MGM Resorts International's Third-Quarter Financial Results Overview

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MGM Resorts International's Third-Quarter Financial Results Overview

MGM Resorts International released its third-quarter financial results, revealing earnings of 54 cents per share, which was below the anticipated 61 cents per share by analysts. The quarter's revenue stood at $4.2 billion, slightly missing the estimated $4.21 billion. Las Vegas Strip Resorts experienced a 1% increase in net revenues compared to the previous year, driven by higher non-gaming revenue but offset by a decline in casino revenue. Regional Operations saw a 3% revenue growth, reaching $952 million, mainly due to increased casino revenue.

MGM China proved to be a strong performer for the company, reporting a substantial revenue increase of 14% from the prior year quarter, reaching $929 million. This growth was attributed to the recovery post COVID-19 travel restrictions removal in the first quarter of 2023. CEO Bill Hornbuckle expressed satisfaction with the record consolidated net revenues driven by MGM China and highlighted positive trends in Las Vegas, such as growth in average daily rate (ADR) and occupancy rates. Additionally, Hornbuckle emphasized the company's strategic positioning for long-term growth, focusing on digital investments and development opportunities in Japan, New York, and beyond.

Despite the positive aspects highlighted by the company, MGM Resorts International's shares experienced a 5.82% decline in after-hours trading following the release of the financial results, with shares priced at $39 at the time of publication.