Latest news with #BillHornbuckle
Yahoo
14-05-2025
- Business
- Yahoo
MGM Q1 Earnings Call: Digital Turnaround and International Expansion Take Center Stage
Hospitality and casino entertainment company MGM Resorts (NYSE:MGM) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 2.4% year on year to $4.28 billion. Its non-GAAP profit of $0.69 per share was 51.5% above analysts' consensus estimates. Is now the time to buy MGM? Find out in our full research report (it's free). Revenue: $4.28 billion vs analyst estimates of $4.27 billion (2.4% year-on-year decline, in line) Adjusted EPS: $0.69 vs analyst estimates of $0.46 (51.5% beat) Adjusted EBITDA: $637.1 million vs analyst estimates of $1.14 billion (14.9% margin, 44.2% miss) Operating Margin: 9%, down from 10.5% in the same quarter last year Free Cash Flow Margin: 7.5%, down from 8.6% in the same quarter last year Market Capitalization: $9.5 billion MGM Resorts' first quarter results were shaped by progress in its digital business and continued emphasis on loyalty programs and strategic partnerships. CEO Bill Hornbuckle attributed the company's performance to the rapid turnaround at BetMGM, robust engagement from its MGM Rewards program—which surpassed 50 million members—and strong contributions from the Marriott partnership in driving hotel occupancy. Management also pointed to record March results in key metrics, particularly on the Las Vegas Strip, and highlighted the ability of certain segments to generate adjusted EBITDA margins at or above 30%. Looking ahead, management emphasized ongoing investments in international projects and digital expansion. Hornbuckle noted, 'Our digital businesses in the US and beyond are growing and turning profitable,' and described the company as well positioned for future growth with a pipeline that includes new developments in Japan and potential opportunities in New York. CFO Jonathan Halkyard reinforced the focus on operational agility and disciplined capital allocation, indicating that while share repurchases have been aggressive, capital will be reserved for large-scale projects moving forward. Management's remarks highlighted several operational levers and strategic initiatives that shaped the quarter's financial performance. The company noted that digital segment gains, loyalty program expansion, and new partnerships were key contributors, while cost discipline and international investments continue to play central roles. Digital turnaround at BetMGM: The BetMGM business reported a 34% increase in net revenue and positive EBITDA, reversing prior losses. Management credited a more targeted approach to customer acquisition and improved engagement in both iGaming and online sports. Loyalty program growth: MGM Rewards reached 50 million members, up over 50% since 2020. Hornbuckle called this database growth unmatched among mature gaming peers and tied it directly to omnichannel opportunities, particularly in leveraging the Marriott partnership. Marriott channel drives occupancy: The Marriott partnership delivered over 440,000 room nights through April, with management describing these guests as highly accretive and supportive of record first quarter slot win. Group customers now also earn Marriott Bonvoy points, further boosting appeal for conventions. International expansion momentum: The company made progress in Japan by finalizing contractor agreements and breaking ground in Osaka, with management remaining confident in the project's high-teens percentage return potential. In Macau, MGM China maintained a mid-teens market share and increased its dividend payout policy. Cost discipline and digital efficiency: The company reduced full-time equivalent employees across regions, aided by increased use of digital customer interactions for services like concierge and call centers. Management indicated that such digital interfaces handle a significant portion of initial traffic for these services, helping contain labor costs, with AI adoption noted as an emerging element. MGM Resorts' forward outlook centers on digital profitability, international project execution, and the ability to drive operating efficiency amid shifting macroeconomic conditions. Digital business scaling: Management expects continued profitability improvements from BetMGM and international digital operations, with Brazil seen as an early bright spot and further product launches planned. International projects ramping up: The Osaka integrated resort in Japan and potential New York casino license are expected to require significant capital outlays, with management aiming for high return on investment. The company has hedged most of its equity commitment to Japan to limit currency risk. Operational cost control focus: Ongoing use of digital tools and process automation is expected to help manage labor expenses and support margin stabilization, even as inflation and tariffs present near-term headwinds. Brandt Montour (Barclays): Asked how Las Vegas demand trends are evolving in April and about the impact of lower Canadian inbound travel. Management replied that overall demand remains strong due to group and event bookings, and Marriott partnership offsets softer Canadian leisure travel. Carlo Santarelli (Deutsche Bank): Questioned whether lower payroll growth reflects cost savings initiatives. Management confirmed ongoing efforts to manage labor costs, including headcount reductions and increased digital interactions with customers. David Katz (Jefferies): Sought clarity on cost variability for the Japan project given material price risks. Management noted contingencies are built into budgets and emphasized scope certainty before construction begins. Shaun Kelley (Bank of America): Asked about investment cadence in Brazil's digital launch and future capital allocation as large projects ramp up. Management stated that marketing spend in Brazil is concentrated in the first half of the year and future share repurchases will be balanced against project funding needs. Chad Beynon (Macquarie): Probed sensitivity of non-gaming revenue trends and the potential impact of tariffs on future capital projects. Management said non-gaming trends are stable, and tariffs are not expected to materially impact near-term development plans. In coming quarters, the StockStory team will be watching (1) the continued profitability and user growth of BetMGM and the broader digital portfolio, (2) progress on the Osaka project's construction milestones and Japan's regulatory environment, and (3) evidence that the Marriott partnership and loyalty expansion sustain higher occupancy and slot metrics. Execution against these markers will be crucial as capital commitments rise and competitive dynamics shift. MGM Resorts currently trades at a forward P/E ratio of 15.6×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Skift
05-05-2025
- Business
- Skift
MGM Sets Date for Dubai Resort
MGM has been trying to enter the UAE since 2006, but something has always gotten in the way. This time seems different. MGM Resorts CEO and President Bill Hornbuckle said the company's Dubai project will finally be ready in the third quarter of 2027. If the timeline holds, it will mark the end of a 20-year effort to establish a foothold in the UAE. 'That building [the MGM in Dubai] is due to complete third quarter of '27. We are literally up on the fifth floor of the MGM Tower as we speak,' Hornbuckle told investors during the company's first-quarter earnings call on April 30. The development is known as 'The Island' and the plan includes three MGM brands — Aria, MGM, and Bellagio — combined into a 1,400-room beachfront resort. A 'Dubai Sphere' is also part of the plan. The project was originally announced in 2017 by Dubai's ruler, and has moved slowly. And MGM's efforts to enter the UAE date back to 2006 when MGM announced a new partnership with Abu Dhabi government developer Mubadala to explore opportunities. A render of MGM's 'The Island' project in Dubai A 20-Year History In 2007, MGM and Mubadala announced plans for a $3 billion non-gaming resort in Abu Dhabi with a projected 2012 opening. In 2011, Abu Dhabi officials said the project was still 'under review' and it has not been mentioned publicly since by either party. Also in 2007, Dubai World, the emirate's state-owned investment company, acquired a 9.5% stake in MGM Resorts (then MGM Mirage) and formed a joint venture aimed at building the $8.5 billion CityCenter complex in Las Vegas, with Dubai World holding a 50% stake through its subsidiary Infinity World Development Corp. The JV did not include plans to build projects in the UAE. In 2009, MGM announced its own project in Dubai, with plans for a 250-room Bellagio, a 350-room MGM Grand, and a Skylofts hotel as part of the Pearl Dubai development near Palm Jumeirah. The project never took off. The land remained largely undeveloped, and in 2023, the Dubai government repossessed the site and demolished all partially built structures. The land remains vacant, with no announced plans for reuse. MGM bought out Dubai World's stake in their joint venture in 2021 for $2.1 billion, and later sold parts of the real estate portfolio to Blackstone in a $3.8 billion deal. The New Gaming Landscape The 2027 target date for The Island coincides with a broader shift in the UAE's stance on gaming. Wynn Resorts is on track to open its integrated resort with a casino in Ras Al Khaimah — about an hour from Dubai — in early 2027. Wynn already holds a gaming license and is positioning the property to attract customers from Dubai and Abu Dhabi. Asked about MGM's own efforts to secure a license, Hornbuckle told investors that the decision rests entirely with local leadership. 'It's completely in their hands,' he said on the earnings call, referring to the UAE's seven sheikhs. 'This is just like the [United] States. It's in the province of any one of the individual rulers to determine whether they want gaming or not. They haven't said yes, they haven't said no.' The UAE established its federal gaming regulator — the General Commercial Gaming Regulatory Authority (GCGRA) — in 2023. In September 2024, Hornbuckle confirmed that MGM had submitted an application for a gaming license in Abu Dhabi. In November, the GCGRA stated it was in no rush to expand the casino sector beyond Wynn's project, signaling that the company may hold a monopoly for several years. CBRE estimates the gross addressable market of casinos in the UAE at upwards of $8.5 billion. This would suggest the UAE casino market would be similar in size to the Las Vegas Strip and 50%-70% larger than Singapore's current casino industry. Why This Time Might Be Different Despite the delays, several developments suggest that MGM's Dubai resort may finally cross the finish line. In late 2023, Wasl Asset Management — the local developer backing the project — awarded a $1.2 billion construction contract to China State Construction Engineering Corporation to build The Island. The GCGRA is chaired by Jim Murren, former chairman and CEO of MGM Resorts and Hornbuckle's former boss. The GCGRA board also includes William W. Grounds, the former president and COO of Infinity World Development Corp. Grounds was also on MGM's board when Murren was CEO. Hornbuckle said on the call that he and a team had just met with the Dubai prince. "[Our] mission [when in Dubai] was to see the prince and to update him on our project, tell him the opportunity that we thought it could bring, not only in the context of a fully integrated resort like we're building MGM, Aria, Bellagio, but the potential gaming could bring to not only UAE, but Dubai specifically and the whole notion of entertainment and the kind of unique things that we could bring to the city."
Daily Mail
01-05-2025
- Business
- Daily Mail
Popular Las Vegas hotel chain makes major change to properties
One of the major Las Vegas hotel chains has announced a major change to its properties as international travelers avoid the United States. MGM Resorts International announced over the weekend that it is shutting down its in-person concierge services at six of its properties along the infamous Strip, the Las Vegas Review-Journal reports. In an email issued by a company representative, the concierge desks at MGM Grand, The Signature, New York-New York, Mandalay Bay, Park MGM and Vdara were to close as of April 28. There would be no changes to operations at ARIA Resort and Casino, Bellagio and Casino and the Cosmopolitan of Los Vegas, and concierge calls to MGM Resorts will be routed to ARIA and Bellagio. In total, 34 employees are losing their jobs in what the company has called 'streamlining.' About half of them have now found new positions within the company, while the other half have been given transitional support, according to News 3 LV. Company executives insist the cutbacks are meant to meet 'evolving guest preferences' as demand for in-person services is declining - and are not the result of any budget cuts. In fact, on Wednesday, CEO Bill Hornbuckle announced that MGM Resorts International had a 'solid' performance from its Vegas resorts in the first quarter, according to KLAS. Speaking of the change to the concierge desk, Hornbuckle suggested in an earnings call on Wednesday that the company is looking to use more AI assistance. 'In the front end of our business, we're beginning to see more and more digital interaction, whether it's concierge or call centers, people calling down for "I want a pillow for my room,"' he explained. 'And so the digital interface, which is probably carrying 80 percent of the traffic now, at least intentionally and ultimately a small spattering we're going to get more and more into this of AI, is proving to be very productive. 'And so we're going to continue down that track.' But the change comes after a damning report by the Las Vegas Convention and Visitors Authority found that Sin City welcomed just 3.39 million visitors last month, down nearly eight percent from 3.68 million in February. It also found that hotels were 82.9 percent full last month, compared with 85.3 percent full in March 2024. Midweek occupancy recorded a decline of 2.5 percent in the same period, despite more than half a million people attending conferences. Casinos also reported an almost five percent drop over the past year. Statewide, the figure fell by 1.1 percent. In downtown Las Vegas, rooms were fractionally cheaper than they were a year ago at an average of $100.31 compared with $100.97 - though Hornbuckle suggested part of the decline is due to the fact that the city hosted the Super Bowl last year. Yet a similar report by the International Trade Administration found that the number of foreign air passengers had plunged by 10 percent over the past year. In Las Vegas, Harry Reid International Airport recorded a four percent decline in passengers according to the Clark County Department of Aviation, and road traffic dipped by 3.1 percent, according to the LVCVA. The decline in international tourism could now cost the US economy almost $90billion, Bloomberg reports. The article quoted a Canadian family who is shunning the US in the wake of punitive tariffs and inflammatory remarks by President Trump. Other tourists have also canceled their trips to the US amid fears they could be caught up in the president's immigration crackdown. Last week two young German tourists found themselves detained and deported for not having any accommodation booked when they arrived in Hawaii. In March a British backpacker found herself locked up for nearly three weeks after allegedly having the wrong type of visa when she tried to enter the US from Canada. The British government has since warned that travelers could face being arrested or detained if they fail to abide by rules that are being strictly enforced by US border agents. Research firm Tourism Economics ultimately estimates that visits to the US will decline by 5.1 percent in 2025, which will ultimately contribute to a $64 billion loss for the domestic tourism industry. The company originally forecasted a nearly 9 percent tourism jump this year, but revised its numbers late last month due to 'polarizing Trump Administration policies and rhetoric.' 'There's been a dramatic shift in our outlook,' Adam Sacks, president of Tourism Economics, told the Washington Post. 'You're looking at a much weaker economic engine than what otherwise would've been, not just because of tariffs, but the rhetoric and condescending tone around it.' Want more stories like this from the Daily Mail? Visit our profile page and hit the follow button above for more of the news you need.
Daily Mail
01-05-2025
- Business
- Daily Mail
Popular Las Vegas hotel chain make major change to properties
One of the major Las Vegas hotel chains has announced a major change to its properties as international travelers avoid the United States. MGM Resorts International announced over the weekend that it is shutting down its in-person concierge services at six of its properties along the infamous Strip, the Las Vegas Review-Journal reports. In an email issued by a company representative, the concierge desks at MGM Grand, The Signature, New York-New York, Mandalay Bay, Park MGM and Vdara were to close as of April 28. There would be no changes to operations at ARIA Resort and Casino, Bellagio and Casino and the Cosmopolitan of Los Vegas, and concierge calls to MGM Resorts will be routed to ARIA and Bellagio. In total, 34 employees are losing their jobs in what the company has called 'streamlining.' About half of them have now found new positions within the company, while the other half have been given transitional support, according to News 3 LV. Company executives insist the cutbacks are meant to meet 'evolving guest preferences' as demand for in-person services are declining - and are not the result of any budget cuts. In fact, on Wednesday, CEO Bill Hornbuckle announced that MGM Resorts International had a 'solid' performance from its Vegas resorts in the first quarter, according to KLAS. Speaking of the change to the concierge desk, Hornbuckle suggested in an earnings call on Wednesday that the company is looking to use more AI-assistance. 'In the front end of our business, we're beginning to see more and more digital interaction, whether it's concierge or call centers, people calling down for "I want a pillow for my room,"' he explained. 'And so the digital interface, which is probably carrying 80 percent of the traffic now, at least intentionally and ultimately a small spattering we're going to get more and more into this of AI, is proving to be very productive. 'And so we're going to continue down that track.' But the change comes after a damning report by the Las Vegas Convention and Visitors Authority found that Sin City welcomed just 3.39 million visitors last month, down nearly eight percent from 3.68 million in February. It also found that hotels were 82.9 percent full last month, compared with 85.3 percent full in March 2024. Midweek occupancy recorded a decline of 2.5 percent in the same period, despite more than half a million people attending conferences. Casinos also reported an almost five percent drop over the past year. Statewide, the figure fell by 1.1 percent. In downtown Las Vegas, rooms were fractionally cheaper than they were a year ago at an average of $100.31 compared with $100.97 - though Hornbuckle suggested part of the decline is due to the fact that the city hosted the Super Bowl last year. Yet a similar report by the International Trade Administration found that the number of foreign air passengers had plunged by 10 percent over the past year. In Las Vegas, Harry Reid International Airport recorded a four percent decline in passengers according to the Clark County Department of Aviation, and road traffic dipped by 3.1 percent, according to the LVCVA. The decline in international tourism could now cost the US economy almost $90billion, Bloomberg reports. The article quoted a Canadian family who is shunning the US in the wake of punitive tariffs and inflammatory remarks by President Trump. Other tourists have also canceled their trips to the US amid fears they could be caught up in the president's immigration crackdown. Last week two young German tourists found themselves detained and deported for not having any accommodation booked when they arrived in Hawaii. In March a British backpacker found herself locked up for nearly three weeks after allegedly having the wrong type of visa when she tried to enter the US from Canada. The British government has since warned that travelers could face being arrested or detained if they fail to abide by rules which are being strictly enforced by US border agents. Research firm Tourism Economics ultimately estimates that visits to the US will decline by 5.1 percent in 2025, which will ultimately contribute to a $64 billion loss for the domestic tourism industry. The company originally forecasted a nearly 9 percent tourism jump this year, but revised its numbers late last month due to 'polarizing Trump Administration policies and rhetoric.' 'There's been a dramatic shift in our outlook,' Adam Sacks, president of Tourism Economics, told the Washington Post. 'You're looking at a much weaker economic engine than what otherwise would've been, not just because of tariffs, but the rhetoric and condescending tone around it.'
Khaleej Times
19-02-2025
- Business
- Khaleej Times
UAE: MGM Resorts sees ‘opportunity for gaming expansion in Dubai'
The US-based MGM Resorts International said it has an agreement to bring three of its brands to the UAE. The multinational hospitality, entertainment and casino firm has a non-gaming management contract with a Dubai firm but sees a 'potential opportunity for gaming expansion in Dubai' following the establishment of the General Commercial Gaming Regulatory Authority (GCGRA) in the UAE. In October 2024, Wynn Resorts was awarded a Commercial Gaming Facility Operator licence by the General Commercial Gaming Regulatory Authority (GCGRA) of UAE to develop the Wynn Al Marjan Island resort in Ras Al Khaimah. Wynn Al Marjan is the first entity to have the licence to operate an integrated gaming resort in the Middle East. 'In the UAE, we currently have a non-gaming management agreement with Wasl Hospitality to bring the Bellagio, Aria, and MGM Grand brands to Dubai. With the UAE's establishment of the General Commercial Gaming Regulatory Authority, tasked with creating a regulatory framework for commercial gaming, we are encouraged by the potential opportunity for gaming expansion in Dubai. We are continuously exploring new geographies for future development, including Thailand,' MGM Resorts said in its annual report. Bill Hornbuckle, CEO and president of MGM Resorts International, last year said at Skift Global Forum 2024 that the US-based hotel operator has applied for a licence to operate a gaming facility in the UAE. "Yes, we have (applied). We've done it in Abu Dhabi,' he said during the Forum. Last week, Craig Billings, CEO of Wynn Resorts, dismissed any concerns around the UAE granting a licence to its competitors to build another integrated gaming resort in the country. While speaking during an earning call after the fourth quarter results, Billings said it takes at least four years to design and build an integrated gaming resort, therefore, they have the advantage of being the first. 'We don't believe that every emirate will avail themselves of potential license by any means. And as we keep our ear to the ground with respect to what's going on… We're opening in March 2027, so think about the fact that it takes a minimum of four years to design and build an integrated resort. You can imagine that we're going to have a very, very healthy lead,' he said during a conference call with analysts. Billings sees the UAE gaming market reaching $3-$5 billion (Dh11 to Dh18.35 billion) over time.
