MGM Resorts International recorded record net revenue in the third quarter of 2024. The result was achieved mainly by the growth of MGM China operations.
Reflecting on the results, CEO and President Bill Hornbuckle noted that the operator is “well positioned for long-term growth” thanks to the “positive inflection to come” from digital investments and integrated resort developments and opportunities around the world. including in Japan and New York.
MGM Resorts declared revenue of US$3 billion in the period
Publishing its financials, MGM Resorts declared record Q3 consolidated net revenue of $3 billion, an increase of 4% year-over-year (Q3 2023: $3.97 billion).
The global gaming and entertainment company attributed the growth to “an increase in MGM China revenue resulting from the recovery of operations following the removal of COVID-19-related entry restrictions in Macau” in the first quarter of 2023.
However, revenue for the quarter was slightly lower than the $4.3 billion reported during the second quarter. Net profit attributable to MGM Resorts for the quarter was $185 million (2023: $161 million).
But the EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent) was adjusted and consolidated was US$1.1 billion.
Revenue by segment, the casino was: US$ 2.12 billion (2023: US$ 2.1 billion), of which:
- Rooms were $883.6 million (2023: $827.1 million)
- Food and beverages were worth US$755.3 million (2023: US$698.3 million)
- Entertainment, retail and other were at US$411.3 million (2023: US$385.7 million)
- Reimbursed costs were US$11.9 million (2023: US$11.6 million)
MGM China Growth
Operations by location, Las Vegas Strip Resorts revenue increased 1% year over year to $2.13 billion (2023: $2.11 billion) due to “an increase in non-gaming revenue, partially offset by a decrease in casino revenue.”
The Vegas property’s adjusted EBITDAR increased 2% year over year to $731 million (2023: $714 million) and included “approximately $37 million of business interruption insurance proceeds related to the safety issue cybernetics of September 2023”.
Thus, net revenue from regional operations increased by 3% year-on-year to US$952 million (2023: US$925 million), mainly due to increased casino revenue.
Regional adjusted property EBITDAR was $300 million (2023: $293 million) and included approximately $15 million of business interruption insurance proceeds related to the cybersecurity issue mentioned above.
MGM China‘s revenue grew 14% year-on-year to a record US$929 million (2023: US$813 million) as operations benefited from the removal of COVID-19-related restrictions in first quarter 2023. Segment property adjusted EBITDAR increased 5% to a new high of $237 million (2023: $226 million).
Grupo Globo partners with MGM Resorts
Revenue at BetMGM – MGM Resorts’ US online joint venture with Entain – increased almost 20% year-on-year. According to the operator, it was “more than double the revenue growth” achieved in the 2nd quarter.
During the quarter, MGM Resorts announced its entry into the regulated online sports betting and igaming market in Brazil. Thus, through a new venture with Grupo Globo, bringing the BetMGM brand to the country in early 2025. But the company is still waiting for the Secretariat of Prizes and Betting to approve its license.
Hornbuckle commented: “We are pleased to report record consolidated net revenue for the third quarter, driven by record results from MGM China. In Las Vegas, we saw sequential improvement throughout the quarter and many key metrics are demonstrating strength, including occupancy growth.”
Well positioned for the future
For the nine months ending September 30, 2024, MGM Resorts’ net cash flow provided by operating activities was $1.7 billion, consisting of:
- Investment – US$ 879 million
- Financing – US$774 million
Meanwhile, free cash flow for the same period was $944 million. During the third quarter, the carrier also repurchased more than $300 million in shares. Thus, increasing the year-to-date value to approximately US$1.3 billion and reducing the overall shares outstanding by 40% since 2021.
Additionally, MGM China declared a special dividend in August 2024, “resulting in approximately $200 million in cash for MGM Resorts in total this year.”
“During the quarter, we returned more than $300 million to shareholders through share repurchases. This brings our year-to-date total to approximately $1.3 billion,” said Jonathan Halkyard, CFO and treasurer of MGM Resorts.
“Since 2021, we have consistently demonstrated our commitment to returning money to shareholders by reducing total shares outstanding by 40%. Our balance sheet, characterized by low net debt and significant liquidity, positions us exceptionally well for strategic investments and sustained growth.”
Hornbuckle also expressed optimism about the future of MGM Resorts, noting that the operator is well positioned for long-term growth.
He said: “MGM Resorts is well positioned for long-term growth. The company is driven by the positive inflection to come in our digital investments. In addition, we are also investing in the development of integrated resorts in Japan, New York and elsewhere.”
