MGM Resorts International Q2 FY2025 earnings call

• MGM's portfolio diversity drove record consolidated net revenue. - BetMGM North America raised 2025 guidance, EBITDA turnaround near $400M vs last year. - Las Vegas had solid performance in luxury, Marriott relationship drove room nights. - MGM China had record adjusted EBITDAR and market share. - Domestic regional ops had best second quarter results. - MGM Digital showed growth, development projects in Japan, Dubai, New York. - Repurchased 8 million shares for $217M in April, Board approved $2B share repurchase authorization.

BetMGM North America: Second quarter EBITDA was $86 million, revenue from operations up 36%. iGaming grew 29%, sports betting top line up 56%, Nevada monthly actives up 30%. Las Vegas: Regional properties had best second quarter net revenues, MGM Grand had room remodel impact, Marriott relationship drove 31% room night increase in 2Q. MGM China: Record adjusted EBITDAR, market share 16.6%, all 28 villas at MGM Macau available. Domestic Regional Operations: Best second quarter net revenue and slot win, three properties had record net revenues. MGM Digital: Top line grew 14%, BetMGM brand extension driving results in existing markets.

• BetMGM North America raised 2025 guidance to at least $2.7B net revenue and at least $150M EBITDA. - BetMGM reporting to align with MGM's starting third quarter. - MGM China's strong performance continuing. - Expectations for MGM Digital's run rate top line and EBITDA margins.

• Volatility in Las Vegas due to room remodel and midweek weakness. - Impact of economic conditions on visitation and value-oriented customers. - International market uncertainties affecting performance. - Risks related to development projects' execution and market reception.

Q: What's the impact of MGM Grand disruption?

A: Jonathan said it's about $40M hit through first 6 months, expected to be fully felt by October.

Q: Update on digital and cross benefit?

A: Gary Fritz mentioned 30% growth in Nevada monthly actives, leveraging Vegas funnel and MGM Live Studio.

Q: Macau market and GGR acceleration?

A: Kenny Feng said market driven by premier mass, July performance robust.

Q: Dividend policy at MGM China?

A: Board approved 50% of distributable net income as dividend, approaching $150M-$200M annually.

Q: Impact of Big Beautiful Bill on MGM?

A: Bill mentioned working on 90% loss issue, Jonathan said bonus depreciation changed tax forecast to positive refund in 2025.

Q: Strip visitation decline and levers?

A: William said international visitation, Spirit engine issues, Southern California impact, Marriott relationship and casino database as levers.

Q: CapEx reduction and projects?

A: Jonathan said CapEx reduction due to capital plan refinement, Aria room renovation to start in late 2026, OPERA Cloud migration delayed but launched seamlessly.