Core Viewpoint - MGM Resorts is characterized as a value stock with improving market conditions in Macao and online gaming, despite not being a high-growth company [1] Group 1 - The company has initiated significant stock buybacks, which are appealing to investors [1] - The current market environment is favorable for MGM Resorts, particularly in the context of Macao and online gaming sectors [1]

Market Overview - Major U.S. equities indexes moved higher as President Trump signed an executive order to investigate reciprocal tariffs without immediate implementation [2] - The S&P 500 closed 1.0% higher, with the Dow industrials up 0.8% and the Nasdaq gaining 1.5% driven by strength in the tech sector [3] Company Performances - MGM Resorts (MGM) shares surged 17.5% after exceeding sales and profit estimates for Q4 2024, driven by strong performance in Macau and the MGM Digital segment [4] - Molson Coors (TAP) shares rose 9.5% following a quarterly report that, despite a year-over-year revenue decline, outperformed sales and profit forecasts due to market-share retention and favorable pricing [5] - GE Healthcare Technologies (GEHC) saw an 8.8% increase in shares after reporting better-than-expected profits for Q4, benefiting from strong U.S. demand and advanced visualization solutions [6] Negative Performances - West Pharmaceutical Services (WST) shares plummeted 38.2% despite topping Q4 profit estimates, as 2025 guidance fell below consensus due to U.S. dollar strength and significant capital expenditures [7] - Zebra Technologies (ZBRA) shares fell 8.4% despite exceeding Q4 sales and profit estimates, as full-year revenue guidance was below forecasts due to a strong dollar and trade uncertainties [8] - Iron Mountain (IRM) shares declined 7.3% after missing Q4 revenue estimates, despite strong performance in its data center business, with elevated interest expenses impacting results [9]

Core Insights - MGM Resorts International reported fourth-quarter 2024 results with earnings and revenues exceeding Zacks Consensus Estimates, although both metrics declined compared to the prior-year quarter [1][4]. Financial Performance - The company achieved record full-year net revenues of $17.24 billion, up from $16.2 billion in 2023, while operating income decreased to $1.49 billion from $1.89 billion [10]. - Fourth-quarter earnings per share (EPS) were 45 cents, surpassing the Zacks Consensus Estimate of 32 cents, but down from an adjusted EPS of $1.06 in the prior-year quarter [4]. - Total revenues for the fourth quarter were $4.35 billion, beating the Zacks Consensus Estimate of $4.28 billion by 1.5%, but reflecting a year-over-year decline of 0.7% [4]. Segment Performance - MGM China reported a 3.7% year-over-year increase in net revenues to $1.02 billion, with casino revenues rising 4% to $885 million [5]. - Domestic operations on the Las Vegas Strip saw net revenues of $2.22 billion, down 6.2% year over year, attributed to lower casino and room revenues following the previous year's Formula 1 event [6]. - Regional operations generated net revenues of $931.6 million, an increase from $873.4 million in the prior year, primarily due to higher casino revenues [7]. Balance Sheet and Share Repurchase - As of the end of the fourth quarter, MGM Resorts had cash and cash equivalents of $2.42 billion, down from $2.93 billion at the end of 2023, while long-term debt increased to $6.36 billion from $6.34 billion [8]. - During the fourth quarter, the company repurchased nearly 3 million shares for a total of $121 million, with approximately $826 million remaining under its share repurchase program [8]. Future Outlook - Management remains optimistic about growth in 2025, supported by strong business demand, record convention bookings, and revenue gains across key segments, with expectations for BetMGM in North America to become profitable in 2025 [2].

Financial Data and Key Metrics Changes - The company reported record consolidated net revenues and all-time high annual domestic slot win, hotel revenue, and food & beverage revenue [8][10] - In Las Vegas, revenues decreased by 6% and adjusted EBITDAR fell by 11% in Q4 2024 compared to the previous year [32] - The company generated approximately $2.4 billion of consolidated adjusted EBITDA in 2024, including $461 million of non-cash rent expense [38] Business Line Data and Key Metrics Changes - Regional properties saw a revenue increase of 7% and adjusted EBITDAR growth of 21% in Q4 2024, with MGM Grand Detroit contributing significantly [33] - MGM Digital segment net revenues grew by 15% in Q4 2024, while losses in the UK are narrowing due to decreased marketing spend [36] Market Data and Key Metrics Changes - In Macau, MGM China achieved a 4% year-over-year growth in quarterly net revenues, with total dividends from MGM China to MGM Resorts approximating $200 million for the year [34] - The company maintained a mid-teens market share in Macau, with strong performance during Chinese New Year [116] Company Strategy and Development Direction - The company is focused on enhancing customer experience through capital investments, including renovations at Bellagio and the transition of Cosmopolitan to MGM rewards [13][16] - MGM is investing in its digital platform, with expectations for BetMGM to achieve $500 million annual EBITDA in the future [22][20] - The company is expanding its digital operations in Europe and Brazil, targeting a $1 billion revenue goal for its owned and operated digital business [24][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Las Vegas operations, citing strong January performance and positive indicators for revenue growth [11][32] - The company anticipates overcoming challenges posed by the Super Bowl and ongoing renovations at MGM Grand, aiming for growth in EBITDA [128][141] Other Important Information - The company has repurchased over 40% of its float since early 2021, with significant buybacks in Q4 2024 and early 2025 [39][140] - The official groundbreaking for the Osaka development is scheduled for April 24, 2025, with construction set to commence shortly thereafter [26] Q&A Session Summary Question: Can you provide more details on MGM Digital's investment scale and near-term returns? - Management highlighted a $1 billion investment in the Leo business and related platforms, with expectations for MGM Digital to achieve over $1 billion in revenue with healthy margins [47][54] Question: Were there any meaningful business interruption proceeds in Q4? - Management confirmed no significant business interruption proceeds in Q4 but expects additional proceeds in 2025 [56] Question: What is the outlook for Las Vegas revenue in a flat demand environment? - Management indicated strong January performance and revenue initiatives in place, suggesting a positive outlook despite challenges [60][62] Question: How do you view the impact of renovations on ADR uplift? - Management noted that renovations at MGM Grand are expected to significantly enhance the property and contribute to ADR increases [91][93] Question: How concerned is the company about potential tax increases in various states? - Management expressed confidence in managing tax increases, citing ongoing communication with state officials and a competitive landscape [96][98]

MGM Resorts International INVESTOR PRESENTATION 02.12.2025 Privileged prepared at the request of counsel MGM RESORTS INTERNATIONAL WORLD-CLASS OPERATORS POISED TO CAPTURE UNPARALLELED GLOBAL TAM THROUGH ITS RESORTS AND DIGITAL PLATFORMS Great Brands Growing Global Presence 1. Calculated as digital + brick & mortar gross gaming revenue from active jurisdictions in which MGM currently operates Access to $150 Billion in Regulated TAM1 2 OUR MISSION: TO BE THE WORLD'S PREMIER GAMING & ENTERTAINMENT COMPANY Oper ...

Core Insights - MGM Resorts reported revenue of $4.35 billion for the quarter ended December 2024, a decrease of 0.7% year-over-year, with EPS at $0.45 compared to $1.06 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.28 billion by 1.50%, while the EPS surpassed the consensus estimate of $0.32 by 40.63% [1] Financial Performance Metrics - Las Vegas Strip Resorts' slots handle was $6,841 million, exceeding the two-analyst average estimate of $6,385.66 million [4] - Table games drop for Las Vegas Strip Resorts was $1,599 million, slightly below the average estimate of $1,620.98 million [4] - Total revenues for Las Vegas Strip Resorts were $2.22 billion, matching the average estimate based on five analysts, but representing a year-over-year decline of 6.2% [4] - MGM China generated revenues of $1.02 billion, surpassing the estimated $969.45 million, reflecting a year-over-year increase of 3.7% [4] - Total regional operations revenues were $931.56 million, exceeding the average estimate of $915.49 million, with a year-over-year growth of 6.7% [4] - Adjusted Property EBITDA for Total Las Vegas Strip Resorts was $765.43 million, above the average estimate of $754.40 million [4] - Adjusted Property EBITDA for Total Regional Operations was $281.09 million, exceeding the estimated $269.79 million [4] - Adjusted Property EBITDA for MGM China was $254.72 million, surpassing the average estimate of $248.07 million [4] - Adjusted Property EBITDA for unconsolidated resorts/affiliates was -$39.33 million, better than the estimated -$42.92 million [4] - Adjusted Property EBITDA for management and other operations was $0.97 million, significantly better than the estimated -$8.61 million [4] - Adjusted Property EBITDA for corporate was -$119.14 million, worse than the average estimate of -$109.45 million [4] Stock Performance - MGM shares returned +3.5% over the past month, compared to the Zacks S&P 500 composite's +4.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - MGM Resorts reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.32 per share, but down from $1.06 per share a year ago, indicating a 40.63% earnings surprise [1] - The company generated revenues of $4.35 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.50%, although this represents a slight decline from $4.38 billion in the same quarter last year [2] Earnings Performance - Over the last four quarters, MGM has surpassed consensus EPS estimates three times, indicating a positive trend in earnings performance [2] - The company had an earnings surprise of -6.90% in the previous quarter, where it reported earnings of $0.54 against an expectation of $0.58 [1][3] Future Outlook - The sustainability of MGM's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $4.29 billion, and for the current fiscal year, it is $2.04 on revenues of $17.12 billion [7] Industry Context - The Gaming industry, to which MGM belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact MGM's stock performance [5][6]

The gambling and resort giant delivered a strong quarterly earnings beat driven by growth in its online and regional segments, despite headwinds in Las Vegas.MGM Resorts International (MGM 0.29%), a leading global hospitality and entertainment company, released its fourth-quarter results on Feb. 12. Significantly, its adjusted EPS came in at $0.45, surpassing expectations of $0.32, as revenues of $4.35 billion exceeded the expected $4.27 billion. However, net income decreased to $157 million from $313 milli ...

Core Insights - MGM China Holdings Limited reported record-high revenue and EBITDA for the year 2024, with net revenue growing by 27% to HK$31.4 billion, representing 138% of 2019 levels [7] - The company achieved an adjusted EBITDA of HK$9.1 billion, up by 25% year-on-year, which is 147% of 2019 figures [7] - MGM China's market share reached an all-time high of 15.8% in 2024, an increase from 15.2% in 2023 and significantly higher than 9.5% in 2019 [7] Financial Performance - Daily gross gaming revenue (GGR) increased by 29% year-on-year, reaching 129% of pre-COVID levels [7] - Mass GGR, including slot revenue, rose by 33%, achieving 179% of pre-COVID levels [7] - Adjusted EBITDA margin improved to 28.9%, which is 170 basis points higher than in 2019 [7] Visitor Trends - Macau welcomed 34.9 million visitors in 2024, a 24% increase from the previous year, with daily visitation recovering to 88% of 2019 levels [2] - MGM China's property visitation grew by 54% year-on-year, reaching 163% of 2019 levels [7] - Hotel occupancy rates improved to 94% in 2024, up from 92.5% in 2023 [7] Cultural and Non-Gaming Initiatives - MGM China hosted various cultural events and festivals in 2024, including concerts and exhibitions, enhancing its non-gaming revenue streams [4][6] - The Poly MGM Museum opened in November 2024, attracting nearly 500,000 visitors and showcasing 228 artifacts related to the Maritime Silk Road [5][7] - The company is committed to promoting cultural tourism and economic diversification in Macau [7][9] Community Engagement - MGM China has initiated community engagement efforts in the Barra district, introducing art exhibitions and workshops to revitalize local areas [8]

Financial Performance - MGM Resorts reported record full-year consolidated net revenues of $17.2 billion, an increase of 7% from the prior year[5]. - Consolidated net revenues for Q4 2024 were $4.3 billion, a decrease of 1% compared to the prior year quarter[6]. - Net income attributable to MGM Resorts for the full year was $747 million, down from $1.1 billion in the prior year[15]. - Adjusted EPS for the full year was $2.59, compared to $2.67 in the prior year[18]. - Total revenues for the twelve months ended December 31, 2024, reached $17,240,545, an increase of 6.7% from $16,164,249 in 2023[52]. - Net income attributable to MGM Resorts International for the twelve months ended December 31, 2024, was $746,558 thousand, down from $1,142,180 thousand in 2023, indicating a decrease of 34.66%[63]. - Adjusted EPS for the twelve months ended December 31, 2024, was $2.40, compared to $3.19 in 2023, indicating a decline of 24.6%[52]. - The company reported a total operating income of $291,565 for the three months ended December 31, 2024, down 30.5% from $419,344 in the same period of 2023[52]. Revenue Sources - MGM China achieved record full-year Segment Adjusted EBITDAR of $1.1 billion, up 25% from the previous year[5]. - Casino revenue for Las Vegas Strip Resorts decreased by 15% to $501 million in Q4 2024[21]. - MGM Resorts experienced a 6% increase in casino revenue in Regional Operations, totaling $676 million in Q4 2024[26]. - Casino revenue for the three months ended December 31, 2024, was $2,210,746, slightly up from $2,203,523 in 2023, showing a marginal increase of 0.1%[52]. - Las Vegas Strip Resorts generated net revenues of $8,816,113 thousand for the twelve months ended December 31, 2024, slightly up from $8,799,146 thousand in 2023, an increase of 0.19%[57]. - MGM China reported net revenues of $4,022,384 thousand for the twelve months ended December 31, 2024, up from $3,153,609 thousand in 2023, a growth of 27.53%[57]. Shareholder Actions - The company repurchased 33 million shares in 2024, reducing shares outstanding by over 40% since 2021[5]. - The weighted average diluted shares outstanding decreased to 299,447 for the three months ended December 31, 2024, from 340,151 in the same period of 2023[52]. Digital and Market Expansion - The company noted a significant $41 billion market opportunity for its global MGM Digital business[2]. - MGM Resorts is pursuing targeted expansion in Asia, specifically through an integrated resort development in Japan[46]. - The company is focused on enhancing its digital presence, including the launch of MGM Digital in Brazil, to strengthen its market position[48]. - MGM Resorts aims to position BetMGM as a leader in sports betting and iGaming, reflecting its strategic growth initiatives in the gaming sector[48]. - BetMGM is expected to be profitable in 2025, with accelerated revenue growth throughout 2024[5]. Financial Position - Cash and cash equivalents decreased to $2,415,532 thousand as of December 31, 2024, from $2,927,833 thousand a year earlier, a decline of 17.43%[55]. - Total current assets decreased to $4,363,599 thousand as of December 31, 2024, from $4,910,593 thousand in 2023, a reduction of 11.14%[55]. - Total liabilities increased to $38,511,671 thousand as of December 31, 2024, compared to $38,001,047 thousand in the previous year, an increase of 1.34%[55]. - The operating lease liabilities remained stable at $25,076,139 thousand as of December 31, 2024, compared to $25,127,464 thousand in the previous year[55]. - The company reported a decrease in retained earnings to $3,081,753 thousand as of December 31, 2024, down from $3,664,008 thousand in 2023, a decline of 15.93%[55]. EBITDA Metrics - Consolidated Adjusted EBITDA for the three months ended December 31, 2024, was $330,899, compared to $413,066 for the same period in 2023, reflecting a decrease of 20%[52]. - Consolidated Adjusted EBITDA for the twelve months ended December 31, 2024, reached $2,410,841 thousand, compared to $2,335,527 thousand for the same period in 2023, reflecting an increase of 3.22%[63].