Q2 2024 MGM Resorts International Earnings Call Transcript
Key Points
- MGM Resorts International (MGM) achieved both top and bottom line growth in Las Vegas, with net revenues growing 3% year over year.
- The strategic relationship with Marriott contributed significantly, with over 410,000 room nights booked, enhancing room rates and occupancy.
- MGM China saw a 37% year-over-year increase in net revenues and a 40% increase in adjusted property EBITDAR, with margins at 29%.
- The company has successfully integrated the Cosmopolitan of Las Vegas into the MGM Rewards program, enhancing customer loyalty and benefits.
- MGM Resorts International (MGM) has a strong balance sheet with low net debt and excess cash, enabling continued investment and share repurchases.
- The Formula 1 event in Las Vegas is showing some softness in room rates, which could present a potential headwind in the fourth quarter.
- There is a noted decline in core gaming metrics in Las Vegas, with some softness in slot revenues due to a shift in mix from casino customers.
- The regional markets have seen some softness, particularly in the lower end of the database and unrated play.
- The company faces challenges with wage inflation, although most increases are expected to lapse in the second half of the year.
- BetMGM's sports betting segment has lost market share, necessitating heavy investment to improve the product and regain customers.
Good afternoon, everyone, and welcome to the MGM Resorts International second-quarter 2024 earnings conference call.
Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President; Corey Sanders, Chief Operating Officer; Jonathan Halkyard, Chief Financial Officer and Treasurer; Gary Fritz, President of MGM Interactive; Kenneth Feng, Executive Director and President of MGM China Holdings; Hubert Wang, COO and President of MGM China Holdings; and Andrew Chapman, Director of Investor Relations.
(Operator Instructions). Please also note, today's conference is being recorded. At this time, I'd like to turn the floor over to Andrew Chapman.
Good afternoon, and welcome to the MGM Resorts International second-quarter 2024 earnings call. This call is being broadcast live on the internet at investors.mgmresorts.com, and we've also furnished our press release on Form 8-K to the SEC.
On the call, we'll make forward-looking statements
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