MGM Resorts International achieved record results in the first quarter of 2024, driven by strong performances at its China and Las Vegas properties, offsetting a decline within the Regional business.
The company recorded consolidated net revenues of $4.4 billion for the quarter ended March 31, marking an increase of 13% compared to the prior-year quarter. The increase was due primarily to an increase in revenue at MGM China resulting from the continued ramp-up of operations after the removal of COVID-19-related entry restrictions in Macau in the prior year quarter, reaching an all-time high.
The China business clocked net revenues of $1.1 billion in the quarter, up 71% from $618 million during the same period last year. Adjusted Property EBITDAR stood at $301 million compared to $169 million in the prior year quarter, marking an increase of 78%.
In the Las Vegas Strip, the company recorded net revenues of $2.3 billion, which marks a 4% increase from the $2.2 billion it registered in the prior year quarter. Casino revenue was marginally lower at $498 million due to lower slots handle and win, but a rise in table games handle and subsequent win helped offset this.
“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,” said Bill Hornbuckle, Chief Executive Officer & President of MGM Resorts International.
“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.”
Net income attributable to MGM Resorts was $217 million compared to $467 million in the prior year quarter. Net income attributable to MGM Resorts was impacted by a change in operating income, which was driven by a $398 million 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, the company said.
As for the regional operations, MGM reported $909 million of net revenues for Q1, down 4% from $946 million in 2023 as poor weather across the US during Q1 had a negative impact. Adjusted Property EBITDAR was $274 million compared to $313 million in the same period last year.
Revenue from casino operations experienced a significant increase of 19.1% year-on-year, reaching $2.24 billion. Room revenue also showed growth, up 12.7% to $956.4 million, while food and beverage revenue rose by 6.6% to $769.4 million. However, revenue from entertainment, retail, and other sources dipped slightly by 1.3% to $404.4 million.
MGM’s Q1 EBITDA was 2% above Macquarie Group analysts’ expectations, 3% above Truist Securities’ expectations, and 5% up on Wall Street’s estimates. Net revenues also exceeded Truist and Wall Street predictions, reason why analysts remain “bullish” on MGM.
Original article: https://www.yogonet.com/international/noticias/2024/05/02/71996-mgm-posts-record-44-billion-in-first-quarter-revenue-driven-by-china-las-vegas-business-growth
