MGM Resorts International (MGM) Deutsche Bank 32nd Annual Leveraged Finance summary

Market and segment performance

• Las Vegas visitation has remained stable despite a challenging July with gaming revenues down 15% due to calendar and hold issues.

• Occupancy in Las Vegas remains strong, with the ability to shift demand across segments as needed.

• Growth in Las Vegas has been driven by the luxury segment, but recent months show little differentiation between luxury and economy property growth.

Digital and BetMGM strategy

• 2024 is focused on investment in BetMGM, particularly in technology and customer acquisition, following market share declines despite late 2023 profitability.

• Launched Single Account, Single Wallet, allowing cross-jurisdictional use and leveraging Nevada's customer base.

• Integrated Angstrom technology for advanced parlay pricing, aiming to stabilize or grow market share in 2024 and return to profitability in 2025-2026.

International expansion and development

• Macau properties deliver market share in the mid-teens and margins in the high twenties, with no significant increase in promotional activity.

• Over $200 million in Macau CapEx for 2024, mainly for non-gaming investments tied to license retendering, continuing into 2025.

• Japan resort construction starts summer 2025, with $2 billion equity invested over 4.5 years and a JPY 530 billion credit facility; project completion expected by 2030.

• Japan project seen as a generational opportunity due to market size and strategic location.