MGM Resorts International · NYSE:MGM
MGM Resorts International — Q3 2021 Earnings Presentation
35 slides from MGM Resorts International's earnings presentation, Nov 3, 2021
Slide 1: Third Quarter 2021 Earnings
MGM RESORTS INTERNATIONAL THIRD QUARTER 2021 EARNINGS NOVEMBER 3, 2021 MGM RESORTS INTERNATIONAL
Slide 2: Forward-Looking Statements
F O R WA R D - L O O K I N G S T A T E M E N T S Statements in this presentation that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's
Slide 3: Our Strategic Pillars
OUR STRATEGIC PILLARS Recruit, develop and retain the best talent STRONG PEOPLE Foster a culture of diversity and inclusion AND CULTURE Invest in the employee experience Leverage a customer-centric model reinforced by CUSTOMER-CENTRIC a strong brand and deep customer insights to provide unmatched en
Slide 4: Table of Contents
• 3Q 2021 HIGHLIGHTS • 3Q 2021 FINANCIAL RESULTS TABLE OF CONTENTS • BETMGM • SUPPLEMENTAL 4
Slide 5: Key 3Q 2021 Takeaways
KEY 3Q 2021 TAKEAWAYS Continued strong domestic operations; Conviction in gradual recovery in Macau over long term • Record Adjusted Property EBITDAR in the Company’s Las Vegas Strip and Regional segments, primarily driven by robust demand and productivity improvements • Record Adjusted Property EBI
Slide 6: 3Q 2021 Financial Highlights
3Q 2021 FINANCIAL HIGHLIGHTS ($ in U.S. millions, except per share information) $ Change $ Change % Change 3Q21 3Q20 vs. 3Q20 3Q191 vs. 3Q19 vs. 3Q19 Consolidated Net Revenues $2,708 $1,126 +$1,582 $3,314 ($607) (18%) Las Vegas Strip Resorts $1,3812 $481 +$900 $1,507 ($126) (8%) Regional Operations
Slide 7: Strong Liquidity Provides Financial Flexibility
STRONG LIQUIDITY PROVIDES FINANCIAL FLEXIBILITY CONSOLIDATED LIQUIDITY OVERVIEW AS OF 9/30/21 MGM Resorts MGM Resorts ($ in U.S. millions) (Ex. MGM China and MGP) MGM China MGP Consolidated Cash and Equivalents $4,920 $331 $320 $5,571 Revolver Availability $1,467 $1,385 $1,350 $4,202 Total Liquidity
Slide 8: Agreement to Acquire the Operations of The Cosmopolitan of Las Vegas
AGREEMENT TO ACQUIRE THE OPERATIONS OF THE COSMOPOLITAN OF LAS VEGAS On September 27, 2021, MGM Resorts announced that the Company has entered into a definitive agreement with Blackstone to acquire the operations of The Cosmopolitan of Las Vegas ("The Cosmopolitan") for cash consideration of $1.625
Slide 9: MGM Resorts Selected as Osaka's Integrated Resort Partner in Japan
MGM RESORTS SELECTED AS OSAKA’S INTEGRATED RESORT PARTNER IN JAPAN On September 28, 2021, MGM Resorts announced that MGM Japan, together with its joint venture partner ORIX, has been selected by Osaka as the region’s integrated resort partner. Osaka's selection of MGM-ORIX is one of several steps in
Slide 10: Integrated Resort in Osaka, Japan Rendering
INTEGRATED RESORT IN OSAKA, JAPAN RENDERING Note: See Supplemental section for additional information 10
Slide 11: Table of Contents
• 3Q 2021 HIGHLIGHTS • 3Q 2021 FINANCIAL RESULTS TABLE OF CONTENTS • BETMGM • SUPPLEMENTAL 11
Slide 12: 3Q 2021 – Las Vegas Strip
3Q 2021 – LAS VEGAS STRIP ADJUSTED PROPERTY EBITDAR WELL ABOVE 2019 LEVELS, WITH NEAR-RECORD MARGINS Net Revenues Adjusted Property EBITDAR and Margin % Margin % ($ in U.S. millions) ($ in U.S. millions) Actual Hold-Adjusted Actual Hold-Adjusted Actual Hold-Adjusted $1,507 $1,504 121% of 117% of $1,
Slide 13: 3Q 2021 – Regional Operations
3Q 2021 – REGIONAL OPERATIONS ANOTHER RECORD QUARTER IN ADJUSTED PROPERTY EBITDAR AND MARGINS ($ in U.S. millions) Net Revenues Adjusted Property EBITDAR Margin % 99% of +886 bps 3Q19 $925 $935 vs. 3Q19 $856 37.6% 37.2% 129% of 3Q19 28.8% $348 $318 $269 3Q21 2Q21 3Q19 3Q21 2Q21 3Q19 3Q21 2Q21 3Q19 •
Slide 14: 3Q 2021 – CityCenter
3Q 2021 – CITYCENTER 1 . S T R U C T U R E T O D A Y ( 7 CITYCENTER 3 % O WN E R SADJUSTED H I P O F OEBITDA P) 10% ABOVE 2019 LEVELS ($ in U.S. millions) Margin % Net Revenues Adjusted EBITDA 92% of 3Q19 $296 $320 +652 bps vs. 3Q19 $259 46.2% 110% of 3Q19 40.4% 33.9% $120 $120 $109 3Q21 2Q21 3Q19 3
Slide 15: 3Q 2021 – MGM China
3Q 2021 – MGM CHINA HEIGHTENED TRAVEL RESTRICTIONS DURING THE QUARTER IMPACTED VISITATION TO MACAU Net Revenues ($ in U.S. millions) Adjusted Property EBITDAR Actual Hold-Adjusted ($ in U.S. millions) Actual Hold-Adjusted $738 $699 39% of 41% of 3Q19 3Q19 $289 $311 $317 $184 $272 $170 4% of 3Q19 $7
Slide 16: MGM China's Market Outperformance
MGM CHINA’S MARKET OUTPERFORMANCE GGR MARKET SHARE REMAINS WELL ABOVE 2019 / 2020 LEVELS MGM China GGR Market Share 13.8% 12.6% 11.5% 11.2% 9.9% 9.4% 9.5% 9.2% 8.7% 7.4% 7.4% 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 MGM RESORTS INTERNATIONAL Source: DICJ Macau GGR 16
Slide 17: 3Q 2021 Financial Items
3Q 2021 FINANCIAL ITEMS • BetMGM – 3Q 2021 net revenues associated with BetMGM operations were $227 million1 – MGM Resorts’ 50% share of BetMGM’s operating loss2 was $49 million in 3Q 2021 • Cash rent – 3Q 2021: $367 million • MGP: $211 million (partially offset by $57 million in distributions that
Slide 18: Table of Contents
• 3Q 2021 HIGHLIGHTS • 3Q 2021 FINANCIAL RESULTS TABLE OF CONTENTS • BETMGM • SUPPLEMENTAL 18
Slide 19: BetMGM by the Numbers
BETMGM BY THE NUMBERS $584 $800+ $450 million million million YTD September 30, 2021 Forecasted 2021 BetMGM’s expected capital net revenues associated net revenues associated consumption in 20213 with BetMGM operations1 with BetMGM operations2 (2021 highest planned annual cash usage) $32 20-25% 30-3
Slide 20: BetMGM Is the Clear Leader in U.S. iGaming
BETMGM IS THE CLEAR LEADER IN U.S. iGAMING… OVERALL ESTIMATED NATIONAL MARKET SHARE IN U.S. iGAMING1 32% 35% BetMGM 30% 3ME August 2021 iGaming BetMGM market share across BetMGM estimated to be market share all jurisdictions1 #1 iGaming operator estimated to be 25% since January 2021 ~2x that of nex
Slide 21: Competing for the #1 Position Marketwide in U.S. Sports Betting & iGaming
… AND COMPETING FOR THE #1 POSITION MARKETWIDE IN U.S. SPORTS BETTING & iGAMING OVERALL ESTIMATED NATIONAL MARKET SHARE IN U.S. SPORTS BETTING & iGAMING1 35% 23% 3ME August 2021 total market share across all 30% jurisdictions1 BetMGM 26% 25% COMPETITOR 1 20% 3ME August 2021 COMPETITOR 2 total market
Slide 22: Growing Presence & Broad-Based Market Access
GROWING PRESENCE & BROAD-BASED MARKET ACCESS ME WA VT MT ND NH MN NY MA OR CT RI 16 20 ID WI MI SD PA NJ WY IA MD NE OH DE NV IL IN WV D.C. Active Expected live VA jurisdictions1 jurisdictions by the CA UT CO end of 1Q 2022 KS MO KY NC TN SC OK AR 33% 27 AZ NM GA AL MS TX LA Expected Market FL addre
Slide 23: Leading Retail Integration & Omni-Channel Offering
LEADING RETAIL INTEGRATION & OMNI-CHANNEL OFFERING 37 million+ 100% M life Rewards of BetMGM players are Members 16% 42% enrolled in M life of new BetMGM of new M life players players in 3Q 2021 BEST LOYALTY PROGRAM in 3Q 2021 were from were active with BetMGM Global Gaming Awards in 6 of the last 7
Slide 24: Continued Product Enhancements and Deployment Execution
CONTINUED PRODUCT ENHANCEMENTS AND DEPLOYMENT EXECUTION College Football New State Launches PayPal Connect King of the Weekend One Game Parlay WY SD AZ • Launched three new markets within nine days • Proven ability to successfully launch new markets in rapid succession MGM RESORTS INTERNATIONAL 24
Slide 25: Supplemental
• MGM CHINA PROPERTY DATA • MGP/VICI TRANSACTION: IMPACT SUPPLEMENTAL • CITYCENTER TRANSACTION: IMPACT • RECENT TRANSACTIONS / ANNOUNCEMENTS 25
Slide 26: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Nine Months Ended September 30 September 30 2021 2020 2021 2020
Slide 27: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Nine Months Ended September 30 September 30 2021 2020 2021 2020
Slide 28: MGM China Financial Information Under IFRS
MGM CHINA FINANCIAL INFORMATION UNDER IFRS Due to the time differences between Macau and the United States, this supplemental information is being provided on behalf of MGM China for the benefit of MGM China investors Three Months Ended Nine Months Ended September 30 September 30 2021 2020 2021 2020
Slide 29: MGP/VICI Transaction
MGP/VICI TRANSACTION • Upon closing, MGM Resorts will no longer consolidate MGM Growth Properties in its financial statements • Financial reporting impact dependent upon lease classification – If the redemption of MGP OP units and related deconsolidation of MGP qualifies as a sale of the MGP real es
Slide 30: CityCenter Transaction
CITYCENTER TRANSACTION • Transaction impact – Upon closing of the purchase of Infinity World’s 50% interest in CityCenter, the Company consolidated CityCenter which included recognizing CityCenter’s assets and liabilities at fair value with the difference between the purchase price and the fair valu
Slide 31: Osaka Yumeshima Integrated Resort Project
OSAKA YUMESHIMA INTEGRATED RESORT PROJECT Proposed to be located along the water on Osaka's Yumeshima island, the project is designed to help establish Japan as a top global tourist destination, with Osaka serving as an internationally celebrated city for international business, travel and world-cla
Slide 32: Agreement with VICI to Redeem MGP Operating Partnership Units
AGREEMENT WITH VICI TO REDEEM MGP OPERATING PARTNERSHIP UNITS On August 4, 2021, MGM Resorts announced a definitive agreement with VICI Properties Inc. (“VICI”) and MGM Growth Properties LLC (“MGP”) whereby VICI would redeem a majority of MGP operating partnership units held by MGM Resorts for $43 p
Slide 33: Purchased Infinity World's 50% Interest in CityCenter and Monetize Real Estate Assets
PURCHASED INFINITY WORLD’S 50% INTEREST IN CITYCENTER AND MONETIZE REAL ESTATE ASSETS On July 1, 2021, MGM Resorts announced it had entered into a definitive agreement to purchase Infinity World’s 50% interest in CityCenter for $2.125 billion, making MGM Resorts the 100% owner of Aria Resort & Casin
Slide 34: MGM Growth Properties Purchased MGM Springfield Real Estate Assets
MGM GROWTH PROPERTIES PURCHASED MGM SPRINGFIELD REAL ESTATE ASSETS On May 11, 2021, MGM Resorts announced it has entered into a definitive agreement whereby MGP will purchase the real estate assets associated with MGM Springfield in Western Massachusetts. MGM Resorts will lease the property from MGP
Slide 35: CityCenter Reconciliation of Net Income to Adjusted EBITDA
CITYCENTER RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA Three Months Ended September 30. 2021 USD $'000 (unaudited) Net Income 50,046 Non-operating (income) expense: Interest expense, net of amount capitalized 18,954 Other, net (3,914) 15,040 Operating income 65,086 Property transactions, net 2,6
MGM Resorts International — Q3 2021 Earnings Presentation on 6ix