This could be the biggest resort in the world.MGM Resorts' (MGM -0.49%) new property in Japan won't open for another five years, but when it does this could be the most profitable resort in the world. In this video, Travis Hoium puts some metrics behind what investors should expect and why this is a cheap stock today.*Stock prices used were end-of-day prices of March 19, 2025. The video was published on March 20, 2025. ...

Core Insights - MGM Resorts International appointed Dame Donna Langley to its Board of Directors, expanding the board to 13 members [1] - Langley brings extensive experience in entertainment programming and marketing, overseeing brands like Peacock, Bravo, and NBC [2] - The company aims to leverage Langley's expertise in content strategy and marketing to enhance its gaming and entertainment offerings [3] Company Overview - MGM Resorts is a global leader in gaming, hospitality, and live entertainment, with a portfolio of 31 unique hotel and gaming destinations [4] - The company operates BetMGM, a joint venture offering sports betting and online gaming in North America, and is expanding into Asia with a resort development in Japan [4] - MGM Resorts is committed to sustainability and has been recognized as one of FORTUNE Magazine's World's Most Admired Companies [4]

LAS VEGAS, March 11, 2025 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") will participate in the J.P. Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum on Thursday, March 13, 2025. MGM Resorts management will speak at a session scheduled to begin at 4:50 p.m. ET. A live webcast of the session will be available under the Events & Presentation section of the MGM Investor Relations website at http://investors.mgmresorts.comAbout MGM Resorts Internati ...

Core Insights - BetMGM has launched its first online casino commercial titled "Vegas Lights," featuring brand ambassador Jamie Foxx, which premiered on March 4, 2025 [1][3] - The commercial highlights the connection between online gaming and in-person rewards at MGM Resorts, showcasing various Las Vegas destinations [3][4] - BetMGM aims to blend online and offline casino experiences, emphasizing responsible gaming through programs like GameSense [5] Company Overview - BetMGM is a leading sports betting and iGaming operator, formed through a partnership between MGM Resorts International and Entain Plc, and has exclusive access to MGM's U.S. gaming operations [8] - The company operates in five North American markets: Michigan, New Jersey, Pennsylvania, West Virginia, and Ontario [4] - BetMGM was founded in 2018 and is headquartered in New Jersey, utilizing state-of-the-art technology for its online gaming services [8]

Core Points - MGM Resorts International and BetMGM are expanding collaborations to support individuals affected by problem gambling, coinciding with Problem Gambling Awareness Month in March [1] - MGM Resorts is donating $180,000 to Kindbridge Research Institute for studies on sports betting's impact and responsible gaming strategies [2] - BetMGM is expanding its Kindbridge Behavioral Health referral program to provide nationwide access to mental health services for players [3][4] Collaboration Details - MGM Resorts and Kindbridge Research Institute are focusing on research to enhance responsible gaming strategies [2] - BetMGM's partnership with Kindbridge Behavioral Health aims to ensure players have access to mental health support [3][4] - MGM Resorts and BetMGM are collaborating with the British Columbia Lottery Corporation to promote responsible gaming messaging through their platforms [4] Community Engagement - MGM Resorts and BetMGM are engaging with UNLV Gaming Law students to emphasize the importance of responsible gaming in the industry [5][6] - MGM Resorts is contributing $60,000 to State Councils on Problem Gambling for advocacy and prevention initiatives [6] - BetMGM has renewed its partnership with EPIC Global Solutions for employee education on problem gambling [6]

Business Strategy and Growth - The company has divested real estate assets and focused on acquiring online gaming operations and integrated casino properties[13]. - The company is pursuing strategic growth through mergers, acquisitions, and development, with a focus on maximizing shareholder returns[39]. - An integrated resort development in Osaka, Japan, has begun preliminary construction in 2024, following an agreement signed in September 2023[44]. - The company is exploring opportunities for gaming expansion in the UAE and Thailand, leveraging its brand recognition[48]. - The company anticipates ongoing and future strategic initiatives, including the development of an integrated resort in Japan and a commercial gaming facility in New York[80]. Revenue Sources - Over half of the net revenue from Las Vegas Strip Resorts is derived from non-gaming operations, while the majority of Regional Operations revenue comes from gaming[20]. - MGM Digital's revenue is generated from online gaming products, including iGaming and sports betting, with a focus on expanding its international presence[24]. - The company is expanding its digital business, including investments in online sports betting and iGaming, positioning BetMGM as a leader in the market[80]. Technology and Innovation - Technology and advanced data analytics are being utilized to deliver personalized digital experiences and improve operational efficiency[49]. - The company is enhancing its digital portfolio by integrating physical resorts with digital casino and sports betting experiences[50]. - BetMGM North America Venture has launched a Single App Single Wallet feature in Nevada to enhance customer retention and satisfaction[45]. - MGM Resorts' MGM Rewards loyalty technology platform enhances guest experience through seamless point earning across gaming and non-gaming activities, leading to increased app adoption[51]. Sustainability and Social Responsibility - The company aims for a 50% reduction in Scope 1 & 2 GHG emissions intensity by 2030, using 2007 as a baseline, and a 50% reduction in absolute Scope 1 & 2 GHG emissions by 2030, using 2019 as a baseline[59]. - MGM Resorts has committed to purchasing 100% renewable electricity in the U.S. and 80% globally by 2030, as part of its sustainability goals[66]. - MGM Resorts' renewable energy strategy includes a power purchase agreement for 115 MW of solar capacity and 100 MW of battery storage for its Las Vegas properties[58]. - The company has established a goal to train 100% of U.S. management employees on social impact and sustainability policies and goals by 2025[68]. - MGM Resorts aims for a 30% reduction in absolute Scope 3 GHG emissions by 2030, using 2019 as a baseline[66]. - The MGM Resorts Foundation facilitates employee engagement in charitable causes, providing grants for both employee emergencies and community support[71]. - MGM Resorts has implemented a new Employee Assistance Program to enhance mental health benefits for employees and their families[69]. - The company has engaged external experts for a comprehensive assessment of social impact and sustainability topics, with findings published in early 2024[54]. Financial Position and Risks - The company has substantial indebtedness and significant financial commitments, which could adversely affect operations and financial results[82]. - The company suspended regular dividend payments to stockholders and may not resume them in the foreseeable future[82]. - The company is exposed to interest rate risk associated with variable rate long-term debt, which could impact future earnings and cash flow[309]. - As of December 31, 2024, variable rate borrowings represented approximately 7% of total borrowings[310]. - The total gross long-term debt amounts to $5.925 billion, with a fair value of $5.839 billion[310]. - A 1% adverse change in the exchange rate would result in a foreign currency transaction loss of $25 million[312]. - A 10% adverse change in the exchange rate related to intercompany debt would result in a foreign currency transaction loss of $220 million[313]. - A 10% adverse change in the exchange rate for forward contracts would result in a foreign currency transaction loss of approximately $127 million[314]. - A 10% adverse change in equity market prices would impact earnings by $39 million[315]. Regulatory and Compliance - The company is subject to various federal, state, and local environmental laws, but has not identified any issues that could materially affect operations[78]. - The company’s operations are subject to extensive regulation, and compliance costs could adversely affect its business[84]. - The company maintains a website for investor information, including access to SEC filings and financial reports[91]. Employment and Workforce - As of December 31, 2024, MGM Resorts employed approximately 45,000 full-time and 18,000 part-time employees domestically, with collective bargaining agreements covering about 38,000 employees[72].

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]