Q1 2026 MGM Resorts International Earnings Call

April 29, 2026

Speaker #1: Good afternoon. And welcome to the MGM Resorts International First Quarter 2026 earnings conference call. Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President; Aisha Molino, Chief Operating Officer; Jonathan Halkyard, Chief Financial Officer; Gary Fritz, Chief Commercial Officer and President of MGM Digital; Kenneth Feng, Chief Executive Officer of MGM China Holdings; and Howard Wang, Vice President, Investor Relations.

Operator: Good afternoon, welcome to the MGM Resorts International Q1 2026 Earnings Conference Call. Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President; Aisha Merlino, Chief Operating Officer; Jonathan Halkyard, Chief Financial Officer; Gary Fritz, Chief Commercial Officer and President of MGM Digital; Kenneth Feng, Chief Executive Officer of MGM China Holdings; and Hubert Wang, Vice President, Investor Relations. Participants are in listen-only mode. 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'd like to turn the conference over to Hubert Wang.

Operator: Good afternoon, welcome to the MGM Resorts International Q1 2026 Earnings Conference Call. Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President, Ayesha Molino, Chief Operating Officer, Jonathan Halkyard, Chief Financial Officer, Gary Fritz, Chief Commercial Officer and President of MGM Digital, Kenneth Feng, Chief Executive Officer of MGM China Holdings, and Hubert Wang, Vice President, Investor Relations. Participants are in listen-only mode. 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'd like to turn the conference over to Hubert Wang.

Speaker #1: in listen-only mode. 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.

Speaker #1: Please note this conference Howard Wang.

Speaker #2: Thanks, Rocco. Welcome to the MGM Resorts International First Quarter 2026 earnings call. This call is being broadcast live on the Internet at investors.mgmresorts.com, and we have also furnished our press release on Form 8K to the SEC.

Hubert Wang: Thanks, Rocco. Welcome to the MGM Resorts International Q1 2026 Earnings Call. This call is being broadcast live on the Internet at investors.mgmresorts.com. We have also furnished our press release on Form 8-K to the SEC. On this call, we will make forward-looking statements under the safe harbor provisions of the federal securities laws. 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 statements as a result of new information or otherwise. During the call, we will also discuss non-GAAP financial measures when talking about our performance.

Speaker #2: On this call, we will make forward-looking statements under the Safe Harbor provisions of the Federal Securities Laws. Actual results may differ materially from those contemplated in these statements.

Speaker #2: 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.

Speaker #2: Except as required by law, we undertake no obligation to update these statements as a result of new information or otherwise. During the call, we will also discuss non-GAAP financial measures when talking about our performance.

Speaker #2: 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.

Hubert Wang: 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'll now turn it over to Bill Hornbuckle.

Speaker #2: I'll now turn it over to Bill Hornbuckle.

Speaker #3: Thank you, Howard. And thanks again to all of our employees. Their continued dedication and execution drove another gold-plus MPS record-breaking quarter, reinforcing the strength and sustainability of our business and our ability to deliver unique and lasting experiences to people find incredibly exciting.

Bill Hornbuckle: Thank you, Hubert. Thanks again to all of our employees. Their continued dedication and execution drove another gold-plus NPS record-breaking quarter, reinforcing the strength and sustainability of our business and our ability to deliver unique and lasting experiences that people find incredibly exciting. MGM Resorts once again delivered a consolidated net revenue growth in Q1, driven by strengths in digital and China. Net revenue for Las Vegas in Q1 grew on a year-over-year basis for the first time in over a year, despite an exceptionally strong leisure comparative. We achieved this with solid group and convention business in Q1, and we expect this to carry into Q2.

Speaker #3: MGM Resorts once again delivered consolidated net revenue growth in the first quarter, driven by strengths in digital and China. Net revenue for Las Vegas in Q1 grew on a year-over-year basis for the first time in over a year despite an exceptionally strong leisure comparative.

Speaker #3: We achieved this with solid group and convention business in the first quarter, and we expect this to carry into the second quarter. The first quarter is typically our seasonally strong group and convention quarter of the year, and we experienced robust business-related to both citywide conventions like CES and CONAG, as well as in-house programs at Mandalay and MGM Grand.

Bill Hornbuckle: The Q1 is typically our seasonally strong group and convention quarter of the year, and we experienced robust business related to both citywide conventions like CES and CONEXPO-CON/AGG, as well as in-house programs at Mandalay and MGM Grand. We achieved record Q1 convention ADRs and catering banquet revenue and drove increased production from our strategic relationship with Marriott. Importantly, we expect this momentum to continue into the Q2 with convention room night mix up 2 percentage points year over year to 20%. As the city evolves, we are making sure we are leaders in innovation. The Gaming Salon at Park MGM, which opened at Park MGM and received all regulatory approvals during the quarter, is another exciting step.

Speaker #3: We achieved record one-Q convention ADRs and catering banquet revenue, and drove increased production from our strategic relationship with Marriott. Importantly, we expect this momentum to continue into the second quarter with convention room night mix to up 2 percentage points year-over-year to 20%.

Speaker #3: As the city evolves, we're making sure we are leaders in innovation. The MGM Gaming streaming lounge, which opened at Park MGM and received all regulatory approvals during the quarter, is another exciting step.

Speaker #3: We developed a premium creator environment where gaming stories can come to life with plans to integrate celebrities into both the content and the broader guest experience.

Bill Hornbuckle: We developed a premium creative creator environment where gaming stories can come to life with plans to integrate celebrities into both the content and the broader guest experience. Another theme in our Las Vegas business has been our value. MGM has always offered opportunities for our guests seeking value experiences. This quarter, we challenged ourselves to be even more creative and launch an all-inclusive experience that bundles hotel, dining, entertainment, and all parking and resort fees. Guests can now choose to stay at Luxor or Excalibur with access to a wide range of dining options across 5 MGM properties. The feedback we're getting from guests is very positive, and roughly one-third of the bookings are from first-time Las Vegas visitors. The program enhances our ability to convey our value propositions in an innovative ways that resonate with our guests.

Speaker #3: Another theme in our Las Vegas business has been our value. MGM has always offered opportunities for our guests seeking value experiences. This quarter, we challenge ourselves to even be more more creative and launch an all-inclusive experience that bundles hotel, dining, entertainment, and all parking and resort fees.

Speaker #3: Guests can now choose to stay at Luxor or Excalibur, with access to a wide range of dining options across five MGM properties. The feedback we're getting from guests is very positive and roughly one-third of the bookings are from first-time Las Vegas visitors.

Speaker #3: The program enhances our ability to convey our value proposition in an innovative way that resonates with our guests. Ultimately, Las Vegas' true value lies in delivering iconic one-of-a-kind experiences.

Bill Hornbuckle: Ultimately, Las Vegas' true value lies in delivering iconic, one-of-a-kind experiences. We look forward to welcoming the Super Bowl back at Allegiant Stadium in 2029, particularly given our proximity to the venue, which drove outsized benefits during the 2024 Super Bowl. In the near term, Allegiant will host the College Football Playoff National Championship in 2027 and the Final Four in 2028. That same year, the A's are set to begin their inaugural season in Las Vegas. During the quarter, Las Vegas has also been named a target city for the NBA expansion team, and we are actively engaged in discussions with the league and respective team owners. If successful, no US city will have assembled all four major professional sports leagues faster than Las Vegas. The ability to attract professional sports franchises and tentpole events exemplifies Las Vegas' structural resilience.

Speaker #3: We look forward to welcoming the Super Bowl back at Allegiant Stadium in 2029, particularly given our proximity to the venue, which drove outsized benefits during the 2024 Super Bowl.

Speaker #3: In the near term, Allegiant will host the College Football Playoff National Championship in 2027, and the final four in 2028. That same year, the A's are set to begin their inaugural season in Las Vegas.

Speaker #3: During the quarter, Las Vegas has also been named a target city for the NBA expansion team. And we are actively engaged in discussions with the league and respective team owners.

Speaker #3: If successful, no U.S. city will have assembled all four major professional sports leagues faster than Las Vegas. The ability to attract professional sports franchises and tentpole events exemplifies Las Vegas' structural resilience.

Speaker #3: The city consistently advances through challenging operating environments by evolving alongside customer demand. Today's consumers are decisively gravitating towards live events, and experiential travel in Las Vegas and MGM has captured that momentum.

Bill Hornbuckle: The city consistently advances through challenging operating environments by evolving alongside customer demand. Today's consumers are decisively gravitating towards live events and experiential travel in Las Vegas, and MGM is capturing that momentum. Las Vegas' ability to adapt its mix, its pricing, and entertainment continues to differentiate the market and reinforce its resilience through economic cycles. Our regional operations have maintained steady market share. Strong casino volumes supported solid results for the quarter, reflecting the premium positioning of these properties and their ability to drive consistent, reliable performance. At MGM China, we grew net revenues by 9%, while segment-adjusted EBITDA was impacted by our new brand fee. Jonathan will remind you of those details in his section.

Speaker #3: Las Vegas' ability to adapt its mix and pricing and entertainment continues to differentiate the market and reinforce its resilience through economic cycles. Our regional operations have maintained steady market share.

Speaker #3: Strong casino volumes supported solid results for the quarter, reflecting the premium positioning of these properties and their ability to drive consistent, reliable performance. At MGM China, we grew net revenues by 9%, while segment-adjusted EBITDA was impacted by our new brand fee.

Speaker #3: Jonathan will remind you of those details in this section. Our market share for the quarter was 15.4%, and while February was negatively impacted by hold, we concluded the quarter in the month of March with a share of 17.3%, which has held steady into April.

Bill Hornbuckle: Our market share for the quarter was 15.4%, and while February was negatively impacted by hold, we concluded the quarter in the month of March with a share of 17.3%, which has held steady into April. We continue to invest in our competitive advantages in premium mass to support future growth, and the suite conversion and renovated premium gaming areas at MGM Cotai were recently completed ahead of the upcoming Golden Week holiday. The next capital projects will involve renovating the suite product in Macau as we want to ensure our offerings stay fresh and ahead of market growth. While we will continue with targeted capital spending, we believe our operating expenses are appropriately sized and scaled to match our growth profile, and our margins are sustainable. At BetMGM North America, our venture, Adam and Gary reported Q1 results a few weeks ago.

Speaker #3: We continue to invest in our competitive advantages in premium math to support future growth, and the suite conversion and renovated premium gaming areas at MGM Kotai were recently completed ahead of the upcoming Golden Week holiday.

Speaker #3: The next capital projects will involve renovating the suite product in Macau, if we want to ensure our offering stays fresh and ahead of market growth.

Speaker #3: While we will continue with targeted capital spending, we believe our operating expenses are appropriately sized and scaled to match our growth profile and our margins are sustainable.

Speaker #3: At BetMGM North America, a venture Adam and Gary reported first quarter results a few weeks ago. We continue to prioritize the iGaming segment, where underlying fundamentals are healthy and growing, and we are approaching $2 billion in annual revenue from operators.

Bill Hornbuckle: We continue to prioritize the iGaming segment, where underlying fundamentals are healthy and growing, and we are approaching $2 billion in annual revenue from operators. We are moderating spend in sports to focus on returns, while our online sports business also continues to grow, and we remain focused on driving profitable growth and margin. Our core strengths remain unchanged: iGaming, multi-product states, our omni-channel presence in Nevada, and our focus on premium mass sports players. We remain disciplined and focused on executing our strategy in areas where we have a competitive advantage. MGM Digital reported another quarter of double-digit revenue growth as it continues to make progress towards profitability. Sweden and the UK continue to drive our LeoVegas B2B B2C business, where the top line grew over 30%. These are also the next two stops for our sportsbook integration.

Speaker #3: We are moderating spend in sports to focus on returns, while our online sports business also continues to grow, and we will remain focused on driving profitable growth and margin.

Speaker #3: Our core strengths remain unchanged: iGaming, multi-product states, our omnichannel presence in Nevada, and our focus on premium math sports players. We remain disciplined and focused on executing our strategy in areas where we have a competitive advantage.

Speaker #3: MGM Digital reported another quarter of double-digit revenue growth as it continues to make progress towards profitability. Sweden and the UK continue to drive our LeoVegas B2B to C business, with top-line growth of over 30%.

Speaker #3: These are also the next two stops for our sportsbook integration. Further validation, our acquisition of Tipco's U.S. sportsbook technology. We're continuing to invest in Brazil, and plan to leverage our global marketing assets and in-house sportsbook capabilities on the significant World Cup opportunity a little later this year.

Bill Hornbuckle: Further validation, our acquisition of Tipico's US sportsbook technology. We're continuing to invest in Brazil and plan to leverage our global marketing assets and in-house sportsbook capabilities on the significant World Cup opportunity a little later this year. In Japan, over 40% of the foundation piles have been installed or completed. The first concrete floor has been poured, and the first structural steel has been erected. I recently visited the site and approved our mock-up rooms, which I found exceptional, and we are as opportunistic as ever, keeping in mind we expect to be the sole licensee and operator in Japan upon opening. The population and visitation metrics are massive, as we've discussed. Japan has over 120 million residents and hosts over 40 million international visitors annually. MGM Osaka remains on time and on budget for 2030 opening.

Speaker #3: And in Japan, over 40% of the foundation piles have been installed or completed. The first concrete floor has been poured, and the first structural steel has been erected.

Speaker #3: I recently visited the site and approved our mock-up rooms, which I found exceptional. And we are as opportunistic as ever, keeping in mind we expect to be the sole licensing and operator in Japan upon opening.

Speaker #3: The population and visitation metrics are massive as we've discussed, Japan has over 120 million residents, and hosts over 40 million international visitors annually. MGM Osaka remains on time and on budget for 2030 opening.

Speaker #3: With the first quarter of 2026 complete, our optimism across all various business segments continues to hold firm, especially in Las Vegas, where we remain on track for growth this year.

Bill Hornbuckle: With Q1 of 2026 complete, our optimism across all various business segments continues to hold firm, especially in Las Vegas. We'll remain on track for growth this year. With that, I'll now hand it over to Jonathan to provide additional details on performance this quarter.

Speaker #3: With that, I'll now hand it over to Jonathan to provide additional details on performance this quarter.

Speaker #4: Thanks, Bill. And I'll certainly join you in thanking all of our employees for their continued hard work and dedication this quarter. We really value your daily contributions and appreciate everything you do to support our company and our guests.

Jonathan Halkyard: Thanks, Bill. I'll certainly join you in thanking all of our employees for their continued hard work and dedication this quarter. We really value your daily contributions and appreciate everything you do to support our company and our guests. In Las Vegas, as Bill mentioned, we were able to grow net revenues despite the strong leisure comparison in the prior year. Segment adjusted EBITDAR decreased by $62 million, which can be explained by just two items: an increase in self-insurance expense of $37 million and a decrease in business interruption proceeds of $31 million versus last year. Now that we're into Q2, comparisons in our leisure offerings should become more normalized, especially toward the latter part of the period. We're encouraged by the incremental momentum driven by our all-inclusive program, as well as the convention strength we have on the books.

Speaker #4: In Las Vegas, as Bill mentioned, we were able to grow net revenues despite the strong leisure comparison and the prior year. Segment-adjusted EBITDA decreased by 62 million dollars, which can be explained by just two items: an increase in self-insurance expense of 30 million dollars, 37 million dollars, and a decrease in business interruption proceeds of 31 million dollars versus last year.

Speaker #4: Now that we're into the second quarter, comparisons in our leisure offering should become more normalized, especially toward the latter part of the period. We're encouraged by the incremental momentum driven by our all-inclusive program, as well as the convention strength we have on the books.

Speaker #4: Our regional operations proved resilient in the first quarter, exhibiting top-line growth of 2%, and similar to the Las Vegas story, segment-adjusted EBITDA decreased by 20 million in part due to an increase in self-insurance expense of 9 million and a decrease in business interruption proceeds of 10 million dollars versus last year.

Jonathan Halkyard: Our Regional Operations proved resilient in Q1, exhibiting top-line growth of 2%. Similar to the Las Vegas story, segment-adjusted EBITDAR decreased by $20 million, in part due to an increase in self-insurance expense of $9 million and a decrease in business interruption proceeds of $10 million versus last year. Borgata and National Harbor also faced some weather-related disruptions, but we ended March on a very solid footing, and those trends continued into April. We closed on the sale of the Northfield Park operations earlier this month. Just a reminder for your models, Northfield Park will no longer be in our Regional Operations going forward. As usual, though, we'll provide same-store results for easy comparisons.

Speaker #4: Borgata and National Harbor also faced some weather-related disruptions, but we ended March on a very solid footing and those trends continued into April. We closed on the sale of the Northfield Park operations earlier this month, so just a reminder for your models: Northfield Park will no longer be in our regional operations going forward.

Speaker #4: As usual, though, we'll provide same-store results for easy comparisons. Before diving further into our other business segments, I do want to briefly address this external factor that continues to pressure operating costs across our industry and drove a meaningful portion of the increase in our self-insurance expenses this quarter.

Jonathan Halkyard: Before diving further into our other business segments, I do want to briefly address this external factor that continues to pressure operating costs across our industry and drove a meaningful portion of the increase in our self-insurance expenses this quarter. That's the growing prevalence of frivolous litigation, often backed by large pools of capital, including private equity. As we noted earlier, we were negatively impacted by $37 million in Las Vegas and $9 million across our regional operations this quarter. While we support a fair and balanced legal system, claims that lack merit, they divert capital, management attention, and resources away from investments that benefit employees, guests, and our communities. We're focused on what we can control, which is enforcing high standards in process and the other operational elements of our business with the utmost care.

Speaker #4: And that's the growing prevalence of frivolous litigation often backed by large pools of capital including private equity. As we noted earlier, we were negatively impacted by 37 million in Las Vegas and 9 million across our regional operations this quarter.

Speaker #4: While we support a fair and balanced legal system, claims that lack merit, they divert capital, management attention, and resources away from investments that benefit employees, guests, and our communities.

Speaker #4: We're focused on what we can control, which is enforcing high standards and process, and the other operational elements of our business with the utmost care.

Speaker #4: Now let's move on to MGM China, which exhibited solid performance in the first quarter. The decrease in segment-adjusted EBITDA of 13 million was primarily driven by the new branding fee agreement through which we received 23 million more in fees than in the prior year period.

Jonathan Halkyard: Now let's move on to MGM China, which exhibited solid performance in Q1. The decrease in segment-adjusted EBITDAR of $13 million was primarily driven by the new branding fee agreement through which we received $23 million more in fees than in the prior year period. As a reminder, the brand fee increased from 1.75% to 3.5% of revenue starting this year. While this impacts segment-adjusted EBITDAR, it results in higher cash flow for MGM Resorts. Moving to digital, our BetMGM North America ventures Q1 results reflected continued successful execution of refined player management strategy, delivering 6% growth in net revenue from operations and 11% growth in adjusted EBITDA. This was also the Q1 where we earned branding fees from BetMGM, which amounted to about $1.5 million.

Speaker #4: As a reminder, the brand fee increased from 1.75% to 3.5% of revenue starting this year. While this impacts segment-adjusted EBITDA, it results in higher cash flow for MGM Resorts.

Speaker #4: Moving to digital, our BetMGM North America Ventures first quarter results reflected continued successful execution of refined player management strategy delivering 6% growth in net revenue from operations and 11% growth in adjusted EBITDA.

Speaker #4: This was also the first quarter where we earned branding fees from BetMGM, which amounted to about 1.5 million. Separately, no quarterly distributions were made in the first quarter given the seasonality of cash outlays, which included marketing investments around NFL postseason and March Madness, as well as accrued annual compensation payouts.

Jonathan Halkyard: Separately, no quarterly distributions were made in Q1 given the seasonality of cash outlays, which included marketing investments around NFL postseason and March Madness, as well as accrued annual compensation payouts. MGM Digital drove growth in net revenues of 43% in Q1 and reported segment-adjusted EBITDAR losses of $26 million. We are continuing to migrate our sports books to our in-house platform, such as BetMGM Sweden, and are investing in the opportunities presented by the upcoming World Cup in both Europe and Brazil. Specific to Brazil, we continue to have confidence in the total addressable market, and we may drive investment beyond our original guidance, reflecting regulatory and tax developments as well as competitive intensity as we pursue our long-term share objectives, and we'll keep you posted as the year progresses.

Speaker #4: MGM Digital drove growth in net revenues of 43% in the first quarter and reported segment-adjusted EBITDA losses of 26 million. We are continuing to migrate our sportsbooks to our in-house platform, such as BetMGM Sweden, and are investing in the opportunities presented by the upcoming World Cup in both Europe and Brazil, specific to Brazil, we continue to have confidence in the total addressable market, and we may drive investment beyond our original guidance reflecting regulatory and tax developments as well as competitive intensity as we pursue our long-term share objectives.

Speaker #4: And we'll keep you posted as the year progresses. In Japan, we are expecting our funding for the balance of the year to be approximately 200 to 225 million dollars after investing approximately 140 million in the first quarter.

Jonathan Halkyard: In Japan, we are expecting our funding for the balance of the year to be approximately $200 to 225 million after investing approximately $140 million in Q1. Much of it will be addressed with proceeds from the yen-denominated credit facility we closed last October, in essence, it's pre-funded for this year. During the quarter, we bought back about 2.5 million shares for $90 million. Over the last five years, we've decreased our share count by almost 50%. As a reminder, and I can't help myself, we sold Northfield Park for 6.6x trailing EBITDA. That's a multiple significantly higher than what is implied by our current share price.

Speaker #4: Much of it will be addressed with proceeds from the yen-denominated credit facility we closed last October, so in essence, it's pre-funded for this year.

Speaker #4: During the quarter, we bought back about 2.5 million shares for 90 million dollars. Over the last five years, we've decreased our share count by almost 50%.

Speaker #4: As a reminder, and I can't help myself, we sold Northfield Park for a 6.6-times trailing EBITDA. That's a multiple significantly higher than what is implied by our current share price.

Speaker #4: With the transaction now closed and the proceeds received, we have increased flexibility to redeploy capital including re-accelerating share repurchases at our current valuation levels.

Jonathan Halkyard: With the transaction now closed and the proceeds received, we have increased flexibility to redeploy capital, including re-accelerating share repurchases at our current valuation levels. I'll turn it back to Bill.

Speaker #4: I'll turn it back to Bill.

Speaker #1: Thanks, Jonathan. Before we go to questions, maybe I'd like to reiterate just a couple of things that were said. Obviously, our diversification strategy is proving successful.

Bill Hornbuckle: Thanks, Jonathan. Before we go to questions, maybe I'd like to reiterate just a couple things that were said. Obviously, our diversification strategy is proving successful. Consolidated revenues again showed growth over 4%. Vegas for the first time in 6 quarters also showed growth at the top line. As I think about the balance of the year, our group and convention business looks strong. Obviously, we have the benefit now of the MGM rooms for the entire year. We have easier leisure comparatives coming up, and the high end continues to demonstrate itself not only in gaming but in non-gaming spend. Event driven, to be sure, and live entertainment, to be sure, but absolutely shows up and shows up often.

Speaker #1: Consolidated revenues, again, showed growth over 4%. Vegas, for the first time in six quarters, also showed growth at the top line. And as I think about the balance of the year, our group and convention business look strong.

Speaker #1: Obviously, we have the benefit now of the MGM rooms for the entire year. We have easier leisure comparatives coming up, and the high-end continues to demonstrate itself not only in gaming but in non-gaming spend, event-driven to be sure, and live entertainment to be sure, but absolutely shows up and shows up often.

Speaker #1: And regionally, despite headwinds and the ones that were mentioned in the overall economy, we've seen a solid performance and we expect to continue to see through the balance of the summer.

Bill Hornbuckle: Regionally, despite headwinds and the ones that were mentioned in the overall economy, we've seen a solid performance, and we expect to continue to see through the balance of the summer. MGM Macau continues to hold on to a major market share. We're very proud of what's been created and what they're doing there. We do believe costs and our margins are sustainable now throughout the year. Japan is off to a great start, albeit early, but we're excited by our progress, we're excited by the design and ultimately the market that it will provide. BetMGM continues to track itself along, and you've seen additional and tremendous growth in Gary's overall digital business for rest of world. With that, Hubert, I will turn it open to questions.

Speaker #1: MGM Macau continues to hold on to a major market share. We're very proud of what's been created and what they're doing there. And we do believe costs and our margins are sustainable now throughout the year.

Speaker #1: In Japan, it's off to a great start—albeit early—but we're excited by our progress. We're excited by the design and ultimately the market that it will provide.

Speaker #1: And then BetMGM continues to track itself along, and you've seen additional and tremendous growth in Gary's overall digital business for the rest of the world.

Speaker #1: So with that, Howard, I will turn it open to questions.

Speaker #5: All right. Thank you. We will now begin the question and answer session. To join the queue, please press star than one and to remove yourself from queue, please press star than two.

Operator: All right. Thank you. We will now begin the question and answer session. To join the queue, please press star then one, and to remove yourself from queue, please press star then two. As a reminder, in all fairness, please limit yourself to one question and one follow-up. Today's first question comes from David Katz at Jefferies. Please go ahead.

Speaker #5: As a reminder in all fairness, please limit yourself to one question and one follow-up. Today's first question comes from David Katz at Jefferies. Please go ahead.

Speaker #6: Hi everyone. Thanks for taking my question. There's a lot of information here, and I took note of the all-inclusive offerings that you decided to introduce.

David Katz: Hi, everyone. Thanks for taking my question. A lot of information here, and I took note of the all-inclusive offerings that you decided to introduce, I think earlier in the quarter. Can you just talk about what kind of response you're getting to that? Is, you know, is that a strategy that we could, you know, see you deploy in, you know, other properties or other areas of the portfolio? Thanks.

Speaker #6: I think earlier in the quarter, can you just talk about what kind of response you're getting to that? Is that a strategy that we could see you deploy in other properties or other areas of the portfolio?

Speaker #6: Thanks.

Bill Hornbuckle: Go ahead, Aisha.

Speaker #3: Sure, David. This is actually Molino. We've been really pleased with the response to the all-inclusive package. We've seen really steady momentum. Since we first deployed that, and the customer response has been very good.

Aisha Merlino: Sure, David. This is Aisha Merlino. Now, we've been really pleased with the response to the all-inclusive package. We've seen really steady momentum since we first deployed that, and the customer response has been very good. As Bill noted in his remarks, we're also seeing a significant portion of those customers as net new customers, which we believe is a positive trend line. We're gonna continue to evaluate it, understand customer response, understand whether there are new strategies we could deploy alongside it, and whether it needs to be scaled or should be scaled to other properties. We're gonna continue to watch, continue to refine over time, but we have been pleased with the reaction to date.

Ayesha Molino: Sure, David. This is Aisha Merlino. Now, we've been really pleased with the response to the all-inclusive package. We've seen really steady momentum since we first deployed that, and the customer response has been very good. As Bill noted in his remarks, we're also seeing a significant portion of those customers as net new customers, which we believe is a positive trend line. We're gonna continue to evaluate it, understand customer response, understand whether there are new strategies we could deploy alongside it, and whether it needs to be scaled or should be scaled to other properties. We're gonna continue to watch, continue to refine over time, but we have been pleased with the reaction to date.

Speaker #3: As Bill noted in his remarks, we're also seeing a significant portion of those customers as net new customers, which we believe is a positive trend line.

Speaker #3: We're going to continue to evaluate it, understand customer response, understand whether there are new strategies we could deploy alongside it, and whether it needs to be scaled or should be scaled to other properties.

Speaker #3: So it's going to be we're going to continue to watch, continue to refine over time, but we have been pleased with the reaction to date.

David Katz: Understood. If I can just as my follow-up, talk briefly about Macau. Having been over there, the operations and the commentary seem relatively stable, but it's always been a market that tends to have surprises around every corner now and again. How are you looking out at the rest of the year and in general terms or qualitative terms, and how do you feel about sort of how that market rolls through the rest of this year? That's it for me.

Speaker #6: Understood. And if I can just, as my follow-up, talk briefly about Macau. Having been over there, the operations and the commentary seem relatively stable.

Speaker #6: But it's always been a market that tends to have surprises around every corner. Now and again. How are you looking out at the rest of the year and in general terms or qualitative terms, and how do you feel about sort of how that market rolls through the rest of this year?

Speaker #6: And that's it for me.

Speaker #1: Yeah, thanks, David. I'll kick it off and then, Kenny, turn it over to you. Look, I think we feel really good about the balance of the year.

Bill Hornbuckle: Thanks, David. I'll kick it off and then, Kenny, turn it over to you. Look, I think we feel really good about the balance of the year. You know, we've brought on many things last year in terms of capital enhancements and just the overall product, and we're excited by that. We've got some more to go, so we're adding some more suites, which it will be beneficial because I think everybody understands we're still under-suited, and that'll be beneficial. It's always difficult to say Macau is quote stable, but I feel good about it. I feel very good about our market position and what we're doing and how we're doing it. Kenny, I don't know if you wanted some more color there.

Speaker #1: We've brought on many things last year in terms of capital enhancements and just the overall product. And we're excited by that. We've got some more to go.

Speaker #1: So, we're adding some more suites, which will be beneficial. Because I think everybody understands we're still under-suited, and that'll be beneficial. It's always difficult to say Macau is 'stable,' but I feel good about it.

Speaker #1: I feel very good about our market position and what we're doing and how we're doing it. And so Kenny, I don't know if you wanted some more color there.

Kenneth Feng: Thank you. Thank you, Bill. This is Kenny from Macau. As we all know, Macau has always been competitive from day one. Macau market is a premium-driven one. It's not simply about supply. It's not like a purely quantitative play. It's more about quality. It is about understanding to serve the purpose of the target guests. Here at MGM China, first, we are very focusing on the products and the services. We want to make sure they are meaningful, effective, and targeted to the premium customers. As Bill just mentioned, we opened like 60 suites at MGM Cotai Central. You never saw such products in Greater China area. They are unique. They are different. They are refreshing. They are cozy. We opened like nearly for a week.

Speaker #4: Oh, thank you. Thank you, Bill. This is Kenny from Macau. As we all know, Macau is always been competitive. From day one. Macau market is a premium-driven one.

Speaker #4: It's not simply about supply. It's not like a purely quantitative play. It's more about quality. So it's about understanding to serve the purpose of the target guests.

Speaker #4: Here at MGM China, first, we are very focusing on the products and the services. We want to make sure they are meaningful, effective, and targeted.

Speaker #4: To the premium customers. As Bill just mentioned, we opened a 60 suites at MGM Kōtai side. You never saw such products in Greater China area.

Speaker #4: They are unique. They are different. They are refreshing. They are cozy. And we opened nearly for a week. Our customers love it. And also, we just opened a 40,000 square feet of a premium gaming space at Kōtai area.

Kenneth Feng: Our customers, they love it. We just opened like a 40,000 sq ft of like a premium gaming space at Cotai area. We have about like 40 tables, 15 private rooms. It's also new, the design, the construction, all the services there. I can see like a lot of customers, they are there playing even right now. Secondly, it's the products. We will continue to refresh our products. For example, we are in the designing stage about 100 suites at the MGM Macau side. Some kind of gaming spaces, F&B outlets. We want to spend money wisely to really reflect the purpose, to serve the purpose of the customers why they are in Macau. It's not a typical like a hospitality products or resort products.

Speaker #4: We have about 40 tables. 15 private rooms. It's also new. The design, the construction, our services there. I can see a lot of customers.

Speaker #4: They are there playing even right now. Secondly, as to the products and we will continue to refresh our products like, for example, we are in the designing stage about 100 suites at Macau, MGM Macau side.

Speaker #4: And also some kind of gaming spaces, F&B outlets. We want to spend money wisely—to really reflect the purpose, to serve the purpose of the customers.

Speaker #4: Why they are in Macau. It's not a typical hospitality products or resort products. They are serving the targeted premium guests, premium gaming customers. Secondly, I want to see MGM has developed a pretty unique corporate culture here.

Kenneth Feng: They are serving the targeted premium guests, premium gaming customers. Secondly, I want to see, like MGM has developed a pretty unique corporate culture here that encourage from the senior management, from myself to all other senior management members, to our team members to react fast, effectively, to make changes, in making changes in developing products and services which are evolving with fast-changing customer tastes. Actually, reinvestment, CapEx, products, services, they are all in one package. It is a package that about how we take care of the customers. I think that's the key for us to continue to grow for the rest of this year and the next year. Thanks.

Speaker #4: That encourages from the senior management, from myself, to all other senior management members, 12 team members, to react fast, effectively, to make changes in making changes in developing products and services which can which are evolving with fast-changing customer taste.

Speaker #4: So actually, reinvestment, CapEx, products, services, they are all in one package. It is a package that about how we take care of the customers.

Speaker #4: I think that's the key for us to continue to grow for the rest of this year and the next year. Thanks.

Speaker #6: Thank you very much.

Bill Hornbuckle: Thank you very much.

David Katz: Thank you very much.

Speaker #2: Thank you. And our next question today comes from Dan Politzer with JPMorgan. Please go ahead.

Operator: Thank you. Our next question today comes from Dan Politzer with JPMorgan. Please go ahead.

Speaker #5: Hey, good afternoon, everyone, and thanks for the question. Bill or Jonathan, whoever wants to take it, I was hoping to talk a little bit about the strip and the health of the customer base there.

Dan Politzer: Hey, good afternoon, everyone, and thanks for the question. Bill or Jonathan, whoever wants to take it, I was hoping to talk a little bit about the strip and the health of the customer base there. It seems like you know, you're talking about this evolving health. Can you maybe talk about how the Q1 kind of progressed and how you kind of saw that resonate in your customer base and then, you know, the expectations for how the Q2 should evolve given your competitor last night had some comments on April?

Speaker #5: It seems like you're talking about this evolving health. Can you maybe talk about how the first quarter kind of progressed, and how you saw that resonate in your customer base?

Speaker #5: And then the expectations for how the second quarter should evolve, given your competitor last night had some comments on April.

Speaker #1: Yeah, I'll start it, Jonathan. Kick it off. Look, we had, interestingly, in the quarter, we had an amazing January last year. So we had a tough kickoff.

Bill Hornbuckle: Yeah. I'll start it, Jonathan. Kick it off. Look, we had interestingly in the quarter, we had an amazing January last year, so we had a tough kickoff and mostly in gaming. As the quarter progressed, and obviously I think you heard yesterday, you hear from us, CONEXPO-CON/AGG was tremendous. As the quarter progressed, each month got successively better. March being obviously for us, the best month yet. You know, the market's changed, consumer has changed, and obviously, luckily for us, we have a lot of luxury product and brands that can cater to that, and it's gonna continue. You know, despite many headwinds, whether they be air, gas, et cetera, we have yet to see a slowdown.

Speaker #1: And mostly in gaming. But as the quarter progressed, and obviously, I think you heard yesterday, you heard from us, ConAg was tremendous. And so as the quarter progressed, each month got successively better.

Speaker #1: March being obviously for us the best month yet. The markets changed: consumer has changed. And we're very obviously, we're focused on, luckily for us, we have a lot of luxury product and brand brands that can cater to that.

Speaker #1: And it's going to continue. Despite many headwinds, whether they be air, gas, etc., we have yet to see a slowdown. That doesn't mean over summer that can't happen.

Bill Hornbuckle: Doesn't mean, you know, over summer that that can't happen, because booking cycles still remain short. You know, we feel resilient about it. We feel good about it. You know, we look at air traffic coming into the community. Half of the traffic that was lost when who was it went bankrupt?

Speaker #1: Because booking cycles still remain short. But we feel resilient about it. We feel good about it. We look at air traffic coming in—the traffic that was lost when, who was it, went bankrupt?

Jonathan Halkyard: Spirit.

Speaker #1: Spirit went bankrupt. It's been picked up. We see a couple additional international flights coming into the market. Now, it's a little early to tell with gas will mean to all of it.

Bill Hornbuckle: Spirit went bankrupt, has been picked up. We see a couple additional international flights coming into the market. Now it's a little early to tell what gas will mean to all of it, but to date, we feel good about it. Our April is fine. We just had a very successful baccarat tournament come through here last weekend. May will be a good month and so we like the second quarter, but it's early. It's just the end of April, and so time to tell on these short-term bookings and where leisure will ultimately go.

Speaker #1: But to date, we feel good about it. Our April is fine. We just had a very successful Baccarat tournament come through here last weekend.

Speaker #1: May will be a good month. And so we like the second quarter. But it's early. It's just the end of April. And so time to tell on these short-term bookings and where leisure will ultimately go.

Speaker #5: Got it. Thanks. And then just on that self-insurance, 37 million, I think that you guys had 13 million charged last year, maybe in the third quarter for this.

Dan Politzer: Got it. Thanks. Just on that self-insurance, $37 million, you know, I think that you guys had $13 million charged last year, maybe in Q3 for this. Is this something just to think about more commonly that this could be impacting results, bearing in mind it does sound one time in nature? Just any better clarity or way to think about that going forward?

Speaker #5: So is this something just to think about more commonly that this could be impacting results and bearing in mind it does sound one-time in nature?

Speaker #5: Is there any better clarity or way to think about that going forward?

Jonathan Halkyard: Sure, Dan. It's Jonathan. I mean, we certainly hope not. You know, this is something that we look at historically once a year. We, of course, you know, we expense amounts every month, but we do a bit of a true up once a year. After that experience, and you remember it correctly, we decided to do it twice this year. You know, and the impact of that examination is this additional accrual that we took across our businesses in Q1. You know, we, of course, we expect that that's adequate now. On the other hand, you know, it has been an increasing cost in our business. It's the reason I wanted to call it out clearly.

Speaker #2: Sure, Dan. It's Jonathan. I mean, we certainly hope not. This is something that we look at historically once a year. We, of course, we expense amounts every month, but we do a bit of a chew up once a year after that experience.

Speaker #2: And you remember it correctly. We decided to do it twice this year, and the impact of that examination is this additional accrual that we took across our businesses in the first quarter.

Speaker #2: So, of course, we expect that that's adequate now. But, on the other hand, it has been an increasing cost in our business.

Speaker #2: It's the reason I wanted to call it out clearly. But for that charge, our results this quarter would have been, I think we'd all agree, even much better on an operating basis.

Jonathan Halkyard: You know, for that charge, our results this quarter would have been, I think we'd all agree, much better on an operating basis. We certainly, you know, we certainly hope that that's not going to be anything that recurs, and in fact, it is an unusual one-time item.

Speaker #2: But we certainly hope that that's not going to be anything that recurs and in fact, it is an unusual one-time item.

Speaker #5: Got it. Thanks so much.

Dan Politzer: Got it. Thanks so much.

Speaker #2: Thank you. And our next question today comes from Steve Wozinski with Stifel. Please go ahead.

Operator: Thank you. Our next question today comes from Steve Wieczynski with Stifel. Please go ahead.

Speaker #6: Hey, guys. Good afternoon. So Bill, want to stay with Vegas here for a little bit. Obviously, you noted you feel better about that value customer.

Steve Wieczynski: Hey, guys. Good afternoon. Bill, wanna stay with Vegas here for a little bit. You know, obviously, you noted, you know, you feel better about that value customer. It seems like the customer base is now somewhat stable. You know, I guess the question is based on what you're seeing right now from a forward demand perspective, coupled with that healthy group and convention business, you know, do you think it's gonna be possible to grow Vegas EBITDA this year? I mean, you obviously kind of talked about Q2 and you feel pretty good there, but Q1 obviously didn't put you guys off to the, you know, to the best start. Thanks.

Speaker #6: It seems like the customer base is now somewhat stable. So I guess the question is, based on what you're seeing right now from a forward demand perspective, coupled with that healthy group and convention business, do you think it's going to be possible to grow Vegas EBITDA this year?

Speaker #6: I mean, obviously, you kind of talked about the second quarter and you feel pretty good there. But the first quarter, obviously, didn't put you guys off to the best start.

Speaker #6: Thanks.

Speaker #1: Yeah, thanks, Steve, for the question. Look, the one comment you did make, I want to be clear about the leisure customer at the lower end of the spectrum.

Bill Hornbuckle: Thanks, Steve, for the question. Look, the one comment you did make, I wanna be clear about the leisure customer at the lower end of the spectrum. For us, obviously, it's Luxor or Excalibur. Midweek is still a challenge. The good news is it's like those two properties represent about 6% of our overall EBITDA. On the weekends we are fine. The balance of the portfolio is performing from fine to good. To answer the core question, we do see growth through the balance of the year. It's gotta be tempered modestly, and it's gotta be tempered with, you know, it's a crazy world out there right now. Based on what we see, particularly in advanced bookings, et cetera, we still remain optimistic that we will have growth by year-end.

Speaker #1: So for us, obviously, it's Luxor-Excalibur. Midweek is still a challenge. Now, the good news is those two properties represent about 6% of our overall EBITDA.

Speaker #1: On the weekends, we are fine. The balance of the portfolio is performing from fine to good. And the answer to the core question, we do see growth through the balance of the year.

Speaker #1: It's got to be tempered modestly, and it's got to be tempered with it's a crazy world out there right now. But based on what we see, particularly in advanced bookings, etc., we still remain optimistic that we will have growth by year-end.

Speaker #6: Okay. Gotcha. Thanks for that, Bill. And then second question, we heard last night from Caesars and obviously, you probably listened to that call that they've been starting to work a little bit more aggressively with the LVCVA to help kind of find and identify bigger events or corporations to bring into the Vegas market.

Steve Wieczynski: Okay, gotcha. Thanks for that, Bill. Second question. You know, we heard last night from Caesars, and obviously you probably listened to that call, that they've been starting to work, you know, a little bit more aggressively with the LVCVA to help kind of find and identify bigger events or corporations to bring, you know, into the Vegas market. Wondering if you could maybe expand on that a little bit more, and maybe help us understand, you know, if you're involved with that process, and then what the potential upside could eventually be there.

Speaker #6: And wondering if you could maybe expand on that a little bit more and maybe help us understand if you're involved with that process and potentially and then what the potential upside could eventually be there.

Bill Hornbuckle: Well, A, at 40,000 feet, yes, we're involved. Gary Fritz, who's sitting next to me, is on the board, so we're, we have been and will continue to be active. Look, I think you know this about our business, remembering we have over 4 million square feet of our own, convention group space. We're big into tech. That sector continues to grow and is looking exciting. We've got some really good groups lined up for the summer. We got Google coming back, and a few others. Cisco's coming in, which with a massive group this summer. You know, the question becomes, 'cause CONAG rotates, are there other groups in the world like CONAG?

Speaker #1: Well, at 40,000 feet, yes, we're involved. Gary Fritz, who's sitting next to me, is on the board. So we have been, and we'll continue to be, active.

Speaker #1: Look, I think you know this about our business. Remembering we have over 4 million square feet of our own convention group space. We're big into tech.

Speaker #1: That sector continues to grow and is looking exciting. We've got some really good groups lined up for the summer. We've got Google coming back.

Speaker #1: And a few others. Cisco is coming in, with a massive group this summer. So the question becomes, because Conag rotates, are there other groups in the world like Conag?

Speaker #1: And the answer is yes, there are. And yes, we have been cooperative, and we'll go on with them from time to time—field trips to go pursue some of this stuff.

Bill Hornbuckle: The answer is yes, there are, and yes, we have been cooperative and we'll go on with them from time to time, field trips to go pursue some of this stuff. I think you heard yesterday it is true that some of it's quote-unquote political in that these groups mean a lot for each one of these communities that they're currently in, whether it's San Francisco or Dallas. You pick the community. They're not as easy just to pick up by, you know, some value proposition. There's generally more to it than that. No, we are active. No, we completely agree with the sentiment that was laid out yesterday, and we'll continue to pursue it.

Speaker #1: I think you heard yesterday, it is true that some of its "political" in that these groups mean a lot for each one of these communities that they're currently in, whether it's San Francisco or Dallas.

Speaker #1: You pick the community. And so they're not as easy just to pick up by some value proposition. There's generally more to it than that.

Speaker #1: But no, we are active. No, we completely agree with the sentiment that was laid out yesterday. And we'll continue to pursue it.

Speaker #6: Okay. Great. Thanks, Bill. Appreciate it.

Steve Wieczynski: Okay, great. Thanks, Bill. Appreciate it.

Speaker #2: Thank you. Our next question today comes from Brant Montour with Barclays. Please go ahead.

Operator: Thank you. Our next question today comes from Brandt Montour with Barclays. Please go ahead.

Brandt Montour: Good afternoon, everybody. Thanks for taking my question. I wanted to key off of that question earlier on about the all-inclusive effort and encouraging commentary around first-time visitors to Las Vegas. You know, you guys obviously have a decades of data in terms of first-time visitors to Las Vegas. Maybe you could kind of, you know, open the hood and share some, you know, metrics on sort of what a typical first-time Vegas visitor kind of behaves like, what the retention is like for a second trip, what you kind of can assume for flow through and profitability for that guest versus the corporate average.

Speaker #5: Good afternoon, everybody. Thanks for taking my question. So I wanted to key off of that question earlier on about the all-inclusive effort. And encouraging commentary around first-time visitors to Las Vegas.

Speaker #5: You guys obviously have a decade of data in terms of first-time visitors to Las Vegas. Maybe you could kind of open the hood and share some metrics on sort of what a typical first-time Vegas visitor kind of behaves like.

Speaker #5: What the retention is like for a second trip. What you kind of can assume for flow-through and profitability for that guest. Versus the corporate average.

Bill Hornbuckle: I think the core thing to remember about first-time visitors is, you know, I can remember in Las Vegas, where visitor profile would indicate that 20% of the visitors were first time. I think over recent years, that number's been in the mid to low teens. It dropped to 8% or 9% last year. I think all of the noise around Canada, which is a place many of them came from, is real. Our general Canadian business is down 30% to 40%. Obviously, we hope to improve that. We've had a couple missions up into Canada, both through the convention center and ourselves to help that. I think we have one planned later this summer that I'm actually going on.

Speaker #1: Brian, I think that the core thing to remember about first-time visitors is I can remember in Las Vegas, where visitor profile would indicate that 20% of the visitors were first-time.

Speaker #1: And I think over recent years, that number has been in the mid to low teens. It drops below it dropped to 8 or 9 percent last year.

Speaker #1: I think all of the noise around Canada, which is a place many of them came from, is real. Our general Canadian business is down 30 to 40 percent.

Speaker #1: Obviously, we hope to improve that. We've had a couple of missions up into Canada, both through the convention center and ourselves, to help that.

Speaker #1: I think we have one planned later this summer that I'm actually going on. In terms of behavior, international has always been a big play there.

Bill Hornbuckle: In terms of behavior, international has always been a big play there. Mexico opened up a few years ago meaningfully with air traffic. You know, so it's interesting, the majority of first-time visitors, actually, many of them come through conventions. They come because they have to, or they're told to, and then they learn about this place and they go, You know, this looks interesting and fun. I wanna come back. They come back with family, friends, et cetera. You know, I think the only real differentiator for now is that international is hurting that number. To see it grow again through this package has been great, because it's important obviously for the future growth of Las Vegas as we continue down the road here. I know, Ayesha, if you wanna add anything, but.

Speaker #1: Mexico opened up a few years ago, meaningfully, with air traffic. And it's interesting. The majority of first-time visitors actually, many of them come through conventions.

Speaker #1: And they come because they have to. They're told to. And then they learn about this place. And they go, "You know, this looks interesting and fun.

Speaker #1: "I want to come back." So they come back with family, friends, etc. And so I think the only real differentiator for now is that international is hurting that number. To see it grow again through this package has been great.

Speaker #1: Because it's important, obviously, for the future growth of Las Vegas as we continue down the road here. I know Aisha, if you want to add anything, but.

Speaker #3: No, I mean, in terms of customer behavior, we certainly see the customers they are engaging in all aspects of the business. And so we've been pleased to see that response.

Aisha Merlino: No, I mean, in terms of customer behavior, we're certainly seeing the customers, you know, they are engaging in all aspects of the business. We've been pleased to see that response. You know, generally, I think in terms of what we're seeing from a flow through perspective, we're happy with the results. No concerns there either.

Ayesha Molino: No, I mean, in terms of customer behavior, we're certainly seeing the customers, you know, they are engaging in all aspects of the business. We've been pleased to see that response. You know, generally, I think in terms of what we're seeing from a flow through perspective, we're happy with the results. No concerns there either.

Speaker #3: And generally, I think in terms of what we're seeing from a flow-through perspective, we're happy with the results. And so no concerns there either.

Speaker #5: Great. Thanks for that. Second question would be a follow-up on Macau. Looking at the first quarter, obviously, we're in a new structure with the management fee.

Brandt Montour: Great. Thanks for that. Second question would be a follow-up on Macau. Looking at Q1, you know, obviously we're in a new structure with the management fee change, and those margins, obviously on that basis were below what you've talked about on this call in the past. Under the new structure and sort of considering the comment you made about March's exit rate for market share being a little bit better than June, Q1, how should we kind of think about, you know, target margins for that segment under this new structure?

Speaker #5: Change. And those margins, obviously, on that basis, were below what you've talked about on this call in the past. Under the new structure, and sort of considering the comment you made about March's exit rate for market share being a little bit better, than in the first quarter, how should we kind of think about target margins for that segment under this new structure?

Jonathan Halkyard: Yeah, it's Jonathan, and I certainly invite Kenny to comment as well. You know, even with this new structure, I mean, the property, first of all, before the branding fee, we expect to be able to continue in the mid to even high twenties in terms of its property level margin. Reducing their EBITDA by the amount of the new fee would get you to the kind of the new going forward margin. I think we feel that that's safely in the mid-twenties.

Speaker #1: Yeah. It's Jonathan and I certainly invite Kenny to comment as well. But even with this new structure, I mean, the property, first of all, before the branding fee, we expect to be able to continue in the mid to even high 20s in terms of its property-level margin.

Speaker #1: And then reducing their EBITDA by the amount of the new fee would get you to the kind of the new going forward margin. But I think we feel that that's safely in the mid-20s.

Speaker #5: Perfect. Thanks, everyone.

Brandt Montour: Perfect. Thanks, everyone.

Speaker #2: Thank you. And our next question today comes from Don Decree at CBRE. Please go ahead.

Operator: Our next question today comes from John DeCree at CBRE. Please go ahead.

Speaker #5: Hi, everyone. I wanted to ask a question or two about the digital business. Revenue growth in the quarter was really strong—a little bit more than we thought.

John DeCree: Hi, everyone. I wanted to ask a question or two about the digital business. You know, revenue growth in the quarter was really strong. A little bit more than we thought. I mean, is that a comparison to the heavy marketing in Brazil last year? Was there something else in terms of revenue uplift? Then I'll just throw my follow-up in there. How do we think about the kind of timeline to profitability in that MGM Digital business from here?

Speaker #5: I mean, is that a comparison to the heavy marketing in Brazil last year? Was there something else in terms of revenue uplift? And then just throw my follow-up in there.

Speaker #5: How do we think about the kind of timeline to profitability in that MGM digital business from here?

Speaker #6: Hi, it's Gary. Thanks for the question. The real growth engine on the top line in a digital business has actually been the Leo Vegas business-to-consumer business.

Gary Fritz: Hi, it's Gary. Thanks for the question. The real growth engine on the top line of the digital business has actually been the LeoVegas business to consumer business. Most of that concentrated in Europe with particular emphasis markets in the UK and Sweden. We've also had a lot of success launching the business in the Netherlands and expanding it there. Brazil helps, obviously, 'cause it comps against, you know, very little revenue. The core LeoVegas business to consumer business, as I believe noted in the prepared remarks, is growing north of 30% year-over-year. It's not all down to Brazil.

Speaker #6: So most of that concentrated in Europe, with particular emphasis on markets in the UK. In Sweden, we've also had a lot of success launching the business in the Netherlands and expanding it there.

Speaker #6: Brazil helps—obviously, because it comps against very little revenue. But the core LeoVegas business-to-consumer business, as I believe noted in the prepared remarks, is growing north of 30% year over year.

Speaker #6: So it's not all down to Brazil. In terms of the path to profitability, I believe we've indicated in the past that we would see the loss this year for the digital segment having relative to last year.

Gary Fritz: In terms of the path to profitability, I believe we've indicated in the past that we would see the loss this year for the digital segment halving relative to last year. We might see a little bit more investment this year than that, given some of the regulatory changes and tax changes in Brazil. We're definitely anticipating the loss to materially narrow vis-à-vis last year, which then, you know, sets us up into 2027 for, you know, close to a break-even year, if not 100% getting there.

Speaker #6: We might see a little bit more investment this year than that given some of the regulatory changes and tax changes in Brazil. But we're definitely anticipating the loss to materially narrow vis-à-vis last year, which then sets us up into '27 for close to a break-even year.

Speaker #6: If not 100% getting there.

Speaker #5: Great. Thanks, Gary. I appreciate it.

John DeCree: Great. Thanks, Gary. I appreciate it.

Speaker #6: Sure.

Gary Fritz: Sure.

Speaker #2: Thank you. Our next question today comes from Sean Kelly at Bank of America. Please go ahead.

Operator: Thank you. Our next question today comes from Shaun Kelley at Bank of America. Please go ahead.

Speaker #5: Hi. Good evening, everybody. Thanks for taking my question. For whoever wants to take it, Bill, I think you mentioned a bit earlier that you were still seeing a bit of midweek softness.

Shaun Kelley: Hi, good evening, everybody. Thanks for taking my question. For whoever wants to take it, you know, Bill, I think you mentioned a bit earlier that you were still seeing a bit of midweek softness, but just wondering, you know, you had called out a pretty large dynamic between your high and low properties, and was just wondering if you could kind of update us on the trend line you're seeing there right now. Obviously, the all-inclusive side, or offer should help maybe narrow that gap, you know, as we get towards the summer. In terms of what you're seeing right now, and just trying to put into context the RevPAR performance for the company, sort of relative to some of the market numbers we saw out there, which I think would have bridged a bit higher.

Speaker #5: But just wondering, you had called out a pretty large dynamic between your high and low properties. And was just wondering if you could kind of update us on the trend line you're seeing there right now.

Speaker #5: Obviously, the all-inclusive side or offer should help maybe narrow that gap as we get towards the summer. But in terms of what you're seeing right now, and just trying to put into context, the RevPAR performance for the company sort of relative to some of the market numbers we saw out there, which I think would have bridged a bit higher.

Speaker #1: Yeah. Sean, thanks for the question. Aisha is probably best suited to start this off. So go ahead.

Bill Hornbuckle: Yeah. Shaun, thanks for the question. Aisha is probably best suited to start this off, go ahead.

Speaker #3: Yeah. Sure, Sean. With regard to the RevPAR question, I think that we look at it as in a couple of different ways. Overall, we think the fundamentals of the business are healthy from a RevPAR perspective.

Aisha Merlino: Yeah, sure, Shaun. You know, with regard to the RevPAR question, I think that we look at it as in a couple of different ways. Overall, we think the fundamentals of the business are healthy from a RevPAR perspective and, you know, from an ADR perspective as well as an occupancy perspective. Particularly among the luxury portfolio, we're seeing real stability and growth in some segments. All of that's been positive and all indications forward-looking remain good there as well. In terms of the lower end of the portfolio, I mean, you know, we discussed this in the last quarter as well. We had seen some softness really starting, as you know, in toward the Q2, toward the Q2 of last year. That's been pretty consistent.

Ayesha Molino: Yeah, sure, Shaun. You know, with regard to the RevPAR question, I think that we look at it as in a couple of different ways. Overall, we think the fundamentals of the business are healthy from a RevPAR perspective and, you know, from an ADR perspective as well as an occupancy perspective. Particularly among the luxury portfolio, we're seeing real stability and growth in some segments. All of that's been positive and all indications forward-looking remain good there as well. In terms of the lower end of the portfolio, I mean, you know, we discussed this in the last quarter as well. We had seen some softness really starting, as you know, in toward the Q2, toward the Q2 of last year. That's been pretty consistent.

Speaker #3: And from an ADR perspective as well as an occupancy perspective, particularly among the luxury portfolio, we're seeing real stability and growth in some segments.

Speaker #3: And all of that's been positive. And all indications forward-looking remain good there as well. In terms of the lower end of the portfolio, I mean, we discussed this in the last quarter as well.

Speaker #3: We had seen some softness really starting as you know toward the in the second quarter, toward the second quarter of last year. And that's been pretty consistent.

Speaker #3: We have been deploying strategies against it as you know with the all-inclusive as well as with overall cost control there. And I think that's been productive.

Aisha Merlino: We have been deploying strategies against it, as you know, with the all-inclusive as well as with overall cost control there, and I think that's been productive. You know, we're continuing to watch closely as the summer unfolds in terms of what happens with that customer. As Bill noted, we feel pretty good about the weekends. In terms of the midweek, we're hoping to continue to see more stability as the year progresses. Certainly, I think there are pockets where we have evidence of that, whether that's convention group business continuing to stabilize, including in those properties midweek. Then also with some of the programming in the South Strip and Allegiant, we're seeing positive reaction, positively impacting those properties as well.

Ayesha Molino: We have been deploying strategies against it, as you know, with the all-inclusive as well as with overall cost control there, and I think that's been productive. You know, we're continuing to watch closely as the summer unfolds in terms of what happens with that customer. As Bill noted, we feel pretty good about the weekends. In terms of the midweek, we're hoping to continue to see more stability as the year progresses. Certainly, I think there are pockets where we have evidence of that, whether that's convention group business continuing to stabilize, including in those properties midweek. Then also with some of the programming in the South Strip and Allegiant, we're seeing positive reaction, positively impacting those properties as well.

Speaker #3: We're continuing to watch closely as the summer unfolds in terms of what happens with that customer. But as Bill noted, we feel pretty good about the weekends and in terms of the midweek.

Speaker #3: We're hoping to continue to see more stability as the year progresses. And certainly, I think there are pockets where we have evidence of that, whether that's convention group business continuing to stabilize including in those properties midweek.

Speaker #3: And then also with some of the programming in the South Strip and Legion, we're seeing positive reaction that's impacted positively impacting those properties as well.

Speaker #1: And I'm sorry.

Bill Hornbuckle: I'm sorry.

Speaker #3: No, please.

Aisha Merlino: No, please.

Ayesha Molino: No, please.

Bill Hornbuckle: Shaun, remembering MGM, we've got about 54,000 more room nights in the bucket this year, because obviously they were offline. Just as pure math, that's gonna. Yep.

Speaker #1: Sean, just in remembering MGM, we've got about 54,000 more room nights in the bucket this year. Because obviously, they were offline. And so just as pure math, that's going to yeah.

Speaker #5: Yeah. Fair. Yeah. Fair point on that. Thanks for that. And then as a follow-up, but probably a good segue, off of Legion, Bill, you mentioned in the prepared remarks a little bit about the NBA.

Shaun Kelley: Yeah, fair. Yeah, fair point on that. Thanks for that. As a follow-up, but probably a good segue off of Allegiant. Bill, you mentioned in the prepared remarks a little bit about the NBA, which is a pretty exciting development. You know, it may be too early to speculate, but, you know, I think, you'd have a lot of vested interest in making sure that that ended up at one of your, you know, one of your venues particularly or, you know, potentially something like.

Speaker #5: Which is pretty exciting development. It may be too early to speculate, but I think you'd have a lot of vested interest in making sure that that ended up at one of your one of your venues, particularly your potentially something like so can you just talk to us about the strategy there for the city?

Shaun Kelley: You know, can you just talk to us about the strategy there for the city and then, you know, MGM's involvement to the extent you have a hand in, possibly where either a purpose-built stadium ends up or if one of the venues that exists right now could be used for that?

Speaker #5: And then MGM's involvement to the extent you have a hand in possibly where either a purpose-built stadium ends up or if one of the venues that exists right now could be used for that.

Speaker #1: Yeah. Sean, appreciate the question. Fun question. I will start by saying I'm already under three NDAs. So the good news is the NBA has clearly earmarked Las Vegas and Seattle.

Bill Hornbuckle: Yeah. Shaun, appreciate the question. Fun question. I will start by saying I'm already under 3 NDAs. The good news is, the NBA has clearly earmarked Las Vegas and Seattle. We have had huge interest and obviously whether Las Vegas becomes the ultimate site or not, time to tell. Obviously, that'll be up to the board of governors sometime next year. That said, we're excited by it. How could we not be? We've all seen the success and then what it means to Las Vegas when these sports teams come. T-Mobile is part of that conversation, whether it's short term or long term. All roads lead to it for now, because the league has expressed interest to host a team as early as 2028.

Speaker #1: We have had huge interest and obviously, whether T-Mobile becomes and Las Vegas becomes the ultimate site or not, time to tell. Obviously, that'll be up to the board of governors sometime next year.

Speaker #1: That said, we're excited by it. How could we not be? We've all seen the success and what it means to Las Vegas with these sports teams come.

Speaker #1: T-Mobile is part of that conversation. Whether it's short-term or long-term, all roads lead to it for now. Because the league is expressed interest to host a team as early as 2028.

Speaker #1: And so we're intimately involved in many of those conversations. And I hope, I believe, if the answer is well, yes or no, I think we'll know hopefully by this time next year.

Bill Hornbuckle: We're intimately involved in many of those conversations. I hope, I believe if the answer is, well, yes or no, I think we'll know hopefully by this time next year. A process is beginning to start. We've been asked how we would position T-Mobile for any and all bidders, and we're beginning to do that with our partner at AEG and Bill Foley. You know, we're open to all comers and there has been extensive interest in Las Vegas. It's exciting. It's very exciting, actually.

Speaker #1: A process is beginning to start. We've been asked how we would position T-Mobile for any and all bidders. And we're beginning to do that with our partner at AEG and Bill Foley.

Speaker #1: But we're open to all commerce and there has been extensive interest in Las Vegas. And so it's exciting. It's very exciting, actually.

Speaker #5: Good to hear. Thanks.

Stephen Grambling: Good to hear. Thanks.

Shaun Kelley: Good to hear. Thanks.

Speaker #2: Thank you. And our next question today comes from Barry Jonas at Truist. Please go ahead.

Operator: Thank you. Our next question today comes from Barry Jonas at Truist. Please go ahead.

Speaker #4: Hey, guys. What are you for current Iran conflict has impacted your UAE non-gaming project and its timeline? And then I guess, do you believe there's still a chance you could get gaming there or in Abu Dhabi?

Barry Jonas: Hey, guys. I'm wondering if the current Iran conflict has impacted your UAE non-gaming project and its timeline. I guess, do you believe there's still a chance you could get gaming there or in Abu Dhabi? Thank you.

Speaker #4: Thank you.

Bill Hornbuckle: Barry, let me handle it. It, it hasn't impacted the ultimate timing, i.e., construction. For now, China State, who is building the project continues, and the project remains on schedule. You know, we have not heard yet, nor do I think we will, given the environment for a while, on whether gaming will be permitted or not, reminding the balance of the crew who may not be as familiar with that project. They're allowing us to hold a quarter of a million square feet of space for a potential casino on one of the podium floors there. It could be very exciting. For us, that is our key focus, not Abu Dhabi, to answer that part of the question. You know, right now, their business is struggling.

Speaker #1: Barry, let me hand it. It has an impact of the ultimate timing, i.e., construction. For now, China. Who is building the project continues. And the project remains on schedule.

Speaker #1: We have not heard yet nor do I think we will given the environment for a while on whether gaming will be permitted or not.

Speaker #1: Reminding the balance of the crew who may not be as familiar with that project. They're allowing us to hold a quarter of a million square feet of space for a potential casino.

Speaker #1: On one of the podium floors there. And so it could be very exciting. For us, that is our key focus, not Abu Dhabi. To answer that part of the question, right now, their business is struggling.

Bill Hornbuckle: The tourism business in that particular neck of the world is down to like, you know, 15%, give or take. I'd say occupancies are down to that level. It'll take some recovery time no matter what happens here over the next couple of months. Long term, we remain very excited. The project is fascinating and fabulous. You know, we're gonna be all over it to continue to push both the agenda, the initiative, and the opening.

Speaker #1: The tourism business in that particular neck of the world is down to like 15%, give or take. I'd say occupancies are down to that level.

Speaker #1: So it'll take some recovery time no matter what happens here over the next couple of months. But long-term, we remain very excited. The project is fascinating and fabulous.

Speaker #1: And so we'd be we're going to be all over it to continue to push both the agenda, the initiative, and the opening.

Speaker #4: Great. And then just sticking on international development, for Japan, I guess they've reopened the process for additional licenses in the country. Curious how you think that potentially impacts your 2030 project.

Barry Jonas: Great. Just sticking on international development for Japan, I guess they've reopened the process for additional licenses in the country. Curious how you think that potentially impacts your 2030 project? I guess as a follow-up with IR, any impact to construction costs that you're seeing? Thank you.

Speaker #4: And then I guess as a follow-up with Iran, any impact to construction costs that you're seeing? Thank you.

Bill Hornbuckle: On the second question, no, not yet. Although, like everybody in the world, we're suspect to cost of inflation and cost of goods. A lot of it, a lot of our concrete and steel has been contracted, so that's the good news. There's, you know, obviously a long way to go. We still have 4 years to go there. What was the first part of the question? First part of your question?

Speaker #1: On the second question, no, not yet. Although, like everybody in the world, we're suspect to cost of inflation and cost of goods. A lot of it a lot of our concrete and steel has been contracted.

Speaker #1: So that's the goodness. But there's obviously a long way to go. We still have four years to go there. Was the first part of the question?

Speaker #1: First part of the question?

Barry Jonas: Oh, just about additional licenses now.

Speaker #4: Oh, just about additional licenses now.

Speaker #1: Oh, yeah, Japan. I'm sorry. Yeah.

Bill Hornbuckle: Oh, in Japan, I'm sorry, yeah.

Barry Jonas: Reopening the process.

Speaker #4: Reopening the process. Yeah.

Bill Hornbuckle: Look, yeah.

Speaker #1: Okay. Yeah. They have started the process. They've put some dates out. I think it runs through next spring. Time to tell. Given the scale and scope and what we all went through, there's only two or three markets that could actually accommodate something that I think that would make sense and be successful.

Barry Jonas: Yeah.

Bill Hornbuckle: They have started the process. They put some dates out. I think it runs through next spring. You know, time to tell, given the scale and scope and what we all went through. There's only two or three markets that could actually accommodate something I think that would make sense and be successful. Whether there's the political will at the end of the day to do that or not, time to tell. We've all witnessed first time around that there was not. Then knowing Japan as well as we do, I'll remind everybody we're in our 17th year of this. I don't think it would impact us too quickly no matter what happened. Frankly, if they were able to get better terms and/or conditions, that would only work to our betterment.

Speaker #1: Whether there's the political will at the end of the day to do that or not, time will tell. We've all witnessed the first time around that there was not.

Speaker #1: And then, knowing Japan as well as we do, I'll remind everybody we're in our 17th year of this. So, I don't think it would impact us too quickly, no matter what happened.

Speaker #1: And frankly, if they were able to get better terms and/or conditions, that would only work to our betterment. And with 120 million people to share, I'm not overly concerned to the contrary.

Bill Hornbuckle: With 120 million people to share, I'm not overly concerned to the contrary.

Speaker #4: Perfect. Thank you.

Barry Jonas: Perfect. Thank you.

Speaker #2: Thank you. And our next question today comes from Steven Grambling at Morgan Stanley. Please go ahead.

Operator: Thank you. Our next question today comes from Stephen Grambling at Morgan Stanley. Please go ahead.

Speaker #5: Hey, thank you. Can you hear me?

Stephen Grambling: Hey, thank you. Can you hear me?

Speaker #1: Absolutely, Steven.

Bill Hornbuckle: Absolutely, Stephen.

Speaker #5: So Jonathan, you mentioned the multiple for Northfield versus the current trading. It was higher than where the baseline is. I guess, does that make you reconsider monetizing other assets as a way to surface value?

Stephen Grambling: Jonathan, you mentioned the multiple for Northfield versus the current trading, you know, was higher than where the baseline is. I guess, does that make you reconsider monetizing other assets as a way to surface value? Are there things that you see out there that could ultimately end up being sold or rethought as a way, again, of surfacing value?

Speaker #5: Are there things that you see out there that could ultimately end up being sold or rethought as a way, again, of surfacing value?

Speaker #1: I meant it really as a way of hopefully monetizing the price of our shares. We have although it's been for a few years now, I would say we've been fairly active in doing just that, starting with the sale of the Mirage at a nice double-digit multiple.

Jonathan Halkyard: I meant it really as a way of hopefully monetizing the price of our shares. You know, we have, although it's been for a few years now, I would say we've been fairly active in doing just that, starting with the sale of the Mirage, you know, at a nice double-digit multiple, the sale of our Gold Strike property in Tunica at a, at the same double-digit multiple. Now, you know, now Northfield Park, I mean, a, you know, a slot-only facility with no hotel. While performing nicely, I mean, you know, a pretty good multiple and well in excess of what our enterprise trades at.

Speaker #1: The sale of our Gold Stripe property in Tunica at the same double-digit multiple and now Northfield Park. I mean, a slot-only facility with no hotel and while performing nicely, I mean, a pretty good multiple and well and access of what our enterprise trades at.

Jonathan Halkyard: We're guided in our dispositions more by our strategies and market positions than we are, you know, necessarily by the, you know, by the level at which these properties could be sold. That was the case with all three of those transactions that I mentioned. They were all done really for strategic reasons. I just think these valuations just highlight what we think is a real disconnect with the enterprise valuation. In short, no, it doesn't really cause us to say, Hey, what other properties might we be able to sell? Because that's usually informed by a strategic approach.

Speaker #1: We're guided in our dispositions more by our strategies and market positions than we are necessarily by the level at which these properties could be sold.

Speaker #1: And that was the case with all three of those transactions that I mentioned that were all done really for strategic reasons. I just think they do these valuations just highlight what we think is a real disconnect with the enterprise valuation.

Speaker #1: So to ensure, no, it doesn't really cause us to say, "Hey, what other properties might we be able to sell because that's usually informed by a strategic approach?"

Speaker #5: Fair enough. And then an unrelated question just on Macau. Looked like the mass market hold was better than kind of the historical trend. Is there something structurally changing there as we think about either the player type or the bet types or even the technology being implemented that could make that sustainable?

Stephen Grambling: Fair enough. An unrelated question just on Macau. Looked like the mass market hold was better than kind of a historical trend. Is there something structurally changing there as we think about either the player type or the bet types or even the technology being implemented that could make that sustainable?

Speaker #1: Well, I'll make one comment and let Kenny comment. There's a lot of prop bets now. Tie. I mean, I think Abacra some Abacra tables have as many as six prop bets on them.

Bill Hornbuckle: Well, I'll make one comment and let Kenny comment. you know, there's a lot of prop bets now. Tie, I mean, I think a baccarat, some baccarat tables have as many as 6 prop bets on them. That has changed the game, the nature of the game, and frankly, the odds of the game. Kenny, I don't know if you wanna comment a little further.

Speaker #1: And so that has changed the game, the nature of the game, and frankly, the odds of the game. Kenny, I don't know if you want to comment a little further.

Speaker #3: Yeah. Thanks, Bill. I did. We are seeing an increasing adoption of some side bets on our gaming floors. As you know, side bets, in general, carry a house advantage.

Kenneth Feng: Yeah. Thanks, Bill. We are seeing like increasing adoption of some side bets on gaming floors. As you know, like side bets, in general carry a house advantage higher than the traditional games. We are rolling out some more side bets literally this week at MGM, following some recent approval by DICJ. The history of side betting in Macau is still relatively short. These games only got popular after pandemic. Along with the volatility in a premium mass market, we do not think it is the right time to adjust the mass, the theoretical mass hold. We will keep monitoring the adoption of the games, the player and the GGR trends, et cetera. Thanks.

Speaker #3: Higher than the traditional games. We are ruling out some more side bets literally this week at MGM. Following some recent approval by DICG. But the history of side betting in Macau is still relatively short.

Speaker #3: This game's only got popular after the pandemic. Along with the volatility in a premium dream market, we do not think it is the right time to adjust the mass the theoretical mass hold.

Speaker #3: We will keep monitoring the adoption of the games the player and the GDR trend, etc. Thanks.

Stephen Grambling: That's helpful. Thank you so much.

Speaker #5: That's helpful. Thank you so much.

Speaker #2: Thank you. And our next question today comes from Chad Baynon with Macquarie. Please go ahead.

Operator: Thank you. Our next question today comes from Chad Beynon with Macquarie. Please go ahead.

Speaker #4: Hi, good afternoon. Thanks for taking my question. Wondering if you can talk about the international business in the first quarter in Las Vegas. Either around Chinese New Year or Super Bowl.

Chad Beynon: Hi, good afternoon. Thanks for taking my question. Wondering if you can talk about the international business in Q1 in Las Vegas, either around Chinese New Year or Super Bowl. As, you know, those comps have been fairly easy over the past couple of years. We're not anywhere near back to, you know, where the peaks were. Wondering if you're starting to see some nice improvement there that could carry forward throughout 2026.

Speaker #4: As those comps have been fairly easy over the past couple of years, we're not anywhere near back to where the peaks were. But wondering if you're starting to see some nice improvement there that could carry forward throughout '26.

Speaker #1: Chad, thanks for the question. Look, I would say, yes, to a limited degree. I mean, obviously, the very nature of what's happened with our core Far East business and China and the restriction of capital leaving that marketplace is not been eradicated, I guess, or changed back to where it was.

Bill Hornbuckle: Chad, thanks for the question. Look, I would say yes, to a limited degree. I mean, obviously, the very nature of what's happened with our core Far East business in China and restriction of capital leaving that marketplace has not been eradicated, I guess, or changed back to where it was. We do see Mexico more often than ever. I mentioned earlier in my comments we had a tremendous baccarat tournament last weekend, this April. It was, as always, full of international play and players. The good news is, despite the overall traffic decline international, as I was mentioning earlier, mostly driven by Canada, when it comes to rated play, and particularly premium rated play, it's very healthy, and that hasn't changed.

Speaker #1: We do see Mexico more often than ever. I mentioned earlier in my comments, we had a tremendous Abacra tournament this last weekend, this April.

Speaker #1: And so it was, as always, full of international play and players. So the good news is, despite the overall traffic decline internationally, as I was mentioning earlier—mostly driven by Canada—when it comes to rated play and particularly premium rated play, it's very healthy.

Speaker #1: And that hasn't changed. And I don't think there's anything out there, other than an outright war, that would change that anytime soon.

Bill Hornbuckle: I don't think there's anything out there other than, you know, an outright war, that would change that anytime soon.

Speaker #4: Okay. Thanks. And then on the Leo Vegas or the digital business, there's been some contraction in public multiples on affiliate companies and sports data companies and even so on the B2C, given regulatory changes.

Chad Beynon: Okay, thanks. On the LeoVegas or the digital business, there's been some contraction in public multiples on affiliate companies and sports data companies, on the B2C, given regulatory changes. What's your appetite in terms of improving or growing the ecosystem from a tech standpoint to just grow that business at a time when multiples might be attractive? Thanks.

Speaker #4: What's your appetite, in terms of improving or growing the ecosystem from a tech standpoint, to just grow that business—at a time when multiples might be attractive?

Speaker #4: Thanks.

Speaker #1: Yeah. Listen, I think we feel really confident about the assets that we have under the hood right now. We were very deliberate in assembling the portfolio of assets that we did.

Gary Fritz: Yeah, listen, I think, we feel really confident about the assets that we have under the hood right now. We were very deliberate in assembling the portfolio of assets that we did. We didn't buy sort of the most obvious, shiny, new thing. We were very deliberate, turned over a lot of rocks and assembled the portfolio that we did. I think we've mentioned before, we feel we're largely fully deployed in terms of capital commitment to the international and MGM Digital business. Can never say never, don't see any glaring holes in our portfolio at the moment. It would take something extraordinary probably to see us deploy additional capital.

Speaker #1: We didn't buy sort of the most obvious shiny new thing. We were very deliberate turned over a lot of rocks and assembled the portfolio that we did.

Speaker #1: I think we've mentioned before, we feel we're fully largely fully deployed in terms of capital, commitment to the international and MGM digital business. Can never say never.

Speaker #1: But don't see any glaring holes in our portfolio at the moment, so it would take something extraordinary, probably, to see us deploy additional capital.

Speaker #4: Thank you.

Chad Beynon: Thank you.

Speaker #2: Thank you. And our final question today comes from Ben Chicken at Mizuho. Please go ahead.

Operator: Thank you. Our final question today comes from Ben Chaiken at Mizuho. Please go ahead.

Speaker #6: Hey, thanks for taking my question. I've got one kind of two-parter. If I recall, maybe clarify, I think there was a small fine in the prior year one Q.

Ben Chaiken: Hey, thanks for taking my question. I've got one kinda two-parter. If I recall, maybe clarify, I think there was a small fine in the prior year Q1. I don't know if that sticks out or if it kinda just gets caught in the wash. Maybe you could help us think about Q2 last year and the correct base. You know, in Las Vegas, you reported around $710 million, $711 million, I think you flagged $60 million of headwinds, $20 million from Grand, $20 million from some event spend, and $20 million from hold, I believe. I guess, you think about the business today, do those three buckets still kinda make sense to you, or have things changed? Thanks.

Speaker #6: I don't know if that sticks out, or if it kind of just gets caught in the wash. And then maybe you could help us think about Q2 last year in the correct base.

Speaker #6: You report in Las Vegas, you reported around $710, $711 million. But I think you flagged $60 million of headwinds—$20 million from Grand, $20 million from some event spend, and $20 million from hold, I believe.

Speaker #6: I guess if you think about the business today, do those three buckets still kind of make sense to you, or have things changed? Thanks.

Gary Fritz: You, you're correct. There was a small fine in Q1 2025 that we incurred that affected our results there. You know, that's one of those things, we have those types of, not fines, but we have those types of relatively small impacts one way or another in our results pretty much every quarter. Q2 of last year, you're correct that we were underway with the renovation at the MGM Grand during the quarter. That affected us for

Jonathan Halkyard: You, you're correct. There was a small fine in Q1 2025 that we incurred that affected our results there. You know, that's one of those things, we have those types of, not fines, but we have those types of relatively small impacts one way or another in our results pretty much every quarter. Q2 of last year, you're correct that we were underway with the renovation at the MGM Grand during the quarter. That affected us for, pretty much all of the year.

Speaker #4: You're correct. There was a small fine in the first quarter of 2025 that we incurred that affected our results there. And so that's one of those things—we have those types of, not fines, but we have those types of relatively small impacts one way or the other in our results pretty much every quarter.

Speaker #4: Second quarter last year, you're correct that we were underway with the renovation at the MGM Grand during the quarter, and that affected us for pretty much all of the year.

Jonathan Halkyard: Pretty much all of the year. We did have, I think, a kind of a net of negative impact on hold during Q2 last year. That was a roughly $20 million. I guess those are probably the two things that I would call out that when I look at this quarter, we certainly have the benefit of the MGM Grand and those rooms back. You know, you never know how old it's gonna go, but last year in Q2, we were impacted negatively by hold.

Speaker #4: We did have, I think, kind of a negative impact on hold during the second quarter last year. That was a roughly 20 million dollars and so I guess those are probably the two things that I would call out that when I look at this quarter, we certainly had the benefit of the MGM Grand in those rooms back.

Jonathan Halkyard: We did have, I think, a kind of a net of negative impact on hold during Q2 last year. That was a roughly $20 million. I guess those are probably the two things that I would call out that when I look at this quarter, we certainly have the benefit of the MGM Grand and those rooms back. You know, you never know how old it's gonna go, but last year in Q2, we were impacted negatively by hold.

Speaker #4: And then you never know how hold is going to go, but last year in the second quarter, we were impacted negatively by hold.

Speaker #6: And then I guess the event, the $20 million event, is that just kind of like, maybe forget that one, or how are you thinking about it now?

Ben Chaiken: I guess the event, the $20 million event, is that just kind of like maybe forget that one or how are you thinking about it now?

Speaker #4: Well, not forget about it, but that was a that was a VIP event that we had. And part of that was also reflected in the hold results that we had during the quarter.

Jonathan Halkyard: Well, not forget about it, that was a VIP event that we had. Part of that was also reflected in the hold results that we had during the quarter. Again, we do VIP marketing events in our business, whether it's Chinese New Year. We just had actually the same VIP marketing event this past weekend, which is, you know, it's costly, but we think it's really important for our customers and for that segment of the business. You know, in that particular event, we've had last year and we had again this year in the quarter.

Speaker #4: But again, we do VIP marketing events in our business. Whether it's Chinese New Year—we just had, actually, the same VIP marketing event this past weekend—which is costly, but we think it's really important for our customers and for that segment of the business.

Speaker #4: So, that particular event—we've had it last year, and we had it again this year in the quarter.

Speaker #1: And did well. And did well with it. I want to.

Bill Hornbuckle: Did well. Did well with it.

Speaker #6: Yeah. Thank you.

Jonathan Halkyard: Yeah.

Ben Chaiken: Thank you.

Speaker #4: Okay. Thanks, Ben.

Jonathan Halkyard: Okay. Thanks, Ben.

Speaker #2: Thank you. And ladies and gentlemen, this concludes our question and answer session. I'd like to turn the conference back over to Bill Hornbuckle for any closing remarks.

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

Speaker #1: Thank you, operator. And thank you all for listening in. I hope, if nothing else, we've shown that we're resilient, that this market is resilient, that people are resilient—and this weekend is another good example.

Bill Hornbuckle: Thank you, operator, and thank you all for listening in. I hope if nothing, we've shown that we're resilient, that this market is resilient. This weekend's another good example. I think we have Morgan Wallen here at Allegiant. People are still excited by what we do, and despite all the noise in the world, and we all know there's a lot, we're pleased with who we are, and we're excited for the future. Thank you all.

Speaker #1: I think we have Morgan Wallen here at Allegiant. People are still excited by what we do. And despite all the noise in the world—and we all know there’s a lot—we’re pleased with who we are, and we’re excited for the future.

Speaker #1: So thank you all.

Speaker #2: Thank you. That concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Operator: Thank you. That concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Q1 2026 MGM Resorts International Earnings Call

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