Mgm Resorts International · NYSE:MGM
Mgm Resorts International — Q3 2020 Earnings Presentation
45 slides from Mgm Resorts International's earnings presentation, Oct 29, 2020
Slide 1: Third Quarter 2020 Earnings
MGM RESORTS INTERNATIONAL THIRD QUARTER 2020 EARNINGS OCTOBER 29, 2020 MGM RESORTS INTERNATIONAL
Slide 2: Forward-Looking Statements
F O R WA R D - L O O K I N G S T A T E M E N T S Statements in this presentation that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's
Slide 3: Table of Contents
• 3Q 2020 HIGHLIGHTS • BETMGM TABLE OF CONTENTS • 3Q 2020 FINANCIAL RESULTS • SUPPLEMENTAL 3
Slide 4: Key 3Q 2020 Takeaways
KEY 3Q 2020 TAKEAWAYS U.S. properties now all open • Health & safety remains our top priority • Improvement in U.S. domestic results compared with the second quarter • Strong U.S. regional performance, primarily driven by record results at MGM National Harbor, MGM Northfield Park and Gold Strike Tun
Slide 5: 3Q 2020 Financial Highlights
3Q 2020 FINANCIAL HIGHLIGHTS ($ in U.S. millions, except per share information) 3Q19 3Q20 $ Change % Change Consolidated Net Revenue $3,314 $1,126 ($2,188) (66%) Las Vegas Strip Resorts $1,507 $481 ($1,026) (68%) Regional Operations $935 $557 ($378) (40%) MGM China $738 $47 ($691) (94%) Net Income (
Slide 6: Sequential Improvement Across the Portfolio
SEQUENTIAL IMPROVEMENT ACROSS THE PORTFOLIO ($ in U.S. millions) Actual Hold Adjusted 3Q20 vs. 2Q20 Change 3Q20 vs. 2Q20 Change Net Revenue 2Q20 3Q20 2Q20 3Q20 $ % $ % Las Vegas Strip Resorts $151 $481 +$331 219% $142 $489 +$347 245% Regional Operations $89 $557 +$468 524% MGM China $33 $47 +$14 41%
Slide 7: Our Liquidity Position Remains Strong
OUR LIQUIDITY POSITION REMAINS STRONG As of September 30, 2020, the Company’s domestic operations had $4.5 billion of liquidity MGM Resorts MGM Resorts ($ in U.S. millions) (Ex. MGM China and MGP) MGM China MGP Consolidated Cash and Equivalents $3,543 $396 $655 $4,594 Revolver Availability $922 $996
Slide 8: Solid Debt Profile
SOLID DEBT PROFILE As of September 30, 2020, the Company’s domestic operations had $5.3 billion of debt, with no domestic maturities until 2022 MGM RESORTS (EXCLUDING MGM CHINA AND MGP) – DEBT MATURITY PROFILE CONSOLIDATED DEBT OVERVIEW $ in millions ($ in U.S. millions) Debt Revolving Credit Facili
Slide 9: All U.S. Properties Now Open
ALL U.S. PROPERTIES NOW OPEN U.S. REOPENING DATES1 • As of September 30, 2020, all MGM Resorts properties have reopened under local % of LAS VEGAS Date COVID-19 guidelines 3Q Open Bellagio 6/4/20 100% MGM Grand 6/4/20 100% • Operations strategy continues to prioritize: New York New York 6/4/20 100%
Slide 10: Demonstrating Operating Model Strength
DEMONSTRATING OPERATING MODEL STRENGTH MGM 2020 savings include initiatives launched at the end of 2019 that began yielding tangible results prior to the COVID-19 crisis Since the beginning of the COVID-19 crisis, the Company has fundamentally re-evaluated how it operates, with a focus on permanentl
Slide 11: Continued Strong Regional Performance
CONTINUED STRONG REGIONAL PERFORMANCE U.S. REGIONAL YEAR-OVER-YEAR PERFORMANCE FOR PROPERTIES OPEN DURING ENTIRE 3Q 2020 (BEAU RIVAGE, GOLD STRIKE TUNICA, MGM NORTHFIELD PARK, MGM NATIONAL HARBOR) Net Adjusted Property Adjusted Property Revenues EBITDAR EBITDAR Margin -15% +7% +768 bps 3Q 2019 3Q 20
Slide 12: The Las Vegas Strip Market Is Improving
THE LAS VEGAS STRIP MARKET IS IMPROVING LAS VEGAS STRIP PERFORMANCE 3Q 2020 vs. 2Q 2020 ($ in U.S. millions) ACTUAL HOLD ADJUSTED Net Revenues Adjusted Property EBITDAR Net Revenues Adjusted Property EBITDAR +$331 +$120 +$347 +$134 $15 $21 $481 ($104) $489 ($112) $151 $142 2Q 2020 3Q 2020 2Q 2020 3Q
Slide 13: Convene with Confidence: Meetings & Events
CONVENE WITH CONFIDENCE: MEETINGS & EVENTS Convene with Confidence is a comprehensive set of protocols designed specifically for bringing meetings and entertainment safely back to Las Vegas. We have worked closely with health experts and local public officials to detail every aspect of an attendee e
Slide 14: Convene with Confidence: Live Entertainment
CONVENE WITH CONFIDENCE: LIVE ENTERTAINMENT Convene with Confidence is a comprehensive set of protocols designed specifically for bringing meetings and entertainment safely back to Las Vegas. We have worked closely with health experts and local public officials to detail every aspect of an attendee
Slide 15: Creating Safer Environments & Ecosystems with MGM Health Pass
CREATING SAFER ENVIRONMENTS & ECOSYSTEMS WITH MGM HEALTH PASS MGM Resorts is bringing together cutting-edge Health Pass technology from CLEAR, innovative COVID-19 testing with CUE Health, and expert health providers from Impact Health with the goal of creating safer environments and ecosystems acros
Slide 16: Entertainment Returns to Las Vegas November 6
ENTERTAINMENT RETURNS TO LAS VEGAS NOVEMBER 6 Fantasy @ Luxor Jabbawockeez @ MGM Grand Carrot Top @ Luxor Brad Garrett’s Comedy Club The Australian Bee Gees @ Excalibur @ MGM Grand David Copperfield @ MGM Grand Thunder From Down Under @ Excalibur MGM RESORTS INTERNATIONAL 16 Shows will be held with
Slide 17: Macau Update
MACAU UPDATE JULY 6 JULY 15 AUGUST 26 SEPTEMBER 23 OCTOBER 1-7 Macau residents exempted Visitors crossing borders Guangdong province The rest of mainland China October Golden Week from quarantine when between Macau and resumes issuance of resumes tourist visas to Macau. visitation down 86% year ente
Slide 18: Table of Contents
• 3Q 2020 HIGHLIGHTS • BETMGM TABLE OF CONTENTS • 3Q 2020 FINANCIAL RESULTS • SUPPLEMENTAL 18
Slide 19: Significant Opportunity in the Growing U.S. Market
SIGNIFICANT OPPORTUNITY IN THE GROWING U.S. MARKET SPORTS MARKET ASSUMPTIONS $20.3 38 States 224.3 million adults BILLION Spend per adult ~$60 Expected market size ~$13.5 billion BY 2025 Sports $13.5 billion iGaming $6.8 billion IGAMING MARKET ASSUMPTIONS 13 States 61.6 million adults Spend per adul
Slide 20: Positioning BetMGM as a Long-Term Leader in U.S. Sports Betting and iGaming
POSITIONING BETMGM AS A LONG-TERM LEADER IN U.S. SPORTS BETTING AND IGAMING • Market access secured in 20 states1, live in 8 states with the expectation to be live in 11 states by year end 2020 • BetMGM is now a Top 3 operator2 in every market where it is live and revenues are publicly reported, wit
Slide 21: Strategic Market Access Enables Day 1 Launch as More States Go Live
STRATEGIC MARKET ACCESS ENABLES DAY 1 LAUNCH AS MORE STATES GO LIVE To date, BetMGM has secured market access in 20 states1 and is live in eight states, with the expectation of being live in 11 states by year end 2020 ME WA VT Live States Retail Sports Online Sports Online Casino Online Poker NH M
Slide 22: BetMGM Has Increased Share in Key U.S. Markets
BETMGM HAS INCREASED SHARE IN KEY U.S. MARKETS TO BECOME A TOP #3 OPERATOR 1 Market Market YTD September YTD2Q20 Share 3Q20 Share Market Share Position1 Position1 Position1 17.9% #1 20.3% #1 #1 IGAMING NJ Consistently the #1 brand in NJ iGaming, with MARKET SHARE1 WV ramping WV N/A N/A 23.8% #2 #2 N
Slide 23: Driving Momentum in Online Sports Betting
DRIVING MOMENTUM IN ONLINE SPORTS BETTING BetMGM has nearly doubled its online sports betting market share1 since January 2020 8.7% 8.5% 8.5% 5.6% 4.5% Jan-20 Jun-20 Jul-20 Aug-20 Sep-20 BetMGM Online Sports Betting Market Share MGM RESORTS INTERNATIONAL 1 In markets that BetMGM is live and are publ
Slide 24: Driving Higher Value Customers Through Omni-Channel Strategy
DRIVING HIGHER VALUE CUSTOMERS THROUGH AN UNMATCHED OMNI-CHANNEL STRATEGY 4 1 GUEST CHECKOUT & RETURN TO HOME GUEST BOOKING • MLIFE INTEGRATED WITH BETMGM APP • STATE-SPECIFIC PROMO OFFERS FOR STATE BETMGM SIGN-UP WITH HOME STATE • MGM RESORTS AND ALL PROPERTY • RETURN VISIT RETENTION WEBSITE INCLUS
Slide 25: On-Property Branding & Activations
ON-PROPERTY BRANDING & ACTIVATIONS MGM RESORTS INTERNATIONAL 25
Slide 26: BetMGM Branding at Luxor
BETMGM BRANDING AT LUXOR MGM RESORTS INTERNATIONAL 26
Slide 27: New Yahoo! Features Released Mid-October
NEW YAHOO! FEATURES RELEASED MID-OCTOBER DIRECT ACCESS TO BETMGM ENHANCED FEATURES Streamlined registration and onboarding Player prop odds added experience between the Yahoo Sports app1 to Yahoo Fantasy app2 YAHOO SPORTS ~50 million MONTHLY AVERAGE USERS IN U.S. YAHOO FANTASY >15 billion MINUTES OF
Slide 28: Key Pillars Position BetMGM for Success
KEY PILLARS POSITION BETMGM FOR SUCCESS BetMGM’s four key strategic pillars position it to become an industry leader with an efficient financial model KEY STRATEGIC PILLARS RECENT SUCCESSES • Prime MGM Resorts assets in key states • Access to 20 markets secured • Additional access secured via other
Slide 29: Table of Contents
• 3Q 2020 HIGHLIGHTS • BETMGM TABLE OF CONTENTS • 3Q 2020 FINANCIAL RESULTS • SUPPLEMENTAL 29
Slide 30: Financial Considerations
FINANCIAL CONSIDERATIONS • Health and Safety / Benefits ➢ Health and Safety – Domestic Operating Expenses – 3Q 2020: $20 million1 – 4Q 2020: Expect to incur ~$20 million1, primarily related to labor, PPE, and other supplies ➢ Benefits – 3Q 2020: The Company provided benefits to its furloughed employ
Slide 31: Triple Net Operating and Ground Leases
TRIPLE NET OPERATING AND GROUND LEASES • The Company has rental obligations to the following entities: MGM Growth Properties, the Bellagio BREIT venture and the MGP BREIT venture (Mandalay Bay and MGM Grand Las Vegas) • Given the Company’s 57% economic ownership in MGP, MGP is consolidated within th
Slide 32: 3Q 2020 – Las Vegas Strip
3Q 2020 – LAS VEGAS STRIP Net Revenues Adjusted Property EBITDAR ($ in U.S. millions) ($ in U.S. millions) Actual Hold Adjusted Actual Hold Adjusted $1,507 $1,504 $441 $438 $481 $489 $15 $21 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20 3Q19 3Q20 • Casino revenue decreased 44% compared to the prior year quarter • R
Slide 33: 3Q 2020 – Regional
3Q 2020 – REGIONAL ($ in U.S. millions) Net Revenue Adjusted Property EBITDAR $935 $557 $269 $146 3Q19 3Q20 3Q19 3Q20 • Casino revenue decreased 30% compared to the prior year quarter ➢ Table games drop of $739 million compared to $1.1 billion in 3Q 2019 ➢ Table games win % of 21.0% compared to 19.6
Slide 34: 3Q 2020 – CityCenter
3Q 2020 – CITYCENTER ($ in U.S. millions) 1 . S T R U C T U R E T O D A Y ( 7 3 % O WN E RNet S H IRevenue P OF OP) 3. M Adjusted GM RESORTS LONG-TERM STRATEGY EBITDA $320 $127 $109 $25 3Q19 3Q20 3Q19 3Q20 • CityCenter reopened in July 2020 • Key Balance Sheet Items (as of 9/30/20) ➢ Occupancy of 36
Slide 35: 3Q 2020 – MGM China
3Q 2020 – MGM CHINA Net Revenues Adjusted Property EBITDAR ($ in U.S. millions) ($ in U.S. millions) 1 . S T R U C T UActual Hold Adjusted R E T O D A Y ( 7 3 % O WN ERSHIP OF OP) 3. MGM RESORTS LONG-TERM STRATEGY Actual Hold Adjusted $738 $699 $184 $170 3Q20 3Q20 3Q19 3Q19 $47 $54 ($96) ($93) 3Q19
Slide 36: Supplemental
• MGM CHINA PROPERTY DATA SUPPLEMENTAL • CONVENE WITH CONFIDENCE 36
Slide 37: MGM China Property Data
MGM CHINA PROPERTY DATA MGM RESORTS INTERNATIONAL 37
Slide 38: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019
Slide 39: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019
Slide 40: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Nine Months Ended September 30 September 30 2020 2019 2020 2019
Slide 41: Convene with Confidence
CONVENE WITH CONFIDENCE MGM RESORTS INTERNATIONAL 41
Slide 42: Convene with Confidence: Meetings
CONVENE WITH CONFIDENCE: MEETINGS MGM RESORTS INTERNATIONAL 42
Slide 43: Convene with Confidence: Entertainment
CONVENE WITH CONFIDENCE: ENTERTAINMENT MGM RESORTS INTERNATIONAL 43
Slide 44: Protected Experiences with MGM Health Pass
PROTECTED EXPERIENCES WITH MGM HEALTH PASS Optional Multi-Layered Health Screening Capabilities GUEST JOURNEY HEALTH PROTECTED FAIL SCREEN EXPERIENCES ENROLL SECURITY/ HEALTH PASS HEALTH PASS PASS RAPID TEST HEALTH PASS TICKET CHECK CREATION CHECK HOTEL F&B PARTNERS CONVENTIONS SPORTS CONCERTS MGM R
Slide 45: Pilot Program at MGM Grand Detroit
PILOT PROGRAM AT MGM GRAND DETROIT PHOTO HERE NAME HERE MGM RESORTS INTERNATIONAL 45
MGM Resorts International — Q3 2020 Earnings Presentation on 6ix