Q1 2024 MGM Resorts International Earnings Call
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Operator: Good afternoon, and welcome to the MGM Resorts International first quarter 2020 forwarding conference call. Leading the call for 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, Executive Director and President of MGM China Holdings Hubert Wong, COO and President of MGM China Holdings Andrew Chapman, Director of Investor Relations; Participants are in a listen-only mode. After the company's remarks, there will be a question and answer session.
Speaker Change: Good afternoon, and welcome to the MGM Resorts International first quarter 2024 earnings Conference call.
Speaker Change: Well, Hey, Nicole for the company today are Bill Hornbuckle, Chief Executive Officer and President.
Speaker Change: Corey Sanders Chief operating officer.
Speaker Change: Jonathan Ho Hum.
Jonathan S. Halkyard: <unk> financial officer and Treasurer.
Jonathan S. Halkyard: Kind of thing executive director and President of MGM, China Holdings.
Jonathan S. Halkyard: One the yellow and president of MGM, China Holdings, Andrew Cabinet and director of Investor Relations.
Jonathan S. Halkyard: Participants are in a listen only mode. After the company's remarks, there will be a question and answer session.
Operator: In fairness to all participants, we do ask that you please limit yourselves to one question and one follow-up. Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Andrew Chapman.
Jonathan S. Halkyard: In fairness to all participants we do ask you to please limit yourselves to one question and one follow up.
Jonathan S. Halkyard: Please also note today's event is being recorded.
Jonathan S. Halkyard: At this time I'd like to turn the floor over to Andrew Chapman.
Andrew Chapman: Good afternoon, and welcome to the MGM resorts International first quarter 2024 earnings call. This call is being broadcast live on the Internet at investors that MGM resorts Dot Com. We have also furnished our press release on form 8-K to the SEC.
Andrew Chapman: Good afternoon, and welcome to the MGM Resorts International first quarter 2024 earnings call. This call is being broadcast live on the internet at investors.mgmresorts.com. We've also furnished our press release on Form 8K to the SEC.
Andrew Chapman: On 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. Additional information concerning factors that could cause actual results to differ from these forward-looking statements is contained in today's press release and in our periodic filings with the SEC. Except as required by law, we undertake no obligation to update these segments as a result of new information or other... During the call, we will also discuss non-GAAP financial measures when talking about our... You can find the Reconciliation to GAAP Financial Measures in our press release and investor presentation, Finally, this presentation is being recorded. I will now turn it over to Jonathan Halkyard.
Andrew Chapman: On this call we will make forward looking statements under the safe Harbor provisions of the federal Securities laws.
Jonathan S. Halkyard: Actual results may differ materially from those contemplated in these statements.
Jonathan S. Halkyard: Additional information concerning factors that could cause actual results to differ from these forward looking statements is contained in today's press release, and then our periodic filings with the SEC.
Jonathan S. Halkyard: Except as required by law, we undertake no obligation to update these segments as a result of new information or otherwise 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.
Jonathan S. Halkyard: Jonathan.
Jonathan S. Halkyard: Thanks, Andrew, and good afternoon, and thank you, everyone, for joining our call. We've decided to change our approach to these calls in the new year to give you a more focused recap of our results with additional color and commentary around our plans for the future. With that in mind, I'll start the call with a discussion of the quarter and our growth algorithm and then pass it over to Bill for his comments.
Jonathan: Thanks, Andrew and good afternoon, and thank you everyone for joining our call we've decided to change our approach to these calls in the new year to give you a more focused recap of our results with additional color and commentary around our plans for the future with that in mind I'll start the call with a discussion of the quarter and our growth algorithm.
Jonathan: Then pass it over to bill for his comments.
Jonathan S. Halkyard: As you saw from our press release, we delivered another record quarter across our company's consolidated businesses, generating record net revenues of $4.4 billion, up 13% from last year, net income of $217 million, and adjusted EBITDA of over $1.2 billion. During the quarter, cash provided by operating activities was $549 million, and free cash flow was $377 million.
William Joseph Hornbuckle: As you saw from our press release, we delivered another record quarter across our company's consolidated businesses generating record net revenues of 4.4 billion up 13% from last year net income of $217 million and adjusted EBITDAR of over one point to bill.
William Joseph Hornbuckle: Yeah.
William Joseph Hornbuckle: During the quarter cash provided by operating activities was 549 million and free cash flow was $377 million. This includes MGM China's $215 million in cash flow from operating activities and $15 million in capital expenditures.
Jonathan S. Halkyard: This includes MGM China's $215 million in cash flow from operating activities and $15 million in capital expenditure. In Las Vegas, we achieved 4% net revenue growth supported by strong ADRs, which were up 7% year-over-year. Our luxury resort offerings on the Strip served as a distinct competitive advantage driving top line growth up 5% during the quarter. Looking ahead to the rest of the year, rates are pacing ahead of the prior year for each of the remaining three quarters, and group rooms on the books are up year over year. In the regions, it's no surprise that our businesses were broadly impacted by poor winter weather in January.
William Joseph Hornbuckle: In Las Vegas, we achieved 4% net revenue growth supported by strong 80, ours, which were up 7% year over year, our luxury resort offerings on the strip served as a distinct competitive advantage driving topline growth up 5% during the quarter.
William Joseph Hornbuckle: Looking ahead to the rest of the year rate is pacing ahead of prior year for each of the remaining three quarters and group rooms on the books are up year over year.
William Joseph Hornbuckle: And the regions. It's no surprise that our businesses were broadly impacted by poor winter weather in January that said, we experienced a quick recovery in February and acceleration into March. This also will be the last quarter, where we need to adjust for same store results as goldstrike closed in February of last year.
Jonathan S. Halkyard: That said, we experienced a quick recovery in February and acceleration into March. This also will be the last quarter where we need to adjust for same store results as Gold Strike closed in February of last year. In Macau, we experienced what was really the start of the recovery last year and achieved another record with net revenues up 71% year over year. MGM China earned its first ever $300 million quarter in adjusted property EBITDA, along with a market share of 17%, surpassing the previous records set in the fourth quarter.
William Joseph Hornbuckle: In Macau, we lapped what was really the start of the recovery last year and achieved another record with net revenues up 71% year over year MGM, China earned its first ever 300 million dollar quarter, and adjusted property EBITDA, along with market share up 17%, surpassing the previous record.
William Joseph Hornbuckle: <unk> set in the fourth quarter.
Jonathan S. Halkyard: Given the strength of MGM China's operating performance over the past 15 months, MGM China and MGM Resorts both agreed there was no longer a need for MGM to support its liquidity, and in March, the subordinated loan agreement was terminated.
William Joseph Hornbuckle: Given the strength in MGM, China's operating performance over the past 15 months MGM, China and MGM resorts. Both agree there's no longer a need for MGM to support its liquidity and in March the subordinated loan agreement was terminated further their revolving credit facility has been nearly paid down the dividend payments have been read.
Jonathan S. Halkyard: In addition, their revolving credit facilities have been nearly paid down, and dividend payments have been resumed, with approximately $94 million to be paid to MGM Resorts in the second quarter. All very encouraging. Aligned with our ongoing commitment to fortify our balance sheet and bolster liquidity, we recently completed the closing on the offering of $750 million of senior notes due 2032 at 6.5%. These proceeds were used to repay our six and three quarters percent 2025 notes.
William Joseph Hornbuckle: Zoomed with approximately 94 million to be paid to MGM resorts in the second quarter, all very encouraging.
William Joseph Hornbuckle: Aligned with our ongoing commitment to fortify our balance sheet and bolster liquidity. We recently completed the closing on the offering at $750 million of senior notes due 2032 at six 5%.
William Joseph Hornbuckle: These proceeds were used to repay our six and three quarters percent 2025 notes, Sarah Rogers and her team did an exceptional job and the refinancing not only extends our liquidity profile, but reduces our interest expense annually.
Jonathan S. Halkyard: Sarah Rogers and her team did an exceptional job, and the refinancing not only extends our liquidity profile but reduces our interest expense annually. Finally, in Japan, along with our partner Oryx, our venture closed on the 530 billion yen project financing for MGM's Osaka Integrated Resort. This was the largest project financing ever in Japan and one of the most significant integrated resort financings globally. With this important milestone achieved, we'll continue to develop this soon-to-be iconic resort. We also bought back over $500 million of shares in the quarter, and as of yesterday, we've reduced our outstanding float to 313 million shares, 37% fewer than at the start of 2021.
William Joseph Hornbuckle: Finally in Japan, along with our partner or XR venture closed on the Japanese yen $530 billion billion.
William Joseph Hornbuckle: Billion yen project financing for Mgm's Osaka integrated resort. This was the largest project financing ever in Japan, and one of the most significant integrated resort financings globally with this important milestone achieved we will continue to develop the soon to be iconic resort. We also bought back over 500 million.
William Joseph Hornbuckle: [noise] of shares in the quarter and yesterday, we have reduced our outstanding float to 313 million shares 37% fewer than the start of 2021.
Jonathan S. Halkyard: I'll close with a summary of our financial growth algorithm. Our resort operations generate both significant and recurring cash flow. In 2023, cash provided by operating activities was $2.7 billion, and free cash flow was $1.8 billion, of which MGM China accounted for $830 million of net cash from operating activities and $45 million of capital expenditures. This implies around a billion dollars of free cash flow domestically. We expect to see benefits soon from our digital business, with BetMGM beginning to generate significant free cash flow in the next couple of years, and Leo Vegas beginning to generate returns from its investment period.
William Joseph Hornbuckle: Close with a summary of our financial growth algorithm.
William Joseph Hornbuckle: Our resort operations generate both significant and recurring cash flow in 2023 cash provided by operating activities was $2 7 billion and free cash flow was $1 8 billion of which MGM, China accounted for $830 million of net cash from operating activities and $45 million of capital expenditures. This <unk>.
William Joseph Hornbuckle: <unk> around $1 billion of free cash flow domestically.
William Joseph Hornbuckle: We expect to see benefits soon from our digital business with bet MGM beginning to generate significant free cash flow in the next couple of years and Leo Vegas, beginning to generate returns from its investment period. This free cash flow generation will fund future growth and opportunities where I expect minimum mid teens returns. This includes international.
Jonathan S. Halkyard: This free cash flow generation will fund future growth and opportunities where I expect minimum mid-teens returns. This includes international digital expansion as well as brick-and-mortar development. In the longer term, we have an enviable pipeline of limited-license development projects in New York, Japan, and potentially the United Arab Emirates, which will drive free cash flow growth over the next decade while also diversifying our geographic reach and earning sources. Any excess cash generated beyond these projects within the constraints of our financial policy will be returned to shareholders through share buyback.
William Joseph Hornbuckle: <unk> expansion as well as brick and mortar development.
William Joseph Hornbuckle: In the longer term, we have an enviable pipeline of limited license development projects in New York, Japan, and potentially the United Arab Emirates, which will drive free cash flow growth over the next decade, while also diversifying our geographic reach and earnings sources.
William Joseph Hornbuckle: Any excess cash generated beyond these projects within the constraints of our financial policy will be returned to shareholders through share buybacks collectively we see this algorithm is driving the compounded annual growth rate of free cash flow per outstanding share to be the mid teens through 2028, all while investing in the Japan.
Jonathan S. Halkyard: Collectively, we see this algorithm as driving the compound annual growth rate of free cash flow per outstanding share to be in the mid-teens through 2028, all while investing in the Japan Integrated Resort. Bill, over to you. Thanks, Jonathan, and good afternoon and good evening.
William Joseph Hornbuckle: The integrated resort Bill over to you, Thanks, Jonathan and good afternoon, and good evening, everybody I'm the color commentary the Johnson spoke to in his opening comments.
William Joseph Hornbuckle: Thanks, Jonathan. And good afternoon and good evening, everybody.
William Joseph Hornbuckle: I'm doing the color commentary that Johnson spoke about in his opening comment. And what I want to do, and what I hope to do in the future on these, is go through some top line thoughts as we think about the business and reiterate things that I think are important, obviously, in what happened in the quarter, but more importantly, from a go forward perspective. Obviously, we use the word record first quarter. And if you look at and think about recent reporting, we're pretty excited and pretty pleased with that.
Speaker Change: And what I'm Gonna do and what I hope to do in the future on these just go through some top line thoughts as we think about the business.
Speaker Change: And reiterate things that I think are important obviously and what happened in the quarter, but more importantly from a go forward perspective, obviously, when we use the word record first quarter and if you'd look at and think about recent reporting we're pretty excited I'm pretty pleased with that.
William Joseph Hornbuckle: It speaks to our diversity of our business and our four key pillars, Las Vegas, our regional properties, Macau, and, we believe, ultimately, our digital business. We're obviously very excited and pleased by what happened in China. Our EBITDA is up almost 80%, and it's 140% over 2019 levels. So it speaks to that market and I think what we've been able to accomplish. In Las Vegas, our strength continues, particularly at the high end. We make roughly 75% to 80% of our adjusted property EBITDA.
Speaker Change: It speaks to our diversity of our business and our four key pillars Las Vegas, our regional properties, Macau and we believe ultimately our digital business.
Speaker Change: We're obviously very excited and pleased by what's happened in China, Our EBITDAR is up almost 80% and it's 140% over 2019 levels.
Speaker Change: So it speaks to that market and I think what we've been able to accomplish it.
Speaker Change: In Las Vegas are our strengths continues particularly at the high end, we make roughly 75% to 80% of our adjusted property EBITDAR. The idea of a luxury campus and being focused on the epicenter of activity here and it's paid off and we feel will continue to.
William Joseph Hornbuckle: The idea of a luxury campus and being focused on the epicenter of activity here has paid off, and we feel it will continue to. And Marriott is off to a great start. We've booked approximately 75% more rooms than we expected. And to date, we've booked over 140,000 room nights. And the most surprising thing to date has been the group business. The activity level in that segment was a little unexpected.
Speaker Change: And Marriott is off to a great start we booked approximately 75% over our expectations and to date, we've booked over 140000 room nights in the most surprising thing to date, it's been the group business on the activity case in that segment was a little unexpected Ah. They do know a lot of folks that we didn't know and were quite please.
William Joseph Hornbuckle: They do know a lot of folks that we didn't know, and we're quite pleased by that. And again, as I always start these, kudos to our team. Our net promoter scores have never been higher. We're holding these scores on margins that have delivered. You saw the margin this past quarter at 37% for Las Vegas. And so we're very excited by that. And I want to thank the team who is doing more with less and doing it better than they've ever done it. So, thank you.
Speaker Change: By that.
Speaker Change: Again, as I always start to ease of kudos to our team our net promoter scores have never been higher we're holding these scores on margins that have delivered you saw the margin this past quarter at 37% for Las Vegas, and so we're very excited by that and I wanted to thank the team who is doing more with less and doing it better than.
Speaker Change: They've ever done it so thank you.
William Joseph Hornbuckle: As it relates to capital allocation, you've heard Jonathan talk about the credit facility. That's about 3.6 billion U.S. dollars in Japan. That represents the largest private financing in Japan's history, and we've also been able to hedge about 60% of that project against what has obviously been a massively over-inflated yen in our favor over the last couple of years. And so we're well into that positioning at 60% of that project hedged for the future. And, obviously, we continue to leverage the balance sheet. You heard Jonathan say we've bought back 37% of the company, and we'll continue to do so where we see value. I think about Las Vegas first.
Speaker Change: As it relates to capital allocation, you've heard Jonathan talk about the credit facility, that's about $3 6 billion U S dollars in Japan.
Speaker Change: It represents the largest largest public a private financing in Japan's history, and we've also been able to hedge about 60% of that project against will obviously, it's been a massively over inflated yen in our favor over the last couple of years and so we're well into that positioning at 60% of that project.
Speaker Change: Hedged for the future and obviously, we continue to leverage the balance sheet.
Speaker Change: As you heard Johnson, saying, we bought back 37% of the company and we will continue to do so where we see value.
William Joseph Hornbuckle: Again, another strong quarter, principally driven by the high end. Although we did see some signs of fatigue at the lower end of the market, overall ADR was up 7% in the first quarter and expected to hold that range into the second with increased occupancies looking at the second quarter and through the balance of the year. We're excited by the opening of connectivity between ourselves and Cosmopolitan. We finished the bridge that ties out Cosmo, Vidara, and Bellagio, and next quarter, I'll talk to you more extensively about plans to do a similar thing in the front of Bellagio that will tie out the front end of the strip to the Cosmopolitan and create what we truly hope is a luxury campus.
Speaker Change: When you think about Las Vegas first again, another strong quarter, principally driven by the high end, although we did see some signs of fatigue at the lower end of the market overall ADR was up 7% in the first quarter and are expected to hold that range in the second with increased occupancy is looking at the second quarter and through the balance of the year.
Speaker Change: Year.
Speaker Change: We're excited by the opening of connectivity between ourselves and Cosmopolitan. We finished the bridge that ties out Carpenter, Carlton Fedora and Bellagio and next quarter I'll talk to you more extensively about plans to do a similar thing in the funnel belonged here that will pay out the front end of the strip to the cosmopolitan and creating what we truly.
Speaker Change: <unk> is a luxury campus.
William Joseph Hornbuckle: The other thing that's obviously beginning to materialize, we saw the closure of the Tropicana, and the advent of the A-Stadium is coming. And if you just take a moment and think about the positioning of us and all of these stadiums slash arenas between T-Mobile, Allegiant, and the new A-Stadium within a mile and really at the epicenter of our resorts, we have over a million seats a month that are accessible to some sport or entertainment activity and programming.
Speaker Change: The other thing Thats, obviously, beginning to materialize, we saw the closure of the Tropicana and the advent of the a stadium is coming and if you just take a moment and think about the positioning of us and all of these stadium slash arenas between T mobile Allegiant and the new <unk> stadium within a mile and really at the epicenter of our.
Speaker Change: Our resorts, we have over a million seats, a month that are accessible to some sports or entertainment activity in programming.
William Joseph Hornbuckle: We had suggested in prior calls that our convention business was returning, and it is and it has. Most notably from tech, our group forecast is up 6.5% for 2023, and our unit date production is up 29% for all future dates. And I will tell you that Mandalay Bay in April just had one of its most successful months in its history. And so we're excited and pleased by the team and the work that they've done down there. Despite all of this, we've continued to maintain the margins. And I want to remind you something about the wage.
Speaker Change: We have suggested in prior calls that our convention business was returning and it is and it has.
Speaker Change: Most notably from Tech our group forecast is up six 5% for 2023 and our year to date production is up 29% for all future dates and I will tell you that Mandalay Bay in April just had one of its most successful launch in its history and so we're excited and pleased by the team and the work that they've done down there.
Speaker Change: Despite all of this yeah, we've continued to maintain the margins and I want to remind something on the wage obviously the wage impact issue was almost 11% in Las Vegas are actually across the company. If I think about somebody individually properties, but particularly across Las Vegas come June one that begins to cycle and overall if you recall when we did we.
William Joseph Hornbuckle: Obviously, the wage impact issue was almost 11% in Las Vegas or actually across the company, if I think about some of the individual properties, but particularly across Las Vegas. Come June 1, that begins to cycle again. And overall, if you recall what we did, we did a five and a half year deal with just over a 5% CAGR. And so those percentages now will begin, starting in June, to fall, at least as an increase. And then, if you think about Las Vegas, maybe my final comment: Tropicana has closed.
Speaker Change: Did a five and a half year deal with just over a 5% CAGR and so those percentages now will begin starting in June at least as an increase begin to fall.
Speaker Change: If you think about Las Vegas, maybe my final comment.
Speaker Change: Tropicana has closed obviously the Mirage is pending and what may or may not happen there, but we don't see any new inventory for a considerable period of time and obviously, we think that that creates favorite would be to us and ultimately our current players you heard jonathan's comments on the regions and I think you've heard from many others.
William Joseph Hornbuckle: Obviously, the Mirage is pending and what may or may not happen there, but we don't see any new inventory for a considerable period of time. And obviously, we think that Crete's favor will be to us and ultimately our current players. You heard Jonathan's comments on the regions, and I think you've heard from many others. The quarter started slow. There was bad weather, particularly in the north and the northeast.
Speaker Change: Orders started slow there was bad weather, particularly in the north and the northeast Detroit was particularly impacted by weather Bye strike and still a hangover from the cyber but each month has gotten progressively better and in March we returned with 47% market share and so we're pleased by where that business is going directionally as well as the <unk>.
William Joseph Hornbuckle: Detroit was particularly impacted by weather, by strike, and still a hangover from the cyber. But each month has gotten progressively better, and in March, we returned with 47% market share. And so we're pleased by where that business is going directionally as well as the balance of our marginals. Corey promised all of us a 30% margin, and we hit it.
Speaker Change: <unk> of our Marginals and Cory promised all of US a 30% margin and we hit it and so given the wage increases I'm pleased with that team and excited by that as well.
William Joseph Hornbuckle: So given the wage increases, I'm pleased with that team and excited about that as well. Macau, as you all know, for us in particular, but I think for the market, is simply booming. We continue to maintain, I think, an outside portion of the share; we're at 17% for the quarter. Obviously, record EBITDA, and we paid our first dividend since 2019. We heard this week about visa reforms, and I think some of the regions are opening up without needing visas at all.
Speaker Change: Macau as you all know for us in particular, but I think for the market is simply booming.
Speaker Change: Continued to maintain I think an ex an outsized portion of share we're at 17% for the quarter, obviously record EBITDA, we paid our first dividend since 2019.
Speaker Change: We heard this week about visa reforms and I think some of the regions are opening up without needing pieces at all and so I think that it creates all to visitation and obviously in all of our favorites and if we recall the market's probably back at about an 80% rate. So we still see some uptick in some growth there for us in particular, we're excited by.
William Joseph Hornbuckle: And so I think that appeals to visitation and is obviously in all of our favors. And if we recall, the market's probably back at about an 80% rate. So we still see some uptick and some growth there. For us in particular, we're excited by some of the enhancements. We're adding new villas in MGM Macau and suites in Kotai because we are undersuited in that market.
Speaker Change: Some of the enhancements and we're adding new villas.
Speaker Change: Jim Macau and suites in Cotai, because we are under Swedish in that market.
William Joseph Hornbuckle: We have a new show that was announced; Johnny Mo, the producer of the 2008 Beijing Olympics, is producing a show for us, which we're very excited about. And we have a world-class museum currently under construction at MGM Macau, which will begin to satisfy and speak to some of the cultural things that we promised the city and Macau, in general, that we would do. And so, overall, I couldn't be more pleased with the team and the job.
Speaker Change: A new show that was announced Johnny Mo to produce at the 2008 Beijing Olympics is producing a show for us, which we're very excited about and we have a world class Museum currently under construction at MGM, Macau, which will begin to satisfy and speak to some of the cultural things that we promised the city and in Macau in general.
Speaker Change: That we do and so overall it couldnt be more pleased with the team and the job and I will make this comment margins there you'll see our 29% for the quarter. So despite the hyperbole about all of the promotional activity, particularly aimed at us at 29% I, just worry that and I challenge that and frankly if.
William Joseph Hornbuckle: And I will make this comment, margins there, if you'll see, are 29% for the quarter. So despite the hyperbole about all of the promotional activity, particularly aimed at us, at 29%, I just question that and I challenge that. And frankly, if we had retail to the extent of someone like two of our competitors, we'd be in the low to mid-30s.
Speaker Change: We had retail to the extent of someone like two of our competitors would be in the low to mid thirties and so.
William Joseph Hornbuckle: And so I'm excited by what the team continues to do there. And obviously, we expect and see, and as we've seen again in April, that to continue. Moving over to digitally, there are some challenges. Obviously, in North America, we are focused with BetMGM on our product and Angstrom integration, and we're working hard at that. We've launched single account, single wallet everywhere but Nevada, and you will see that come to fruition between now and football season. Angstrom has now begun to give us additional parlay offerings and in-play betting for baseball and the NBA, and we hope to bring that to fruition again with football this fall.
Speaker Change: I am excited about what the team continues to do there and obviously, we expect and see and we've as we've seen again in April that to continue.
Speaker Change: Moving over digitally.
Speaker Change: There are some challenges obviously in North America.
Speaker Change: We are focused with bet MGM on our product and in Angstrom integration and we're working hard at that we've.
Speaker Change: We've launched single account single wallet everywhere button, Nevada, and you will see that come to fruition between now and football season.
Speaker Change: And Angstrom has now begun to give us additional parlay offerings and in in play betting for baseball and M. B, a and we hope to bring that to fruition again with football. This fall. So a lot of work to do there we recognize the product efficiency, but I like the road map I liked the team I like the focus and I like where we're going.
William Joseph Hornbuckle: So a lot of work to do there. We recognize the product deficiency, but I like the roadmap, I like the team, I like the focus, and I like where we're going. Outside of the US, Leo Vegas, particularly now in Sweden, has seen a return. There was a whole relicensing procedure there that cost everyone, including us, and that was their primary market. So Leo Vegas is on the rebound.
Speaker Change: Outside of the U S. A Leo Vegas, particularly now in Sweden has seen a return there was a whole re licensing procedure debit cost everyone, including us and that was their primary market. So Leo Vegas is on the rebound.
William Joseph Hornbuckle: BetMGM UK, which we spoke about last quarter, is doing exceptionally well. We've established a real presence there, and again, something we're excited about. And then yesterday saw the first soft launch of BetMGM in the Netherlands, and so the BetMGM brand will begin to extend itself throughout Leo Vegas's network and beyond. Overall, our digital strategy remains the same.
Speaker Change: At MGM, UK, which we spoke about last quarter is doing exceptionally well we've established a real presence there and again something we're excited by and then yesterday saw the first soft launch a bet MGM in the Netherlands, and so the bet MGM brand will begin to extend itself throughout Leo Vegas is network and beyond overall, our digital strategy remains.
Speaker Change: At the same at some point, we want to be self sustaining with all site features including producing our own games on our own product.
William Joseph Hornbuckle: At some point, we want to be self-sustaining with all site features, including producing our own games and our own product. Some of the initial work by Push, as we've mentioned before, is doing exceptionally well, and we're excited by that. You'll see Live Dealer up and operating between now and the end of summer here in Las Vegas.
Speaker Change: Some of the initial work by push we've mentioned before is doing exceptionally well and we're excited by that Youll see live dealer up and operating between now and the end of summer here in Las Vegas, very excited to understand that and the value that that could ultimately bring our digital business and the idea that we could do live dealing from Las Vegas and put it out into several global markets.
William Joseph Hornbuckle: I am very excited to understand that and the value that that could ultimately bring to our digital business. And the idea that we could do live dealing from Las Vegas and put it out into several global markets, I think is going to be interesting and fascinating for the business and a good brand builder of note. We are also looking at the Leo Vegas business, LATAM in South America, and some additional Eastern European countries for exposure and for expansion.
Speaker Change: He is going to be interesting and fascinating for the business and a good brand builder of notes and we're also looking at two real.
Speaker Change: Vegas business Lat am in South America, and some additional eastern Europe countries, where exposure and for expansion.
William Joseph Hornbuckle: On the development pipeline, we've talked about this, but now that we have financing in place, we put our consortium in place, excited to be going forward with real construction, and we hope to be in the ground sometime next spring or summer, driving pylons. We still have an eye on a 2030 opening, and nothing is to dissuade that at this point.
Speaker Change: On the development pipeline, we've talked about this but now that we have financing in place we put our consortium in place.
Speaker Change: <unk> to be going forward with real construction.
Speaker Change: And we hope to be in the ground sometime next spring summer driving pylons, where they are we still have an eye on that 2030 opening and nothing has to dissuade that at this point. So we're excited by it we're excited by the design the development and the fact that we've got in this next most important phase behind us and so we're pushing forward aggressively you heard Jonathan talked about we had UAE.
William Joseph Hornbuckle: So we're excited by it. We're excited by the design, the development, and the fact that we've gotten this next most important phase behind us, and so we're pushing forward aggressively. You heard Jonathan talk about the UAE.
William Joseph Hornbuckle: We have an eye on Abu Dhabi and Dubai as that unfolds. And so to the extent that anything becomes meaningful, obviously, we'll keep you all posted. I will say we're somewhat disappointed with the process in New York, but we have been. We've been there since, I think, 2015 or 16. We will remain patient, and we will remain focused. And the good news here for us is that we like our chances. The city of Yonkers has our full support behind us, and so we think that's meaningful as we come ultimately into the process that will entail. It sounds like next spring, if you will.
Speaker Change: We have an eye on Abu Dhabi, and Dubai as that unfolds and so to the extent something becomes meaningful obviously, we will keep you all posted.
Speaker Change: I will say, we're somewhat disappointed with the process in New York, but we have been we've been there since I think 2015 or 16, we will remain patient and we will remain focused and the good news here for US is we like our chances to city of Yonker says our full support behind us and so we think that's meaningful as we come ultimately.
Speaker Change: Into the the process that will entail it sounds like next spring if you will and then like many others. We have an eye on Texas, and Thailand time to tell what happens both in those two markets. Obviously, it's a government process is ongoing in both places but.
William Joseph Hornbuckle: And then, like many others, we have an eye on Texas and Thailand. Time to tell what happens in those two markets. Obviously, it's a government process that's ongoing in both places, but we are there, and we are just trying to understand those opportunities for what they may ultimately bring to the company. In conclusion, you've heard me use this word in the past, and I think, probably more than any other quarter, it came through in this quarter, the word diversification of our products and diversification of our business.
Speaker Change: But we are there and we are I'm, just trying to understand those opportunities.
Speaker Change: For what they may ultimately bring to the company.
Speaker Change: In conclusion, you've heard me use this word in the past and I think probably more than any other quarter. It came through in this quarter. The word diversification of our products and the diversification of our business. Obviously Macao did a great deal of lift this quarter Las Vegas held its own the regionals are recovering and the digital business has been fully.
William Joseph Hornbuckle: Obviously, Macau did a great deal of lift this quarter. Las Vegas held its own. The regionals are recovering, and the digital business has been fully funded, and we're looking forward to what it can do ultimately down the road. So with all of that, I will turn this open to questions.
Speaker Change: Funded and we're looking forward to what it can do ultimately down the road.
Speaker Change: So with all of that.
Speaker Change: I will turn this open to questions.
Operator: We will now begin the question and answer session. As a reminder, in all fairness, please limit yourselves to one question and one follow-up. Our first question today comes from Joe Greff from J.P. Morgan. Please go ahead with your question.
Speaker Change: We will now begin the question and answer session. As a reminder, in all fairness. Please limit yourselves to one question and one follow up.
Speaker Change: Our first question today comes from Joe Greff from JP Morgan. Please go ahead with your question.
Joseph Richard Greff: Good afternoon, everybody. Bill, the early experience with Marriott and bookings there was, obviously, positive. Tony Capuano mentioned that this morning on Marriott's earnings conference call. I was hoping you could just talk a little bit about what you're seeing so far. I know it's early in terms of out-of-room spend with these bookings compared to maybe either the bookings they're displacing or with just MGM. But this is more of a specific Las Vegas strip question.
Joseph Richard Greff: Good afternoon everybody.
Joseph Richard Greff: Bill the you know the early experience with that with Marriott and and bookings there positive obviously.
Joseph Richard Greff: Couple of them I mentioned that this morning on marriott's.
Joseph Richard Greff: <unk> earnings Conference call.
William Joseph Hornbuckle: And then, further to this, is it helping more on the high end? Is it potentially serving as a buffer on the low end? You obviously referenced low-end fatigue in your prepared comments.
Joseph Richard Greff: I was hoping you could just.
Joseph Richard Greff: Talk a little bit about what you're seeing so far I know, it's early in terms of out of room spend.
Joseph Richard Greff: You know with these bookings.
Joseph Richard Greff: Compared to maybe the either the bookings you're displacing or with just M. G. M. And this is more of a specific Las Vegas strip question and then a further to this is it helping them more on the high end is it potentially serving as a buffer on the low end you obviously, you've referenced low end fatigue in your prepared comments.
Joseph Richard Greff: Yeah.
Jonathan S. Halkyard: Jonathan, I'll offer a couple of observations. First, as you noted in the premise of the question, it is early. I mean, we're off to a great start with over 130,000 rooms booked. We've actualized over 50,000 of those so far.
Joseph Richard Greff: The gentleman that jumped yeah, Joe it's Jonathan.
Jonathan: I'll offer a couple of observations first as you as you noted in the premise of the question. It is early I mean, we're off to a great start with over 130000 rooms book, we've actualized over 50000 of those so far.
Jonathan S. Halkyard: What we're seeing now is a higher premium than we had figured when we were going into this deal, which breaks down between rate and the non-property spend. But between the two of those, right now, it's around $150 higher than the rooms that we believe are being displaced by this occupancy. About 100 or so of that is on rate, and about $50 is a premium on on-property spend. So that's all with the caveats around it being early, but that's what we're seeing.
Jonathan: What we're seeing now is a higher premium than we we had figured when we were going into this deal.
Jonathan: Breaks down between rate and the non property spend but.
Jonathan: But between the two of those right now it's around $150 higher.
Jonathan: Then we then the rooms that that we believe are being displaced by this occupancy.
Jonathan: About 100, or so of that is on rate and about $50 premium on on property spend so that's all with the with the caveat surround it being early but that's what we're seeing and I'll offer one comment and then maybe bill or Corey you want to comment on the group side of this equation.
Jonathan S. Halkyard: And I'll offer one comment that maybe Bill or Corey would like to comment on the group side of this equation, and that is that it really is the leisure customers that we're displacing through other channels, but they are across all of the businesses, including our regional properties.
Speaker Change: That is that.
Speaker Change: It really is.
Speaker Change: The leisure customers.
Jonathan: We are displacing coming through other channels.
Jonathan: What they are they are across all of the businesses, including our regional properties.
Corey Ian Sanders: Yeah, and the properties, I mean, they're pretty, they're booking throughout the portfolio, probably Bellagio is leading, and we're actually seeing some pickup even in our legacy properties. In addition, the other area we're seeing some pretty nice pickup in is Borgata. So we're very pleased with what we're seeing across the portfolio. And as it relates...
Speaker Change: Yes, and the properties I mean, it's pretty they're booking throughout the portfolio, probably <unk>, leading more actually seeing some pickup even in our legacy properties.
Jonathan: In addition, the other area, we're seeing some pretty nice pickup as a borgata. So we're very pleased with what we're seeing across the portfolio and then as it relates to group Joe.
William Joseph Hornbuckle: And as it relates to the group, Joe, we've gotten tens of thousands of referrals. And the fascinating thing is we didn't know, and we thought we were pretty good at this, we have been historically, but we didn't know 80% of those referrals. And the vast majority of that business is going midstream. MGM has been so far, again, it's very early, the biggest beneficiary of bookings into the group segment. And so, you know, we have 13 GSOs; they have 1300, literally. So it's meaningful.
Jonathan: We did we've gotten tens of thousands of referrals and the fascinating thing is we didn't know and we thought we were pretty good at this we have been historically, but we didn't know 80% of those referrals and the vast majority of that business is growing midstream MGM has been so far again, it's very early the biggest beneficiary of bookings into the group segment and so.
Jonathan: Yeah.
Jonathan: We have 13 GSO as they have 1300 literally so it's it's meaningful.
Operator: Great. Thank you for that.
Jonathan: Great.
Speaker Change: Thank you for that and then my follow up question, maybe more geared towards Jonathan.
Speaker Change: But up together was news reports of potential efforts to divest certain regional assets. Obviously, if there was something to update us on your you would update us in the press release, but more my question is about the strategic thinking in terms of how you go about and maybe.
Joseph Richard Greff: And then my follow-up question, maybe more geared towards Jonathan, about a month ago, there were news reports of potential efforts to divest certain regional assets. Obviously, if there was something to update us on, you would update us in a press release. But more importantly, my question is about strategic thinking in terms of how you go about and maybe think about pruning the portfolio domestically, and what are the certain characteristics or considerations that you think about when thinking about this?
Jonathan: Thinking about pruning the portfolio domestically.
Jonathan: What are the certain characteristics or considerations.
Jonathan: You think about when when when thinking about this.
Jonathan S. Halkyard: Sure, I appreciate the question. Clearly, we can't comment on anything like those reports you referenced.
Jonathan: Sure.
Speaker Change: Appreciate the question clearly we can't comment on.
Speaker Change: On a on any anything like the like.
Speaker Change: Those reports you you referenced but look we're always looking at the portfolio and.
Jonathan S. Halkyard: But look, we're always looking at the portfolio and understanding how it fits in overall with us strategically. Things that are very important include market positioning in markets that we believe have strong potential for growth, overall scale, because this is, you know, this is a business where most of our properties, including our regional properties, are doing north of $200 million annually via BDAR. So scale matters. And then finally, the way in which all of our properties interact with the whole importation of business into Las Vegas, the linkage with our digital businesses, etc. But those are the general lenses through which we look at the portfolio and how they fit in with the strategy. And John, I only want to add one other thing.
Speaker Change: Two to understand how it fits in overall with us strategically things that are very important and include.
Jonathan: Market positioning in markets that we believe have strong potential for growth.
Jonathan: Overall scale because this is this is a business where most of our properties, including our regional properties are doing north of $200 million annual EBITDAR. So scale matters and then finally.
Jonathan: The way in which our all of our properties interact with the whole importation of business into Las Vegas, the linkage with our digital businesses et cetera, but those are the those are the general lenses through which we look at the portfolio and how they fit in with the strategy.
William Joseph Hornbuckle: And John, I only add one other thing. And those properties that demonstrate beyond just organic growth, a real growth potential at some point for various reasons. So, for various reasons, but if they don't demonstrate that, then we have a potentially different view.
Jonathan: And one other thing and those properties are demonstrated.
Jonathan: Beyond just the organic growth of real growth potential at some point for various reasons, it's tropical different so for various reasons, but if they don't demonstrate that and we have a potentially a different view.
Speaker Change: Thank you.
Jonathan: Our next question comes from Shaun Kelley from Bank of America. Please go ahead with your question.
Operator: Our next question comes from Shaun Kelley from Bank of America. Please go ahead with your question.
Shaun Clisby Kelley: Hi, good afternoon, everyone. Thank you for taking my questions.
Shaun Clisby Kelley: Hi, good afternoon, everyone. Thank you for taking my questions. I was hoping we could maybe just drill in on digital a little bit. So maybe one kind of specific and then one, you know, strategic. The specific question would just be, can you help us think about, you know, the loss cadence?
Shaun Clisby Kelley: Hoping we could maybe just drill in on digital a little bit. So maybe one kind of specific and then one strategic the specific question would just be can you help us think about the launch cadence I think we've been very clear here that 'twenty 'twenty four would be an investment year again, so just help us think about how some.
Jonathan: Some of those investments may play throughout and is there some additional marketing.
Jonathan: Especially in the second half as you get the product to I think where you want any angstrom integrations done and then maybe the strategic question just hit all at once would be.
Shaun Clisby Kelley: I think we've been very clear here that 2024 would be an investment year again. So just help us think about, you know, how some of those investments may play out throughout. And is there some additional marketing, you know, especially in the second half as you get the product to, I think, where you want and the angstrom integrations kind of done? And then maybe the strategic question just hit all at once would be, you know, the big picture here.
Jonathan: And a big picture here.
Jonathan: What more would you look for it in digital are there some things on the technology side.
Jonathan: Or is it more of the market expansion side that you're kind of out looking to expand upon digitally.
Speaker Change: I'll take that first part of that just so you know what.
Speaker Change: When it comes to bet MGM, if you will.
Speaker Change: Your comments are pretty relatively spot on we want to see the product development as it comes out throughout the balance of the year.
Speaker Change: The idea we've all talked about the idea of leaning in if we think where we need to be and want to be by end of year, particularly to football and beyond.
Shaun Clisby Kelley: You know, kind of what more would you look for in digital? You know, are there some things on the technology side? Or is it more of the market expansion side, you know, that you're kind of looking to expand upon, you know, digitally?
Jonathan: You know obviously for the first quarter I think digital for all of US was a little rough nobody wanted to Super Bowl, but no one seemed to win at March Madness bet, we're not alone in that.
William Joseph Hornbuckle: I'll take that first part. So, you know, when it comes to bet MGM, if you will, I think your comments are pretty relevant and spot on. We want to see product development as it comes out throughout the balance of the year. I think the idea we've all talked about is leaning in if we think we're where we need to be and want to be by the end of the year, particularly through football and beyond. You know, obviously, for the first quarter, I think digital for all of us was a little rough. Nobody won a Super Bowl bet. No one seemed to win a March Madness bet.
William Joseph Hornbuckle: We're not alone in that. But all that said, I think the plan that we have put forward in discussions to date is something that you can hold true to. You know, as it relates to longer, there are obviously, particularly with things like angstrom and product deliverable, there's a lot to be done that can be done. You know, we're pushing 40 odd states in terms of sports betting. Obviously, iGaming is the real opportunity over time. Arguably, we're all in six.
Jonathan: But all that said I think the plan that we had put forward in discussions to date you can hold true on.
Jonathan: As it relates to longer there are obviously, particularly with things like angstrom and product deliverable Theres a lot to be done that can be done now we're pushing 40 odd states in terms of sports betting obviously I gaming is the real opportunity over time, you know arguably we're all in six I think we operate in five and three that.
William Joseph Hornbuckle: I think we operate in five and three that really make a difference. And so there's a huge upside to that potential. And we continue to try to push for that each and every day. You know, the digital side of our other business, meaning the Leo Vegas business, it is about the extension of BetMGM's brand and what it could mean in certain established markets and the focus on places like South America of note and LATAM.
Jonathan: Make a difference and so there's huge upside to that potential and we continue to try to push for that each and every day.
Jonathan: If you think about then the digital side of our other business, meaning the Leo Vegas business.
Jonathan: Is about the extension of bad M, James brand and what it could mean in certain established markets.
Jonathan: And the focus on places like South America of note in Latam, we see long term.
William Joseph Hornbuckle: We see long-term real growth potential there if we can get ourselves established in the proper regulated markets. And so none of that happens overnight, as you know. But like what we've done in terms of positioning, like the products that we have in the foundation we've built, particularly there, and some of the things we're about to add going down the road there to stabilize that business and to own all of that business. And so we're excited by that.
Jonathan: Real growth potential there if we can get to get ourselves established in the proper regulated markets and so none of that happens overnight as you know, but like what we've done in terms of positioning like the products that we have and the foundation we've built.
Jonathan: Particularly there and some of the things we're about to add going down the road there to stabilize that business and to own all of that business and so we're excited by that.
Speaker Change: Thank you very much.
Speaker Change: Our next question comes from Carlos Santa Rally from Deutsche Bank. Please go ahead with your question.
Operator: Our next question comes from Carlos Santarelli from Deutsche Bank. Please go ahead with your question.
Carlo Santarelli: Hey guys, good afternoon. Jonathan, I'm just doubling back on some of your comments earlier in the call. Obviously, good ADR growth in the first quarter, rates pacing up for each subsequent quarter, and the group pacing well. Obviously, as Bill mentioned, we lapped the big headwind with the union contract incremental expenses. As you guys think about the rest of the year and all the puts and takes, hold comparisons from last year, easy, hard, et cetera, events last year, although that should pretty much normalize right now.
Speaker Change: Hey, guys good afternoon.
Speaker Change: Jonathan just doubling back to some of your comments earlier in the call. Obviously, good ADR growth in first quarter rates pacing up for each subsequent quarter group pacing well.
Speaker Change: Obviously as Bill mentioned, we lap the you know the big headwind with the Union contract incremental expenses.
Speaker Change: As you guys think about the rest of the year and all the puts and takes.
Speaker Change: Hold comparisons from last year easy hard et cetera events last year, although that should pretty much normalized right now in the book of business that you currently have with kind of some of the known expenses and where theyre going obviously going up but less.
Carlo Santarelli: In the book of business that you currently have with some of the known expenses and where they're going, obviously going up, but less heartily as they have been. Do you look at the outlook for the rest of this year and believe there's potential for Vegas trip EBITDA to grow as you work through the year?
Speaker Change: Less heartily as they have been.
Speaker Change: Do you look at the outlook for the rest of this year and believe there's there's potential for Vegas strip EBITDAR too.
Speaker Change: To grow as you worked through the year.
Speaker Change: Yes.
Jonathan S. Halkyard: Yes is the simple answer. As we look not only at the leading indicators that we have in our book of business but also at the initiatives that we have underway. And yes, we are confident that we can grow EBITDAR in Las Vegas this year.
Speaker Change: The simple answer as we as.
Speaker Change: As we look not only to the leading indicators that we have in our in our book of business, but also the initiatives that we have underway and.
Speaker Change: Yes, we.
Speaker Change: Our confident that we can grow.
Speaker Change: EBITDAR in in <unk>.
Speaker Change: In Las Vegas this year.
Speaker Change: Okay, Great and then if I could just I know you guys tightened up the the sum of the slide deck materials and stuff.
Carlo Santarelli: Okay, great. And then, I know you guys tightened up some of the slide deck materials and stuff, and they're actually very user-friendly.
Speaker Change: Actually it's.
Jonathan S. Halkyard: Will the Hong Kong filing provide much of the same material that it provided historically on the MGM China piece of the business for modeling purposes? Yes, it will. Okay. And will that be out at some point this evening?
Speaker Change: So our user friendly.
Speaker Change: We'll be the Hong Kong filing provide much of the same material that it provided historically on the on the MGM, China piece of the business for modeling purposes.
Speaker Change: Yes, it will.
Speaker Change: Okay and will that be out at some point this evening.
Speaker Change: Yeah in about 30 minutes I'm told perfect.
Jonathan S. Halkyard: Yeah, in about 30 minutes, I'm told. Perfect. Okay.
Operator: Okay. Thank you. Thank you very much.
Speaker Change: Okay. Thank you. Thank you very much.
Speaker Change: Our next question comes from David Katz from Jefferies. Please go ahead with your question.
David Brian Katz: Our next question comes from David Katz from Jefferies. Please go ahead with your question.
David Brian Katz: Hi, good afternoon.
David Brian Katz: Hi, good afternoon. Thanks for taking my questions I wanted to follow on in the digital.
Speaker Change:
Speaker Change: Trainer.
David Brian Katz: And when we last spoke publicly.
William Joseph Hornbuckle: Thanks for taking my questions. I wanted to follow on in the digital, you know, train of thought. And, you know, when we last spoke publicly, there were notions about potential further tuck-ins and, you know, some potentially of some, you know, meaningful size and continuing to grow that business through some acquisitions. I'm not sure that you touched on that today. I just wanted to get a sense for what that thinking might be.
David Brian Katz: You know there were notions about.
David Brian Katz: About potential further tuck ins.
David Brian Katz: And you know some potentially of some meaningful size and continuing to grow that business through some acquisitions I'm not sure that you touched on that today, but I just wanted to get a sense for what that thinking might be.
William Joseph Hornbuckle: I did not do this on purpose. There are some contemplated tuck-ins coming down the road. But for now, I'm just going to leave it at that. You know, I think we've stated, I stated on the earlier call, we're anxious to solidify something in sports. We like content businesses. We're anxious to get into the live dealer business. And so none of that's changed. And so I think you'll see us, over the course of time here, do things that will further solidify that strategy and get us deeper into those objectives.
Speaker Change: I I did non purpose.
David Brian Katz: There are some contemplated tuck ins coming down the road, but for now I'm just going to leave it at that I.
Speaker Change: I think we've stated and I stated on the earlier call. We're anxious to find something in sports, we like content businesses. We're in.
David Brian Katz: Just to get into the live dealer business and so none of that's changed and so I think you'll see us over the course of time here do things that will further solidify that strategy and get us deeper into those objectives.
Speaker Change: Okay fair enough and if I can just follow up on on better M. G. M. Alright, there is.
David Brian Katz: Okay, fair enough. And if I can just follow up on, you know, BED-MGM, right? There's, you know, a lot of your sort of commentary and vision for BED-MGM has, you know, progressed appropriately but in a steady way where, you know, from afar, it seems like there's a lot of fluidity on your partner side. And my question is, you know, has there been, you know, any near-term sort of positive change in how they're approaching the business, executing on the business, etc., beyond what you mentioned in some of your prepared remarks?
Speaker Change: A lot of your sort of commentary envisioned for bet MGM has progressed appropriately but in a steady way, where you know from a far it seems like there's a lot of fluidity on your partner side and my question is has there been any near term sort of positive.
Speaker Change: Change and sort of how they're approaching the business executing on the business, etc. Beyond what you mentioned in some of your prepared remarks.
Speaker Change: Yes look.
William Joseph Hornbuckle: Yes. Look, I think Stella, their new CEO, is a breath of fresh air. She's been extremely transparent. She took Adam, who is the CEO, Adam Greenblatt, our CEO of BetMGM, to India to get under the covers to meet with the design development team so that he had her, I'm sorry, she had him speak at a town hall about the importance of BetMGM and all that mattered.
Speaker Change: Look I think stellar their new CEO is the breath of fresh air.
Speaker Change: She has been extremely transparent she took adams, who is the green blend our CEO.
Speaker Change: That MGM to India to get under the covers to meet with the design development teams.
Speaker Change: He had her I'm, assuming she had him speak at a town hall about the importance of bet MGM and all that mattered.
William Joseph Hornbuckle: And so we're excited by that. We think it's movement in the right direction, and it's something that, frankly, hasn't happened heretofore.
Speaker Change: And so we're excited by that we think it's movement in the right direction.
Speaker Change: And it's something that frankly heretofore hadn't happened and so that's all affirmative and positive everyone's agreeing to the roadmap. It's an extensive roadmap on product development and it's going to take some time energy and some investment, particularly on <unk> behalf and they are fully supportive of that and so yes, I think things have changed and I think much much better.
William Joseph Hornbuckle: And so that's all positive and encouraging. Everyone's agreeing to the roadmap. It's an extensive roadmap for product development, and it's going to take some time, energy, and some investment, particularly on NTAIN's behalf. And they're fully supportive of that. And so, yeah, I think things have changed, and I think for the much better.
Operator: understood. Thank you. I appreciate it.
Speaker Change: Understood. Thank you appreciate it.
Speaker Change: Our next question comes from Brent <unk> from Barclays. Please go ahead with your question.
Brandt Antoine Montour: Our next question comes from Brandt Montour from Barclays. Please go ahead with your question.
Brandt Antoine Montour: Good evening, everybody. Can you hear me?
Brent: Good evening, everybody can you hear me.
Brent: Lumpy yes.
Operator: [inaudible]
Unknown Executive: Douglas Goldstein, CFP®, is the director of Profile Investment Services and the host.
Brent: Thank you.
Brent: The first question is on Las Vegas.
Brent: Maybe you could reconcile or help us reconcile the slot.
Brent: Volume trends that you saw in the quarter versus the really strong room rates and I guess, what I'm asking is there.
Lumpy: Any sort of behavioral shifts or customer trend shift going on under the surface and what's driving that can you talk about the trade off between those two those two factors and how much control you have over that shift.
Speaker Change: Yeah, I'll start and John do you want to add in.
Unknown Executive: Yeah, I'll start and jump on that. And, you know, in the quarter, our convention mix was up. But also, with the Marriott integration, we, we definitely strategically looked at reducing our lower end of that casino base. And so we definitely, we believe that we got the revenue back in the hotel and in the convention base for the lost revenue on the slot side there.
John: In the quarter, our convention mix was up but also with the Marriott integration. We are yes, we definitely strategically looked at.
Speaker Change: Reducing our lower end of that casino base.
Speaker Change: And so we.
Speaker Change: We definitely we believe that we got the revenue back in the hotel and the convention based for.
Speaker Change: The loss drive revenue on the slot side there.
Speaker Change: Yeah, that's a great answer and my second question is on MGM China.
Brandt Antoine Montour: That's a great answer. My second question is about MGM China. Bill, you touched on the competitive environment there. Your market share in January was well-documented to be high, but your average from the mass table market share over the quarter was obviously lower. It implies a lower exit rate. I'm just curious if you want to double back on the January market share and maybe talk about what happened there. I guess it wasn't permanent, of course, and how much of it was held, but what can you say about the exit rate on market share heading into the second?
Speaker Change: And Bill you touched on the competitive environment there.
Speaker Change: Your your market share in January was well documented to be high but your average from the mass.
Speaker Change: As cable market share over the quarter was obviously lower implies a lower exit rate.
Speaker Change: Just curious curious if you want to double back on the January market share.
Speaker Change: Maybe talk about.
Speaker Change: What happened there and what.
Speaker Change: Does it I guess it wasn't permanent of course and how much of it was hold but what can you say about exit rate on on market share heading into the second quarter.
William Joseph Hornbuckle: Let me deflect to Kenny and or Hubert here. I think most of it was tied to Holden January, but gentlemen, correct me if I'm wrong. B-O-U-R-I, And we also had some VIP space in January, so that...
Speaker Change: Let me take <unk> bird here I think most of it was tied to hold in January but gentlemen, correct me if I'm wrong.
Unknown Executive: D-O-U-R-I And we also had some VIP places in January, so that was a major reason that we reached 20% market share in January. But definitely, our goal is in the mid-teens, as we always said in our previous calls.
Speaker Change: Yes, you are right.
Speaker Change: Good.
Speaker Change: And <unk> also had to sum up like it placed in January so that was a major reason we reached 20%.
Speaker Change: Our market share in January.
Speaker Change: So definitely <unk> Asa in mid teen and we always said in our previous calls.
Speaker Change: The exit market share rate for March.
Speaker Change: Was 15, 8%.
Speaker Change: And we are pretty much stable.
Speaker Change: On that front and we see a little higher number in April around that.
Speaker Change: Beautiful thanks, everybody.
Unknown Executive: Beautiful. Thanks, everybody.