny: Scott the table drop.

Kenny: Lot handle Israel and the VIP paying over.

Kenny: Have all rail exceeded 2019 in period Nevertheless.

Speaker Change: So we are confident and we are optimistic.

Speaker Change: I'll be the Chinese new year as Vale as an event of this quarter.

Speaker Change: And I might add.

Speaker Change: Ed.

Speaker Change: Kenny I just might add you know what.

What countries are growing.

Speaker Change: As our high volume continues to increase because again, that's on us versus the junket operatives in the middle of that and I'll remind everybody on our margins in particular, we do not I wish we did but we do not have a large retail segment, which obviously theres a massive amount of flow through if you're making 100 million in a year in rent.

William Joseph Hornbuckle: So, we are confident and we are optimistic about the Chinese New Year, as well as the rest of this quarter. And, you know, I just might add, Kenny, I just might add, you know, contras are growing as our high volume continues to increase because, again, that's on us versus a junked operative in the middle of that. And I remind everybody about our margins in particular, we do not, I wish we did, but we do not have a large retail segment, which obviously has a massive amount of flow through if you're making 100 million a year in rent, which I know some of our competitors are. The flow through on that is a lot. We don't have that luxury.

Which I know some of our competitors are the flow through on that is a lot [laughter].

Speaker Change: We don't have that luxury so it does impact some of our margins.

Speaker Change: Absolutely.

Speaker Change: Yeah.

Sorry, because you mentioned it in terms of the Contra revenue. So it looks like they were you know 20.

Speaker Change: 21, 22% at each of the properties respectively in the period.

William Joseph Hornbuckle: So it does impact some of our, Absolutely. Sorry, because you mentioned it in terms of the contra revenues. It looks like they were, you know, 21, 22% at each of the properties, respectively, during the period.

Speaker Change: Is that kind of a level that you expect maintains as long as business mix as it stands today maintain.

Speaker Change: Yes, that's right, yes, that's right like are we at <unk> like like.

Carlo Santarelli: Is that kind of a level that you expect to maintain as long as the business mix as it stands today holds? Yes, that's right. Yes, that's right. Like, we are pretty like, like, we are. The re-investment rate actually is pretty flat over the quarters for the past year. Got it.

Iridium plasma rate actually pretty flat over the culture for the past year.

Speaker Change: Got it thank you al.

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

David Katz: Sorry, just to kind of us like myself.

David Katz: Thank you.

David Katz: Thank you all. The next question is from David Katz with Jeffreys, please go ahead. Sorry, I just had to unmute myself.

David Katz: Good evening, everyone and thanks for taking my question.

David Katz: I wanted to just go back to bet MGM.

David Katz: Thank you. Good evening, everyone, and thanks for taking my question. I wanted to just go back to Vet MGM.

David Katz: Obviously, there is a keen focus on product and 'twenty 'twenty four is its been in 2023.

David Katz: Obviously, there is a keen focus on product in 2024, as there was in 2023. But should we still think about 2024 as more of an investment year for that entity? And in 2025, you know, is that one where we can start to sort of realize some profits? If you could just talk through the puts and takes for what that trajectory might cause that trajectory to change this year, next year, that would be helpful. Sure, David. I'll take that.

David Katz: You should should we still think about 2024.

More of an investment year for that entity.

David Katz: In 2025.

David Katz: Is one where we can start to sort of realize some profits. If you could just talk through the puts and takes for what that trajectory what caused that might cause that trajectory change.

David Katz: This year next year that would be helpful.

Speaker Change: Sure sure David I'll take that.

William Joseph Hornbuckle: Look, I think the answer is yes, you're spot on. This will be a reinvestment year. Obviously, you've seen we've lost share. Literally, in both instances of the two folks that sit above us, we're being outspent two, two and a half to one in terms of raw marketing spend in dollars. We want and need to get our product in a better and different shape. We want more par

Speaker Change: Look I think the answer is yes, you're spot on this will be a reinvestment year, obviously, you've seen we've lost share literally in both instances of the two folks that sit above us we're being outspent two two and a half to one in terms of raw marketing spend in dollars.

We want and need to get our product in a better and different shape, we want more parlays I'm, obviously the acquisition of angstrom by our partner will be a big add to that and we'll be able to stick out more product. We will have more confidence in its speed to market will be better etcetera, and so that's part of what will be developed starting with baseball.

William Joseph Hornbuckle: Obviously, the acquisition of Angstrom by our partner will be a big add to that. We'll be able to put out more product. We'll have more confidence in it. Speed to market will be better, etc.

William Joseph Hornbuckle: And so that's part of what will be developed starting with baseball this year. We hope by the time we hit football next year, a lot of the product differentiators we hope to have will be in place. We hope to have a single wallet in play, as I mentioned in my prepared comments this spring here.

Speaker Change: This year, we hope by the time, we hit football next year, a lot of the product Differentiators, we hope to have will be in play.

Speaker Change: We hope to have a single wallet in play and as I mentioned in my prepared comments to spring here, but.

William Joseph Hornbuckle: But ultimately, a development year this year, and begin to see making some cash next year. And I'm suggesting that by 2026, we're going to have a very strong first year of, you know, this is where this business is going and should be. And look, it'd be silly for me to ask as my follow-up, will you or won't you? And so I'm not.

Speaker Change: But ultimately a development ear this year begin to see making some cash next year.

Speaker Change: And I'm.

Speaker Change: Suggesting that by 2026, we're gonna have a very strong first year of you know this is where this business is going and should be.

Speaker Change: Alright, and looked at it it would be silly for me to ask as my follow up will you or wont you and so I'm not.

David Katz: But, you know, if you could just help us frame out the puts and takes around, you know, whether MGM could at some point or how it thinks about, you know, controlling that entity, and, you know, being able to drive the trajectory of that product advancement, you know, that makes perfect sense, that'd be helpful also. It's obviously a matter that's being discussed pretty actively. David, you know, I would only say, echo what I said, look, with Stella as the interim CEO, the focus on the product team for Ben MGM is the focus. I don't want to comment on any further discussions with them at this point. I don't think it'd be prudent.

But if you could just help us frame out the puts and takes around.

Speaker Change: Whether MGM.

Speaker Change: Could at some point or how it thinks about.

Speaker Change: Trolling that entity.

And being able to drive the trajectory of that product advancement.

Speaker Change: No that makes perfect sense.

Speaker Change: That that'd be helpful. So it's a it's obviously a matter that that's discussed pretty accurately.

Speaker Change: David I would only say echo what I've said look with Stella as the interim CEO the focus on the team for product for better M. G. M is is the focus.

Speaker Change: I don't want to comment on any other further discussion with them at this point I don't think it'd be prudent.

Speaker Change: I understand I appreciate it I hope you can.

William Joseph Hornbuckle: I understand. I appreciate it. I hope you will allow me to ask it.

Speaker Change: Allow me to ask them. Thanks.

Stephen Grambling: Thanks. Thank you. The next question comes from Stephen Grambling with Morgan Stanley. Please go ahead.

Thank you.

Speaker Change: The next question comes from Stephen Grambling with Morgan Stanley. Please go ahead.

Stephen Grambling: Hi, just thinking about Vegas into 2024, do you generally think of this year as being more of a lodging and F&B year versus a gaming year? And in that context, how should we think about OpEx per day growth in Vegas specifically this year? What are the major puts and takes to think through? Yeah, actually, I think that's probably a good way to characterize it.

Hi.

Stephen Grambling: Thinking about Vegas into 2024 do you generally think of this year as being more of a lodging and F&B year versus a gaming year and in that context, how should we think about opex per day growth.

Stephen Grambling: In Vegas, specifically in the year and what the major puts and takes I think a true.

Stephen Grambling: Okay.

Stephen Grambling: I actually I think that's probably a good way to characterize it you know when we look at the drivers of of growth. This year and we've talked about a few of them already a lot of it relates to yielding pricing.

Jonathan S. Halkyard: You know, when we look at the drivers of growth this year, and we've talked about a few of them already, a lot of it relates to yielding, pricing, of course, growing demand through this new Marriott partnership, and so on. Yeah, and the conventions business. Thank you, Bill. The, you know, so those are going to be the main drivers of top line growth as it relates to OPEX, while, of course, we don't, you know, we don't provide guidance for either the top line or the bottom line. However, we are looking at increases, the main increases associated with our new labor agreement here in Las Vegas with the Culinary Union. So that will be at least a year over year factor for the first half of the year, not really in the back half of the year since we already incurred that in the last six months of the year.

Stephen Grambling: Of course growing demand through this new Marriott partnership.

Stephen Grambling: And so on but yeah in the conventions.

Speaker Change: Thank you Bill.

Bill: So that's going to those are going to be the main drivers of top line growth as it relates to Opex. While of course, we don't you know we don't provide guidance.

Bill: Guidance for either the top line or the bottom line and we are looking at increases.

Bill: Main increases associated with our new labor agreement here in Las Vegas with the culinary Union.

Bill: So that will be at least a year over year factor for the first half of the year not really in the back half of the year since we already incurred that in the last six months of the year.

Jonathan S. Halkyard: That will be the main, the main issue for us. We'll be able to offset that in part through some work we're doing around productivity, as well as an improvement in cost of sales through leveraged procurement activities. You know, but I think a, you know, kind of a low to mid single-digit OPEX growth rate is, I wouldn't be surprised if we incur that this year. And then maybe one other follow-up, just on the buyback, I guess, how do you think about the pace that we should be anticipating this year? And what's the kind of upper bound in terms of leverage that you should be thinking through?

Bill: That will be the main the main issue for us will be able to offset that in part through some work, we're doing around productivity as well as.

Bill: Improvement in cost of sales through leverage procurement activities, no, but I think a kind of a low to mid single digit opex growth rate is is I wouldn't be surprised if we are if we incur that this year.

Bill: And then maybe one other follow up just on the buyback I guess, how do you think through the the pace that we should be anticipating this year and what's kind of the upper band in terms of leverage that you should be thinking through.

Bill: Yeah.

Jonathan S. Halkyard: The upper bound of leverage would be four and a half times lease-adjusted leverage, and we're a full turn below that right now. I think I mentioned the preparer's remarks. We retired 14% of our outstanding shares last year.

The upper bound of leverage would be four and a half times lease adjusted leverage.

Bill: And we're a full turn below that right now.

Bill: You know, we I think I mentioned in the prepared remarks, we we retired 14% of our outstanding shares last year. It was it may have been our largest.

Jonathan S. Halkyard: It may have been our largest share repurchase year to date. I wouldn't anticipate continuing at that pace this year, but we're still active in the market. We still think its shares are attractively valued, and we still have a fair amount of dry powder just augmented with our revolving credit increase to enable us to do that. I would say it's likely going to be less than it was in 2023, but we're still being aggressive. Thanks so much.

Bill: Share repurchase year to date wouldn't anticipate continuing at that pace this year.

Bill: But we're still we're still active in the market. We still think its shares are attractively valued.

Bill: And we still have a fair amount of dry powder, just augmented with our revolving credit increase to enable us to do that so I would say, it's likely going to be less than it was in 2020 three but we're still being aggressive.

Speaker Change: Great. Thanks, so much best of luck.

Dan Politzer: Thank you. The next question is from Dan Politzer with Wells Fargo. Please go ahead.

Speaker Change: Thanks.

Speaker Change: The next question is from Dan policy with Wells Fargo. Please go ahead.

Dan Politzer: Hey, good afternoon, everyone, and thanks for taking my question. First, I want to drill in a little bit just on the fourth quarter in Las Vegas. I think our same sort of revenues were about 10 percent, and margins down a couple hundred basis points. I know there's a lot of moving pieces in there, accruals and maybe some cyber impact and hold, but hopefully, maybe you could just parse that out, you know, as it would be helpful for us to think about that 2024 OPEX guide you mentioned. Sure. You know, when we kind of parse it out, accounting for unusual items or things that we wouldn't expect to occur, we think that the margin in the fourth quarter in Las Vegas was maybe benefited by about 100 basis points. So that still puts us, you know, right in the mid-30s, which is where we've kind of expected the margins to be for some time. That's where we expect them to be for 2024. Got it. That's helpful. And then I guess, you know, more broadly on muscle.

Dan Policy: Hey, good afternoon, everyone and thanks for taking my questions.

Dan Policy: Firstly I wanted to drill in a little bit.

Dan Policy: Just on the fourth quarter in Las Vegas, I think our same store revenues were up about 10% margins down a couple of hundred basis points I know theres a lot of moving pieces in air and accruals and maybe some cyber impact on hold but hoping maybe you could just parse that out.

Dan Policy: It would be helpful for us to think about that 2024 Opex Guide you mentioned.

Speaker Change: Sure you know.

Speaker Change: When we kind of parse it out.

Speaker Change: Accounting for unusual items or things that we wouldnt expect to recur, we think that the margin in.

Speaker Change: In the fourth quarter in Las Vegas was maybe benefited by about 100 basis points.

Speaker Change: So that still puts us right in the mid thirties, which is where we would where we we've kind of expected the margins to be for for some time, that's where we expect them to be for 2024.

Speaker Change: Yeah.

Speaker Change: Got it that's helpful. And then I guess more broadly on Las Vegas, as we think about kind of the remainder of the year I think March Conagra Rolling off March Madness, but you have group as you mentioned kind of pacing better how should we think about kind of baking all in in terms of an expectation for growth or any major tentpole.

William Joseph Hornbuckle: As we think about kind of the remainder of the year, I think March, you have Con Ag rolling off, March Madness, but you have groups, as you mentioned, kind of pacing better. How should we think about kind of baking it all in in terms of an expectation for growth or any, you know, major tentpole events to kind of call out for the remainder of the year that we should get excited about? You know, we've got just the top line. Madonna's coming, Springsteen's coming, the Stones are coming, to name three. We've got a great football kickoff with USC and LSU coming. To your point, obviously March Madness is always a big deal around here, and then Formula One rolls back around again. We are going to miss the Pac-12 championship game next year.

Speaker Change: And the kind of call out for the remainder of the year that we should get excited about.

Speaker Change: Yeah I can.

Speaker Change: We've got just topline off top my head Madonna's calming springsteen's coming the stones or coming to name three.

Speaker Change: We've got a great football kickoff with U S. C. L. S you coming.

Speaker Change: You know to your point, obviously March madness is always a big deal around here and then formula one rolls back around again.

Speaker Change: We are going to Miss the Pac 12 Championship next year, that's been done there. We're not we have only got one way I take that back so we don't Miss that.

William Joseph Hornbuckle: That's been done. No, we're not. We've got one more year. I take that back.

Speaker Change: And so you know this.

William Joseph Hornbuckle: So we won't miss that. We all must admit, 2023, and if you think about the recent stretch we've just been through, was an amazing year. An amazing year and an amazing stretch. So replicating that won't be easy.

Speaker Change: But you must we almost had met 2023 and if you think about the recent stretch. We've just been through was an amazing year amazing ear and amazing stretch so replicating that.

Speaker Change: Won't be easy, but having said that we still have plenty of content and activity case, they tend to fill the void fill a void fill the dates.

William Joseph Hornbuckle: But having said that, we still have plenty of content and activity cases that kind of fill the void and fill the dates. And from a city perspective, I think the Spear has been a great addition. The T-Mobile will be programmed more than it was last year. So, all in all, I think it's going to be a really strong year. As you think about March, it won't only be CONAG. We also have Easter ending in March.

Speaker Change: From a city perspective, I think the spirit has been a great addition.

The T mobile will be program more than it was last year. So all in all I think it's gonna be a really strong year as you think about March and won't only be con Ed. We also had Easter ending in March so that will have a slight impact in March on the convention business will be picked up in April.

Dan Politzer: So that will have a slight impact on the convention business in March but will be picked up in April. Got it. Thanks so much for all the help.

Got it thanks, so much Charles.

Shaun C. Kelley: The next question comes from Shaun Kelley with Bank of America. Please go ahead. Hi, good afternoon, everyone. Thanks for taking my questions. I wanted to maybe just stick with Las Vegas for a moment. Bill, you called out a lot of great commentary and color around the high end. I'm just wondering if you could give us a little bit more color on maybe those core properties kind of, you know, outside the high end.

Speaker Change: The next question comes from Shaun Kelly with Bank of America. Please go ahead.

Shaun C. Kelley: Hi, good afternoon, everyone and thanks for taking my questions wanted.

Shaun C. Kelley: I wanted to maybe just sticking with Las Vegas for a moment you know bill you called out a lot of great commentary and color around the high end I'm. Just wondering if you could give us a little bit more color on maybe the core properties kind of outside the high end what are you seeing on the customer behavior side, what's going to take to drive.

Shaun C. Kelley: What are you just seeing on the customer behavior side? What's it going to take to drive some growth and, you know, and improvement at some of those properties as you look out to 2024? Well, I'll tell you one thing, and Corey can pick this up, but the flow-through, the spill-off, I should say, from the 100,000 more room nights, principally at Mandalay for conference and convention business, does flow into Luxor with set-up crews, pieces, and parts of these various groups, even in the Excalibur. So I think that's an opportunistic thing.

Shaun C. Kelley: Growth and you know and improvement at some of those properties as you look out to 2024.

Speaker Change: Well I'll tell you one thing and Corey I can pick this up but.

Speaker Change: The flow through of the spill off I should say from 100000 more room nights, principally at Mandalay for conference or convention business does flow into Luxor with credit with the setup crews.

Pieces and parts of these various groups even index caliber. So I think that's an opportunistic thing obviously, where we can't you know we've gone through and whether it's resort fees on through we've gone through with pricing exercise will continue to do that to try to recapture some of the particularly the culinary increase which we all know that she is going to be an extensive one.

William Joseph Hornbuckle: Obviously, we've gone through, whether it's resort fees on through, we've gone through the pricing exercise. We'll continue to do that to try to recapture some of, particularly the culinary increase, which we all know this year is going to be an extensive one, then it falls off and basically flattens out for the balance of the four and a half years. So Corey, I don't know if you... Yeah, the legacy properties are, you know, the growth is going to be a little bit limited there. It's a small percent of our Vegas revenue. As Bill mentioned, the convention mix, not just here but in town, city-wise, will help some overflow there, but it definitely won't have the same benefits that the luxury properties see.

Speaker Change: And then it falls off and basically flattens out for the balance of the four and a half years. So yeah. The legacy properties are you know the growth is going to be a little bit limited there. It's a small percent of our Vegas revenue on the.

Speaker Change: Convinced as Bill mentioned that convention mix, not just here, but in town city Wides will help some overflow there, but it definitely won't have the same benefits that the luxury properties are and we'll see.

William Joseph Hornbuckle: Great, thanks. And just as a follow-up, I think it was called out in the prepared remarks, but a billion dollars earmarked across a variety of things, including international and digital, to help us think through what some of the criteria would be there. I mean, again, I know a lot of eyes are focused on something more transformative with your partner, but it sounds like this is more along the lines of what you did with Leo Vegas.

Speaker Change: Yeah.

Speaker Change: Great. Thanks, and just as my follow up I think it was called out in the prepared remarks, but I'll tell you the dollars earmarked across a variety of things, including our international digital well just help us think through what some of the criteria would be there I mean again I know a lot of eyeballs are focused on something more transformative with your partner, but it sounds like this is more along the lines of what you.

Speaker Change: Leo Vegas, So maybe just give us some parameters of what could check the boxes for you in terms of that opportunity you're looking out for this year.

Shaun C. Kelley: So maybe just give us some parameters of what could check some boxes for you in terms of that opportunity looking out for this year, and Sure, we contemplated four key pillars to getting and setting up our own shop, if you will. And so we bought Leo Vegas with that in mind. We've obviously now gone and bought Push Gaming, which is a content studio. By the way, their first game, MGM Millions or MGM Money Millions, whatever it's called, is the number one game on our network, and the number one first game out branded with MGM. We are on the heels of buying sports technology. We want to obviously be in our own sports betting business with our own technology. And over time, we have Camby that we use for Leo Vegas.

Speaker Change: Sure, we contemplated four key pillars to getting and setting up our own shop, if you will and so we bought Leo Vegas.

With that in mind.

Speaker Change: We've obviously now gone and bought push gaming, which is a content studio by the way their first game MGM millions of MGM money millions or whatever it's called number one game on our network number one first came out branded with MGM.

Speaker Change: We are on the on the heels of buying sports technology.

Speaker Change: We want to obviously.

Speaker Change: Beyond that be it in our own sports betting business with our own technology.

And over time.

Speaker Change: We have can be that we use.

Speaker Change: Sure Leo Vegas.

William Joseph Hornbuckle: We are on the heels of a deal for Live Dealer, where we've talked about and had a vision of broadcasting live games from Las Vegas to the rest of the world with some celebrity and some entertainment tied to them. And we're on the heels of that. I'm heading down to South America next week or the week after to look at a large JV.

Speaker Change: We are on the heels of a deal for live dealer, where we've talked about and had a vision of broadcasting live games from Las Vegas to rest of world.

Speaker Change: With some celebrity and some entertainment tied to them and we're on the heels of that.

Speaker Change: I'm heading down to South America next week or the week after.

Speaker Change: To look at a large JV, Brazil is obviously contemplating canceling Brazil is.

William Joseph Hornbuckle: Brazil is obviously contemplating, not contemplating, Brazil is going to put internet gaming in play for both casino and sports betting. And we plan to be there when that launches. And so, you know, we're focused on building that business at its core into a real business. We've taken BetMGM UK, as we've talked about. We've got well over 100,000 first-time depositors already in the four and a half short months. And we're looking at another country already to do the same thing.

Speaker Change: Gonna put our Internet gaming in play for both casino and sports betting and we plan to be there when that launches.

Speaker Change: And so you know we're focused on building that business at its core.

Speaker Change: Into a real business, we've taken bet MGM U K as we've talked about.

Speaker Change: We've got well over 100001st time depositors are readying it for four and a half short months and we're looking at another country and ready to do the same thing and so you know we're gonna grow the business and if we ultimately acquire something else time to tell but for now staying focused on that is paramount to us.

William Joseph Hornbuckle: And so, you know, we're going to grow the business. And if we ultimately acquire something else, time to tell. But for now, staying focused on that's paramount to us. Thank you. The next question comes from Brent Montour with Barclays. Please go ahead.

Speaker Change: Yeah.

Speaker Change: Thank you.

Speaker Change: The next question comes from Brian <unk> with Barclays. Please go ahead.

Brian: Hey, Thanks, everybody. Thanks for taking my question. So just first wanted to circle back to Macau and ask Carlos question, a little bit of a different way. If we just look at sort of all.

Brent Montour: Hey, thanks everybody. Thanks for taking my question. So I just wanted to circle back to Macau and ask Carlo's question a little bit differently. If we just look at sort of, you know, OPEX excluding gaming taxes for the fourth quarter, that number did step up a little bit. And I'm just curious if you look at that on maybe a per day basis or versus 19 or however you look at that, you know, is there one time maybe events related to OPEX in that quarter? And what I'm really getting at is if you guys think we should be thinking about that sort of run at that level as a run rate.

Brian: Opex.

Brian: Excluding gaming taxes for the fourth quarter that.

That number did step up a little bit and I'm. Just curious if you look at that on maybe a per day basis or versus 19, or however, you look at that.

Carlos: Is there one time, maybe events related opex in that quarter, and what I'm really getting at is if you guys think we should be thinking about that sort of run at that level as a run rate going forward.

Speaker Change: Can you maybe you could speak to this more intelligently, but I can tell you a broad stroke given remember the requirement. We have we have to spend the 1 billion one in 10 year commitment.

Brent Montour: Kenny, maybe you could speak to this more intelligently, but I can tell you a broad stroke given, remember the requirement we have, we have to spend $1.1 billion in a 10-year commitment to OPEX driving tourism, and there's about $900 million or so in actual capital expense. We've got a little over a $2 billion commitment to the government, of which the $1.1 billion is pure OPEX. A lot of the activity case in driving international tourism and driving tourism isn't necessarily tied to the usual marketing programs that we'd think about in gaming. Oh, okay. This is Kenny.

Speaker Change: In Opex, driving tourism number and Theres about 900 million or so in actual capital expense. So we've got a little over $2 billion commitment to the government.

Speaker Change: On which the billion one is pure opex and so a lot of activity case, I'm driving international tourism and driving tourism isn't necessarily tied to the usual marketing.

Speaker Change: Programs that we'd think about in gaming.

Speaker Change: Oh, okay.

This is kenny.

Kenny: As you know, we and I kept for the past year with a new conversation. We added another 200 people of course, we added a little bit more ftes. All we have more daily that people open all worth.

William Joseph Hornbuckle: As you know, for the past year with the new concession, we added another 200 tables. Of course, we added a little bit more FTEs. We have more daily table open hours. But in general, we are very, very tight regarding our OPEX control. You can see from our EBITDA margin over the quarter of the last year, we are very stable in the high 20s along with our market share gain and business growth. SEO just commented, like, we do not have so much high-margin retail rental EBITDA. But our gaming EBITDA margin is really way up there in this marketplace. That's really awesome.

Kenny: But in general we are very right Pike regarding Opex control.

Kenny: You can see from our EBITDA margin over the quarters of the last year, we were stable in the high Twenty's.

Kenny: Along with our market share gain and growth.

Kenny: And Bill just commentate like we do not have so much high margin retail rental EBITDA.

Kenny: But to our gaming EBITDA margin is really we opt in in this marketplace.

Kenny: That's really what I can see yeah I can see for the next for the next couple of quarters.

Kenneth Fong: So I can see, yeah, I can see for the next couple of quarters, we should be quite stable with our margins. Okay, that's perfect. Thanks for that. And then, circling back on digital and MGM specifically, I was wondering, Bill, if you wanted to comment at all on the sort of newly announced partnership with X, you know, what you can say about how that deal came together, the structure of the deal, anything from an economic standpoint that you can share, and then what you expect the impact to be over time. Um, Look, it's interesting. It just started, as you know, so we have high hopes for it. literally 100 million people when they flipped on X yesterday, the day before, are going to be exposed to that offering and that opportunity. That team is probably in a much better position to give you some input on what they think the outcome is going to be.

Kenny: We should be quite stable.

Kenny: All markets.

Speaker Change: Okay. That's perfect. Thanks for that and then and then circling back on digital and bet MGM, specifically I was wondering if you. If you wanted to comment at all on the.

Speaker Change: Sort of a newly announced partnership with with ex what you can say about how that deal came together the structure of the deal any anything from an economic standpoint that you can share and then what you expect the impact to be overtime.

Speaker Change:

Look it's interesting it just started as you know so you know we have high hopes for it we had literally 100 million people when they flipped on X.

Speaker Change: Yesterday day, before I'm gonna be exposed to that offering and that opportunity.

Speaker Change: That team is probably much better position to give you some.

Speaker Change: Input on what they think the outcome is going to be I can remember from the various presentations that if it if you captured but at 10th of a percent of Jewish folks. It was a significant uptick to the company and its efficient the way we've structured this deal compared to other even general bonus thing, it's extremely efficient deal for us So we'll see.

William Joseph Hornbuckle: I can remember from the various presentations that if you captured even a tenth of a percent of those folks, it would be a significant uptick for the company, and it's efficient. The way we've structured this deal compared to other, even general bonusing, it's an extremely efficient deal for us. So we'll see. We think those customers, our customers, live there. Everyone lives on X, I guess, but we particularly think the demographic suits well for what we do.

Speaker Change: We think those customers are customers live there.

Speaker Change: But you know everyone was on actually I guess, but we particularly think the demographic shifts well for what.

Brent Montour: Thanks, everyone. The next question is from Chad Beynon with Macquarie. Please go ahead. Good afternoon.

Speaker Change: What we do.

Speaker Change: Great. Thanks, everyone.

Speaker Change: Yeah.

Speaker Change: The next question is from Chad Beynon with Macquarie. Please go ahead.

Chad Beynon: Thanks for taking my question. I wanted to ask about the regional properties, I guess, more so in the current quarter. We've seen a number of public releases out there for January showing that there were some pretty significant declines, and it sounds like most of that is kind of chalked up to bad weather, and we've heard that from a lot of companies. So, A, maybe if you're willing to kind of touch on that, given that many of your properties are in these areas that may have inclement weather in January, and then more importantly, is that Are we seeing any trends kind of rolling off in terms of that low end, or does it still feel, you know, good as you kind of look out to 24?

Chad Beynon: Afternoon. Thanks for taking my question I wanted to ask about the regional properties I guess I'm more so in the current quarter. We've seen a number of public releases out there for January is showing that there's been some pretty significant declines and it sounds like most of that is kind of chalked up to bad weather and we've heard that from a lot of our companies.

Chad Beynon: So hey, maybe if you're willing to kind of touch on that given that many of your properties are in these areas that may have have inclement weather in January and then more importantly is that core customer in the regional markets. You know stable are we seeing any trends kind of rolling off in terms of that low end.

Chad Beynon: Or does it still feel good as you kind of look out to 'twenty four thanks.

Chad Beynon: Thanks. Yeah, I would say that certain of our properties were affected by the weather. Springfield comes to mind as one, Empire is another, but we also saw some pockets of strength in January as well. But I would say... both because of weather effects as well as the calendar a bit coming off of New Year's, January saw some of those impacts in our regional markets. Players are pretty stable across all age groups and all spend, you know, during COVID, we actually eliminated a lot of that low-end play.

Chad Beynon: Yeah, I would I would say that certain of our properties were affected by by those by the weather Springfield comes to mind is one Empire is another.

Chad Beynon: But we you know we also saw some pockets of strength in the in January as well, but I would say.

Chad Beynon: It's because of weather effects as well as the calendar a bit coming off of new years.

Chad Beynon: January saw some of those impacts in our regional markets.

Chad Beynon: If the players are pretty stable from all age groups and I'll spend you know during COVID-19, we actually eliminated a lot of that will let them play.

Chad Beynon: So in general, what we're seeing in February, we're pretty positive about, and we feel pretty comfortable that what you saw in January was a weather-related component of the business. Okay, great. Appreciate that. Near-term color.

Chad Beynon: So in general what we're seeing in February were pretty positive on and we feel pretty comfortable that that what you saw in January it was a weather related component of the business.

Speaker Change: Okay, Great I appreciate that near term color and then with respect to New York is there any update in terms of the timeline as we get through 'twenty four anything to to speak to us about thanks.

William Joseph Hornbuckle: And then with respect to New York, is there any update in terms of the timeline as we get through 24? Anything to speak to us about? Thanks. Yeah. Yeah. Hi, this is Bill. No, I wish there was.

Yeah, Hi, this is bill no I wish there was a I know they're going through some of the zoning things by all of the boroughs I think ultimately they're going to we're going to wait and see what happens I suspect theyre going to wait and see what happens there. It may make a decision for them and then in fact they'll come back to us with the round two questions and then that gives our.

William Joseph Hornbuckle: I know they're going through some of these zoning things by all of the boroughs. I think ultimately they're going to, we're going to wait and see what happens. I suspect they're going to wait and see what happens there. It may make a decision for them.

William Joseph Hornbuckle: And then, in fact, they'll come back to us with the round two questions, and then that will give our 90 day clock going, but you know, we're hopeful by the middle of this year that we get something submitted, and that by the end of 24, something's awarded. But, unfortunately, we don't know anymore, unfortunately. Thanks, Bill. The next question is from Barry Jonas with Truist Securities. Please go ahead. Hey guys, as you think about the potential for an A's baseball stadium, how does that influence your thinking about incremental catbacks for your adjacent properties over the next few years? A very interesting question.

Speaker Change: <unk> 90 day clock going but we're hopeful by the middle of this year, we get something submitted and then by the end of 'twenty four something's awarded but but we don't know anymore. Unfortunately.

Okay. Thanks, Bill appreciate it.

Speaker Change: Yeah.

Speaker Change: The next question is from Barry Jonas with curious Securities. Please go ahead.

Hey, guys as you think about the potential for an AIDS Baseball stadium, how does that influence your thinking about incremental capex for your adjacent properties over the next few years.

Barry Jonas: Very interesting question, we've been we've been thinking about that talking about it.

William Joseph Hornbuckle: We've been thinking about that, talking about it. For us, obviously, the place to invest capital first and foremost, if in fact, that all happens, is MGM. I mean, it's our brand. It's our namesake. It's on the corner of Las Vegas Boulevard and TROP. It would literally be adjacent to this stadium, and it needs some love. It's a 30-year-old property.

For us obviously, the place to invest capital first and foremost if in fact that all happens as MGM I mean, it's our brand. It's our namesake it's on the corner of Las Vegas Boulevard and drop it would literally be adjacent to the stadium.

Barry Jonas: And it needs some love it it's a 30 year old property, we're going to reinvest in the rooms this year.

William Joseph Hornbuckle: We're going to reinvest in the rooms this year. We've got some new show concepts. We've done a few restaurants. But the front end of the property, as you get closer to Las Vegas Boulevard, needs some attention and some reprogramming.

Barry Jonas: We've got some new show concepts, we've done a few restaurants, but the frontage of the property closer to Las Vegas Boulevard needs some attention and some reprogramming.

William Joseph Hornbuckle: We're waiting to see where that lands. I have to believe in the next 30 to 60 days, we should find out more. I've been shown three versions of it now, in terms of where it'll actually sit on the site and how it will connect.

Barry Jonas: We're waiting to see where that lands I I have to believe in the next 30 to 60 days, we should find out more.

Barry Jonas: <unk> been shown three versions of it now in terms of where it will actually sit on the site and how it will connect once it settles in.

William Joseph Hornbuckle: Once it settles in, we'll get serious about what we might want to do and how we might want to communicate with it, if you will, in terms of pedestrian traffic, et cetera. But that's how we think about where we might go first, really MGM, and see how it all plays out. Okay, great. And then, just as a follow-up, you talked a bit about the UAE, but maybe can you get into what the next steps are for gaining legalization there?

Barry Jonas: We'll get serious about what we might want to do and how we might want to communicate with it. If you will in terms of pedestrian traffic et cetera, but you know that's how to think about what we might go first Israeli MGM and see how it all plays out.

Okay, Great and then just as a follow up you talked a bit about UAE, but maybe can you get into what the next steps are for gaming legalization, there and maybe also elaborate on how you could potentially participate in Abu Dhabi.

William Joseph Hornbuckle: And maybe also elaborate on how you could potentially participate in Abu Dhabi? Well, as I think we suggested last year, we spent some time on the ground there, specifically in Abu Dhabi, trying to understand that license or the license in general for the UAE, but ultimately the opportunity in Abu Dhabi. We believe it would be on Yas Island.

Barry Jonas: Hum.

Barry Jonas: As I think we suggested last year, we spent some time on the ground there specifically in Abu Dhabi I'm trying to understand that license or license in general for UAE, but ultimately the opportunity in Abu Dhabi.

We believe it would be on the <expletive> island that opportunity still exists.

William Joseph Hornbuckle: That opportunity still exists. To the extent there is a submission to be had, you know, we, we, may participate in that. Obviously, we have Dubai.

Barry Jonas: To the extent there is a submission to be had you know we.

We may participate in that obviously, we have Dubai.

William Joseph Hornbuckle: We have our project there, which is an amazing project. It's going to be over a $2.5 billion project without a casino in it. And so if and when both Abu Dhabi itself as the general license grantor for all or any of the Emirates goes, and then ultimately, one by one, the Emirates say they would like it, we hope to be positioned either for Dubai or for Abu Dhabi. But time will tell. And it may start with digital first, a lottery, and potentially digital. Great, thank you so much. The next question is from Robin Farley with UBS. Please go ahead. Oh great, thanks. I just have two pretty quick ones.

Barry Jonas: We have our project there.

Barry Jonas: As you know an amazing project, it's going to be over two and a half billion dollars project without a casino in it.

Barry Jonas: And so if and when.

Barry Jonas: Both of the Derby itself as the.

Barry Jonas: The general license granted for all or any of the Emirates goes and then ultimately one by one the Ameren say they would like it.

Barry Jonas: We hope to be positioned either for Dubai, or Abu Dhabi, but time to tell.

Barry Jonas: And it may start with digital first a lottery and potentially digital.

Speaker Change: Great. Thank you so much.

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

Robin M. Farley: Oh, great. Thanks.

Robin M. Farley: Two pretty quick ones one is to say if you could clarify.

Robin M. Farley: One is just if you could clarify in the regional for Q4, how much of the, I think it was $60 million, how much of that was just the strike if we were trying to think about just the kind of non-recurring piece of that $60 million decline? Thanks. Yeah, the $60 million is roughly half related to the strike and the other half to the national. Okay, great.

Robin M. Farley: Regional.

Robin M. Farley: For Q4, how much of the I think it was 16 land how much of that was just the strike. If we were trying to think about just the kind of nonrecurring piece of that 60 million decline. Thanks.

Yes, the 60 million.

Robin M. Farley: Roughly half is related to the strike and the other after the National Harbor.

Jonathan S. Halkyard: And then I don't know if you said for Marriott, and I know it's only been a couple of weeks, but did you give any metrics about what percent of room nights or, you know, kind of the dollar premium on rooms sold through Marriott? Any color like that you could give?

Speaker Change: Okay great.

And then.

Speaker Change: Thank you and then I don't know if you said for Marriott I know, it's only been a couple of weeks, but did you give any metrics about.

Speaker Change: What percent of room nights or you know kind of the the dollar premium.

Speaker Change: <unk> sold through a myriad of any any color like that you could guess thanks.

Jonathan S. Halkyard: Thanks. We did give some expectations back in, I believe it was our second quarter earnings call in August of last year, Robin, and although our implementation was delayed from October to a few weeks ago to January, our estimation of what the arrangement can bring us has not changed. So I'd just refer you back to those measures that we gave in August. Does that mean it's kind of too early to know what the last three weeks or, in other words, has there been no change in your expectations at the moment, or are you seeing enough to say that it's delivering those numbers? I mean, the answer is yes.

Speaker Change: We we did give some expectations back in I believe it was our second quarter earnings call in August of last year, Robyn and and although our implementation was delayed from October to a few weeks ago to January.

Speaker Change: Our estimation of what the arrangement can bring us has not changed so I'd just refer you back to those those measures that we gave in August.

Is that does that mean, it's kind of too early to know what the last three weeks or in other words like at the moment no change in your expectations or are you seeing enough to say that it's it's delivering those numbers.

I mean, the answer is yes.

Jonathan S. Halkyard: You know, it's early days, but as I think Bill noted in his opening remarks, we're very encouraged by what we're seeing in the first few weeks. Okay, great. Thank you very much.

Speaker Change: It's early days, but but it's I think bill noted in his opening remarks, we're very encouraged by what we're seeing in the first few weeks.

Speaker Change: Okay, great. Thank you very much thanks.

John Decree: Thanks. The next question is from John DeCree with CBRE; please go ahead. Good afternoon, everyone.

John Decree: The next question is from John decree with C. B R. E. Please go ahead.

John Decree: Thank you for taking my questions. Maybe a high-level question or two to get your view on the consumer. So we talked a lot about the performance at your high-end properties in Las Vegas. I'm curious if you see similar trends or consumer trends at your regional properties. Is it the high-end and high tiers of the database that are driving performance there as well, or might the business mix be a little bit more balanced? And realizing regionals doesn't have the same event draw that Vegas does. But I'm curious if you have kind of a view on the segments of the database from a consumer perspective. Yeah, it's Jonathan. I'll offer a couple of comments. The answer is yes, but really for different reasons.

John Decree: Good afternoon, everyone. Thank you for taking my questions maybe.

John Decree: Maybe a high level question or to get your view on the consumer. So maybe you talked a lot about the performance at your high end properties in Las Vegas, I'm curious if you see.

John Decree: Similar trends are consumer trends at your regional properties is at the high end and high tiers of the database.

John Decree: Driving performance, there as well or or might the business makes me a little bit more balance and realizing regionals and it doesn't have the same adventure off that that Vegas stats, but curious if you have kind of a view on.

John Decree: The segments of the database from a consumer perspective.

John Decree: Yeah, Oh, it's Jonathan I'll offer a couple of comments there.

Jonathan S. Halkyard: The answer is yes, but really for different reasons in the regional markets I think as Corey mentioned, we've really directed our marketing efforts and to a certain extent the property amenities themselves too.

Jonathan S. Halkyard: In the regional markets, I think, as Corey mentioned, we've really directed our, you know, our marketing efforts, and to a certain extent, the property amenities themselves, to higher-value guests; we've reduced our marketing investments and promotional investments on the lower end. And that really, really started in the aftermath of the pandemic, and it's carried forward. So the effect is that, you know, the increases that we've seen in those regional properties are really predominantly from higher average daily values customers. But I say it's the same effect for different reasons because...

Jonathan S. Halkyard: Higher worth guests, we've reduced our marketing investments and promotional investments on the lower end and that really.

Jonathan S. Halkyard: Really started in the aftermath of the pandemic and its it's carried forward.

Jonathan S. Halkyard: So the effect is the you know the increases that we've seen in those regional properties are really predominantly from the higher average daily worth customers.

Speaker Change: But I'd say, it's the same.

Speaker Change: For different reasons because.

Jonathan S. Halkyard: In Las Vegas, you know, what has been really driving this has been our special events, our focus on these customers through our branch offices and our own marketing efforts, and obviously, the citywide events that are going on have skewed, you know, more toward that high-end luxury growth, as well as our capital investment in our luxury properties. So same effect for different reasons. Thanks, Jonathan. I appreciate the color. And then maybe quickly on the growth capex plan for this year. I think you listed a couple of the projects that go into that bucket. And you guys have this dialed in pretty tight by now. But is there anything that we should think about in terms of disruption, or are any of those projects large enough or the timing of such that we might want to think about any disruption at the assets?

Speaker Change: In Las Vegas, you know what has been really driving this is Ben.

Our our special events, our focus on on these customers through our branch offices and our own marketing efforts and obviously the citywide.

<unk> that are going on.

Have skewed more towards that high end luxury growth as well as our capital investment in our luxury properties. So same effect for different reasons.

Speaker Change: Thanks, Jonathan I appreciate that color and then maybe quickly on the growth Capex plan. This year I think you've listed a couple of the projects that go into that bucket and you guys have this dialed in pretty tight by now but is there anything that we should think about.

Speaker Change: In terms of disruption or any of those projects large enough or or the timing of such that we might want to think about any disruption at the assets.

Yeah go ahead.

Jonathan S. Halkyard: I would say no, you know, I have been now, I've been at MGM for three years, and I've been amazed at our operators' ability to manage through disruption and room renovations as well as on the casino floor, but mainly in the room renovations. You know, what we've done just in the last year or so with New York, New York and the Spa Tower, the Rotter Club at the Borgata, et cetera; this year, we have the ones I mentioned, Chelsea Suites, and we're starting in the MGM Grand and so on, and also in the Bellagio Main Tower Suites. So no, I would not advise you to really incorporate any disruption from those investments. Great That's my picture.

Jonathan S. Halkyard: I would say no you know I have been now I've been at MGM for three years and I've been amazed at our operator's ability to manage through disruption and room renovations as well as on the casino floor, but mainly in the room renovations you think what we've done just in the last year or so with New York New York in the spot.

Jonathan S. Halkyard: Tower.

Jonathan S. Halkyard: The router club at the Borgata et cetera. This year, we have the ones I mentioned.

Jonathan S. Halkyard: Chelsea suites, and we're starting and the MGM Grand and so on and and also in the <unk> main tower suites. So no I would not I would not advise you to really incorporate any disruption from those invest.

Jonathan S. Halkyard: Investments.

Speaker Change: Great that's what I figured.

Jonathan S. Halkyard: Thanks, Jonathan. I appreciate the color. The next question is from Steve Wyshynski with Stiefel. Please go ahead. Hey guys, good afternoon. So real quick, just two quick questions for me.

Speaker Change: Thanks, Jonathan I appreciate the color.

Speaker Change: The next question is from Steve Rucinski with Stifel. Please go ahead.

Steve Rucinski: Yeah, Hey, guys. Good afternoon. So real quickly just two quick questions for me, but when we think about margins.

Steven Moyer Wieczynski: But when we think about margins in the regional markets, look, I understand there was a material impact in the fourth quarter from the strikes at the customer at National Harbor. But, you know, Jonathan, maybe just, you know, how are you guys thinking about the way margins could look this year? Yeah, I know there were a lot of things going on this quarter.

Steve Rucinski: In the regional markets look like and I understand there was a material impact in the fourth quarter from the strikes and the customer at National Harbor, but Jonathan maybe just you know how are you guys thinking about the way margins could look for this year.

Steve Rucinski: Yeah.

There were a lot of things going on this quarter I would say that we can do 30% margins in the regions.

Jonathan S. Halkyard: I would say that we can achieve 30% margins in the regions. You know, we do have a number of tools at our disposal, but we're also facing some labor cost increases there. But when we do the forensics on the fourth quarter and look ahead to this year, we believe that that's achievable. In the regionals, especially the fourth quarter, because of weather and it's a little slower, you'll have a little bit lower margin in the fourth quarter, but 30% for the year is attainable.

Jonathan S. Halkyard: You know, we do have a number of tools at our disposal, but we're also facing some some labor cost increases there, but when we do the forensics on the fourth quarter and look ahead to this year, we believe that that's achievable.

Jonathan S. Halkyard: And on the and then the regional so, especially fourth quarter because of weather and it's a little slower you'll have a little bit lower margin in the fourth quarter, but 30% for the year.

Speaker Change: Is it feasible.

William Joseph Hornbuckle: Okay, great. Thanks. And then Bill and Jonathan, you know, you've given us a lot of color around the gives and takes for this year in Vegas. So without getting too much into, you know, guidance, I'm going to try to ask this question and see if I can get an answer out of you. But, you know, I guess the simple question is, you know, do you think it's actually possible to grow full-year EBITDA this year, or are the, you know, the overall comparisons, the whole comparison is just going to be too tough to, you know, overcome? No, look, I think the answer is yes.

Speaker Change: Okay, Great. Thanks, and then bill and and Jonathan you've given US a lot of color around the gives and takes for this year in Vegas, so without getting too much into guidance I'm going to try to ask this question and see if I'll get an answer out of you, but you know I guess the simple question is you know.

Speaker Change: Do you think it's actually possible to grow full year EBITDA this year or the you know the overall comparisons to hold comparisons just gonna be too tough to overcome.

Jonathan S. Halkyard: No look I think the answer is yes, I think we budgeted to that we've convinced our board of that we're incentivized to do that and I think the answer is yes, obviously twenty-three was an amazing year and we've got some headwinds.

William Joseph Hornbuckle: I think we've budgeted for that. We've convinced our board of that. We're incentivized to do that. And I think the answer is yes. Obviously, 23 was an amazing year. We've got some headwinds, particularly with labor costs.

With particularly labor cost.

William Joseph Hornbuckle: But there's enough programming out there, enough momentum that, in macro, we think we can surpass. And so it's not going to be like double-digit, I can assure you, but I think we can. Okay, great. Thanks, guys. Really appreciate it. Ladies and gentlemen, this concludes our question and answer session. I would like to turn the conference back over to Mr. Bill Hornbuckle for any closing remarks.

Jonathan S. Halkyard: But there's enough programming out there enough momentum that in macro we think we surpass and so it's not going to be like double digit I can assure you, but I think we surpass.

Speaker Change: Okay, great. Thanks, guys really appreciate it.

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

William Joseph Hornbuckle: Thank you, operator. Thank you all for joining us today. Just a couple of thoughts. You know, I mentioned this word earlier again, resilience. Our troops have demonstrated that.

William Joseph Hornbuckle: Thank you operator, and thank you all for joining us today I, just a couple of thoughts I.

I mentioned this word earlier again resiliency.

William Joseph Hornbuckle: Our troops are demonstrating again want to thank them twenty-three was an incredible year. We had an all time EBITDA years seven of our properties continues to break records.

William Joseph Hornbuckle: So I again want to thank them. 23 was an incredible year. We had an all-time EBITDA record year, seven of our properties continued to break records, and so we're anxious for the future. Macau is well positioned.

William Joseph Hornbuckle: And so we're anxious for the future Macao is well positioned we've ended up in a great space and digital and we're in the game for real for the long haul.

William Joseph Hornbuckle: We've ended up in a great place in digital, and we're in the game for real for the long haul. And so you'll see us continue to do that. And we launched our own digital brand and business in the rest of the world. And we were so excited about it, excited by the balance sheet and the development opportunities. Remember, on 23, Japan came our way, which is one and only and a very unique thing for the company in the long term. And so we're excited by that, and potentially the opportunity that New York may bring. So 23 was a great year. We hope to replicate it and then some in 24.

William Joseph Hornbuckle: And so you'll see us continue to do that and we launched our own digital brand and business in rest of world and so on.

William Joseph Hornbuckle: Cited by and excited by the balance sheet and the developing opportunities remember in twenty-three Japan came our way, which is the one that only in a very unique thing for the company in the long term and so we're excited by that and potentially the opportunities that New York May bring so when I said it was a great year, we hope to replicate it and then some in 'twenty four and we thank you for your time.

Speaker Change: The conference has now concluded. Thank you for your participation you may now disconnect your lines.

Operator: And we thank you for your time. The conference is now concluded. Thank you for your participation. You may now disconnect your line. BF-WATCH TV 2021

Speaker Change: Yeah.

Speaker Change: [music].