MGM China and Las Vegas drive record start for MGM Resorts in 2024

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MGM Resorts International has reported record consolidated net revenues for the first quarter of 2024 due to the performance of MGM China and Las Vegas operations.

Publishing its Q1 results, the operator declared consolidated net revenues of $4.4bn, up 13 per cent year-over-year (Q1 2023: $3.9bn), driven by improvements at MGM China “from the continued ramp-up of operations after the removal of COVID-19 related entry restrictions in Macau in the prior year quarter”.

Casino operations generated $2.2bn during the quarter, an improvement on the $1.9bn earned during Q1 last year. Rooms generated $956.4m (2023: $848.5m), food and beverage produced $769.4m (2023: $722.1m), entertainment, retail and other stood at $404.4m (2023: $409.6m) and reimbursed costs was $12.2m (2023: $10.7m).

MGM Resorts’ net income came in at $217m, down from the $467m reported during Q1 2023 due to “a change in operating income, which was driven by a $398m gain on the disposition of Gold Strike Tunica in the prior year quarter, partially offset by the increase in net revenues in the current quarter”.

Consolidated adjusted EBITDAR at the end of the quarter was $1.2bn, diluted earnings per share were $0.67 (2023: $1.24) and adjusted diluted earnings per share were $0.74 (2023: $0.44). 

Net cash flow provided by (used in) operating, investing, and financing activities was $549m, ($108m), and ($629m), respectively, while free cash flow stood at $377m.

Bill Hornbuckle, CEO & President of MGM Resorts International, celebrated what was a record revenue quarter for the operator, adding that they expect its partnership with Marriott to be a driving force throughout the year.

Hornbuckle commented: “Our strategic growth plan to drive sustainable free cash flow from our resort operations, develop free cash flow by investing in international digital and luxury integrated resorts, and return capital to shareholders through share repurchases continued to develop in the first quarter of 2024. 

“We achieved record consolidated revenues in the first quarter. The January launch of our license agreement with Marriott has surpassed our initial expectations with over 130,000 room nights booked and we expect the strategic relationship will be a growth driver this year.”

Regional performance

Per regional segment, Las Vegas Strip resorts and MGM China operations had an uptick in revenue during Q1, but regional operations saw a decline when compared to the same period the previous year.

Las Vegas revenue improved by four per cent to $2.3bn (2023: $2.2bn) due primarily to a seven per cent increase in average daily rate. Room revenue rose by 10 per cent YoY to $827m (2023: $752m).

Casino revenue for Strip properties, however, dropped slightly to $498m (2023: $501m), as although table games win improved by 12 per cent to $388m (2023: $346m), slot win fell by six per cent to $511m (2023: $544m).

Adjusted property EBITDAR for Las Vegas was $828m, down one per cent in comparison to the same period last year (2023: $836m).

As previously mentioned, MGM China continued to benefit from the removal of COVID restrictions during the quarter, with total revenue from operations rising by 71 per cent YoY to $1.1bn (2023: $618m). Casino revenue improved by 66 per cent to $920m (2023: $555m).

Adjusted property EBITDAR for MGM China was $301m, a 78 per cent increase in comparison to the previous year (2023: $169m).

Revenue from regional operations fell by four per cent YoY to $909m (2023: $946m) due to the previously mentioned disposition of Gold Strike Tunica in February 2023, as well as a drop in casino revenue, which declined by four per cent to $685m (2023: $717m).

Table games win decreased by five per cent YoY to $202m (2023: $214m) while slot win dropped by four per cent to $641m (2023: $670m).

Same-store net revenues (adjusted for dispositions) were down one per cent YoY to $909m (2023: $919m), adjusted property EBITDAR fell by 12 per cent to $274m (2023: $313m) and same-store adjusted property EBITDAR decreased by nine per cent to $274m (2023: $302m).

CFO and Treasurer Jonathan Halkyard highlighted the record results achieved during the quarter, while also adding that progress is being made with MGM Resorts’ property timeline in Japan.

Halkyard said: “We achieved record results in the first quarter of 2024 driven by strong performance at MGM China and in Las Vegas specifically at our luxury resort properties. We repurchased 12 million shares at attractive valuations, providing our shareholders with incremental future benefits from the free cash flow growth of our resort operations, digital profitability, and the development opportunities of Japan and New York. 

“Our venture in Japan continues to progress with financing now in place and our recent hedging program has provided significant cost advantages for the development of the country’s first integrated resort.”