Mgm Resorts International · NYSE:MGM
Mgm Resorts International — Q4 2020 Earnings Presentation
32 slides from Mgm Resorts International's earnings presentation, Feb 10, 2021
Slide 1: Fourth Quarter & Full Year 2020 Earnings
MGM RESORTS INTERNATIONAL FOURTH QUARTER & FULL YEAR 2020 EARNINGS FEBRUARY 10, 2021 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: 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 CUSTOMER-CENTRIC a strong brand and deep customer insights to provide unmatched en
Slide 4: Table of Contents
• 4Q 2020 HIGHLIGHTS • BETMGM TABLE OF CONTENTS • 4Q 2020 FINANCIAL RESULTS • SUPPLEMENTAL 4
Slide 5: Key 4Q 2020 Takeaways
KEY 4Q 2020 TAKEAWAYS Confident in the long-term recovery of all of our markets • Sequential 4Q 2020 Adjusted Property EBITDAR improvements across both the U.S. and Macau • Regional markets exhibiting stability in demand despite state-mandated restrictions • Optimistic about recovery in Las Vegas an
Slide 6: 4Q 2020 Financial Highlights
4Q 2020 FINANCIAL HIGHLIGHTS ($ in U.S. millions, except per share information) 4Q20 4Q19 $ Change % Change Consolidated Net Revenue $1,494 $3,185 ($1,692) (53%) Las Vegas Strip Resorts $480 $1,429 ($949) (66%) Regional Operations $595 $900 ($304) (34%) MGM China $305 $727 ($423) (58%) Net Income (L
Slide 7: Sequential Improvement in 4Q 2020
SEQUENTIAL IMPROVEMENT IN 4Q 2020 ($ in U.S. millions) Actual Hold Adjusted 4Q20 vs. 3Q20 Change 4Q20 vs. 3Q20 Change Adjusted Property EBITDAR 4Q20 3Q20 4Q20 3Q20 $ % $ % Las Vegas Strip Resorts $54 $15 +$39 256% $57 $21 +$36 166% Regional Operations $159 $146 +$13 9% MGM China $41 ($96) +$137 NM $
Slide 8: Our Liquidity Position Remains Strong
OUR LIQUIDITY POSITION REMAINS STRONG CONSOLIDATED LIQUIDITY OVERVIEW MGM Resorts MGM Resorts ($ in U.S. millions) (Ex. MGM China and MGP) MGM China MGP Consolidated Cash and Equivalents $4,131 $345 $626 $5,102 Revolver Availability $1,472 $880 $1,340 $3,692 Total Liquidity $5,603 $1,225 $1,966 $8,7
Slide 9: 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 10: Table of Contents
• 4Q 2020 HIGHLIGHTS • BETMGM TABLE OF CONTENTS • 4Q 2020 FINANCIAL RESULTS • SUPPLEMENTAL 10
Slide 11: U.S. Sports Betting and iGaming Market
U.S. SPORTS BETTING AND iGAMING MARKET SIGNIFICANT GROWTH OPPORTUNITY IN AN ACCELERATING MARKET DRIVEN BY STATE BUDGET DEFICITS $20.3 BILLION 17% BY 2025 AND GROWING U.S. Sports Betting $13.5 billion BETMGM’S U.S. iGaming $6.8 billion CURRENT MARKET SHARE1 MGM RESORTS INTERNATIONAL Note: Estimated m
Slide 12: BetMGM Has Established Itself as a Top #3 Leader
BETMGM HAS ESTABLISHED ITSELF AS A TOP #3 LEADER 1 Full Year 2020 Market Share Position1 NJ #1 IGAMING WV #2 MARKET SHARE1 PA Dec 2020 Launch #1 in U.S. iGaming GGR in 4Q 2020* TN #1** Continued growth in online sports betting with newer CO #2* markets showing significant progress NJ #3 ONLINE SPORT
Slide 13: Strong Market Share Gains in 2020
STRONG MARKET SHARE GAINS IN 2020 BETMGM’S MARKET SHARE HAS GROWN THROUGHOUT 2020 DRIVEN BY ONLINE SEGMENTS1 Online Sports Betting* iGaming* All (Online & Retail Sports Betting and iGaming)* 25% 17% 4Q 2020 Market Share2 20% 25% NJ iGaming Market Share2 15% 34% TN Online Sports Betting Market Share2
Slide 14: Strategic Market Access Enables Day 1 Launch
STRATEGIC MARKET ACCESS ENABLES DAY 1 LAUNCH TO DATE, BETMGM HAS SECURED MARKET ACCESS IN 23 MARKETS1 AND IS LIVE IN 12 STATES, WITH THE EXPECTATION OF BEING LIVE IN APPROXIMATELY 20 MARKETS BY YEAR END 2021 WITH ACCESS TO ~40% OF THE U.S. ADULT POPULATION ME WA VT NH MA Live States Retail Sports
Slide 15: Leading Retail Integration & Omni-Channel Offering
LEADING RETAIL INTEGRATION & OMNI-CHANNEL OFFERING DRIVING HIGHER VALUE CUSTOMERS THROUGH AN ROBUST OMNI-CHANNEL STRATEGY LOW COST PREMIUM OMNI-CHANNEL DRIVES PLAYER ACQUISITION PLAYER VALUE CUSTOMER VALUE Omni-channel customers are significantly ~35 million Member base1 more valuable compared to re
Slide 16: Early Momentum in Recent Launches
EARLY MOMENTUM IN RECENT LAUNCHES MICHIGAN TENNESSEE iGAMING AND ONLINE SPORTS ONLINE SPORTS DAY 1 138K $13M DAY 1 34% OF MARKET OF MARKET Launched on Newly registered Total GGR through Launched on 4Q 2020 GGR January 22, 2021 customers through January 31, 2021 November 1, 2020 market share2 January
Slide 17: Continued Acceleration in Our Most Mature Market: New Jersey
CONTINUED ACCELERATION IN OUR MOST MATURE MARKET NEW JERSEY iGAMING NJ iGAMING & POKER GGR #1 43% 205% 35% iGaming operator 4Q 2020 average 4Q 2020 GGR 4Q 2020 FTDs in NJ in 2020 monthly actives YoY growth YoY growth Up from #2 in YoY growth Jan 20201 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 ONLINE S
Slide 18: BetMGM Financial Highlights
BETMGM FINANCIAL HIGHLIGHTS • 2020 net revenues associated with BetMGM operations were $178 million1 – Ahead of target of $150-160 million (which was increased in October 2020 from $130 million) • MGM Resorts’ 50% share of BetMGM’s operating loss2 was $62 million in 2020 ($37 million loss2 in 4Q 202
Slide 19: Table of Contents
• 4Q 2020 HIGHLIGHTS • BETMGM TABLE OF CONTENTS • 4Q 2020 FINANCIAL RESULTS • SUPPLEMENTAL 19
Slide 20: 4Q 2020 – Las Vegas Strip
4Q 2020 – LAS VEGAS STRIP Net Revenues Adjusted Property EBITDAR ($ in U.S. millions) ($ in U.S. millions) Actual Hold Adjusted Actual Hold Adjusted $1,429 $1,444 $392 $380 $480 $483 $54 $57 4Q19 4Q20 4Q19 4Q20 4Q19 4Q20 4Q19 4Q20 • Casino revenue decreased 38% compared to the prior year quarter • R
Slide 21: 4Q 2020 – Regional Operations
4Q 2020 – REGIONAL OPERATIONS ($ in U.S. millions) Net Revenue Adjusted Property EBITDAR Margin % $900 26.6% $595 25.4% $228 $159 4Q19 4Q20 4Q19 4Q20 4Q19 4Q20 • Casino revenue decreased 24% compared to the prior year quarter • Adjusted Property EBITDAR margin of 26.6% in 4Q 2020, a 129-basis point
Slide 22: 4Q 2020 – CityCenter
4Q 2020 – CITYCENTER ($ 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 $302 $128 $87 $29 4Q19 4Q20 4Q19 4Q20 • Hotel Stats • Key Balance Sheet Items (as of 12/31/20) – Occupancy of 33.5% compared to 90.3%
Slide 23: 4Q 2020 – MGM China
4Q 2020 – MGM CHINA Net Revenues Adjusted Property EBITDAR ($ 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 $727 $703 Actual Hold Adjusted $185 $177 $305 $303 $41 $43 4Q19 4Q20 4Q19 4Q20 4Q19 4Q
Slide 24: MGM China's Market Outperformance
MGM CHINA’S MARKET OUTPERFORMANCE GGR MARKET SHARE IN 4Q 2020 WAS 12.6%, WELL ABOVE THAT OF THE PAST SEVEN QUARTERS MGM China GGR Market Share 12.6% 9.9% 9.4% 9.5% 9.2% 8.7% 7.4% 7.4% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 MGM RESORTS INTERNATIONAL Source: DICJ Macau GGR 24
Slide 25: Triple Net Lease REITs & Ground Leases
TRIPLE NET LEASE REITS & GROUND LEASES • The Company has rental obligations to the following entities: MGM Growth Properties, the Bellagio BREIT venture and the MGP BREIT venture (Mandalay Bay and MGM Grand Las Vegas) • Given the Company’s controlling interest in MGP (53% economic ownership), MGP is
Slide 26: Supplemental
• FULL YEAR 2020 RESULTS SUPPLEMENTAL • MGM CHINA PROPERTY DATA 26
Slide 27: Full Year 2020 Financial Results
FULL YEAR 2020 FINANCIAL RESULTS MGM RESORTS INTERNATIONAL 27
Slide 28: FY 2020 Financial Highlights
FY 2020 FINANCIAL HIGHLIGHTS ($ in U.S. millions, except per share information) FY20 FY19 $ Change % Change Consolidated Net Revenue $5,162 $12,900 ($7,738) (60%) Las Vegas Strip Resorts $2,246 $5,831 ($3,585) (61%) Regional Operations $1,967 $3,550 ($1,583) (45%) MGM China $657 $2,905 ($2,249) (77%
Slide 29: MGM China Property Data
MGM CHINA PROPERTY DATA MGM RESORTS INTERNATIONAL 29
Slide 30: 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 Twelve Months Ended December 31 December 31 2020 2019 2020 2019
Slide 31: 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 Twelve Months Ended December 31 December 31 2020 2019 2020 2019
Slide 32: 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 Twelve Months Ended December 31 December 31 2020 2019 2020 2019
MGM Resorts International — Q4 2020 Earnings Presentation on 6ix