• Consolidated Net Revenues: Record high for the year.
• Domestic Slot Win: All-time high record for annual performance.
• Hotel Revenue: Achieved record levels.
• Food & Beverage Revenue: Reached an all-time high.
• Las Vegas Revenues: Down 6% in Q4 year-over-year.
• Las Vegas Adjusted EBITDAR: Down 11% in Q4 year-over-year.
• Regional Properties Revenue: Increased by 7% in Q4.
• Regional Properties Adjusted EBITDAR: Increased by 21% in Q4.
• Macau Net Revenues: Grew 4% year-over-year in Q4.
• BetMGM Net Revenue from Operations: Over $2 billion for the year.
• BetMGM 2025 Revenue Forecast: Expected to grow to $2.4 billion to $2.5 billion.
• iGaming Revenue: Approximately $1.5 billion with over $400 million in contribution.
• MGM Digital Net Revenues: Grew 15% in Q4.
• Consolidated Adjusted EBITDA: Approximately $2.4 billion for 2024.
• Capital Expenditures: Approximately $1.15 billion for the year.
• Share Buybacks: 3.4 million shares in Q4 and 8.4 million shares in 2025 thus far.

• Warning! GuruFocus has detected 4 Warning Sign with MGM.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• MGM Resorts International (NYSE:MGM) reported record results for consolidated net revenues, domestic slot win, hotel revenue, and food and beverage revenue for 2024.
• The company achieved an all-time high Net Promoter Score for Gold Plus customers, reflecting strong guest satisfaction.
• MGM's strategic investments in Las Vegas, including renovations at Bellagio and the integration of Cosmopolitan into MGM Rewards, are driving increased guest visitation and spending.
• BetMGM saw significant growth, with net revenues from operations exceeding $2 billion and expectations for continued momentum in 2025.
• MGM China achieved its best-ever full-year segment adjusted EBITDAR, with strong market share growth and successful non-gaming initiatives in Macau.

Negative Points

• Las Vegas revenues were down 6% and adjusted EBITDAR down 11% in the fourth quarter, partly due to the impact of F1 and hold variances.
• The company faces a $65 million year-over-year headwind in the first quarter of 2025 due to the absence of the Super Bowl event.
• MGM Grand renovations are expected to impact earnings throughout the year, adding to the challenges of overcoming the Super Bowl comparison.
• MGM Digital's EBITDAR losses are expected to remain consistent in 2025 due to increased spending related to the launch in Brazil.
• There is ongoing concern about potential increases in sports betting and gaming taxes in various states, which could impact profitability.

Q & A Highlights

Q: Can you provide more details on the scale of MGM's digital investment and the outlook for near-term returns? A: Gary Fritz, President of MGM Interactive, explained that MGM Digital has been building a distribution network and product platform, investing about $1 billion in the Leo business and acquiring Tipico's US betting technology. The integration of these assets is expected to be completed by mid-2025, with the first market launch imminent. The core business, including Leo and Push, is a $0.5 billion revenue business with high double-digit margins. Strategic investments in Europe and Brazil are expected to narrow operating losses in 2025, setting up for operational inflection in 2026.

Q: Were there any business interruption (BI) proceeds in the fourth quarter? A: Jonathan Halkyard, CFO, stated that there were no meaningful BI proceeds in the fourth quarter. However, they resolved civil litigation during this period and expect to receive additional BI proceeds in 2025.

Q: How do you view the impact of the Super Bowl on first-quarter results, and can you offset it throughout the year? A: Jonathan Halkyard noted that the Super Bowl had a significant impact, estimated at $65 million year-over-year. MGM aims to overcome this through organic growth and strategic programs. However, renovations at MGM Grand will also impact results, similar to the Super Bowl's effect.

Q: Can you discuss the January performance in terms of non-gaming versus gaming, and any changes in room rates? A: Jonathan Halkyard highlighted that January set records for occupancy, ADR, slot handle, and restaurant revenue. The demand was strong, with mid-single-digit growth in ADRs expected for the year, except for February due to the Super Bowl comparison.

Q: How is MGM Digital aligned with BetMGM in the US, and is there any content or information sharing? A: William Hornbuckle and Gary Fritz explained that while MGM Digital and BetMGM operate independently due to the joint venture structure, there is collaboration in content creation, such as MGM branded games. However, the businesses are distinctly operated.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.