MGM Resorts International has unveiled robust financial results for the second quarter of 2023, posting record-breaking revenue of $3.9 billion. The remarkable 21% year-over-year surge underscores MGM’s resilience and strategic positioning in the evolving market landscape.
Revenue Breakdown:
Divisional Contribution: MGM’s revenue composition comprises three key divisions—Las Vegas, US Regional Operations, and MGM China. Las Vegas, as the largest market, led with Q2 revenue reaching $2.15 billion, a slight increase from the previous year’s $2.14 billion.
US Regional Operations: The US regional operations reported revenue of $926 million for Q2, registering a marginal decline of 4% from the $960 million recorded in Q2 2022.
MGM China Surge: Notably, MGM China witnessed an exceptional performance, recording revenue totaling $741 million—a staggering 418% rise compared to Q2 2022’s $143 million. The substantial growth is attributed to the easing of travel restrictions in Macau and China’s zero-Covid policy.
Financial Highlights:
Consolidated Adjusted EBITDAR: The consolidated Adjusted EBITDAR for Q2 stood at $1.1 billion, showcasing MGM’s financial strength and operational efficiency.
BetMGM Milestone: BetMGM, MGM’s digital gaming platform, reported its first positive EBITDA quarter, demonstrating resilience and progress on its path to achieving second-half profitability.
Strategic Agreements and Outlook:
Marriott Agreement: MGM Resorts solidified a long-term agreement with Marriott, enhancing its customer booking channels and positioning itself for increased profitability.
Optimistic Future: Bill Hornbuckle, CEO and President of MGM Resorts, expressed optimism for the remainder of 2023. Positive indicators include the promising trajectory of Formula 1 and the Super Bowl, coupled with the impactful relocation of the A’s, reinforcing Las Vegas as the unrivaled sports and entertainment capital.
MGM Resorts’ record Q2 revenue not only reflects its financial prowess but also highlights strategic successes, including significant growth in the MGM China segment and pivotal agreements such as the one with Marriott. As the company embraces a positive outlook for the future, these achievements underscore MGM’s resilience and adaptability in navigating the dynamic hospitality and entertainment landscape.