MGM Resorts reports a 16% increase in Q3 revenue
MGM Resorts International has reported revenue of $4bn for the third quarter of 2023.
US.- MGM Resorts International has reported financial results for the quarter ended September 30. The company reported record revenue of $4bn, up 16 per cent compared to the same period the previous year.
MGM’s revenue comprises three divisions, Las Vegas, US regional operations and MGM China. The revenue boost was primarily attributed to an increase in revenue at MGM China due to the removal of Covid-19-related entry restrictions in Macau.
The company recorded an operating income of $370m compared to an operating loss of $1bn in the prior-year quarter. The turnaround was attributed to the increase in net revenues in the current quarter and a decrease in amortization expense of $1.2bn relating to the MGM Grand Paradise gaming sub-concession.
Net income attributable to MGM Resorts was $161m in the current quarter compared to a net loss of $577m in the prior year period.
MGM China recorded net revenues of $813m during the quarter, an increase of 829 per cent from $87m in the prior year Q3. The numbers also mark an increase of 10 per cent compared to the third quarter of pre-pandemic 2019.
Adjusted Property EBITDAR was at $226m in Q3 compared to a loss of $70m in the prior year quarter, and marked an increase of 23 per cent compared to the third quarter of 2019.
In the Las Vegas Strip, the company registered net revenues of $2.1bn in Q3 2023 compared to $2.3bn in the prior year quarter, which marks a decrease of 8 per cent. Same-store net revenues (adjusted for dispositions) stood at $2.1bn compared to $2.2bn in the prior year quarter while adjusted Property EBITDAR decreased 16 per cent to $714m from $846m in Q3 2022.
Room revenues from the Strip decreased 6 per cent to $695m from $736m in the previous year and casino revenue dropped 5 per cent to $546m. Earnings from table games win increased by 4 per cent to $405m.
In its regional operations, MGM clocked net revenues of $925m for the third quarter compared to $974m in Q3 2022.
“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.”
