MGM Resorts International has reported record net revenues in the third quarter of 2024, primarily driven by growth in 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 globally including in Japan and New York.
Record Q3 revenue
Publishing its financials, MGM Resorts declared a record Q3 consolidated net revenue of $4.18bn, up 5% YoY (Q3 2023: $3.97bn).
The global gaming and entertainment company attributed the growth to “an increase in revenue at MGM China resulting from the recovery of operations after the removal of COVID-19 related entry restrictions in Macau” in Q1 2023.
However, the quarter’s revenue was slightly down on the $4.3bn reported during Q2.
Net income attributable to MGM Resorts in the quarter was $185m (2023: $161m), while consolidated adjusted EBITDAR stood at $1.1bn.
Revenue per segment, casino was $2.12bn (2023: $2.1bn), rooms stood at $883.6m (2023: $827.1m), food and beverage came in at $755.3m (2023: $698.3m) while entertainment, retail and other was $411.3m (2023: $385.7m). Reimbursed costs were $11.9m (2023: $11.6m).
MGM China growth
Operations per location, Las Vegas Strip Resorts revenue increased by 1% YoY to $2.13bn (2023: $2.11bn) due to “an increase in non-gaming revenue, partially offset by a decrease in casino revenue”.
Vegas’ adjusted property EBITDAR increased by 2% YoY to $731m (2023: $714m) and included “approximately $37m of business interruption insurance proceeds related to the September 2023 cybersecurity issue”.
Net revenues for regional operations rose by 3% YoY to $952m (2023: $925m) primarily due to casino revenue increasing. Regional adjusted Property EBITDAR stood at $300m (2023: $293m) and included approximately $15m of business interruption insurance proceeds related to the aforementioned cybersecurity issue.
MGM China revenue grew by 14% YoY to a record $929m (2023: $813m) as operations benefited from the removal of COVID-19-related restrictions which occurred in Q1 2023. The segment’s adjusted property EBITDAR increased by 5% to a new high of $237m (2023: $226m).
Revenue from BetMGM – MGM Resorts’ online joint venture in the US with Entain – increased by nearly 20% YoY, which the operator says was “more than doubling the revenue growth” achieved in Q2.
During the quarter, MGM Resorts announced its intentions to enter Brazil’s regulated online sports betting and igaming market via a new venture with Grupo Globo, bringing the BetMGM brand to the country in early 2025 if the Secretariat of Prizes and Betting approves its licence.
Hornbuckle commented: “We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China.
“In Las Vegas, we drove sequential improvement throughout the quarter and many key metrics are demonstrating strength including growth in ADR and occupancy.”
Positioned well for the future
For the nine months ended September 30, 2024, MGM Resorts net cash flow provided by (used in) operating, investing, and financing activities was $1.7bn, ($879m), and ($774m), respectively. Meanwhile, free cash flow for the same period was $944m.
During Q3, the operator also repurchased over $300m of shares, bringing the year-to-date amount to approximately $1.3bn and reducing overall shares outstanding by 40% since 2021.
In addition, MGM China declared a special dividend in August 2024, “resulting in approximately $200m in cash to MGM Resorts in total this year”.
“During the quarter, we returned over $300m to shareholders through share repurchases, bringing our year-to-date total to approximately $1.3bn,” stated Jonathan Halkyard, CFO and Treasurer of MGM Resorts.
“Since 2021, we have consistently demonstrated our commitment to returning cash to shareholders, reducing overall shares outstanding by 40%. Our balance sheet, characterised by low net debt and significant liquidity, positions us exceptionally well for strategic investments and sustained growth.”
Hornbuckle also expressed optimism for MGM Resorts’ future, noting that the operator is positioned well for long-term growth.
He said: “MGM Resorts is well positioned for long-term growth driven by the positive inflection to come in our digital investments alongside the enviable integrated resorts pipeline of development that we have in Japan as well as opportunities in New York and beyond.”