We will now begin question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then 2. As a reminder, in all fairness, please limit yourself to 1 question and 1 follow-up. Our first question today comes from Daniel Politzer with JPMorgan. Please go ahead.

Hey, good afternoon, everyone, and thanks for the questions. I wanted to first start with Las Vegas and the health in the underlying market there. It does seem like, Bill, based on your comments that it is getting better. But maybe if you could walk us through the second quarter and the cadence and how it progressed and maybe give us a glimpse into July as we really start to pace some of those easier comparisons. And then, obviously, tie in with any of the recent initiatives, how those are maybe helping out? Thanks.

Yeah. Thanks, Daniel, for the question, and we will do. And then, Ayesha, you can help me pile on top here. Look, I think the second quarter as we reflect back, April and May were strong. May was exceptionally strong driven by events and other activity. In April, we had our $10 million baccarat tournament, which was extremely successful. June was more challenged. I think it is the summer heat picked up, and we got into the real throes of summer. July, on the other hand, has been good. And so, you know, I think we have seen ups and downs in summer, and frankly, I think we will continue to see so. As we think about the third quarter and beyond. But again, healthy group business helped the quarter. Great events, which we continue to see throughout the course of the year. And overall, I think the package has helped at Excalibur and Luxor stabilized occupancies and somewhat ADRs. And so as we think about 3 and 4, we like what we see in the third quarter. We got some work to do in the fourth quarter. I just think I covered it. Okay. Okay. I thought it was a good response, so, I am happy. Okay. Good. Yeah.

I think just turning kind of more broadly to kind of the value of the stock. Right? I think, Jonathan, you mentioned MGM has bought back about 50% of its shares in the past 5 years. I think the average price is probably around $40 or so. The stock's sitting here today at $46 So how do you think about the current value of your stock here and the attractiveness given some of the longer term value drivers that you talked about such as Osaka?

Yes. I think your math is about right in terms of what the price has been over the past several years in our share repurchases. We have--we bought back fewer shares in this past quarter. Only about $164 million worth at about I would say about $37 a share or thereabouts. So, of course, we think that is been a good use of capital. You know, as it relates to the current value of the stock, we have gone through this on a number of prior quarters in terms of the sum of the parts valuation and, you know, in our view, given the current trends really has not changed from that. Understood.

Thanks so much.

The next question is from Barry Jonas with Truist Securities. Please go ahead.

Questions. Just wanted to dig in a little more on Strip trends., record group and convention bookings in the quarter, but RevPAR still down a little. So anything you can call out, whether that is specific properties or, you know, is it still sort of a kind of lower-end leisure driving that softness? And I guess, related to that, do you see a path to return to growth in RevPAR sometime this year? Thank you.

No, I just want to this is Ayesha. I just want to highlight again what Bill noted in his script and his previous comment. We have seen growth in overall Las Vegas revenue as well as EBITDAR. And so we are pleased with what we are seeing there. You know, in terms of RevPAR, I just note that is a--it is a non-cash metric. Overall, I think we continue to see really strong strength in the luxury segment. As we have noted, lower end of the segment, particularly Luxor and Excalibur, those do remain challenged, but we have been deploying offers such as the all inclusive. We have seen positive reaction to that. So overall, I think, you know, we are seeing real health in the group segment. We are seeing real health in the group segment. We are real health in the luxury segment, and then we are seeing a sort of a continued relatively stabilized trend at the lower end.

Got it. that is that is helpful. And then I guess just maybe 1 on regionals. You have seen what the Sphere has done in Vegas. Just curious how much of an impact you think the Sphere can do for National Harbor when it opens?

Yes. Hi, Barry. Bill. So they are projecting 2.5 million visitors which seems about right. I think it is about a 6.5 thousand-seat facility when it is all said and done. Know they are finalizing plans, I do not want to get ahead of them. But that is the visitation that is being contemplated, which is significant. And so, whether those are new customers, I think many of them will be for us, and they will come from farther away just to see it. And we have seen that obviously in Las Vegas. So we expect to capture our fair share of that and then some. Given that it is literally on our doorstep. And I think they will use much of our parking facility, which places them in the midst of our casino environment. So we are pretty excited by all of it. Thank you so much.

The next question is from Shaun Kelley with Bank of America. Please go ahead.

Hi, good afternoon, everyone, and thanks for taking my question. To start with a CapEx related question. I think a couple of times both in the prepared remarks and throughout, you mentioned about investing further in the luxury side of the portfolio. So just curious, I mean, for Jonathan or Bill, whoever wants to take it, does this stay within your sort of normal growth capital bounds? Are there any sort of larger projects or larger ideas that you might have that may push kind of around those, you know, kind of those levels that you have been sticking to in the last couple of years or just how should we think about sort of that those comments and sort of what you are thinking about really 2027 and beyond?

I think, Sean, a great way to think about it is generally, Although particularly here at Bellagio, we are thinking about more villas potentially because we only have 8 to draw from, 8 or 9 whatever it is. Think it is 8. And so we are thinking about more villas Our convention and meeting space, as I mentioned in my prepared comments, need some work. We have seen tremendous success with activation of Lakeside with Carbone and Riviera. So we are gonna look to continue on that theme. I think you could think about it at least for today, in the context of where we are. And if we, you know, if we add to that, understand what the consequence to that, but we think it we do not we would only add to that if we thought it was gonna pay a real dividend.

And, Sean, this is Jonathan. 1 of the ways, you know, I also think about it, and I think this is probably pretty useful in terms of modeling is that you know, we can do quite a lot of work to improve within our existing footprint in that level of CapEx that we have been spending the last 3 or 4 years to the extent that we expand the footprint, we add capacity, we add square footage to our portfolio here in Las Vegas, then it would likely be additive to that base level of CapEx. As an example, we did as you know, a very large room renovation to the MGM Grand We are contemplating, you know, 1 later this year beginning in ARIA. Both of those projects have been and will be done within that basic level of CapEx that we have spent the last few years. But if we did something beyond that to add capacity, it would likely be above.

And Sean, maybe just as a more global thesis Las Vegas is our home. Las Vegas is the epicenter of gaming in many respects. it is not going anywhere, and there is no I do not think anything immediately it is gonna come even close to competing with it. So we believe in its not only midterm, but long term future. And so we want to continue to invest aggressively where it makes sense and luxury and luxury--luxury experiences, not necessarily items, are down that--down that lane.

Perfect. Thank you both. And then just maybe a quick 1 on just the MGM Digital on sort of the international piece, non BetMGM. But just help us think through the inflection in that business. There was a little bit there saying, obviously, loss is equal to or a little less than last year for this year. But is there a bigger sort of j curve or inflection in 2027? It sounded like we were maybe headed in that direction. We something about funding, helping to start self fund maybe some of those, investments in Brazil. So if you could just elaborate on that a little? Yeah.

Sure. it is Gary. Well spotted. Yeah. I think that is right. The way you should think about MGM Digital, we basically have the, you know, European, LeoVegas, operated portfolio, LeoVegas branded business, and the BetMGM branded business in Europe. That business, is setting up, as Jonathan remarked, in 2027, for significant operating leverage. And, likely, you know, substantial levels of profitability. And then, you know, we can use that to you know, at our discretion to, you know, finance the remaining growth investments in the portfolio, which are largely dominated by Brazil, in terms of what we have line of sight on. So we do think there will be the ability to self fund in part the ongoing investments in Brazil a few other geographies around the world. You know, the exact nature of how much will be self funded completely you know, we are working out through the budgeting process that we are in for 2027, but we do anticipate some degree of self financing from, the core LeoVegas business. Thank you so much.

The next question is from David Katz with Jefferies. Please go ahead.

Afternoon. Thanks for taking my question. I wanted to just go back to the all inclusive offerings. I think the term you may have used is supported. In reference to Luxor and Excalibur. I would love just a little more color on, you know, whether that is we would classify that as, you know, upward momentum. And, you know, all of this in the context of some of the prior questions around you know, some of the sort of lower-half or lower-quartile properties within the portfolio. And how they are doing. Thank you.

Yeah. I will kick it off and turn over to Ayesha. I mean, we have booked well over 30 thousand room-nights on it. It absolutely has helped us stabilize occupancy And again, I think I commented earlier, the narrative around Los Vegas not providing value and everyone getting beat up on that. We think we do not think we know it is helped. We have what we followed it closely through social media and otherwise. And it is a great value at the end of the day. Is the bottom line. Ayesha, I do not know if you want any more color.

But Just a just a couple of other notes. I mean, you know, a couple of things that have been interesting to us. What we have seen is a lot of interest in demand from the customers, particularly around the weekends. And so they have actually been purchasing the package at slightly higher rates. Has been accretive. And from that perspective, we have also been really happy with the margin profile that we have been realizing from that package. So in all, in terms of the gross room nights booked plus the change in narrative plus the margin, we think it is been healthy.

Excellent. And as my with respect to Park MGM, I think you also indicated, you know, a strategy there toward locals. I would love a little more color about that, which is just interesting.

Yeah. Sure. You know, we think that property in particular has appealed to locals for a couple of reasons. First, there is the obvious proximity to T Mobile as well as Adobe within its footprint and the non smoking of it is unique in our portfolio. We also do know that for that property in particular, much of our high end play is locals play, so from that perspective, we have just been taking a look at how to expand its appeal to our local demographic, particularly over the summer. So we have been doing a host of different things including looking at sort of F&B offers for locals as well as parking offers for locals. Even up to and including locals free play offers. And so it is really just a focused attempt at demand generation with within that demographic. Appreciate that. Thank you very much.

The next question is from John DeCree with CBRE. Please go ahead.

Hi, everyone. Thank you for taking my question. Bill, Jonathan, I wanted to ask about your view on kind of the thesis that customers are staying closer to home and that might be 1 of the reasons we are seeing some strength in the regionals. Relative to leisure in Las Vegas and, you know, a record revenue quarter on same store basis. And seeing a little bit of stability in the leisure business in Vegas. how much do you kind of subscribe to that consumer theory? And do you look at this as like a zero sum equation or as Vegas starts to recover, do you think the kind of trajectory in the regional is sustainable so can we kind of do both Vegas and regionals as you look across the database?

I actually can speak maybe to the database transfer. I would say this. You know, Las Vegas is still down on international travel. And while we are picking up some additional seats, particularly as you look at a place like Canada, we are off considerably. And so it needs to continue to focus on that. And then, obviously, particularly in the summer, Southern California is a major drive market. Our drive in traffic hits over 50% generally of how people get here. Principally driven again by that market. And so we do not have a regional casino in California as much as we would love 1, you know, I think it is somewhat limited. I do not know how Ayesha feels, but specific to you.

You know, look, if I take a look at visitor volume year over year, to Las Vegas, I mean, you know, there are puts and takes month by month, but overall, the trends, there is not a significant departure in overall trend line. I do note that, and we are happy about this, our regionals are and we are seeing, you know, consistent visitation among our highest frequency regional visitors, and we are seeing, you know, consistent play among the top demographics there. I do not know that I would say there is a 1-to-1 trade-off. I do not really think of it that way. I think that as sort of the overall macroeconomic environment continues to stabilize, particularly in Southern California. And as Bill noted with international travel, I think we have every reason to be optimistic about Vegas.

that is helpful. I appreciate that color. Thank you. Maybe a quick follow-up on convention group outlook for 2027. I apologize if I missed it. Did you provide any thoughts on bookings or kind of ADR pace for 2027? Obviously, it is been a great year so far, but how does kind of forward years look?

Yeah. I think For 2027, we like our on the books position right now. You know, we still got plenty of runway left for this year and into next year, even for in the year for the for the year. But we think we are headed into 2027 in a strong position from a group perspective.

Okay. Thank you so much.

The next question is from Steven Wieczynski with Stifel. Please go ahead.

Hey, guys. Good afternoon. I wanted to first ask about Macau. And it seems like the promotional environment, you know, over there continues to be pretty intense. And just wondering maybe, from your perspective, what you guys are seeing over there right now. And then how aggressive or non-aggressive you guys have been in terms of, you know, having to or trying to protect your market share?

Kenny, over to you.

Okay. Okay. Thank you. This is Kenny from Macau. Macau has always been a competitive market and will continue to be. MGM, for the post part of 5 or 6 years has demonstrated a consistent and a deep understanding of our customers. We deliver the appropriate offerings, cater to premium demand. I want to see, like, here, we are not it is not purely, like, a promotion, reinvestment. What we are competing is a package it is our products, our services, our innovation, event, our promotion. it is really a package. Like, for example, during the quarter, like, we have completed some meaningful CapEx projects, including our suite conversions, and as well as, like, our premium gaming space. At Cotai. These projects these projects have been well received by our premium customers. And moving on, we will continue to renovate nearly, like, 1 hundred suites at MGM Macau. And our strategy is really to opt in to focus on optimizing the yield. Of every table every slot, every square foot of the casino floor And that is our strategy. it is not a purely, like, reinvestment. it is a package. Like, you can look at it for the past 6 years since pandemic, every quarter, we have, like, always, like, in the, guided range. Of our operating margins. Like, at MGM China level, like, mid twenties to high twenties. We are confident. We feel comfortable that we can sustain such margin going forward. If this level is sustainable. Okay.

Thanks for that, Kenny. And then second question, Bill, going back to Vegas. I want to ask the bundling question maybe a little bit differently. And I guess what I am wondering here is as you guys have kind of rolled out that bundling promotion, so to speak, have you seen that translate into your into growth in your database? You know, just trying to figure out if you are starting to see new folks coming to the market or these are more existing players.

No, it is a great question. Half of the participants in this package are brand new. If you think about Las Vegas in general right now, I think we are under 15% of first-time visitors in total in terms of visitation. And so it is drawing a new customer base. Presumably younger, but I do not think I know that yet. We are gonna try to do some data on that. But yeah, it is 50%, which is, frankly startling. And, you know, importantly, promising.

Okay. Great. Thanks, guys. Appreciate it.

The next question is from Brandt Montour with Barclays. Please go ahead.

Hi, everyone. Thanks for taking the questions. So, first in Vegas, Jonathan, you mentioned whole as being a benefit in the second quarter. Looking back to the last 3 quarters, it just seems like you guys have had a really nice run of hold. And so the question is, is there anything structural or sort of any changes that you have made to mix or anything as we try and figure out where we should be modeling that business on a sort of neutral basis.

Look. I this is Bill. I do not know if I would changed the model or the percentages of the games. I will tell you, you know, we skew--there are half a dozen customers, maybe a dozen customers that we have consistently catered to, and they have enjoyed their services and their time here. And you know, they swing hard. And they swing heavy, and they can go either way. Obviously, this past quarter has been to our advantage, but I would not change the formula yet. I would say that. Okay, that is helpful.

And then 1 more on Macau. You know, when you made that comment, Bill, about volumes recovering sharply in July, what I was hoping you could clarify that was a MGM comment or a industry comment or both so that we can kind of get a sense for, you know, the question the second follow-up question would be, you know, did promo kind of drive that recovery in July and so how we can, you know, think about EBITDA flow through from that from that sort of-- yeah.

I would say, I think we have returned to our normal pace, Kenny. I think it is both, meaning both the market and we have recovered in the context of where we were in June.

Kenny? Yeah. I think I want to say, like, if you look, we are seeing pent up demand. From World Cup period. Actually, the both of visitations and even the business volumes have strongly picked up. Since even the second week of July, when there are still a few matches remaining before the end of the World Cup. And the weekly performance has improved week over week. We believe Macau's gaming revenue last week, added the entire market. Had recovered nearly to Q1 levels. And at MGM, both property visitations and normalized GGR have already exceeded Q1 levels. With the events and the concerts in town in this month and next month, we are confident to see a busy summer in Macau. It can draw popular--popularity and visitations. Perfect. Thanks, everyone.

The next question is from Chad Beynon with Macquarie. Please go ahead.

Good afternoon. Thanks for taking my question. Bill, wanted to ask a strategic question on regionals. I think it is quite clear in that you guys are focusing on market leading properties with, hopefully over $100 million of EBITDA. Obviously, 1 of your companies with some regional assets is going through their HSR process now. And then after the close, Churchill Downs announced that there might be some more regional properties on the market. Can you just update us if there would be markets that kind of help with, you know, the hub and spoke and kind of the long term value for your shareholders? Thanks.

Yeah. Chad, look. I would not say, no never for sure. And while there is always a couple of properties out there that might fit well into the portfolio, and we have kept an eye on that. there is nothing imminent. To the contrary. Okay.

Great. And then drilling in just a little bit more on the result in Vegas, you had a very low hold comparable in Q2 25. You mentioned that, you know, you were on the right side of that this quarter. Are you willing to provide what the hold adjusted number would be for the quarter and what the positive impact? For Vegas was.

No. We do not really like to put kind of a point estimate on that because there are a number things that drive what the whole percentage ultimately is. But you know, but it is in the tens of millions this quarter. It was meaningful, but we do not--we stopped a couple of years ago for presenting any kind of hold adjusted number.

Okay. Thanks, Jonathan. Appreciate it.

The next question is from Stephen Grambling with Morgan Stanley. Please go ahead.

Hey, thanks. Just on the digital side. So we have the update from BetMGM earlier this week. And as you continue to learn from the digital on the international side, how do you think about whether BetMGM U. S. Is being maximizing its current form as a JV? And are there any limitations to evaluating either various ownership structures at this point whether it is an embedded ROFR or other legal components when we think about the JV as the right setup from here?

Look. I, you know, I would say this about the JV, which we continue to say, we have enjoyed our relationship and our partnership. Obviously, we are the brand. They are the technology. there is always things to learn. I think Gary can speak more specifically to that because he oversees these businesses on a daily basis. But the JV is in good shape. And while you never say never to anything, there is nothing contemplated.

So, again, there is no but there is no limit to various structures at this point. it is just a question of you know, what you feel is best and price. Fair enough. I will jump back in the queue. Thank you. Thanks.

The next question is from Benjamin Chaikin with Mizuho. Please go ahead.

Hi. Thanks for taking my question. Recognizing you do not want to comment on hold and some of the other items, I was hoping you could maybe in broad strokes give an assessment of how you are thinking about the underlying business in Vegas in 2Q from an EBITDA perspective, but more importantly, the track--the trajectory of the business in Vegas as you see it today? Understanding that things have improved in July? Thanks.

Yes. Look, I think you have heard throughout our comments our Luxury business remains strong. The top end of our marketplace, the very top end is very strong and continues to be. We still all have, and it is not just us, it is the city of Las Vegas, where value customers are continuing to push We collectively are down 3.5 million visitors from our all time peak, I think, back in 2020--help me here--2019 or 2018, whatever it was. And so, you know, as we think about that, we are going to continue to push ways to do that. We have always been able to get ourselves and keep ourselves to the 90% occupancy range, and we are going to continue to push on that. If you think about what we said about this quarter, it is a good example. Our convention and catering business, all time high. And so that speaks to corporate America, the desire of the destination, the other thing that speaks to, here the marketplace has changed. We are a big event marketplace now. And when something meaningful happens, whether it was just the recent UFC fight with McGregor, or again, believe it or not, BTS, the market responds to it and responds with a great deal of interest and velocity so we are gonna continue to drive it through both the city and independent with events like I mentioned, our Players Era basketball tournament and other that we all want to create because live is what is happening right now, and it is not lost on us or anybody else for that matter. And so, you know, the Sphere has been a big help for the community. We have other competitors who have helped bring in live entertainment, and we are gonna continue to do the same.

Okay. Maybe you may not want to answer this, but just to put a finer point on it, I guess, net of some of the different moving parts in Vegas, are you--do you think you are growing underlying EBITDA today? Thanks.

We are growing revenue for sure. Up against some challenges, on EBITDA. But absolutely, in the long haul, yes, we are. Thank you. Appreciate it.

Ladies and gentlemen, this concludes our question and answer session.

I would like to turn the conference back over to Bill Hornbuckle for any closing remarks. Thank you, operator. Again, I thank everyone's participation. Look, Vegas has remained stable and consistent. Same with Macau. We love where our regional businesses are coming from and our digital programming particularly and the digital piece of Gary's business and the international piece of Gary's business is showing some promise and return. And so, with all that said, we thank you for joining us. Have a great night.

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.