MGM Resorts International has released its financial results for the second quarter of 2024, showcasing impressive growth and operational recovery. The company’s performance in this quarter is marked by a record consolidated net revenue of $4.33 billion, representing a 9.8% year-on-year increase. This achievement is largely attributed to the strong performance of MGM China, following the lifting of COVID-19 restrictions in Macau.
Record Consolidated Net Revenue
MGM Resorts International reported a record consolidated net revenue of $4.33 billion for the second quarter of 2024. This represents a 9.8% increase compared to the same period last year. The surge in revenue is primarily driven by the robust performance of MGM China, which saw significant growth as operations ramped up in Macau post-pandemic restrictions.
Net Income and Earnings
The net income attributable to MGM Resorts stood at $187.1 million, reflecting a 6.8% decrease year-on-year. Despite the decline in net income, the company’s consolidated adjusted earnings before interest, taxes, depreciation, amortisation, and rent (EBITDAR) amounted to $1.2 billion. Additionally, diluted earnings per share increased by 9% to $0.60, while adjusted diluted earnings per share saw a remarkable 45% rise, reaching $0.86.
Las Vegas Strip Resorts
Las Vegas Strip resorts reported net revenues of $2.21 billion, marking a 2.7% increase compared to the previous year. This growth is primarily driven by a rise in room revenues, which benefited from a higher average daily rate (ADR) and increased catering and banquet revenue. The adjusted property EBITDAR for Las Vegas Strip operations was $782.3 million, reflecting a modest 0.6% increase. Room occupancy on the Strip was notably high at 97%, with the ADR reaching $248, contributing to a revenue per available room (RevPAR) of $240.
Regional Operations
Regional operations remained steady with net revenues of $927.1 million. However, the adjusted property EBITDAR for these operations saw a slight decline of 2%, amounting to $288.4 million. Despite this, regional operations continue to contribute significantly to the company’s overall financial performance.
MGM China
MGM China demonstrated substantial growth, reporting net revenues of $1.02 billion, a 37% increase year-on-year. This impressive performance is attributed to the continued ramp-up of operations in Macau. The adjusted property EBITDAR for MGM China surged by 40%, reaching $293.9 million, highlighting the strong recovery and demand in this region.
Share Repurchase Program
During the second quarter, MGM Resorts repurchased approximately 10 million shares of its common stock, totalling $413 million. This move is part of the company’s ongoing commitment to returning capital to shareholders. Since 2021, MGM Resorts has reduced its outstanding shares by nearly 40%, demonstrating its dedication to enhancing shareholder value.
MGM Live Casino Offering
In June 2024, MGM Resorts and Playtech launched a live casino offering, “MGM Live,” streaming directly from MGM’s Las Vegas Strip properties. This partnership aims to expand the gaming experience available to customers with exclusive content and games, enhancing MGM’s digital footprint and providing a unique gaming experience to its audience.
MGM Resorts International’s second-quarter results for 2024 highlight the company’s robust financial health and strategic growth initiatives. With record net revenues, strong performance in key segments, and continued shareholder returns, MGM Resorts is well-positioned for sustained growth and success in the coming quarters.