MGM Resorts International has revealed its third-quarter financial results, highlighting a significant surge in revenue. The company posted a 16% increase in revenue compared to the same period last year, amounting to a net revenue of $4.0 billion.
The surge in revenue is primarily attributed to the outstanding performance of its China division, experiencing a boost due to the removal of COVID-19-related entry restrictions in Macau. This positive development contributed significantly to the overall growth, partially offsetting the decrease in revenues at MGM’s Las Vegas Strip Resorts and Regional Operations. The latter faced challenges associated with the dispositions of The Mirage and Gold Strike Tunica, along with a cybersecurity issue that emerged in Sept. 2023.
“We started the quarter with great momentum across our businesses. While we were faced with a difficult cybersecurity issue in September, our employees rose to the occasion with incredible resilience and determination. With the incident now behind us, we are a stronger company having been through the challenge,” said Bill Hornbuckle, Chief Executive Officer, and President of MGM Resorts.
“Going forward we have much to be optimistic about with Formula 1’s inaugural Las Vegas race next week and early next year the debut of the MGM Collection with Marriott Bonvoy followed by the Super Bowl. Beyond these catalysts, MGM China is performing exceptionally well, and we have a pipeline of development opportunities including New York and Japan alongside the growth and development of our international digital business and BetMGM.”
According to the financial report, MGM’s operating income for Q3 was $370 million, a remarkable turnaround from the operating loss of $1.0 billion it sustained in the same period last year. The change can be credited to the rise in net revenues for the current quarter and a significant reduction in amortization expense associated with the MGM Grand Paradise gaming sub-concession. MGM Resorts also recorded a notable increase in net income during the third quarter, generating $161 million as opposed to the net loss of $577 million reported in the corresponding period of the previous year.
MGM Resorts Witnesses a 2.6% Increase in Stock Value
By the close of the market day, MGM Resorts maintained a 2.6% increase in its shares to $39.61. Its diluted income per share for the third quarter stands at $0.46, an improvement from the diluted loss per share of $1.45 reported in Q3 2022. MGM’s adjusted diluted EPS shows a more positive picture, standing at $0.64 in Q3 2023, in stark contrast to a loss of $1.39 in the same period of the previous year.
“We continue to view share repurchases as an attractive opportunity to return value to our shareholders,” Chief Financial Officer and Treasurer of MGM Resorts, Jonathan Halkyard said.
“Year-to-date, we have repurchased approximately $1.7 billion in stock. Our buyback program totals $6.2 billionsince the beginning of 2021, reducing our share count by over 30%.”
MGM China reported stellar financial results for the third quarter, displaying a remarkable increase in net revenue. Its revenue surged to $813 million, indicating 829% growth from the $87 million reported in the same period last year. Furthermore, its third quarter performance reflects a 10% increase compared to the third quarter of 2019.
The resort’s adjusted property EBITDAR for the third quarter garnered $226 million, a significant turnaround from the adjusted property EBITDAR loss of $70 million it suffered in Q3 2022. Additionally, when compared to the third quarter of 2019, its adjusted property EBITDAR recorded a 23% increase.