FIRST QUARTER 2021 EARNINGS · 2021. 4. 28. · •MGM Resorts (consolidated) had $9.7 billion of...

MGM RESORTS INTERNAT IONAL

M G M R E S O R T S I N T E R N A T I O N A L

F I R S T Q U A R T E R 2 0 2 1 E A R N I N G S

A P R I L 2 8 , 2 0 2 1

MGM RESORTS INTERNAT IONAL 2

FORWARD-LOOKING STATEMENTSStatements 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, includingthose described in the Company's public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management’s current expectations and assumptions andnot on historical facts. Examples of these statements include, but are not limited to, the Company’s expectations regarding its financial outlook (including expectations regarding its liquidity position, long term costsavings and the performance at re-opened properties), the continued impact of the COVID-19 pandemic on the Company’s operations, the Company’s ability to execute on its strategic pillars, expectationsregarding the development of an integrated resort in Japan and the positioning of BetMGM as a leader in sports betting and iGaming (including BetMGM’s expected growth in new and existing jurisdictions andprojected market share and net revenues). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from thoseindicated in such forward-looking statements include the continued impact of the COVID-19 pandemic, effects of economic and other conditions in the markets in which the Company operates and competitionwith other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings,approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company’s Form 10-K, Form 10-Q and Form 8-K reports(including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information,future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those otherforward-looking statements.

MARKET AND INDUSTRY DATAThis presentation also contains estimates and information concerning the Company’s industry that are based on industry publications, reports and peer company public filings. This information involves a numberof assumptions and limitations, and you are cautioned not to rely on or give undue weight to this information. The Company has not independently verified the accuracy or completeness of the data contained inthese industry publications, reports or filings. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including those described in the “Risk Factors” section ofthe Company’s public filings with the SEC. Third party logos and brands included in this presentation are the property of their respective owners and are included for informational purposes only.

NOTE REGARDING PRESENTATION OF NON -GAAP F INANCIAL MEASURESThis presentation includes certain “non-GAAP financial measures” as defined in Regulation G under the Securities Exchange Act of 1934, as amended, including, among others, Adjusted EBITDAR, Table GamesHold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR, and Adjusted EPS. Schedules that reconcile the non-GAAP financial measures to the most directly comparable financial measures calculatedand presented in accordance with Generally Accepted Accounting Principles in the United States are included herein or in the Company’s earnings releases that have been furnished with the SEC and are availableon our website at www.mgmresorts.com.

IMPORTANT NOTE REGARDING BETMGM FINANCIAL AND OTHER INFORMATIONThis presentation includes certain financial and other information related to BetMGM and the industry in which BetMGM operates, which is jointly owned by the Company and Entain plc. This information wasobtained from BetMGM management and while the Company believes such information to be reliable and accurate, the Company has not independently verified it and does not make any representation as to itsaccuracy. Included in this information is BetMGM reported net revenues from operations, forecasted 2022 net revenues from operations and long-term EBITDA margin targets. BetMGM financial information is notprepared in accordance with GAAP. If BetMGM presented these financial measures in accordance with GAAP, then BetMGM would present the revenues associated with its Nevada digital and retail sports bettingoperations differently, until such time as BetMGM is directly licensed as a Nevada gaming operator. Currently under GAAP, its calculation of net revenue would be on a basis net of operating costs, such that theGAAP reported net revenue would be lower than the net revenue reported herein, with net income remaining the same. BetMGM projected net revenue from operations and target EBITDA margins are also basedon significant assumptions regarding the extension of current market trends in the states where BetMGM currently operates as well as assumptions regarding BetMGM’s expansion into new jurisdictions in 2021and 2022. These assumptions are subject to significant risks and uncertainty and as a result investors are cautioned not to place undue reliance on such statements as a prediction of BetMGM’s actual results. See“Forward-looking Statements” above.


O U R S T R A T E G I C P I L L A R S

STRONG PEOPLE

AND CULTURE

Recruit, develop and retain the best talent

Foster a culture of diversity and inclusion

Invest in the employee experience

OPERATIONAL

EXCELLENCE

Operating model refinement to maximize operating efficiencies and expand margins

Enhancement of digital capabilities to strengthen customer loyalty

DISCIPLINED CAPITAL

ALLOCATION TO MAXIMIZE

SHAREHOLDER VALUE

Pursuit of targeted, attractive ROI opportunities that align to the Company’s strategic vision

Focus on shareholder returns

Fortify balance sheet

3

OUR VISION: TO BE THE WORLD’S

PREMIER

GAMING ENTERTAINMENT

COMPANY

Leverage a customer-centric model reinforced by a strong brand and deep customer insights to provide unmatched entertainment experiences for our guests and drive top-line growth

CUSTOMER-CENTRIC

MODEL

T A B L E O F

C O N T E N T S

4

• 1 Q 2 0 2 1 H I G H L I G H T S

• 1 Q 2 0 2 1 F I N A N C I A L R E S U L T S

• B E T M G M

• S U P P L E M E N T A L


K E Y 1 Q 2 0 2 1 T A K E A W A Y S

5

Domestic markets solidly improving, with sequential improvement over 4Q 2020• With nationwide vaccination rollouts underway, Las Vegas Strip recovery is well on track with meaningful uptick in domestic leisure and casino demand• Regional properties achieved record 1Q Adjusted Property EBITDAR and margins• MGM China outperformed the market, with 1Q 2021 GGR recovering to ~40% of pre-pandemic 4Q 2019 levels, compared to broader market’s 33%;

Expect Macau’s rate of recovery to be gradual

Strong operating model and liquidity to position the Company for long-term growth• Expect to permanently reduce approximately $450 million of domestic expenses relative to 2019 levels• Evidenced by significant margin improvement in 1Q 2021 across both Las Vegas and Regional operations• Strong liquidity position and improving operating environment allows MGM Resorts to continue disciplined execution of long-term strategy while returning

cash to shareholders– In 1Q 2021, repurchased 3.15 million shares at an average price of $37.87 per share for an aggregate amount of $119 million

Long-term vision to be the world’s premier gaming entertainment company• U.S. Sports betting and iGaming opportunity: Believe BetMGM has already established itself as a leader• Investing in the Company’s digital transformation to drive customer loyalty• Asia expansion: Pursuit of Japan integrated resort opportunity and further investments in Macau


1 Q 2 0 2 1 F I N A N C I A L H I G H L I G H T S

6

($ in U.S. millions, except per share information)

1Q21 1Q20 $ Change % Change

Consolidated Net Revenue $1,648 $2,253 ($605) (27%)

Las Vegas Strip Resorts $545 $1,134 ($589) (52%)

Regional Operations $711 $726 ($14) (2%)

MGM China $296 $272 $24 9%

Net Income (Loss) Attributable to MGM Resorts ($332) $807 ($1,139) NM

Diluted Earnings (Loss) Per Share ($0.69) $1.64 ($2.33) NM

Adjusted EPS ($0.68) ($0.45) ($0.23) NM

Consolidated Adjusted EBITDAR $218

Las Vegas Strip Resorts Adjusted Property EBITDAR $108 $268 ($160) (60%)

Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR $107 $273 ($166) (61%)

Regional Operations Adjusted Property EBITDAR $242 $152 $90 59%

MGM China Adjusted Property EBITDAR $5 ($22) $27 NM

CityCenter Adjusted EBITDA $33 $79 ($45) (58%)


($ in U.S. millions)

1Q21 vs. 4Q20 Change 1Q21 vs. 4Q20 Change$ % $ %

Las Vegas Strip Resorts $108 $54 +$54 101% $107 $57 +$50 88%Regional Operations $242 $159 +$83 53%MGM China $5 $41 -$36 -88% $5 $43 -$38 -88%

Las Vegas Strip Resorts 20% 11% 20% 12%Regional Operations 34% 27%MGM China 2% 13% 2% 14%

Adjusted Property EBITDAR 1Q21 4Q20 1Q21 4Q20

ACTUAL HOLD ADJUSTED

Adjusted Property EBITDAR Margins 1Q21 4Q20 1Q21 4Q201Q21 vs. 4Q20 Change 1Q21 vs. 4Q20 Change

+860 bps+738 bps

-1,181 bps

+792 bps

-1,234 bps

S E Q U E N T I A L D O M E S T I C I M P R O V E M E N T I N 1 Q 2 0 2 1

7Note: Calculations may not match exactly, due to rounding

• Las Vegas Strip Resorts: Meaningful acceleration in leisure and casino visitation since mid-February, and March was the best month since opening. Strong operating productivity also drove margin improvement in the first quarter

• Regional Operations: Robust consumer demand amid easing restrictions, combined with the Company’s keen focus on costs resulted in 1Q records for Adjusted Property EBITDAR and margins

• MGM China: Sequential decrease in Adjusted Property EBITDAR and margins primarily due to the $23 million bonus accrual reversal positively impacting the fourth quarter, as well as lower mass hold in the first quarter compared to the fourth quarter


O U R L I Q U I D I T Y P O S I T I O N R E M A I N S S T R O N G

8

($ in U.S. millions)MGM Resorts

(Ex. MGM China and MGP) MGM China MGPMGM Resorts Consolidated

Cash and Equivalents $4,939 $1,090 $143 $6,172 Revolver Availability $1,469 $747 $1,350 $3,566

Total Liquidity $6,408 $1,837 $1,493 $9,738

• MGM Resorts’ domestic operations had $6.4 billion of liquidity as of March 31, 2021

• MGM Resorts (consolidated) had $9.7 billion of liquidity as of March 31, 2021

• In March 2021, MGM China raised an additional $750 million of 4.75% senior notes due 2027

• In March 2021, MGM completed the 37.1 million MGP OP unit redemption for cash proceeds of ~$1.2 billion– Reduced MGM’s ownership stake in MGP from 53.0% to 42.1%

CONSOLIDATED LIQUIDITY OVERVIEW


($ in U.S. millions) Annualized Run-rate1

Corporate expense (gross)2 $180 MGM 2020 $160 Operations streamlining $85Fixed Labor $25

Annualized domestic cost reductions $450

1 Annual run-rate savings relative to 2019 actuals2 Represents gross corporate expense savings, a large portion of which gets allocated to property-level operating results

MGM 2020 savings include initiatives launched at the end of 2019 that began yielding tangible results prior to the COVID-19 crisis

Through the pandemic, the Company has fundamentally re-evaluated how it operates, with a focus on permanently eliminating redundancies and low profitability initiatives

The Company grows increasingly confident in its ability to deliver on these savings when demand returns to 2019 levels

D E M O N S T R A T I N G O P E R A T I N G M O D E L S T R E N G T H

10

• 1 Q 2 0 2 1 H I G H L I G H T S


• B E T M G M


T A B L E O F

C O N T E N T S


1 Q 2 0 2 1 – L A S V E G A S S T R I P

11

• Casino revenue decreased 16% compared to the prior year quarter– Table games drop of $529 million compared to $841 million in 1Q 2020– Table games win % of 24.1% compared to 23.2% in 1Q 2020– Slot handle $2.3 billion compared to $2.5 billion in 1Q 2020– Slot win % of 9.2% compared to 9.4% in 1Q 2020

Note: Excludes CityCenter; On March 17, 2020, MGM Resorts temporarily closed its Las Vegas Strip properties due to the COVID-19 pandemic; In 1Q 2021, Mandalay Bay, Mirage and Park MGM hotel rooms were closed mid-week until March 3, 2021.1 RevPAR is hotel revenue per available room. Rooms that were out of service during the three months ended March 31, 2021 and March 31, 2020, including full and midweek closures, as a result of the Covid-19 pandemic were excluded from the available room count when calculating hotel occupany and REVPAR.

• Rooms revenue decreased 60% compared to the prior year quarter– Occupancy of 46% compared to 88% in 1Q 2020

Midweek occupancy: 39%Weekend occupancy: 62%

– ADR declined 30% to $129 compared to $183 in 1Q 2020 – RevPAR1 decreased 63% to $60 compared to $160 in 1Q 2020

$545 $544

$1,134 $1,141 Actual Hold-Adjusted

Net Revenues ($ in U.S. millions)

1Q21 1Q20 1Q21 1Q20

$108 $107

$268 $273 Actual Hold-Adjusted

Adjusted Property EBITDAR ($ in U.S. millions)

1Q201Q21 1Q201Q21


1 Q 2 0 2 1 – R E G I O N A L O P E R A T I O N S

12

• Casino revenue increased 11% compared to the prior year quarter– Table games drop of $819 million compared to $844 million in 1Q 2020– Table games win % of 21.2% compared to 19.4% in 1Q 2020– Slot handle of $5.4 billion compared to $5.2 billion in 1Q 2020– Slot win % of 9.8% compared to 9.6% in 1Q 2020

• Adjusted Property EBITDAR margin of 34.0% in 1Q 2021, a 1,311-basis point increase compared to the prior year quarter

• Strong focus on costs and operating productivity resulted in double-digit margin improvement vs. 1Q 2020

$711

$242

$726

$152

Net Revenue Adjusted Property EBITDAR


1Q201Q21 1Q201Q21 1Q211Q20

Margin %

Note: Between March 13, 2020 and 17, 2020, MGM Resorts temporarily closed its regional properties due to the COVID-19 pandemic. MGM Springfield’s hotel was closed beginning November 2, 2020, and partial hotel operations resumed with midweek closures on March 5, 2021. MGM Grand Detroit re-closed on November 17, 2020 and re-opened on December 23, 2020, with the hotel tower operations resuming February 9, 2021

21%

34%


1 Q 2 0 2 1 – C I T Y C E N T E R

13

1. STRUCTURE TODAY (73% OWNERSHIP OF OP) 3. MGM RESORTS LONG-TERM STRATEGY

• Hotel Stats– Occupancy of 41.3% compared to 86.0% in 1Q 2020– ADR declined 27% to $209 compared to $285 in 1Q 2020 – RevPAR1 decreased 65% to $86 compared to $245 in 1Q 2020

1 RevPAR is hotel revenue per available room. Rooms that were out of service during the three months ended March 31, 2021 and 2020 including full and midweek closures, as a result of

the Covid-19 pandemic were excluded from the available room count when calculating hotel occupancy and REVPAR.

• Key Balance Sheet Items (as of 3/31/21)– Cash and cash equivalents: $137 million– Availability under revolver: $121 million– Total debt: $1.73 billion

1Q201Q21 1Q201Q21

$134

$33

$265

$79

Net Revenue Adjusted EBITDA



$5 $5

$(22)

$(17)

Actual Hold-Adjusted

Adjusted Property EBITDAR ($ in U.S. millions)

$296 $294

$272 $275

Actual Hold-Adjusted

Net Revenues ($ in U.S. millions)

1 Q 2 0 2 1 – M G M C H I N A

14

• VIP table games: 31% decrease in turnover year-over-year; win percentage of 3.3%

• Main floor table games: 34% increase in volume year-over-year; win percentage of 22.0%

• See Supplemental section for MGM China reported property-level details

1Q201Q21 1Q201Q21 1Q201Q21 1Q201Q21


M G M C H I N A ’ S M A R K E T O U T P E R F O R M A N C E

15

9.4% 9.2%9.9%

9.5%8.7%

7.4% 7.4%

12.6%

11.5%

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21

MGM China GGR Market Share

GGR MARKET SHARE IN 1Q 2021 STILL WELL ABOVE 2019 / 2020 LEVELS

Source: DICJ Macau GGR


F I N A N C I A L I T E M S

16

• BetMGM– 1Q 2021 net revenues associated with BetMGM operations were $163 million1

– MGM Resorts’ 50% share of BetMGM’s operating loss2 was $59 million in 1Q 2021– MGM Resorts and Entain expect to fund approximately $450 million in 2021

• Management and other operations3

– 1Q 2021: $14 million– Included a non-recurring $20 million benefit related to the buyout of a profit share agreement with PlayStudios, which the Company expects to

fund directly back to PlayStudios as part of a PIPE investment as they prepare to go public

• Corporate expense (net)3

– 1Q 2021: $67 million, down 26% year over year– Expect net corporate expense to run higher through the remainder of 2021 as business volumes continue to improve, and the Company ramps

investments in IT, digital and IR efforts in Japan

• Capital expenditures– 1Q 2021 U.S.: $49 million– 1Q 2021 MGM China: $30 million

1 Net revenues for 1Q 2021 for the BetMGM joint venture on a GAAP basis was approximately $156 million, which includes $12 million related to Nevada sportsbooks operations for whichBetMGM records on a net basis as BetMGM is considered to be the agent in the Nevada transactions for GAAP purposes. MGM Resorts recorded $17 million of net revenues for Nevadasportsbooks operations during 1Q 2021, which does not include Aria’s sportsbook net revenues2 Reported as part of the Company’s Adjusted EBITDAR under “Unconsolidated affiliates”3 Refer to “SUPPLEMENTAL DATA – ADJUSTED PROPERTY EBITDAR AND ADJUSTED EBITDAR” table within the Company’s 1Q 2021 earnings release


T R I P L E N E T L E A S E R E I T S & G R O U N D L E A S E S

17

• The Company has rental obligations to the following entities: MGM Growth Properties, the Bellagio BREIT venture and the MGP BREIT venture (Mandalay Bay and MGM Grand Las Vegas)

• Given the Company’s controlling interest in MGP (42% economic ownership), MGP is consolidated within the Company’s financial statements. However, the BREIT ventures are not consolidated

• Thus, MGM Resorts’ rent expense associated with the BREIT ventures and other ground leases are expensed within the Company’s consolidated income statement as part of “General and administrative” expenses– Recognized on a straight-line basis ($189.6 million in 1Q 2021)

• Additionally, the Company’s income is recognized via the equity method under “Income (loss) from unconsolidated affiliates” ($41.7 million in 1Q 2021) and “Non-operating items from unconsolidated affiliates”(-$14.9 million in 1Q 2021)– 5% ownership of Bellagio BREIT venture– 50.1% ownership of MGP BREIT venture through the consolidation of MGP within MGM Resorts financial statements

• Consolidated net income is adjusted to exclude the impact of these items in our Adjusted EBITDAR calculation1

• 1Q 2021 triple net operating lease rent expense on a cash basis:– MGP: $206.9 million (partially offset by $72.4 million in distributions received from MGP)– BREIT ventures: $136.0 million

• Our ground lease expenses aggregate to approximately $8 million of rent expense per quarter (~$32 million per year)

1 Refer to “Reconciliation of Net Income (Loss) Attributable to MGM Resorts International to Adjusted EBITDAR” table within the Company’s 1Q 2021 earnings release

18

• 1 Q 2 0 2 1 H I G H L I G H T S


• B E T M G M


T A B L E O F

C O N T E N T S


K E Y H I G H L I G H T S F R O M B E T M G M I N V E S T O R D A Y

19

Estimated 1Q 2021 net revenues associated with

BetMGM operations1

Forecasted 2022 net revenues associated

with BetMGM operations2

Long-term total addressable market (TAM)

Expected long-termU.S. market share

Expected long-term EBITDA margin

$163million

$1+billion

$32billion

20-25% 30-35%

1 Net revenues for 1Q 2021 for the BetMGM joint venture on a GAAP basis was approximately $156 million, which includes $12 million related to Nevada sportsbooks operations for whichBetMGM records on a net basis as BetMGM is considered to be the agent in the Nevada transactions for GAAP purposes. MGM Resorts recorded $17 million of net revenues for Nevadasportsbooks operations during 1Q 2021, which does not include Aria’s sportsbook net revenues2 Refer to “Important Note Regarding BetMGM Financial and Other Information” on slide 2

Expected capital consumed in 2021(2021 highest planned annual cash usage)

$450million


S I G N I F I C A N T L O N G - T E R M M A R K E T O P P O R T U N I T Y

TOTAL LONG TERM

ADDRESSABLE MARKET (“TAM”)

NORTH AMERICAN TAM

$32 BILLION U.S. OSB

$14.1

BILLION

U.S.

iGAMING

$13.4

BILLION

CANADA

$4.4 BILLION

• ~65% of the adult population

• Average GGR per adult of ~$90

U.S. ONLINE SPORTS BETTING(“OSB”)

• ~35% of the adult population

• Average GGR per adult ~$160U.S.

iGAMING

• ~65% of the adult population1

• Average GGR per adult of ~$65 for OSB and ~$115 for iGaming

CANADA

1 Includes OSB and iGaming

$32 BILLION SPORTS BETTING AND IGAMING TAM IN NORTH AMERICA

20


G R O W I N G P R E S E N C E & B R O A D - B A S E D M A R K E T A C C E S S

20

Expected live jurisdictions in next 12 months

12

Active jurisdictions

40%

Population with expected access

in next 12 months1

24

Market access

secured or anticipated2

1 Approximate U.S. adult population with access to OSB and / or iGaming in jurisdictions where BetMGM is expected to be active 2 Includes open license jurisdictions where BetMGM intends to apply for market access3 Future locations at MGM properties subject to enabling legislation

Live

Market Access Secured or Anticipated2

Current or Future Retail Location3

21


P R O V E N A B I L I T Y T O W I N I N D I F F E R E N T M A R K E T S

22

Market Position1

Products

Day-1 Launch

Omni-channel

Local Partnerships

MICHIGAN COLORADO NEW JERSEY

OSB, iGaming, Retail#1

OSB (est.)#1

iGaming#1

1 Based on market share for products listed for last 3-month (L3M) period ended February 2021; CO based on internal estimates

OSB Gaming Poker OSB Gaming PokerOSB


S T R O N G M A R K E T S H A R E G A I N S C O N T I N U E I N 1 Q 2 0 2 0

23

0%

5%

10%

15%

20%

25%

Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21

Online Sports Betting* iGaming* All (Online & Retail Sports Betting and iGaming)*

BETMGM’S MARKET SHARE CONTINUES TO GROW DRIVEN BY ONLINE SEGMENTS1

1 In markets that BetMGM is active2 Based on BetMGM revenues as a percentage of state reported revenues in markets where BetMGM is active* December market share includes PA where BetMGM had a partial month of sports betting and iGaming

February total market share across all active jurisdictions2

22%

February iGaming market share across all active jurisdictions2

25%

February OSB market share across all active jurisdictions217%


Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021

MONTHLY GROSS GAMING REVENUE (“GGR”)

P O I S E D T O S U S T A I N R A P I D G R O W T H

24

✓ Proven ability to launch on day 1

✓ Platform built to deliver rapid market rollout

✓ TOP 3 in U.S. OSB2

✓ #1 in U.S. iGaming2

WV NVIN

MI CO OR TN PA IAVA

1 Represents approximate increase in March 2021 GGR versus September 20202 Measured by GGR for the L3M period ended February 2021 across all U.S. jurisdictions

STATE LAUNCHES

+400%1


0%

5%

10%

15%

20%

25%

30%

35%

Jan 2020 Feb 2020 Mar 2020 Apr 2020 May 2020 Jun 2020 Jul 2020 Aug 2020 Sep 2020 Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021

P O S I T I O N E D T O B E A L O N G - T E R M L E A D E R

25

OVERALL ESTIMATED NATIONAL MARKET SHARE1

COMPETITOR 1

COMPETITOR 2

COMPETITOR 3

BetMGM

1 Total market share by GGR for retail, OSB and iGaming across all U.S., including jurisdictions where BetMGM is not currently active; internal estimates used where operator-specific results are unavailable

COMPETITOR 4


BEST LOYALTY PROGRAMGlobal Gaming Awards in 6 of the last 7 years

35 million+M life Rewards

Members

100%of BetMGM players are

enrolled in M life10%of new BetMGM

players in 1Q 2021 were active with

MGM1

1 M life players who were active in the 12 months prior to acquisition

L E A D I N G R E T A I L I N T E G R A T I O N & O M N I - C H A N N E L O F F E R I N G

44%of new M life players in 1Q 2021 were from

BetMGM1


100% 100%

28%

157%

CPA GGR

Non-MGM Sourced

MGM Sourced1

Est. Normalized Avg.

T H E O M N I - C H A N N E L A D V A N T A G E

27

Marketing ROI is 5.4x

higher for MGM-sourced players2

Value of omni-channel will increase

post-COVID

1 MGM Sourced players include on-site registrations and other directly attributable marketing sources2 Marketing ROI defined as GGR per month divided by cost per acquisition (“CPA”)All information presented for 1Q 2021


B E T M G M ’ S S U S T A I N A B L E C O M P E T I T I V E A D V A N T A G E S

28

• Market access currently secured or anticipated in 24 jurisdictions

• Relationship with MGM Resorts minimizes cost of market access

• Platform enables B2C and B2B entry

NATIONAL MARKETACCESS

LEADING PRODUCTAND TECHNOLOGY

• Fully-featured proprietary tech-stack

• Proven capability and superiority worldwide

• Relationship with Entain provides structural cost advantage

EFFICIENT PLAYERACQUISITION AND RETENTION

MARKET LEADING POSITION

WITH SUPERIOR

ECONOMIC STRUCTURE

• Omni-channel attracts and retains players with money-can’t-buy experiences

• Award-winning rewards program builds loyalty and provides distinct competitive advantage

• Strategic partnerships deliver players nationwide at attractive costs per acquisition (“CPA”)

RESPONSIBLEGAMBLING

• Longstanding history in responsible gambling leadership

• Committed to a balanced approach to growth

• Our goal is to provide players with an entertaining and safe gambling experience

29

• MGM CHINA PROPERTY DATAS U P P L E M E N T A L


1 Adjusted EBITDA is profit/loss before finance costs, income tax expense/benefit, depreciation and amortization, gain/loss on disposal/write-off of property and equipment, and other assets, interest income, net foreign currency difference, share-based payments, pre-opening costs and corporate expenses which mainly include administrative expenses of the corporate office and license fee paid to a related company. Adjusted EBITDA is used by management as the primary measure of the Group’s operating performance and to compare our operating performance with that of our competitors. Adjusted EBITDA should not be considered in isolation, construed as an alternative to profit or operating profit as reported under IFRS or other combined operations or cash flow data, or interpreted as an alternative to cash flow as a measure of liquidity. Adjusted EBITDA presented in this announcement may not be comparable to other similarly titled measures of other companies operating in the gaming or other business sectors.

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

M G M C H I N A F I N A N C I A L I N F O R M A T I O N U N D E R I F R S

Three Months EndedMarch 31

2021 2020HK$'000 HK$'000

(unaudited) (unaudited)

Revenue

MGM Macau $1,318,121 $1,128,806

MGM Cotai $980,703 $984,255

Total Revenue $2,298,824 $2,113,061

Adjusted EBITDA1

MGM Macau $169,973 $34,121

MGM Cotai ($85,610) ($156,800)

Total Adjusted EBITDA $84,363 ($122,679)


(in thousands, except for percentages and revenue per available room (“RevPAR”))


311 The total of “VIP gross table games win”, “main floor gross table games win” and “slot machine gross win” is different to the casino revenue because casino revenue is reported net of commissions and certain sales incentives including the allocation of casino revenue to hotel rooms, food and beverage and other revenue for services provided to casino customers on a

complimentary basis. 2 Permanent table count as of March 31, 2021 and 2020




MGM MACAU2021 2020

HK$'000 HK$'000(unaudited) (unaudited)

VIP Table Games Turnover 10,398,589 15,792,808VIP Gross Table Games Win1 368,985 502,552VIP Table Games Win Percentage 3.55% 3.18%Average Daily Gross Win Per VIP Gaming Table 60.6 111.5Main Floor Table Games Drop 4,672,214 3,413,565Main Floor Gross Table Games Win1 980,622 744,335Main Floor Table Games Win Percentage 21.0% 21.8%

Average Daily Gross Win Per Main Floor Gaming Table 50.5 55.0

Slot Machine Handle 3,527,202 3,324,631Slot Machine Gross Win1 142,756 113,114Slot Hold Percentage 4.0% 3.4%Average Daily Win Per Slot 2.4 1.8Commissions, complimentaries and other incentives1 (307,695) (332,258)

Room Occupancy Rate 81.1% 44.0%RevPAR 961 881

As of March 31Gaming Units: 2021 2020Tables2 287 285Slot Machines 694 575




(in thousands, except for percentages and revenue per available room (“RevPAR”))


MGM COTAI2021 2020

HK$'000 HK$'000(unaudited) (unaudited)

VIP Table Games Turnover 8,007,850 10,823,869VIP Gross Table Games Win1 237,200 340,911VIP Table Games Win Percentage 2.96% 3.15%Average Daily Gross Win Per VIP Gaming Table 51.2 92.8Main Floor Table Games Drop 3,427,066 2,628,142Main Floor Gross Table Games Win1 803,010 713,537Main Floor Table Games Win Percentage 23.4% 27.1%

Average Daily Gross Win Per Main Floor Gaming Table 41.6 56.4

Slot Machine Handle 3,992,534 3,397,889Slot Machine Gross Win1 93,604 111,598Slot Hold Percentage 2.3% 3.3%Average Daily Win Per Slot 1.5 1.7Commissions, complimentaries and other incentives1 (289,225) (328,406)

Room Occupancy Rate 47.0% 33.2%RevPAR 469 585

As of March 31Gaming Units: 2021 2020Tables2 265 267Slot Machines 662 462

1 The total of “VIP gross table games win”, “main floor gross table games win” and “slot machine gross win” is different to the casino revenue because casino revenue is reported net of commissions and certain sales incentives including the allocation of casino revenue to hotel rooms, food and beverage and other revenue for services provided to casino customers on a complimentary basis. 2 Permanent table count as of March 31, 2021 and 2020


FIRST QUARTER 2021 EARNINGS · 2021. 4. 28. · •MGM Resorts (consolidated) had $9.7 billion of...

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