MGM Resorts International

Good afternoon, and welcome to the MGM Resorts International First Quarter 2026 Earnings Conference Call. Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President, Aisha Molina, Chief Operating Officer, Jonathan Healthyard, Chief Financial Officer, Gary Fritz, Chief Commercial Officer and President of MGM Digital, Kenneth Feng, Chief Executive Officer of MGM China Holdings, and Howard Wong. Vice President, Investor Relations. Participants are in listen-only mode. After the company's remarks, there will be a question-and-answer session. In fairness to all participants, please limit yourself to one question and one follow-up. Please note, this conference is being recorded. Now I'd like to turn the conference over to Howard Wong.

Thank you, Rocco. Welcome to the MGM Resorts International's first quarter 2026 earnings call. This call is being broadcast live on the Internet at investors.mgmresorts.com, and we have also furnished our press release on Form 8K to the SEC. On this call, we will make forward-looking statements under the safe harbor provisions of the federal securities laws. Actual results may differ materially from those contemplated in these statements. Additional information concerning factors that could cause actual results to differ from these forward-looking statements is contained in today's press release and in our periodic filings with the SEC. Except as required by law, we undertake no obligation to update these statements as a result of new information or otherwise. During the call, we will also discuss non-GAAP financial measures when talking about our performance. You can find the reconciliation of the GAAP financial measures in our press release and investor presentation, which are available on our website. Finally, this presentation is being recorded. I'll now turn it over to Bill Horbrook.

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 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 an exceptionally strong leisure comparative. 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 typically our seasonally strong group and convention quarter of the year, and we experienced robust business related to both citywide conventions like CES and CONAG, as well as in-house programs at Mandalay and MGM Grand. We achieved record 1Q convention ADRs and catering 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 two percentage points year-over-year to 20%. As the city evolves, we're making sure we are leaders in innovation. The MGM Gaming Streaming Lounge, which opened at Park MGM and received all regulatory approvals during the quarter, is another exciting step. We developed a premium creator 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 has always offered opportunities for our guests seeking value experiences. This quarter, we challenged ourselves to be more creative and launch 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 properties. The feedback we're 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 24th 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 has also been named a target city for the NBA expansion team, and we are actively engaged in discussions from leagues 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 in Las Vegas, and MGM is capturing that momentum. Las Vegas' ability to adapt its mix, its 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 EBITDA was impacted by our new brand fee. Jonathan will remind you of those details in this 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 masks to support future growth, and the suite conversion and renovated premium gaming areas at MGM Kotai 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, a 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 operators. We are moderating spend in sports to focus on returns while our online sports business also continues to grow, and we remain focused on driving profitable growth and margin. Our core strengths remain unchanged. iGaming, multi-product states, our omni-channel present in Nevada, and our focus on premium math 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 U.K. continue to drive our Leo Vegas B2C business, where the top line grew over 30%. These are also the next two stops for our sportsbook integration. Further validation, our acquisition of Tipco's U.S. sportsbook technology. We're 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. and we are an opportunistic as ever, keeping in mind we expect to be the sole licensing operator in Japan upon opening. The population and visitation metrics are massive, as we've discussed. Japan has over 120 million residents and hosts over 40 million international visitors annually. MGM Osaka remains on time and on budget for 2030 opening. With the first quarter of 26 complete, our optimism across all various business segments continues to hold firm, especially in Las Vegas. We remain on track for growth this year. With that, I'll now hand it over to Jonathan to provide additional details on performance this quarter.