Note: This is an earnings call transcript. Content may contain errors.

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DATE

Oct. 29, 2025, at 5 p.m. ET

CALL PARTICIPANTS

  • Chief Executive Officer — William Joseph Hornbuckle
  • Chief Financial Officer — Jonathan S. Halkyard
  • Chief Operating Officer — Corey Ian Sanders
  • President and Executive Director, MGM China — Kenneth Feng

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RISKS

  • Las Vegas EBITDAR Decline — Chief Financial Officer Halkyard reported "$601 million in EBITDAR down $130 million year over year," citing The shortfall is explained by three main factors: a $27 million decrease in business interruption proceeds combined with higher insurance expenses due to increased reserves; $25 million in disruption from the MGM Grand Room renovation; and $78 million in operational impacts, primarily related to ADRs, in Q3 2025.
  • Las Vegas Net Revenue Decrease — Net revenue in Las Vegas declined 7%.
  • MGM Digital EBITDAR Losses — Halkyard stated, "MGM Digital reported revenue growth of 23% during the quarter while segment EBITDAR was a loss of $23 million," and full-year EBITDAR losses could approach $100 million due to increased investment in Brazil.

TAKEAWAYS

  • Northfield Park Sale -- The company is selling its Northfield Park operations for $546 million in cash at a sale multiple of 6.6 times, a premium to MGM Resorts International's share price-implied multiple of less than three times.
  • Las Vegas Segment EBITDAR -- Reported $601 million in EBITDAR, a decrease of $130 million year over year, due to decreased business interruption proceeds, higher insurance expenses, operational disruptions, and lower hold.
  • Luxor and Excalibur Performance -- Roughly half of the operational EBITDAR impact is attributed to performance challenges at Luxor and Excalibur, further compounded by soft ADRs and lower occupancy.
  • Las Vegas Booking Trends -- October 2025 bookings are on pace to be the strongest forward room night month ever from the Marriott channel, with over 90% of targeted groups and conventions already contracted for 2026.
  • Las Vegas Luxury Properties -- Several luxury properties achieved record slot win, while Bellagio, Aria, and Cosmopolitan maintained rates and ADRs despite market headwinds.
  • Regional Operations Record -- Regional operations achieved an all-time record slot win, with several properties posted record total revenue and EBITDAR.
  • Borgata Performance -- Borgata achieved all-time high table games drop and slot win, benefiting from targeted capital allocation to VIP experiences.
  • MGM China Market Share -- MGM China posted record EBITDAR and achieved a record market share of 15.5%, despite a typhoon causing an estimated $12 million negative impact.
  • MGM China Golden Week Growth -- During the Golden Week period, Macau visitation increased 11% and total win rose 20% year over year.
  • MGM China October Pacing -- Management reported October pacing to 16.5% market share and well over $100 million in EBITDAR for the month.
  • BetMGM Cash Distributions -- BetMGM North America will begin quarterly cash distributions, with at least $100 million expected to be received by MGM Resorts International in Q4 2025 from a $630 million investment.
  • BetMGM EBITDA Guidance -- EBITDA guidance for 2025 was raised to approximately $200 million, an increase of roughly $450 million in one year.
  • MGM Digital Segment -- Revenue grew 23% during the quarter, but segment EBITDAR was a loss of $23 million, primarily due to investments in Brazil.
  • MGM Digital Brazil Venture -- Business fundamentals in Brazil are healthy, with quarter-over-quarter growth in active players, deposits, and GGR, but EBITDAR losses are consistent with MGM Resorts International's roughly 50% stake in the venture.
  • Japan Integrated Resort Project -- All elements under construction and a $300 million equivalent yen-denominated credit facility closed at approximately 2.5% interest, supporting near-term funding through next summer.
  • Share Repurchase Threshold -- CFO Halkyard said, "given present circumstances with our shared price, our return thresholds are pretty darn high," citing internal free cash yield estimates of "probably 25% or 30%."
  • Operational Efficiency -- Over 90% of targeted $150 million in cost-saving actions are complete, with adjustments including price corrections and labor management following customer feedback on value.

SUMMARY

MGM Resorts International (MGM +0.48%) management's withdrawal from the Yonkers commercial license process was driven by increasing tax burdens, unfavorable license terms, and capital discipline prioritizing higher return opportunities elsewhere. Room renovation disruptions and lower ADRs at certain Las Vegas properties contributed to the segment EBITDAR decline. While cost management efforts sought to mitigate these impacts. Diversified operations enabled offsetting growth, highlighted by regional properties delivering record slot wins and Macau outperforming with record EBITDAR and rising market share. Cash flows are strengthening with BetMGM moving to quarterly cash distributions and raising EBITDA guidance to approximately $200 million for 2025. The digital business, despite Brazil-driven EBITDAR losses, continued to grow revenues at a strong pace. Major long-term bets such as the Japan integrated resort and expansion in Dubai remain on track with updated funding and construction progress.

  • Jonathan S. Halkyard described Northfield Park's sale and the share price-implied multiple differential as "further evidence the attractive valuation."
  • Management emphasized the focus on premium offerings, VIP upgrade initiatives, and fine-tuned segment-level pricing to preserve long-term guest value.
  • The full COO transition, as Corey Ian Sanders retires, marks an organizational change.
  • F1 presales and group convention bookings provide visibility for Las Vegas recovery, with the Marriott partnership contributing record forward booking momentum.
  • Macau segment outperformance was attributed to premium mass customer targeting, the launch of the Alpha Gaming Club, and enhanced non-gaming events.
  • Borgata's market outperformance was linked to "all-time high table games drop and slot win" and VIP-focused capital allocation strategies.
  • CFO Halkyard stated the company will scrutinize growth capital investments closely, setting a "high bar" relative to share buyback alternatives amid current share value assessments.

INDUSTRY GLOSSARY

  • EBITDAR: Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent; a key cash flow metric for hospitality and gaming companies with significant leased assets.
  • GGR: Gross Gaming Revenue; total amount wagered minus payouts to players, used as a primary performance indicator in gaming markets.
  • ADR: Average Daily Rate; the average revenue earned per occupied room in a given time frame.
  • Alpha Gaming Club: Premium mass-focused gaming and hospitality offering at MGM Macau, featuring VIP tables and exclusive non-gaming amenities.

Full Conference Call Transcript

William Joseph Hornbuckle: Thank you, Howard. Good afternoon, everyone. Our industry is constantly changing. And MGM is always moving forward, proactively navigating with agility, and allocating capital with discipline to best position our company for future success. One example of our capital discipline was a challenging decision to withdraw our application for a commercial license in Yonkers, New York. We dedicated significant time and resources over the last several years to this project, adjusted along the way with our best efforts to make the project work for all parties involved. We have been and continue to be a proud partner of the city of Yonkers and the state of New York.

We remain committed to operating the property in its current format and believe it will continue to enjoy success serving customers in the Yonkers and surrounding communities. Also, we have been consistent in our focus on premium best-in-class market-leading integrated resort operations and have held true to our message that we will optimize our portfolio when the right value opportunities are presented. This was the case for Northfield Park, which we are selling for $546 million in cash. You may recall, we acquired the operations in 2019 for $275 million. We have grown the business and created significant value over the last six years.

And importantly, the sale multiple of 6.6 times represents a significant premium to MGM's current share price which values the OpCo business at less than three times. This company's diversity is also a true benefit. Amid all the headlines with concerns about Las Vegas and the general consumer, MGM's consolidated net revenues grew this quarter, thanks to the geographic and channel diversity of our business. I've spoken in the past about the evolution of Las Vegas, and that over the last thirty years, the market has grown at a CAGR of over 4%.

Of course, that growth ebbs and flows over shorter measurements of time, and this summer, we heard from some of our guests around a value in Las Vegas, and we responded by making adjustments to ensure a rationalized premium value experience across all of our properties. We also partnered with a destination on a fabulous five-day sale during which we sold over 300,000 room nights, nearly doubling our typical pace, reflecting the strong demand that exists for our experiences.

There are additional factors presuming the current visitation dynamic, including international visitation, particularly from Canada, Southern California drive traffic, and the recent Spirit Airlines bankruptcy resulting in several canceled routes, yet we are still expecting to receive over 40 million visitors to Las Vegas in 2025. While we don't expect the dynamic to be changed overnight, we are proactively working to create initiatives and draw incremental visitation. Despite these headwinds, several of our luxury properties generated record 3Q slot win.

As we look to the fourth quarter, we see signs of stabilization as the luxury market segment continues exhibiting strength, groups and conventions are returning, and all MGM guest rooms will be upgraded and back online, and F1 ticketing presales, particularly for the Bellagio fountain club, are pacing higher versus the prior year, all of which puts us on a solid footing as we approach 2026. Over 90% of our target groups and conventions are contracted for next year, and the first quarter starts off strong with ConAg continuing into the year with other citywides. We also built up the 900,000 room nights we're pacing to book through our Marriott partnership this year.

And I'd note our October is shaping up to be the strongest room night month ever for forward bookings originating from the Marriott channel. We'll have a full year in 2026 to benefit from the group and convention initiatives launched in the second quarter this year, that will allow meeting planners and attendees to earn Marriott Bonvoy loyalty perks. In the meantime, we continue maintaining an oversized share of business and room nights and rate relative to our Las Vegas competition.

As visitation ramps up in Las Vegas, we fully expect our advantage will be maximized by the outside efforts of our employees who achieved our highest ever 3Q gold plus NPS scores despite continuing disruption from the MGM throughout the quarter which again now has ended. Our teams in the regional markets drove another quarter of solid results. Several regional properties achieved record 3Q total revenue and EBITDAR, and the regional operations as a whole generated all-time record slot win this quarter.

The targeted capital would create and elevate VIP experiences at Borgata but a notable role again as a casino GGR growth outpaced the market during the quarter, and the Brugada posted all-time high table games drop and slot win. In Macau, even a brief closure caused by a typhoon wasn't enough to stop the positive momentum as MGM China achieved record 3Q EBITDAR. Our contributions are leading Macau's evolution in the entertainment destination, including the Macau 2049 residency show at MGM Cotai and the Poly MGM Museum at MGM Macau all while staying focused on understanding our customers, particularly our focus on premium mass.

The high end continues to drive market growth and quarter to date, we've seen a great response to the Alpha Gaming Club at MGM Macau, which officially opened in late September. Similar to the elevated experience provided by MGM Cotai's Mansion 1, MGM Macau's 3,500 square meter Alpha Gaming Club includes nearly 30 tables, dedicated restaurant, cigar lounge, and located just below the newly designed Alpha Villas. With more non-gaming and entertainment events taking place in Macau, customers now have more reasons to visit and continue to drive growth into the market.

The later two drove accelerated revenue growth for the segment which in aggregate grew top line by 23% this quarter, and saw priority market collectivity growing in line with TAM or higher. Our European pet MGM reached a new all-time revenue high in third three q. With improved profitability driven by customers' growth and market share gains. Even though the success has been offset by increased investment in Brazil, we are seeing quarter over quarter growth with healthy player fundamentals, Notably, growth has been driven around the key metrics of retention, which is exceeding even some of our healthy, mature markets.

We have a great relationship with our local media partner, Grupo Globo, and are taking a disciplined investment approach for long-term brand positioning and profitability. We expect that we to gain market share and reduce our gross spend in the future, and MGM Digital has an opportunity for $1 billion in revenue with significant margin, driving double-digit returns on those investments. Progress in Japan continues for 2030 opening, and we remain confident in our ability to generate a high teens return at the time of opening, particularly as the only integrated resort in Japan country of over 120 million people.

As of early this month, all elements of this project were under construction, and at one time, there are 60 to 80 cranes and other pieces of heavy equipment on-site. We also recently entered a $300 million USD equivalent yen denominated credit facility at very attractive rates to support our funding commitment to MGM Osaka. And then Dubai also continues to make progress with an expected opening date in 2028. With that, I will now hand it over to Jonathan Halkyard to provide additional detail on our performance this quarter.

Jonathan S. Halkyard: Thanks, Bill. And I'd like to echo my appreciation to all of our employees throughout our operations globally for their hard work and dedication. The effort does not go unnoticed and truly is the driver behind everything MGM achieves. This quarter, the Las Vegas segment reported $601 million in EBITDAR down $130 million year over year. The bridge to that shortfall includes three main parts. There was $27 million in decreased business interruption proceeds together with an increase in insurance expense due to increased reserves. $25 million in disruption from the MGM Grand Room renovation and $78 million from the impact on operations, primarily related to and ADRs.

Roughly half of that operations impact can be attributed to Luxor and Excalibur, and $6 million more can be attributed to lower hold year over year. The balance is attributed to softer ADRs and a decrease in occupancy, which affected volumes in food and beverage, in some of our properties. This operating environment has provided an opportunity for us to focus on our cost containment efforts, and we've been able to reduce certain costs alongside top line fluctuations. Net revenue in Las Vegas declined 7% but we managed expenses down accordingly where possible, including FTEs that also decreased by 7%. As we look into the fourth quarter, we're seeing improving room rates.

We also have the benefit of all MGM Grand rooms online and newly upgraded in time for the group and convention season. And we're seeing strong group demand in November and December, driving stabilization in our business. As we look to next year, the 2026 group and convention channel has the ability to drive growth. Currently, future bookings are pacing up in all outer years. While attrition and cancellations are in line with historical averages. Regional operations had another steady quarter as we grew net revenues EBITDAR was down $4 million related to a decrease in business interruption proceeds of $6 million year over year. Beyond that impact, the results were very solid.

MGM China continued its impressive run with record third quarter EBITDAR, despite an estimated $12 million typhoon-related impact in September. We also ended the quarter with a 3Q record market share of 15.5%. We continue to benefit from MGM China's strong cash flows with an $85 million dividend paid to MGM Resorts in September. As we look to fourth quarter in Macau, we experienced year over year growth across segments during the Golden Week holiday period with visitation up 11% and total win up 20%. For the month of October, we're pacing to a 16.5% market share and well over $100 million in EBITDAR.

Our BetMGM North American venture reported outstanding results and also announced that prior to the end of the calendar year, it will begin distributing cash back to MGM Resorts with the expectation of doing so on a quarterly basis going forward. We expect to receive at least $100 million in the fourth quarter from our $630 million total investment with more to come. The business model is proving out as in with just within just the last twelve months, we've witnessed the evolution from positive EBITDA inflection then to solid growth trajectory and now to a business generating ample cash capable of funding growth and cash distributions.

MGM Digital reported revenue growth of 23% during the quarter while segment EBITDAR was a loss of $23 million. For the full year, we now expect MGM Digital to have EBITDAR losses that could approach $100 million given our increased investment in Brazil. Though keep in mind, the actual contribution is consistent with our stake in the Brazil venture, which is roughly 50%. The venture has seen encouraging growth quarter over quarter throughout the year in active players, deposits and GGR. And our fourth quarter initiatives, launching our in-house sports book and continuing to increase the scale of the business, focusing on efficient returns. In Japan, construction continues making progress.

We've recently raised a yen denominated term loan A at the MGM Resorts level, equivalent to US$300 million at a borrowing cost of approximately 2.5% as of this month. This facility also has the ability to upsize to $450 million and we're already receiving incremental interest. We'll use the proceeds from this issuance to cover our equity contributions for MGM Osaka at least through next summer. Finally, we continue to see significant value in our share price. And this quarter, we were able to provide yet another transaction precedent further evidence the attractive valuation.

When you strip out the value of MGM China at market value, and assign a consensus value to the BetMGM North America venture, which we still view as very conservative given the current trajectory, you end up with an implied multiple of under three times trailing twelve month adjusted EBITDA, to say nothing of value of MGM Digital a business that's capable of $1 billion in run rate top line with double digit EBITDA margins. And this compares to the 6.6x announced sale multiple for Northfield Park's operations in Ohio.

Which, if applied across the board to our brick and mortar business, inclusive of Vegas, which arguably deserves a higher multiple than the regionals, that would imply a share price of approximately $60. I'll turn it back to Bill.

William Joseph Hornbuckle: Thanks, Jonathan. Apparently, I bumped over a page which I would like to spend a second on commenting about our digital business before we take your questions. I know a few weeks ago, you all heard BetMGM's venture reported strong 3Q results and raised our full year guidance for the second time this year. Increased 2025 EBITDA guidance to approximately $200 million represents an EBITDA increase of roughly $450 million in just one year without any new jurisdictions. Importantly, BetMGM will start returning capital to MGM Resorts with an expected initial cash distribution at least $100 million in the fourth quarter. Also want to follow-up on BetMGM's recent comments about prediction markets.

For decades, the gaming industry has been highly regulated at state level. This intense scrutiny has been essential to ensuring the integrity of the gaming industry and in the case of sports betting, help to identify potentially irregular activity. This is not the time to back away from these high standards. Gaming historically has been and should be continued to be a highly regulated industry with safeguards in place to protect consumers and promote integrity. I also wanna take a moment and thank our Chief Operating Officer, Corey Sanders, who will be retiring at the end of the year, making this his last earnings call. I'm sure many of you on this call spoke to Corey frequently throughout his tenure.

It's impossible to overstate what Corey has meant to this company. Over the last thirty plus years. As a person, as a leader, Corey understands the importance of caring for employees and treating people with respect. We all wanna thank you, Corey, for your dedication, your service, and your leadership. And let you know that you will be deeply missed. In closing, I want to stress that MGM is the only global operator across physical and digital channels converging gaming and hospitality with entertainment and sports, delivering diversified growth at scale. We have proven to be disciplined allocators of capital, and we'll look at any opportunities with attractive returns including share buybacks.

And in Las Vegas, it's worth repeating, we are focused on what we can control and are well positioned to adapt given the range and diversity of our luxury offerings. We see stabilization in the fourth quarter, and growth in 2026 and beyond. And over the long run, we see a measured supply outlook a growing local population, expanding entertainment infrastructure, rising demand for live entertainment and for luxury, and we remain very bullish on Las Vegas. And now, operator, if we could open it up for questions. Thank you.

Operator: Thank you. As a reminder, in all fairness, please limit yourself to one question and one follow-up. And our first question will come from John DeCree with the CBRE. Please go ahead.

John G. DeCree: So much for taking my question. I'm sure we'll talk quite a bit about Las Vegas, but maybe to start with your decision to exit New York. Obviously, it was also such a focus of yours for a while. Bill, I know you've gave some prepared remarks, but curious if you could elaborate Was it just investment sizing? I know you put out a press release, but anything else you could kind of tell us there? And then my follow-up with the swing in liquidity, how should we think about MGM's kind of return hurdles for investment going forward? If New York didn't quite pencil out?

William Joseph Hornbuckle: Sure. Look. There was originally a concern with and I think most of you know this. Between ourselves and resorts, we basically had a guaranteed tax. Whether we bid the tax or not, we had to make whole on the education fund. We had to make whole for the horsemen. Ultimately, we struck a deal with the city of Yonkers meant we woulda had the minimum tax of about $400 million. So that was our first hurdle. We knew that, but that remained a large hurdle. As we then began to understand the landscape, and particularly as it's looked more and more where the competitive set would land, it put further pressure on the deal.

It put further pressure on the numbers. And I think the thing that concerned us probably the most was at the end, we thought we were vying for a thirty year license and we're told it was fifteen, it was done after we had made an original submission, that was concerning because if not for that, then what else? And so while we initially like the return, it got tighter and tighter and tighter so much so that given overall market conditions, we think it's capital best spent some other location, and some other opportunity.

Jonathan S. Halkyard: And, John, as it's Jonathan. On your second question, in terms of our return threshold, I mean given present circumstances with our shared price, our return thresholds are pretty darn high. I mean, we can capture a free cash yield just in repurchasing our own shares of don't have the math in front of me, but it's probably 25% or 30%. One investment we're very excited about is our project in Japan.

And despite Sarah's great efforts in securing this yen denominated facility, which will get us through next summer, and we'll be investing in that project in late '26, '27, and '28 but this is a project that we think probably has the most favorable supply demand dynamics of any integrated resort So we're very excited about that project. Otherwise, we scrutinize our capital investments very closely, the growth capital investments that we have opening shortly in Las Vegas like Arbonne Riviera, Gymkhana, and the rest we think are going to drive very nice returns for us. But we have a high return threshold right now as compared to simply buying our own shares.

John G. DeCree: Thanks, Jonathan. And Corey, congratulations on your retirement It's been great working with you over the years. Congratulations.

Corey Ian Sanders: Thanks, guys.

Operator: Thank you. The next question will come from Shaun Kelley with Bank of America. Please go ahead.

Shaun Clisby Kelley: Hi, good afternoon everyone and thanks for taking my questions. Also, I'd like to offer my congrats to Corey and we enjoyed working with you So thanks for that. So if I could just build on the last question a little bit around sort of the high ROI threshold Jonathan that you mentioned. Think the question we get over and over again is obviously I think we know the trajectory of land-based gaming in The U. S. Think a lot more about the growth in digital that you're experiencing.

Does the turnaround and so there's going need to be a balance at some point between value today and a lower cost of capital, but or a higher cost of capital, but growth that you could achieve by looking to a digital future. So just trying to kind of get your current sense on how you put how you kind of prioritize or balance that and just sort of your thoughts on doubling down on digital given, I think, the stability we've seen from the BetMGM team obviously lending itself to being able to return some capital to you?

Jonathan S. Halkyard: Yes. Thanks, Shaun. Interesting thing is right now our digital investments are cash generative as opposed to cash consuming. We're in very much a growth mode in MGM digital as it relates to our BetMGM brand expansions over in Europe. And in Brazil. But the Corleo Vegas business together with of course, BetMGM in North America are both generating now pretty substantial cash flow for us. So it's not requiring a digital investment. And as it relates to other additional investments in digital were really just focused on growing the existing businesses we have right now as opposed to doing any kind inorganic growth.

Shaun Clisby Kelley: Thanks for that. And then just as my follow-up, obviously, the prepared remarks, you guys weathered a pretty challenging Q3 environment. A lot of talk about Q4 stabilization the group calendar comes back. F1 sounds encouraging. So just can you help us kind of put it on a spectrum of what like we hear stabilization, is that getting better sequentially? Is that potentially flat the 4Q? Much better could it be? Or do you really need like a bigger group calendar like we expect to see in Q1? To potentially see some growth in the Vegas segments just given some of the calendar issues that you're up against in Q4?

William Joseph Hornbuckle: Shaun, hi. I'll kick it off and obviously my colleagues pile on here. It has been sequential. Obviously, July for everyone in the community was a rough month. The summer was rough. But it sequentially got better. I will say the same about October. Knock on wood. We may even beat October. And recognizing the fourth quarter last year was like an all-time fourth quarter, so all that being said, F1 does feel good. You know, the leisure activity is there. We obviously can generate through value. We saw it with a fabulous sale. You know, we literally doubled the bookings in that particular week. So we feel better about it.

You know, there's a lot out in front of The FAA, in its considerations with the government shutdown, may or may not have an impact. It has not to date, thankfully. But there's no precursor to what that will mean for the next six weeks or so. But I think overall, we feel positive. There's a couple of weeks in December with leisure that is a whole that we need to you know, we wanna continue to push on to see how we fill. But sequentially, feel better. And we use the word stabilization not lightly. Think we can get there.

Operator: Thank you. Your next question will come from Brandt Montour with Barclays. Please go ahead.

Brandt Antoine Montour: Just starting off in Macau, the stats you gave for October, were really impressive. Obviously, you know, implies a share gains, and you gave the share number. You know, but some of your peers have been more aggressive recently. And they've been sort of public about that. You know, I know that EBITDA is there for you. You gave that for the other month of October as well. But you know, if you if you had to change your strategy at all and that sort of in you know, imputed in this these share numbers that you have here?

Kenneth Feng: Annie, why you take that? Yeah. Okay. This is Kenny. Thank you for your question. Actually, competition is not new to us at all. We see, rational competition in the market that operates like a folks that operators are focusing on, like, offering quality products and bringing in excellent services for Macau visitors. For MGM for MGM China, we as we always said, we are focusing on standing our customers. By conducting CapEx project and improving our improving our services. To refresh and fine-tune the experiences. For our premium customers or example, we have a fully launched our alpha villas and the alpha collapse and the fantasy box at MDM side.

There is no such competitive products in the Macau Peninsula market. These products, the key is that these products truly reflect our understanding of our customers They are well received. Like, Macao market in January looks pretty optimistic. For optic for October. But for MGM China, we believe, we anticipate we will deliver one of the strongest demands in terms of GGR and the EBITDA performance at our company's history. So currently, what we are focusing on is we are focusing on the effective projects. Like on Cotai side, we are trying we are doing like 160 we are converting 160 rooms to 60 suites. Majority of them are two-bedroom suites. So construction has started.

We targeted to complete in the 60 space will cater to their evolving taste of our customers. And we are also developing some other high-end gaming places at the MGM Cotai side as well. We hope we can utilize this over advantage which is our deep understanding of our customers. We are acting quickly. And to maintain our market share. In the mid-teens in Macau.

Brandt Antoine Montour: Okay. That's great color. Thanks for that. And then back domestically, you know, you guys had a savings program about a $150 million. Some of that was taking price in certain areas. And I was hoping you could give a refresh on that program and sort of if you've had to sort of change things around given some of the, you know, consumer awareness prices in Las Vegas and if that was something that had to be adjusted and how you're faring there.

Jonathan S. Halkyard: Yeah. We are kind of deep into that program now. In fact, most of the actions, the vast majority I'd say over 90% of the actions that we set out really about this time last year are complete. And I would say and I don't want to speak for Corey or Bill, but in my opinion, there's really nothing we would have done differently on the kind of on the customer value side than what we did. In fact, many of the things that we did were in response to what we were hearing from our customers and the kinds of things that they you know, were and were not willing to pay for.

A lot of our activities also were in just the daily blocking and tackling of labor management and procurement and those types of things as well and I certainly wouldn't undo any of that because I don't think they, in the end, really had a customer impact. So And, yeah, this maybe a more global view on the whole value. Look. We lost control of the narrative over the summer. I think we would all agree to that in hindsight. You know, when we look at the $150 million, we think about resort fees parking and some of the other things that were fee-based inside that number, those have remained as in place.

When we think about pricing and things that got everyone's attention, whether it was the infamous bottle of water or a Starbucks coffee of Excalibur that cost $12 shame on us. We should have been more sensitive to the overall experience at a place like Excalibur to those customers. You can't have a $29 room and a $12 coffee. And so we've gone through the organization We think, we hope, we believe, and we've price corrected. I think the sale that the community did and we participated in a meaningful way demonstrated we understand value when it's in Las Vegas. And we'll always be that, we'll always need to be that.

And so I think we've positioned ourselves for that and we'll continue to do so going forward.

Brandt Antoine Montour: Great. Great color. Thanks, everyone.

Operator: The next question will come from Dan Politzer with JPMorgan.

Daniel Brian Politzer: I was wondering if we caught talk a little bit about Las Vegas through the lens of the high end and low end. Bill, you mentioned luxury properties, you know, record slot handle there. Then kind of juxtaposed that with Excalibur and Luxor. Have you seen maybe a widening in the performance between these this segments of your of your portfolio? And if so, kind of what are the adjustments or levers you can make going forward to kind of keep everything on the growth path?

William Joseph Hornbuckle: I think the core answer is yes. I don't think that's unique to us or our industry for that matter. But, yes, look, I have Bellagio, Aria, Cosmopolitan have continued to maintain rates, continued to maintain ADRs, generally speaking. In a tough environment. Know, when you lose 400,000 seats in a marketplace over the summer, principally around Spirit, and Spirit's a value or airline that speaks to a marketplace that we potentially lost. When you think about what's going on in country and you think about Southern California market, heavily Hispanic, I think our drive I don't think I know our drive traffic was down in the summer.

And so that had presented and continues to present somewhat of a challenge You think about international visitation in Canada, And while we're all trying to do things to make that better, I don't think that's going to go away anytime soon. Obviously, that's really across all of our marketplaces, the international piece. But it also impacts, I think, to a degree, for sure, Luxor, Excalibur. Which is the two properties that we struggled here in Las Vegas the most. And, of course, if you have some more color Look. I think you look at the Bellagio, it's seems to be you wouldn't know anything was wrong with it or able to fill the hotel rooms.

The gaming volumes are high in place. This is where it has been in the past. Weekends for everywhere we were able to, get occupancy Rates sometimes a little more challenged than it was year, but still we're able to fill the hotels. And this midweek, when the convention base is not here, it's really Luxor and Excalibur that probably have the biggest challenges of occupying rooms.

Daniel Brian Politzer: Got it. Thanks. And then this isn't a higher level one for Bill or Jonathan, whoever wants to take it. Obviously, the there's been a few deals know, on the m and a front lately that you guys have been involved in. But I guess, you just talk about the appetite for diversified cash flow stream as you think about the things that you're seeing in your portfolio now And, you know, obviously, the balance sheet is in good shape right now, but you know, if something did come across your plate, you know, what are kind of the thresholds we should think about that you guys would kinda go to kinda take advantage of that?

William Joseph Hornbuckle: Well, I'll I'll take about 40,000 feet, John. I think about the actual threshold. Diversification, we've been saying it all along is key. We think we have the opportunity given our scale, scope, breadth, and knowledge to participate in many pieces of this marketplace. We think we do best when we're creating things that are at the highest end. I think a lot of the recent things we've done in Macau proved that to be the case. I think ultimately what you'll see in Japan will prove that out to be the case. We are obviously in the digital business in a big way. The combined business next year will probably do $3.5 billion top line.

And as we've said, time to tail bottom. Which we're we understand and we manage to and, you know, But we're we will continue to look. I mean, obviously, now, the value of our you just I mean, when we're trading under three times for our core business, not to continue to buy back our own stock, you know, doesn't make any it makes all sense in the world to us. For today, But I'm sure the market, because it always has, will readjust itself. And other opportunities may come up.

Jonathan S. Halkyard: I think one of the pretty things about the performance of MGM China example, and BetMGM And we expect MGM Digital as our company is becoming more diverse diversified rather than less as those relatively smaller business businesses grow at very high rates. With respect to M and A, activity in the regional markets, between Gold Strike and Tunica, over $100 million EBITDAR business. Northfield Park, $130 million EBITDAR business. These are big businesses, but yet they are ones that we don't think have the growth to represent the scale of the regional portfolio that we aspire to have. So, it's a pretty high bar for us to look at any additional regional properties.

They have to be of course, of the quality consistent with our brand, but also of a the scale. And they're just in any market that we're not in. So it's a pretty high bar for regional M and A, I would say.

Operator: The next question will come from Steven Wieczynski with Stifel. Please go ahead.

Steven Moyer Wieczynski: Yes. Hey, guys. Good afternoon. So I wanna ask the strip leisure recovery question maybe a little bit differently. So if we think about the next couple of months, and fully aware the booking window is a little bit tighter right now. But are you seeing a major difference in the booking patterns for that FIT visitor between your different properties? You touched on this a little bit, Bill, but meaning is demand at Bellagio, Cosmo, ARIA, whatever you what you wanna think about it, all really strong? You aren't seeing the same thing at the other properties like New York, New York, Luxor, etcetera?

Or, you know, moving forward, are the booking patterns starting to become a little bit more similar across all your assets there?

Jonathan S. Halkyard: I think the luxuries booking patterns are similar to what they've been in the past. The core is and the legacy properties are booking a little bit differently. So where we used to book a ton of that in thirty days, some, seeing some of that book out a little further.

Steven Moyer Wieczynski: Okay. Gotcha. And then Jonathan, to your to your last kind of remark there, if we think about the rest of your regional portfolio now after the Northfield sale. Just wondering how you view the rest of your regional assets at this point. Meaning, would any of the remainders be for sale? Are they all for sale at the right price? Just any high level thoughts there about kind of rightsizing the rest of that regional portfolio would be helpful. Thanks.

Jonathan S. Halkyard: Well, that's a tough question with my CEO sitting right next to me. Yeah. I mean but I'll I'll it's good. I mean, I you know, sure. I guess at some price, all properties are for sale. But I would say that our regional portfolio right now they represent pretty much in every case market leading properties with very nice importation to Las Vegas. Most of them very important BetMGM omni channel locations as well. So, you know, we like that regional portfolio a lot.

William Joseph Hornbuckle: Yeah. And of the seven five of them are market leaders that they dominate anywhere from 25 to 40 per 47%. Of market mix in those particular markets that they serve. So we think of them whether it's Borgata or The Bow in Mississippi, as highly representing our brand well, market leaders independent of anything else we do. They stand on their own, and they do quite well, obviously. To Jonathan's comment on digital, it's important in most of all of those states. A couple of them are not. Obviously, we've talked about New York, and so how to think about that long, long term, time to tell.

But, you know, one day at a time, we've just come off of the we're not gonna push forward for today in New York.

Steven Moyer Wieczynski: Okay. Thanks for the color, guys. Appreciate it.

Operator: Next question will come from Stephen Grambling with Morgan Stanley. Please go ahead.

Stephen White Grambling: Thanks. Just want to follow-up on Dan's question, but perhaps from the opposite angle. You talked about the undervalued nature of stock. So what do you view as the primary levers or path that you could pursue to unlock value from here? And I know you referenced diversification, but is there also a path to simplification to consider And if there are, what do you think are the kind of the lowest hanging fruit as we look across China, BetMGM, digital or otherwise? Thanks.

William Joseph Hornbuckle: Hey, let me kick it off and then Jonathan be up. Obviously, digital and the unlock over time of BetMGM is something that we contemplate and that's not a surprise to anybody on the call. And so we're constantly talking to our partner about how we can all get the best value out of what was being created there. Which is a tremendous business. I think that's very real. Look, we enjoy our position in Macau. We particularly as of late, I think the team has done an amazing job there. You all know we own 56.7% of it. And so we've had a twenty year relationship with Pansy Ho.

And so I don't see that changing anytime in the near future. If we could diversify and then continue to grow our digital business, now obviously, Japan steps in, it's gonna outweigh this But if we could continue to grow our digital business, it'll become more and more of a performer. And more and more of what's important to us. But that's probably the place that we most think about diversification.

Jonathan S. Halkyard: Yeah, and I think it's generating cash flow through our dividend stream from MGM China now dividends from BetMGM, And then the other thing I'd say is we've, of course, talked a lot about the last quarter in Las Vegas. But we still think Las Vegas is a fantastic market. And we love our position here. We have a better cost structure than we've ever had in Las Vegas. And so with the dynamism in this market, I think that's an unlock also for the stock.

Stephen White Grambling: That's helpful. Maybe one quick follow-up since you flagged Digital Unlock with BetMGM first. Are there any organizational changes or bylaw bylaws to consider that need to be thought through as we think about the timing or path No.

William Joseph Hornbuckle: No. Not really. Look, we have a great relationship in far partnership with our folks and friends in Entain. We constantly think about ways to improve that business. But, no, there's there's nothing in that context that we need to unlock it. It's no.

Operator: Thank you. Okay. The next question will come from Barry Jonas with Truist Securities. Please go ahead.

Barry Jonathan Jonas: First off, congrats Corey. It's been a real pleasure working with you over the years. I wanted to start on the strip. Question on the 2026 group outlook. I know the Home Builders Conference is not in town for just next year. That definitely doesn't seem to dampen the enthusiasm we're hearing for growth. So ConAg obviously returns But are there other specific large conference callouts you could share so we better understand what's driving the growth outlook? Thank you.

Jonathan S. Halkyard: Yes. Barry, we'd to look and get back to you on the large conference call outs that I could tell you our mix is gonna be better next year. We're gonna have more room nights. First half of the year is gonna be extremely strong. First quarter and second quarter will be north of 20% convention mix, which allows us really not only to fill all of our rooms, but even potentially yield up our rates.

Barry Jonathan Jonas: Understood. Okay. And then just as a follow-up, there have been some talk about increasing promotions in the regional markets. Curious to get your take on what you're seeing there. Just in the regions and if the strip you're seeing anything there as well. Thank you.

William Joseph Hornbuckle: Both regional and strip. You know, in the regional markets, the well, the it's I guess to go back to Kenny's answer, there's always competition. Maryland continues to be more and more competitive as does New Jersey. Look, in New Jersey, we've recreated a real differentiator with our product. We've re gone in there We've done all the rooms now, what's called the MGM Tower, which is a water club. We've gone through and redone and have an amazing baccarat area VIP, domestic VIP. We have a new noodle shop. We have a new b bar, which is a center bar. And so you go in there. It's refreshed.

It feels like a new property, and it really focused on the high end. We've repositioned an aircraft there. So we are doing personalization when it comes to our highest level customers in that market. And so while we're aggressive, we're aggressive not necessarily in, you know, what shows up in your mailbox, but what shows up with your host. And so we're pushing that high end VIP extensively there. You know, the other markets continue to be aggressive and we continue to do what we do. I think the margin in this quarter was 30.1% for regional. So I think it's indicative of our activity cases measured and appropriate, and I think we'll continue to do that.

Jonathan S. Halkyard: We monitor all of our competitors and all of our markets also and our reinvestment is of where we thought it would be, and it's fairly close to what it was last year.

Barry Jonathan Jonas: Got it. Thank you so much.

Operator: The last question for today will come from Chad Beynon with Macquarie. Please go ahead.

Chad C. Beynon: Afternoon. Thanks for taking my question. And Corey, congrats from us as well on your retirement. Wanted to ask about I guess, capital in Vegas. So maybe a two parter on this. First, on MGM Grand. I think the disruption, that you, outlined today on last quarter's call, ended up being exactly what you had thought. So first question on that, given that project is done, should we start to see the ADR increases and some of the returns come in?

Or do you maybe have to ease into this a little bit just because of the market softness And then the second question that I have on capital projects in Vegas, Bill, I think you teased us before on ARIA potentially being a project in twenty six. I believe that wouldn't start until maybe after some of the big, conventions. But if you could update us on that as well. Thank you.

William Joseph Hornbuckle: Sure, Chad. I'll kick it off. I think we were down for the quarter 8% in room nights and 5% in I think the first real challenge for all of us given market conditions is to refill those rooms, and we've begun to do that Frankly, occupancy, fairly easily. Not easily, but, I mean, we're in good shape there. Yes. Over time, it will build because the actual product itself is spectacular. I think it exceeded not only our expectations, but the customers who have stayed there so I think as that gets out and news of what that product actually is, I think we'll see both ARC and ADR lift over the long haul.

We are gonna take pretty much the balance of 26 off in terms of room remodel. The and what made the MGM so impactful was we were redoing the bathrooms and plumbing. So we were taking two more floors out than normal. So there was always five to eight floors out. In any given moment. A normal room remodel centers around three. But we're not gonna start the ARIA until November and then really push it into '27 and have the principal work being done over the '27 so we can come out of that seasonality, rate of roll and go to the next one, which is Cosmopolitan. It's like, you know, Golden Gate Bridge. In 2028.

Jonathan S. Halkyard: Chad, this is Jonathan. Thank you. We'll be we will be as Bill said, starting that in November. We will incur CapEx right at the '26 on the ARIA Room renovation. But even so, we expect CapEx to be in '26 to be below 2025 And during our fourth quarter call, we'll give specifics on CapEx guidance for the year.

Chad C. Beynon: Excellent. Thank you very much.

Operator: Ladies and gentlemen, this concludes our question and answer session. I would like to turn the conference back over to Mr. William Joseph Hornbuckle for any closing remarks. Please go ahead.

William Joseph Hornbuckle: Thank you, operator. And again, I appreciate everyone's recognition of Corey. So, Corey, congrats, and you're making me jealous. And look. Vegas is fine fundamentally. We feel good about the fourth quarter and particularly going into '26. Macau continues to outperform, and we're excited by that. And we're even more excited by what the digital business has been able to do year over year. And ultimately where we think this goes. So, hopefully, you share some of that excitement, and I appreciate everyone's time tonight. I know it's late back east, so thank you all.

Operator: This concludes our conference call for today. Thank you for your participation. You may now disconnect.