MGM Resorts International

Good afternoon and welcome to the MGM Resorts International second quarter 2026 earnings conference call. Joining the call from the company today are Bill Hornbuckle, Chief Executive Officer and President, Ayesha Molino, Chief Operating Officer, Jonathan Halkyard, Chief Financial Officer, Gary Fritz, Chief Commercial Officer and President of MGM Digital, Kenneth Feng, Chief Executive Officer of MGM China Holdings, and Howard Wang, 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 would like to turn the call over to Howard Wang. Please go ahead.

Thanks. Welcome to the MGM Resorts International second 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 law. Actual results may differ materially from these 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 to GAAP financial measures in our press release and investor presentation, which are available on our website. Finally, this presentation is being recorded. I will now turn it over to Bill Hornbuckle.

Thank you, Howard, and thanks to everyone for joining today's call. Before we review the second quarter results, I want to provide a brief update on the status of the offer received from People, Inc. Since reviewing the offer, our Board of Directors has formed a special committee composed of independent directors with no affiliation or association with Barry Diller, People, Inc., or the proposed transaction. This committee continues to evaluate the proposed transaction and consultation with independent outside advisors. I'm confident our board will pursue the course of action that's in the best interest of the company and our shareholders. I don't have anything more to share at this time, and Jonathan and I are not able to answer any questions during Q&A on this topic. Now turning to our results, we are pleased to report that solid fundamentals and business momentum we saw at the start of the year carried forward into the second quarter. The company delivered record second quarter consolidated net revenue, driven by a second consecutive quarter of year-over-year revenue growth from our Las Vegas Strip Resorts, all-time best regional operations same-store quarterly revenue, and a 20% year-over-year revenue growth at MGM Digital. Revenue for Las Vegas was bolstered by a solid underlying base of group and convention business at MGM Resorts and aided by strong attendance at events around town, ranging from BTS to UFC to a deep playoff run into the Stanley Cup by our very own Vegas Golden Knights. Our group and convention business picked up where it left off in Q1, delivering a 20% room mix in Q2 and keeping us on pace for this market segment to represent a 20% of the room mix for the full year. We drove demand from a diverse customer mix that included technology and hospitality corporate groups as well as top B2B trade shows and professional association meetings leading to the highest second quarter convention ADR in catering and banquet revenue in our history. Our all-inclusive experience in Las Vegas has also sustained solid momentum since launch four months ago. At the end of the quarter, nearly half of the guests booked this offer were first-time visitors to MGM. The initiative has supported occupancies in forward bookings at Luxor and Excalibur, and importantly, turned the value narrative into a positive story. We are constantly creating new experiences for our customers that leverage and highlight the MGM Resorts Las Vegas Strip portfolio. One example is the Players' Era basketball tournament taking place across two weeks this November at Michelob Ultra Arena in Mandalay Bay and the T-Mobile Arena. 24 top collegiate basketball programs from multiple conferences including four of the last five national championship winning programs will play in a bracket style tournament with all games televised on ESPN family of networks. To deliver a world-class experience for teams and for fans, Las Vegas stands unmatched and MGM is proud to offer the ultimate stage. From the all-inclusive experiences to the players-era tournament, this spectrum of experiences we have created aligns with prevailing consumer trends, bridging the more deliberate spending patterns of value-conscious guests with a broadening demand for our premium live experiences. Las Vegas has become the world stage for premier hospitality and entertainment, and MGM is helping to lead the way. We are elevating our commitment to luxury by retouching and reimagining every element of the customer experience, including the convention and public areas within the Bellagio. Room remodels for Aria and the Cosmopolitan are also on the horizon, building upon our already upgraded suites, villas, and high-end gaming areas. We will strategically invest our growth capital into designing creative and inspiring concepts that expand the very definition of luxury, and we're excited to share more details on this vision in the near future. Our regional operations continued their solid performance in the second quarter, resulting in an all-time best revenue quarter on a same store basis. We continue to invest targeted capital throughout our regional portfolio, which between now and the end of the year will include enhancing our premium lounge offerings at both Beaurevage and Borgata, as well as a room remodel beginning at Borgata. We continue to see benefits from the recent upgrades and improvements in high-limit gaming areas, which drove record two-quarter revenues at Borgata and an all-time record quarterly revenue at the Bow. Both were major contributors to all-time same-store record quarterly casino revenues and slot win in the regionals this quarter. At MGM China, we continued to outperform the market in the second quarter while maintaining solid market share of 16.4%, a sequential increase of a full percentage point. While the World Cup temporarily impacted June volumes in Macau, this was a transitory event rather than a secular shift. Our confidence is reinforced by the immediate and encouraging rebound in volumes observed post-tournament throughout the month of July. At our BetMGM North America Ventures, Adam and Gary Deutsch reported second quarter results yesterday. Our second quarter performance keeps us well-positioned to meet our full-year guidance, and our business continues to grow. Remember, over two-thirds of net revenue comes from iGaming, which continues to drive overall growth. In our sports business, despite the unrestrained spending and legally burdened predictive market participants, we are still growing. We are also excited about our recent launch in Alberta, where early performance indicates reflect tangible benefits of our omnichannel presence. I'd note that of the first 8,500 deposits we recorded in Alberta, almost 1,000 had prior relationships with the MGM. MGM Digital reported double-digit revenue growth again this quarter and continues to make progress towards profitability in our underlying businesses. We successfully launched our in-house sportsbook in Sweden ahead of the World Cup, which drove record high player activity. We have seen great traction with our products, which have led to phenomenal growth in both Ben MGM branded services internationally. In Brazil, the environment continues to be dynamic and fluid, but we remain bullish on the long-term opportunity. Turning to Osaka, our construction continues to reach milestones on a timely basis as we advance towards the 2030 opening. The underground work is progressing nicely, with over 60% of foundation piles completed. Above ground, the property's main structure is taking shape with ongoing concrete placement and structural steel fabrication. We remain on time and on budget as the only licensee in Japan for what we consider the greatest greenfield opportunity in the world. In closing, MGM Resorts delivered a strong first half of the year, which should come as no surprise considering the enterprise achieved record-breaking 2Q results on our NPS scores. Again, I want to thank every one of our team members for their tremendous daily efforts that drove the record net promoter scores. We're excited as we look forward to the second half of the year as our business is positioned for continued positive momentum, driven by a solid base of group and convention business at MGM Resorts, particularly led by the tech sector. This is further complemented by an expanded sports and entertainment events calendar taking place citywide that represents an increased number of events compared to that the third quarter last year. I'll now pass it over to Jonathan to provide some additional details on our performance before we open up for questions.