Mgm Resorts International · NYSE:MGM
Mgm Resorts International — Q2 2023 Earnings Presentation
27 slides from Mgm Resorts International's earnings presentation, Aug 2, 2023
Slide 1: Second Quarter 2023 Earnings
SECOND QUARTER 2023 EARNINGS August 2, 2023 MG M R E S O R T S I NT E R NAT I O N AL 1
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: Our Strategic Pillars
OUR STRATEGIC PILLARS Recruit, develop and retain the best talent STRONG PEOPLE Foster a culture of diversity and inclusion AND CULTURE Invest in the employee experience Leverage a customer-centric model reinforced by a CUSTOMER-CENTRIC strong brand and deep customer insights to provide MODEL unmatc
Slide 4: MGM Resorts Is an International Brand
MGM RESORTS IS AN INTERNATIONAL BRAND Operator of 18 properties in the United States and Macau Seeking a license for an integrated resort in Japan MALTA Sports betting and iGaming brand in 26 North American jurisdictions Online sports betting and iGaming operator in 9 jurisdictions in Europe and Can
Slide 5: Second Quarter 2023 Takeaways
SECOND QUARTER 2023 TAKEAWAYS All-Time Record Consolidated Net Revenues Long-term Agreement with Marriott will Further Strengthen our Customer Base ✓ Offers Marriott’s 180 million members the opportunity to earn and redeem Bonvoy points at MGM Resorts properties ✓ Replacing lower yielding room night
Slide 6: 2Q 2023 Financial Results
1 2Q 2023 FINANCIAL RESULTS The MGM Bellagio Grand Bellagio SpaRoom Studio TowerRemodel Tower Suite Remodel Remodel MGM RESORTS INTERNATIONAL Borgata Water Club Tower Remodel (Renamed MGM Tower) 6
Slide 7: 2Q 2023 – Las Vegas Operations
2Q 2023 – LAS VEGAS OPERATIONS Net Revenues Adjusted Property EBITDAR Margin % ($ in U.S. millions) ($ in U.S. millions) $2,147 $825 $2,137 38.6% $777 36.2% +0% vs -6% vs -244 bps 2Q22 2Q22 vs. 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 Casino and hotel metrics 2Q 2023 vs. 2Q 2022 (as reported): Same-store
Slide 8: 2Q 2023 – Regional Operations
2Q 2023 – REGIONAL OPERATIONS Net Revenues Adjusted Property EBITDAR Margin % ($ in U.S. millions) ($ in U.S. millions) $960 $926 $340 35.4% $294 31.7% -3% vs -14% vs -369 bps 2Q22 2Q22 vs. 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 Gaming and non-gaming metrics 2Q23 vs. 2Q22 (as reported): Same-store 2Q23
Slide 9: 2Q 2023 – MGM China
2Q 2023 – MGM CHINA Net Revenues Adjusted Property EBITDAR Margin % ($ in U.S. millions) ($ in U.S. millions) $741 $209 28.3% $173 $706 +5% vs +21% vs +379 bps 24.5% 2Q19 2Q19 vs. 2Q19 2Q23 2Q19 2Q23 2Q19 2Q23 2Q19 • Casino revenues exceeded 2Q19 by 6% Macau Market Recovery Stats: – GGR was 101% of
Slide 10: MGM China's Market Outperformance
MGM CHINA’S MARKET OUTPERFORMANCE 2Q 2023: GGR MARKET SHARE HOLDS STRONG MGM China GGR Market Share 15.4% 14.6% 14.3% 14.3% 13.3% 13.2% 12.5% Monthly Breakdown: 9.9% April: 14.6% 9.4% 9.5% 9.2% May: 14.3% June: 14.8% 1Q19 2Q19 3Q19 4Q19 2021 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 MGM RESORTS INTERNATIONAL So
Slide 11: Rapid Recovery of MGM China
RAPID RECOVERY OF MGM CHINA MGM CHINA IS OUTPEFORMING THE MARKET RECOVERY AND POISED FOR FUTURE GROWTH MGM CHINA ENJOYS KEY ADVANTAGES VS. ITS COMPETITORS GGR AS A % OF 2019 101% ✓ Addition of 198 table games as a result of the concession award - Only concessionaire allocated additional tables with
Slide 12: Key Financial Forecasts
KEY FINANCIAL FORECASTS •• $350 $380 – $400 360 million millionexcluding excludingstock-based stock-basedcomp,comp,including amounts including related amounts to MGM related China to MGM of $44 China of 2023 2023 Corporate Expense Expense million andand $44 million global development global of $37of
Slide 13: Strong Liquidity Provides Financial Flexibility
STRONG LIQUIDITY PROVIDES FINANCIAL FLEXIBILITY CONSOLIDATED LIQUIDITY OVERVIEW AS OF 06/30/23 MGM MGM MGM Resorts ($ in U.S. millions) Resorts1 China3 Consolidated Cash, cash equivalents & marketable debt securities2 $3,903 $448 $4,351 Revolver availability $1,646 $934 $2,580 Total liquidity $5,549
Slide 14: Triple Net Lease Cash Rent
TRIPLE NET LEASE CASH RENT CASH RENT ESTIMATE1 ($ in U.S. millions) 1Q23 2Q23 3Q23 4Q23 2023 VICI $189 $185 $186 $186 $746 Mandalay Bay / MGM Grand Las Vegas 76 77 77 77 $307 Bellagio 65 65 65 65 $260 Aria / Vdara 55 55 55 56 $221 The Cosmopolitan 50 50 51 51 $202 Total Cash Rent $435 $432 $434 $435
Slide 15: Portfolio Optimization
PORTFOLIO OPTIMIZATION Reduced Avg Age of the Portfolio by 2 Years TCOLV Q2 2023 TTM Net Income = $176 million The Mirage 2022 Net Income = $25 million Gold Strike Tunica 2022 Net Income = $47 million ($ in U.S. millions) TCOLV Opco Purchase $1,625 Less: The Mirage Opco Net Proceeds1 (815) Less: Gol
Slide 16: Implied MGM Trading Multiples
IMPLIED MGM TRADING MULTIPLES Enterprise Value / Q2 2023 TTM Adjusted EBITDA (In millions except share price and multiple) Implied MGM Resorts1 Valuation Share Price (rounded) as of 8/01/23 $50 Shares 351 Consolidated Market Value of Equity $17,555 Less: 56% of MGM China Market Value of Equity2 $2,8
Slide 17: MGM and Marriott Brand Collection
MGM AND MARRIOTT BRAND COLLECTION MGM RESORTS INTERNATIONAL 17
Slide 18: BetMGM Update
2 BetMGM UPDATE The Cosmopolitan of Las Vegas Sportsbook & Lounge MGM RESORTS INTERNATIONAL 18
Slide 19: BetMGM 1H Update
BETMGM 1H Update $1.8-$2.0 $944 Contribution billion million Breakeven1 Forecasted 2023 First half 2023 net revenues associated with net revenues associated All annual cohort launches BetMGM operations with BetMGM operations prior to 2023 65% 300 bps 8% Increase in revenue/player Improvement in spor
Slide 20: BetMGM Remains the Leading Operator in U.S. iGaming
BETMGM REMAINS THE LEADING OPERATOR IN U.S. iGAMING… OVERALL ESTIMATED NATIONAL MARKET SHARE IN U.S. iGAMING1 35% 30% 25% COMPETITOR 1 COMPETITOR 2 20% 15% 10% COMPETITOR 3 5% May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 Note: Market share information provided
Slide 21: Top Position in Active Markets in U.S. Sports Betting & iGaming
… WITH A TOP 3 POSITION IN ACTIVE MARKETS IN U.S. SPORTS BETTING & iGAMING OVERALL ESTIMATED NATIONAL MARKET SHARE IN U.S. SPORTS BETTING & iGAMING IN ACTIVE BETMGM MARKETS12 40% COMPETITOR 1 35% 30% 25% COMPETITOR 2 20% 15% 10% 5% COMPETITOR 3 0% May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec
Slide 22: Growing Presence & Broad-Based Market Access
GROWING PRESENCE & BROAD-BASED MARKET ACCESS 26 ONTARIO ME WA Current active VT jurisdictions 1 MT ND NH MN NY MA OR CT RI ID WI MI SD PA NJ WY 32 NV NE IA IL IN OH MD DE WV D.C. VA UT CA CO KS MO KY Market access NC secured or anticipated2 TN SC OK AR AZ NM GA AL MS 48% TX LA FL Live Addressable Ma
Slide 23: Supplemental Information
3 SUPPLEMENTAL INFORMATION Club Privé at Bellagio MGM RESORTS INTERNATIONAL 23
Slide 24: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 HK$'000 HK
Slide 25: MGM China Financial Information Under IFRS – MGM Macau
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 Six Months Ended June 30 June 30 2023 2022 2023 2022 HK$'000 HK
Slide 26: MGM China Financial Information Under IFRS – MGM Cotai
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Six Months Ended June 30 June 30 2023 2022 2023 2022 HK$'000 HK
Slide 27: Official Certification of Area Development Plan in Osaka
OFFICAL CERTIFICATION OF AREA DEVELOPMENT PLAN IN OSAKA On April 14, 2023, MGM Resorts announced that Japan’s Ministry of Land, Infrastructure, Transport and Tourism has officially certified the Area Development Plan submitted last year. MGM and ORIX, together with Osaka Prefecture/City, submitted a
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