MGM Resorts International has reaffirmed its commitment to a host of long-term growth opportunities, which include a maintained digital expansion as well as ongoing development efforts in Japan and New York.
The comments come from CFO and Treasurer Jonathan Halkyard, with the former following the Entain joint owned BetMGM venture last week reporting that it is on the “path to profitability” after following a US trend of achieving positive EBITDA for the second quarter.
In Osaka, the group, together with joint-venture partner Orix, have been selected by Osaka as the region’s integrated resort partner for a proposed $10bn development, with the race heating up in the Big Apple to secure one of three available commercial casino licences
This enthusiasm for future prospects follows a second quarter financial report that saw the group declare an “all-time record for consolidated net revenue”, with this metric growing 21 per cent year-on-year to $3.94bn (2022: $3.26bn).
“BetMGM reported that it achieved its first positive EBITDA quarter and remains on track to achieve its next milestone”
Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts
This saw MGM follow in the footsteps of many entities that boast operations in Macau, citing the removal of COVID-19 related entry restrictions in the autonomous region as a primary reason for such a performance.
Breaking this down across the group’s three core reporting divisions, the US saw the company’s Las Vegas operations remain flat at $2.1bn, while on a regional basis revenue dropped the per cent to $926m (2022: $960m). This was aligned to the sale of Gold Strike Tunica in February 2023.
Elsewhere, MGM China is lauded as having “outperformed Macau market recovery”, with revenue surging to a figure of $741m (2022: $143m).
Operating income dropped to $371m (2022: $2.4bn), which was primarily aligned to the $2.3bn sale of MGM Growth Properties to Vici Properties in the past year, as well as a rent expense increase relating to The Cosmopolitan.
Net income dropped to $201m (2022: $1.8bn) for the reasons discussed above, while adjusted EBITDA closed the period at $1.1bn.
Las Vegas resorts saw AEBITDA drop eight percentage points through Q2 to $662m (2022: $723m), with regional operations following suit with a slightly lower seven per cent decline to close the April to June period at $294m (2022: $315m).
However, MGM China swung from a loss of $52m one year ago to record a figure of $209m through the most recent quarter. This also represents a 21 per cent uptick from the relevant time frame four years ago.
“Looking forward to the rest of 2023 and beyond, we are encouraged by the pacing of both Formula 1 and the Super Bowl”
Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts
“Beyond MGM’s outstanding second quarter performance, we also cemented a long-term agreement with Marriott which will provide us with an expansive customer booking channel to further bolster our profitability,” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts.
“Also, BetMGM reported that it achieved its first positive EBITDA quarter and remains on track to achieve its next milestone of second half profitability.”
For the year-to-date, revenue increased 27.72 per cent to $7.81bn (2022: $6.11bn), net income decreased to $667.6m (2022: $1.76bn) and AEBITDA closed $2.24bn.
“Looking forward to the rest of 2023 and beyond, we are encouraged by the pacing of both Formula 1 and the Super Bowl and the announced relocation of the A’s, which will further solidify Las Vegas as the sports and entertainment capital of the world,” Hornbuckle added.
