MGM (MGM) Q1 2026 Earnings Call Transcript

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Date

Wednesday, April 29, 2026 at 5 p.m. ET

Call participants

• Chief Executive Officer — William Joseph Hornbuckle
• Chief Financial Officer and Treasurer — Jonathan S. Halkyard
• Senior Vice President, Public Affairs and Communications — Ayesha Molino
• MGM China Holdings Executive Officer — Kenny [surname not provided]

Takeaways

• Consolidated net revenue growth -- Over four percent increase, with management attributing primary drivers to digital operations and China, as well as the first Las Vegas growth in six quarters.
• Las Vegas Strip net revenue -- Achieved year-over-year growth, credited to strong group and convention business and record first-quarter ADR and catering/banquet revenues.
• Las Vegas segment adjusted EBITDAR -- Decreased by $62 million due to $37 million in higher self-insurance expense and $31 million less in business interruption proceeds.
• Regional operations revenue -- Increased two percent, while segment adjusted EBITDAR declined $20 million, affected by $9 million in higher self-insurance expense and $10 million decrease in business interruption proceeds.
• MGM China net revenue -- Increased nine percent, with market share at 15.4% overall and 17.3% in March, although segment adjusted EBITDAR dropped $13 million, mainly due to a higher brand fee (now 3.5%, up from 1.75%) delivering $23 million in incremental fees for the parent.
• BetMGM North America net revenue -- Grew six percent in the quarter, with adjusted EBITDA up 11%; first-quarter branding fees from BetMGM totaled $1.5 million, but no quarterly distributions were received.
• MGM digital revenue -- Rose 43%, with segment adjusted EBITDAR loss of $26 million for the quarter.
• LeoVegas B2B and B2C revenue -- Exceeded 30% growth rate, with Sweden and the UK driving the top-line increase.
• Japan integrated resort capex -- $140 million invested in the quarter; full-year funding expected at $200 million–$225 million and already addressed through a yen credit facility.
• Share repurchases -- 2.5 million shares bought back for $90 million during the quarter; share count has decreased nearly 50% over five years.
• Northfield Park sale -- Asset sold at 6.6x trailing EBITDA, a multiple "significantly higher than what is implied by our current share price."
• Las Vegas all-inclusive package -- Represented roughly one-third bookings from first-time visitors and received "very positive" feedback according to management.
• Premium gaming in Macau -- 63 new suites and a 40,000-square-foot gaming space with 40 tables and 15 private rooms were launched at MGM Cotai, targeting premium guests.

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Risks

• Chief Financial Officer Halkyard said, "Before diving further into our other business segments, I do want to briefly address this external factor that continues to pressure operating costs across our industry and drove a meaningful portion of the increase in our self-insurance expenses this quarter, and that is the growing prevalence of frivolous litigation, often backed by large pools of capital, including private equity," leading to $37 million in Las Vegas and $9 million regionally. He added, "We certainly hope it will not recur and that it is an unusual one-time item."
• Luxury hotel midweek occupancy at Luxor and Excalibur remains a "challenge," with CEO Hornbuckle noting these properties make up six percent of EBITDA and highlighting short-term risk tied to leisure booking cycles and international softness, particularly Canadian business, which he described as down 30%-40%.

Summary

Management flagged the over four percent consolidated net revenue increase as evidence that digital growth and ongoing Macau market-share gains are driving the company’s recovery trajectory. Las Vegas conventions and ADR hit record levels, while targeted capital projects and product enhancements continued in China, further strengthening the premium mass segment. Sustainable margins, capital discipline, and substantial share repurchases provide operational flexibility.

Executives confirmed MGM Resorts International (NYSE:MGM) Osaka construction remains on budget and on schedule for 2030.

Strategic emphasis is placed on expanding direct digital offerings, iGaming, and leveraging recent technology acquisitions and sportsbook integrations to diversify future revenue streams.

• CEO Hornbuckle said, "we have over 4 million square feet of our own convention space," and indicated major tech groups like Google and Cisco are booked for summer, supporting ongoing group business strength.
• Expansion of air traffic to Las Vegas is offsetting lost capacity from the Spirit bankruptcy, and management highlighted a stable "air" environment and additional international flights. Short booking cycles require continued monitoring.
• In digital, management reported no quarterly BetMGM distributions because of marketing investments related to the NFL postseason and March Madness. Seasonality affects cash outlays.
• On the Macau brand fee, Chief Financial Officer Halkyard confirmed, "the brand fee increased from 1.75% to 3.5% of revenue," and that margins are expected to stabilize "safely in the mid-20s" going forward.
• The UAE non-gaming project construction remains on schedule and management is reserving 250,000 square feet for a potential casino subject to regulatory developments. "We have not heard yet, nor do I think we will for a while given the environment, whether gaming will be permitted or not."

Industry glossary

• ADR: Average Daily Rate; a key hotel industry metric calculated as total room revenue divided by the number of rooms sold, excluding complimentary rooms.
• EBITDAR: Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent; used to assess operating profitability, particularly for companies in asset-intensive industries such as casinos and hotels.
• Premium mass: A casino industry term denoting high-value, non-VIP players who wager significant amounts, typically in cash rather than on credit, and are not part of the traditional junket or VIP segments.
• BetMGM: MGM Resorts International’s joint venture with Entain plc focused on online sports betting and iGaming operations in North America.
• LeoVegas: MGM Resorts International’s European online gaming subsidiary, operating both business-to-consumer (B2C) and business-to-business (B2B) gaming offerings.

Full Conference Call Transcript

William Joseph Hornbuckle: Thank you, Howard. And thanks again to all of our employees. Their continued dedication and execution drove another Gold Plus MPS record-breaking quarter, reinforcing the strength and sustainability of our business and our ability to deliver unique and lasting experiences that people find incredibly exciting. MGM Resorts International once again delivered consolidated net revenue growth in the first quarter driven by strengths in digital and China. Net revenue for Las Vegas in Q1 grew on a year-over-year basis for the first time in over a year despite exceptionally strong leisure comparatives. We achieved this with solid group and convention business in the first quarter and we expect this to carry into the second quarter.

The first quarter is simply our seasonally strong group and convention quarter of the year, and we experienced robust business related to both citywide conventions like CES and CONEXPO-CON/AGG, as well as in-house programs at Mandalay Bay and MGM Grand. We achieved record first-quarter convention ADRs and catering and banquet revenue, and drove increased production from our strategic relationship with Marriott. Importantly, we expect this momentum to continue into the second quarter with convention room night mix up 2 percentage points year over year to 20%. As the city evolves, we are making sure we are leaders in innovation. The MGM Gaming Streaming Lounge, opened at Park MGM and received all regulatory approvals during the quarter, is another exciting step.

We developed a premium, creative environment where gaming stories can come to life with plans to integrate celebrities into both the content and the broader guest experience. Another theme in our Las Vegas business has been our value. MGM Resorts International has always offered opportunities for our guests seeking value experiences. This quarter, we challenged ourselves to be even more creative and launched an all-inclusive experience that bundles hotel, dining, entertainment, and all parking and resort fees. Guests can now choose to stay at Luxor or Excalibur, with access to a wide range of dining options across five MGM Resorts International properties.

The feedback we are getting from guests is very positive and roughly one-third of the bookings are from first-time Las Vegas visitors. The program enhances our ability to convey our value proposition in innovative ways that resonate with our guests. Ultimately, Las Vegas' true value lies in delivering iconic, one-of-a-kind experiences. We look forward to welcoming the Super Bowl back at Allegiant Stadium in 2029, particularly given our proximity to the venue, which drove outsized benefits during the 2024 Super Bowl. In the near term, Allegiant will host the College Football Playoff National Championship in 2027 and the Final Four in 2028. That same year, the A's are set to begin their inaugural season in Las Vegas.

During the quarter, Las Vegas was also named a target city for the NBA expansion team, and we are actively engaged in discussions with the league and respective team owners. If successful, no U.S. city will have assembled all four major professional sports leagues faster than Las Vegas. The ability to attract professional sports franchises and tentpole events exemplifies Las Vegas' structural resilience. The city consistently advances through challenging operating environments by evolving alongside customer demand. Today's consumers are decisively gravitating towards live events and experiential travel, and Las Vegas and MGM Resorts International are capturing that momentum. Las Vegas' ability to adapt its mix, pricing, and entertainment continues to differentiate the market and reinforce its resilience through economic cycles.

Our regional operations have maintained steady market share. Strong casino volumes supported solid results for the quarter, reflecting the premium positioning of these properties and their ability to drive consistent, reliable performance. At MGM China, we grew net revenues by 9% while segment adjusted EBITDAR was impacted by our new brand fee. Jonathan will remind you of those details in his section. Our market share for the quarter was 15.4%, and while February was negatively impacted by hold, we concluded the quarter in the month of March with a share of 17.3% which has held steady into April. We continue to invest in our competitive advantages in premium mass to support future growth.

The suite conversion and renovated premium gaming areas at MGM Cotai were recently completed ahead of the upcoming Golden Week holiday. The next capital projects will involve renovating the suite product in Macau as we want to ensure our offerings stay fresh and ahead of market growth. While we will continue with targeted capital spending, we believe our operating expenses are appropriately sized and scaled to match our growth profile and our margins are sustainable. At BetMGM North America, the venture, Adam and Gary reported first-quarter results a few weeks ago. We continue to prioritize the iGaming segment where underlying fundamentals are healthy and growing, and we are approaching $2 billion in annual revenue from operations.

We are moderating spend in sports to focus on returns, while our online sports business also continues to grow, and we will remain focused on driving profitable growth and margin. Our core strengths remain unchanged: iGaming, multi-product states, our omnichannel presence in Nevada, and our focus on premium mass sports players. We remain disciplined and focused on executing our strategy in areas where we have a competitive advantage. MGM Digital reported another quarter of double-digit revenue growth as it continues to make progress towards profitability. Sweden and the UK continue to drive our LeoVegas B2B and B2C business where the top line grew over 30%.

These are also the next two stops for our sportsbook integration, further validating our acquisition of TIBCO's U.S. sportsbook technology. We are continuing to invest in Brazil and plan to leverage our global marketing assets and in-house sportsbook capabilities on the significant World Cup opportunity a little later this year. And in Japan, over 40% of the foundation piles have been installed or completed. The first concrete floor has been poured and the first structural steel has been erected. I recently visited the site and approved our mock-up rooms, which I found exceptional. We are as opportunistic as ever, keeping in mind we expect to be the sole licensed operator in Japan upon opening.

The population and visitation metrics are massive, as we have discussed. Japan has over 120 million residents and hosts over 40 million international visitors annually. MGM Osaka remains on time and on budget for a 2030 opening. With Q1 2026 complete, our optimism across all business segments continues to hold firm, especially in Las Vegas. We remain on track for growth this year. With that, I will hand it over to Jonathan to provide additional details on performance this quarter.

Jonathan S. Halkyard: Thanks, Bill. And I will certainly join you in thanking all of our employees for their continued hard work and dedication this quarter. We really value your daily contributions and appreciate everything you do to support our company and our guests. In Las Vegas, as Bill mentioned, we were able to grow net revenues despite the strong leisure comparison in the prior year. Segment adjusted EBITDAR decreased by $62 million and can be explained by just two items: an increase in self-insurance expense of $37 million and a decrease in business interruption proceeds of $31 million versus last year.

Now that we are into the second quarter, comparisons in our leisure offering become more normalized, especially toward the latter part of the period. We are encouraged by the incremental momentum driven by our all-inclusive program, as well as the convention strength we have on the books. Our regional operations proved resilient in the first quarter, exhibiting top-line growth of 2%, and similar to the Las Vegas story, segment adjusted EBITDAR decreased by $20 million in part due to an increase in self-insurance expense of $9 million and a decrease in business interruption proceeds of $10 million versus last year.

Borgata and National Harbor also faced some weather-related disruptions, but we ended March on a very solid footing, and those trends continued into April. We closed on the sale of the Northfield Park operations earlier this month, so just a reminder for your models, Northfield Park will no longer be in our regional operations going forward. As usual, we will provide same-store results for easy comparisons.

Before diving further into our other business segments, I do want to briefly address this external factor that continues to pressure operating costs across our industry and drove a meaningful portion of the increase in our self-insurance expenses this quarter, and that is the growing prevalence of frivolous litigation, often backed by large pools of capital, including private equity. As we noted earlier, we were negatively impacted by $37 million in Las Vegas and $9 million across our regional operations this quarter. While we support a fair and balanced legal system, claims that lack merit divert capital, management attention, and resources away from investments that benefit employees, guests, and our communities.

We are focused on what we can control, which is enforcing high standards and processes and the other operational elements of our business with the utmost care. Now let us move on to MGM China, which exhibited solid performance in the first quarter. The decrease in segment adjusted EBITDAR of $13 million was primarily driven by the new branding fee agreement through which we received $23 million more in fees than in the prior-year period. As a reminder, the brand fee increased from 1.75% to 3.5% of revenue starting this year. While this impacts segment adjusted EBITDAR, it results in higher cash flow for MGM Resorts International.

Moving to digital, our BetMGM North America venture’s first-quarter results reflected continued successful execution of refined player management strategy, delivering 6% growth in net revenue from operations and 11% growth in adjusted EBITDA. This was also the first quarter where we earned branding fees from BetMGM, which amounted to about $1.5 million. Separately, no quarterly distributions were made in the first quarter given the seasonality of cash outlays, which included marketing investments around the NFL postseason and March Madness, as well as accrued annual compensation payouts. MGM Digital drove growth in net revenues of 43% in the first quarter, and reported segment adjusted EBITDAR losses of $26 million.

We are continuing to migrate our sportsbooks to our in-house platform, such as BetMGM Sweden, and are investing in the opportunities presented by the upcoming World Cup in both Europe and Brazil. Specific to Brazil, we continue to have confidence in the total addressable market, and we may drive investment beyond our original guidance reflecting regulatory and tax developments as well as competitive intensity as we pursue our long-term share objectives. And we will keep you posted as the year progresses. In Japan, we are expecting our funding for the balance of the year to be approximately $200 million to $225 million after investing approximately $140 million in the first quarter.

Much of it will be addressed with proceeds from the yen-denominated credit facility we closed last October. So in essence, it is pre-funded for this year. During the quarter, we bought back about 2.5 million shares for $90 million. Over the last five years, we decreased our share count by almost 50%. As a reminder, and I cannot help myself, we sold Northfield Park for 6.6 times trailing EBITDA. That is a multiple significantly higher than what is implied by our current share price. With the transaction now closed and the proceeds received, we have increased flexibility to redeploy capital, including reaccelerating share repurchases at our current valuation levels. I will turn it back to Bill.

William Joseph Hornbuckle: Thanks, Jonathan. Before we go to questions, I would like to reiterate just a couple of things that were said. Obviously, our diversification strategy is proving successful. Consolidated revenues again showed growth of over 4%. Vegas, for the first time in six quarters, also showed growth at the top line, and as I think about the balance of the year, our group and convention business looks strong. We obviously have the benefit now of the MGM rooms for the entire year. We have easier leisure comparatives coming up, and the high end continues to demonstrate itself not only in gaming, but in non-gaming spend.

Event-driven, to be sure, and live entertainment to be sure, but it absolutely shows up, and shows up often. Regionally, despite headwinds in the overall economy, we have seen solid performance and expect that to continue through the balance of the summer. MGM Macau continues to hold on to a major market share. We are very proud of what has been created and what they are doing there, and we believe costs and our margins are sustainable now throughout the year. Japan is off to a great start, albeit early. We are excited by our progress, the design, and ultimately the market that it will provide.

BetMGM continues to track, and you have seen additional and tremendous growth in Gary’s overall digital business for rest of world. We will now open the call for questions.

Operator: To join the queue, please press star then 1, and to remove yourself from the queue, please press star then 2. As a reminder, in all fairness, please limit yourself to one question and one follow-up. Today’s first question comes from David Brian Katz at Jefferies. Please go ahead.

David Brian Katz: Hi, everyone. Thanks for taking my question. A lot of information here, and I took note of the all-inclusive offerings that you introduced earlier in the quarter. Can you talk about what kind of response you are getting to that? Is that a strategy that we could see you deploy in other properties or other areas of the portfolio? Thanks.

William Joseph Hornbuckle: Go ahead, Ayesha.

Ayesha Molino: Sure, David. We have been really pleased with the response to the all-inclusive package. We have seen steady momentum since we first deployed it, and the customer response has been very good. As Bill noted in his remarks, we are also seeing a significant portion of those customers as net new customers, which we believe is a positive trend line. We will continue to evaluate it, understand customer response, and assess whether there are new strategies we could deploy alongside it and whether it should be scaled to other properties. We will continue to watch and refine over time, but we have been pleased with the reaction to date.

David Brian Katz: Understood. And as my follow-up, can you talk briefly about Macau? Operations and commentary seem relatively stable, but it has always been a market that has surprises. How are you looking at the rest of the year in general or qualitative terms, and how do you feel about how that market rolls through the rest of this year?

William Joseph Hornbuckle: Thanks, David. I will kick it off and then turn it over. We feel really good about the balance of the year. We brought on many things last year in terms of capital enhancements and overall product and we are excited by that. We have more to go. We are adding more suites, which will be beneficial. I think everybody understands we are still undersuited, and that will be beneficial. It is always difficult to say Macau is “stable,” but I feel good about it. I feel very good about our market position and what we are doing and how we are doing it. Please add some color.

an executive officer of MGM China Holdings: Thank you. This is Kenny from Macau. As we all know, Macau has always been competitive from day one. The Macau market is a premium-driven one. It is not simply about supply. It is not a purely quantity play. It is about quality—understanding and serving the target guest. Here at MGM China, first, we are very focused on products and services. We want to make sure they are meaningful, effective, and targeted to premium customers. As Bill mentioned, we opened a 63-suite product at MGM Cotai. You never saw such products in the Greater China area. They are unique, different, refreshing, and cozy, and our customers love it.

We have also just opened about 40 thousand square feet of premium gaming space at the Cotai area with about 40 tables and 15 private rooms. It is also new—the design, the construction, and all the services there. We can see a lot of customers are very keen even right now. We will continue to refresh our products. For example, we are in the design stage for the One Hundred Threes at MGM Macau side, and also some gaming spaces and F&B outlets. We want to spend money wisely to serve the purpose of why customers are in Macau—serving targeted premium guests and premium gaming customers.

Secondly, MGM has developed a corporate culture here that encourages senior management and team members to react fast and effectively, making changes in developing products and services that evolve with fast-changing customer tastes. Reinvestment, CapEx, products, and services are all in one package about how we take care of customers. That is key for us to continue to grow for the rest of this year and next year. Thanks.

Operator: Thank you. Our next question today comes from Daniel Brian Politzer with JPMorgan. Please go ahead.

Daniel Brian Politzer: Hey, good afternoon, everyone, and thanks for the question. Bill or Jonathan, I was hoping to talk a bit about the Strip and the health of the customer base there. It seems like you are talking about this evolving health. Can you talk about how the first quarter progressed and how you saw that resonate in your customer base, and then expectations for how the second quarter should evolve, given your competitor last night had some comments on April?

William Joseph Hornbuckle: I will start. We had an amazing January. We had a tough kickoff, mostly in gaming, but as the quarter progressed, each month got successively better—March being the best month for us. The market has changed. The consumer has changed. Luckily for us, we have a lot of luxury product and brands that can cater to that, and it is going to continue. Despite headwinds—air, gas, etc.—we have yet to see a slowdown. That does not mean over summer that cannot happen, because booking cycles remain short. But we feel resilient about it. We feel good about it. Air traffic coming into the community—about half of the traffic that was lost when Spirit went bankrupt has been picked up.

We see a couple of additional international flights coming into the market. It is a little early to tell what gas prices will mean, but to date we feel good. Our April is fine. We just had a very successful baccarat tournament last weekend. May will be a good month. We like the second quarter, but it is early—just April—so time will tell on short-term bookings where leisure ultimately goes.

Daniel Brian Politzer: Got it, thanks. And then on the self-insurance—$37 million—I think you had a $13 million charge last year, maybe in the third quarter. Is this something to think about more commonly that could be impacting results? It sounds one-time in nature. Any clarity on how to think about that going forward?

Jonathan S. Halkyard: Sure, Dan. We certainly hope not. This is something we look at historically once a year. We expense amounts every month, but we do a true-up once a year. After that experience—and you remember it correctly—we decided to do it twice this year, and the impact of that examination is the additional accrual we took across our businesses in the first quarter. We expect that is adequate now. But on the other hand, it has been an increasing cost in our business—it is the reason I wanted to call it out. Clearly, but for that charge, our results this quarter would have been much better on an operating basis.

We certainly hope it will not recur and that it is an unusual one-time item.

Operator: Thank you. Our next question today comes from Steven Moyer Wieczynski with Stifel. Please go ahead.

Steven Moyer Wieczynski: Hey, guys. Good afternoon. Bill, staying with Vegas: you noted you feel better about that value customer and it seems like the customer base is now somewhat stable. Based on what you are seeing from a forward demand perspective, coupled with healthy group and convention business, is it possible to grow Vegas EBITDA this year? The first quarter did not start you off on the best foot.

William Joseph Hornbuckle: Thanks, Steve. One clarification on the leisure at the lower end of the spectrum: for us, obviously, it is Luxor and Excalibur. Midweek is still a challenge. The good news is those two properties represent about 6% of our overall EBITDA. Weekends are fine. The balance of the portfolio is performing from fine to good. To answer the core question, we do see growth through the balance of the year. It must be tempered modestly—there is a lot going on in the world—but based on what we see in advance bookings, we remain optimistic that we will have growth by year end.

Steven Moyer Wieczynski: Got it, thanks. And second, we heard last night from Caesars that they are working more aggressively with the LVCVA to help find and identify bigger events or corporations to bring into the Vegas market. Are you involved, and what is the potential upside?

William Joseph Hornbuckle: At 40,000 feet—yes, we are involved. Gary M. Fritz, who is sitting next to me, is on the board. We have been and will continue to be active. Remember, we have over 4 million square feet of our own convention space. We are big into tech; that sector continues to grow and looks exciting. We have some really good groups lined up for the summer. We have Google coming back and a few others. Cisco is coming with a massive group this summer. The question becomes, because CONEXPO-CON/AGG rotates, are there other groups like it? Yes. We have been cooperative and will go on field trips to pursue this.

Some of it is political—these groups mean a lot to their current communities, so they are not easy to move on value proposition alone. There is generally more to it. We are active, we agree with the sentiment, and we will continue to be.

Operator: Our next question today comes from Brandt Antoine Montour with Barclays. Please go ahead.

Brandt Antoine Montour: Good afternoon, everybody. Thanks for taking my question. On the all-inclusive effort and encouraging commentary around first-time visitors to Las Vegas, you have decades of data on first-time visitors. Can you share metrics on how a typical first-time Vegas visitor behaves, retention for a second trip, and flow-through and profitability versus corporate average?

William Joseph Hornbuckle: The core thing about first-time visitors: historically, about 20% of visitors were first-time. In recent years, that number has been in the mid- to low-teens, and it dropped to 8–9% last year. The noise around Canada is real—our general Canadian business is down 30–40%. We hope to improve that. We have had a couple of missions into Canada through the convention center and ourselves, and we have one planned later this summer that I am going on. International has always been a big driver. Mexico opened up meaningfully with air traffic a few years ago.

The majority of first-time visitors actually come through conventions—they come because they have to, then they learn about this place and come back with family and friends. The differentiator now is international softness hurting that number. Seeing it grow again through this package has been great because it is important for future growth in Las Vegas. Ayesha?

Ayesha Molino: In terms of customer behavior, we are seeing customers engage in all aspects of the business, and we have been pleased with the response. From a flow-through perspective, we are happy with the results, with no concerns.

Brandt Antoine Montour: Great, thanks. Second question is a follow-up on Macau. Looking at the first quarter under the new management fee structure, margins on that basis were below—

Jonathan S. Halkyard: Reducing their EBITDA by the amount of the new fee would get you to the new going-forward margin. We feel that is safely in the mid-20s.

Operator: Our next question today comes from John G. DeCree at CBRE. Please go ahead.

John G. DeCree: Hi, everyone. I wanted to ask a question or two about the digital business. Revenue growth in the quarter was really strong, a little bit more than we have [inaudible] the business-to-consumer business. I appreciate it.

Operator: Thank you. Our next question today comes from Shaun Clisby Kelley at Bank of America. Please go ahead.

Shaun Clisby Kelley: Hi. Good evening, everybody. Thanks for taking my question. Earlier you mentioned you are still seeing a bit of midweek softness. You also called out a large dynamic between your high and low properties. Can you update us on the trend line there? The all-inclusive offer should help narrow that as we get towards the summer. How should we think about RevPAR performance relative to market numbers, which looked a bit higher?

Ayesha Molino: We look at this a couple of ways. Overall, fundamentals are healthy from a RevPAR perspective—ADR and occupancy—particularly among the luxury portfolio. We are seeing stability and growth in some segments, and forward-looking indicators remain good. At the lower end of the portfolio, we saw softness starting in the second quarter of last year, and that has been pretty consistent. We have been deploying strategies against it—the all-inclusive offer and overall cost control—and that has been productive. We are watching closely as the summer unfolds. Weekends feel good. For midweek, we hope to see more stability as the year progresses.

There are pockets of evidence supporting that, including convention and group business stabilizing midweek at those properties, and programming on the South Strip and Allegiant that is positively impacting those properties as well.

William Joseph Hornbuckle: Also, remember we have about 54 thousand more MGM room nights this year because those rooms were offline last year. Pure math will affect RevPAR comparisons.

Shaun Clisby Kelley: Fair point. Thanks. As a follow-up, Bill, you mentioned the NBA—exciting development. It may be early, but you would have a vested interest in making sure that ended up at one of your venues. Can you talk about your strategy for the city and MGM’s involvement, and whether a purpose-built stadium or an existing venue could be used?

William Joseph Hornbuckle: I am already under three NDAs. The good news is the NBA has clearly earmarked Las Vegas and Seattle. We have had huge interest. Whether a team ultimately lands in Las Vegas will be up to the Board of Governors sometime next year. We are excited. How could we not be? We have all seen the success and what it means to Las Vegas when these sports teams come. T-Mobile is part of that conversation—whether short term or long term, all roads lead to it for now because the league has expressed interest to host a team as early as 2028. We are intimately involved in many of those conversations.

I hope—and believe—that whether the answer is yes or no, we will know by this time next year. The process is beginning. We have been asked how we would position T-Mobile for any and all bidders and we are working on that with our partners at AEG and Bill Foley. We are open to all comers, and there has been extensive interest in Las Vegas. It is very exciting.

Operator: Thank you. Our next question today comes from Barry Jonathan Jonas at Truist. Please go ahead.

Barry Jonathan Jonas: Hey, guys. Has the current Iran conflict impacted your UAE non-gaming project and its timeline? And do you believe there is still a chance you could get gaming there or in Abu Dhabi? Thank you.

William Joseph Hornbuckle: Barry, let me handle it. It has not impacted the ultimate timing, i.e., construction. We are now in a China State phase—the entity building the project continues—and the project remains on schedule. We have not heard yet, nor do I think we will for a while given the environment, whether gaming will be permitted or not. For context, they are allowing us to hold a quarter of a million square feet of space for a potential casino on one of the podium floors there. It could be very exciting.

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