MGM Resorts International has unveiled its financial results for the third quarter ending September 30, 2023. The company reported a record-breaking revenue of $4 billion, reflecting a substantial 16% increase compared to the corresponding period in the previous year. This surge in revenue is attributed to notable growth in MGM China following the lifting of Covid-19-related entry restrictions in Macau.
Revenue Breakdown by Division:
MGM Resorts International’s revenue is segmented into three divisions: Las Vegas, US regional operations, and MGM China. The robust financial performance is primarily credited to the impressive revenue boost in MGM China, contributing to the company’s overall success.
Financial Turnaround and Operating Income:
The company recorded a remarkable operating income of $370 million, marking a significant turnaround from the prior-year quarter’s operating loss of $1 billion. This reversal is attributed to increased net revenues in the current quarter and a notable decrease in amortization expense related to the MGM Grand Paradise gaming sub-concession.
Net Income Milestone:
MGM Resorts International achieved a net income attributable to the company of $161 million in the current quarter, showcasing a substantial improvement compared to the net loss of $577 million in the same period the previous year.
MGM China’s Stellar Performance:
MGM China reported impressive net revenues of $813 million during the quarter, reflecting an extraordinary 829% increase from $87 million in the prior year’s Q3. Additionally, these figures represent a notable 10% increase compared to the third quarter of pre-pandemic 2019. The Adjusted Property EBITDAR reached $226 million in Q3, a stark improvement from the prior year’s quarter loss of $70 million, marking a 23% increase compared to the third quarter of 2019.
Las Vegas Strip and Regional Operations Overview:
In the Las Vegas Strip, net revenues amounted to $2.1 billion in Q3 2023, representing a slight decrease from $2.3 billion in the prior year quarter. Adjusted for dispositions, same-store net revenues stood at $2.1 billion, and adjusted Property EBITDAR decreased by 16% to $714 million. Despite these figures, MGM remains optimistic about future prospects, including Formula 1’s inaugural Las Vegas race and the debut of the MGM Collection with Marriott Bonvoy.
Room revenues from the Strip decreased by 6% to $695 million, while casino revenue dropped 5% to $546 million. Earnings from table games win increased by 4% to $405 million.
In regional operations, MGM reported net revenues of $925 million for the third quarter, compared to $974 million in Q3 2022.
CEO’s Positive Outlook:
Bill Hornbuckle, CEO and President of MGM Resorts, expressed optimism for the future, citing the company’s resilience in the face of challenges such as a cybersecurity issue in September. He highlighted upcoming catalysts, including Formula 1’s Las Vegas race and the launch of the MGM Collection with Marriott Bonvoy. Hornbuckle also emphasized the exceptional performance of MGM China and the company’s pipeline of development opportunities, including projects in New York and Japan, alongside the growth of the international digital business and BetMGM.
MGM Resorts International’s record-breaking Q3 2023 results underscore its resilience, financial strength, and commitment to growth. The stellar performance in MGM China, coupled with strategic initiatives in Las Vegas and regional operations, positions the company for continued success. As it celebrates these achievements, MGM Resorts remains forward-looking, anticipating significant milestones and opportunities on the horizon.