MGM reaches USD 3.9B in Q2; success partly owed to Macau tourism spike

International IR and gaming giant MGM Resorts International rakes in USD 741M in net revenues this quarter; MGM to invest more in the home front for sports and entertainment.

Original story by GGRAsia

Casino-entertainment giant MGM Resorts International has reported financial results for the second quarter of the year. Net revenues for the period achieved an all-time record of $3.9 billion, an increase of 21% compared to the prior year, partly driven by the removal of COVID-19-related entry restrictions in Macau.

Bill Hornbuckle, CEO and President of MGM Resorts, said: “Beyond MGM’s outstanding second quarter performance, we also cemented a long-term agreement with Marriott which will provide us with an expansive customer booking channel to further bolster our profitability.”

Additionally, in Q2 BetMGM, the company’s online gaming joint venture with Entain, reported that it achieved its first positive EBITDA quarter and remains on track to achieve its next milestone of second-half profitability.

While revenue for the quarter was up, income was dramatically off. The Las Vegas-based giant reported an operating income of $371 million, a net income of $201 million, and a loss of $0.77 per share. In the same quarter a year ago, the company had an operating income of $2.3 billion, a net income of $1.8 billion, and $4.20 a share.

Officials for the casino operator said the drop in income was because the company was wrapping up its sale of land beneath its resorts from MGM Growth Properties to Vici Properties in that quarter of 2022.

Breaking down figures by geographical region finds Las Vegas Strip Resorts posted net revenue of $2.1 billion in Q2, which was flat from the prior year. Regional operations posted net revenues of $926 million in the current quarter compared to $960 million in the prior year quarter, a decrease of 3%.

However, Asia saw a dramatic shift as MGM China recorded net revenues of $741 million, compared to $143 million in the prior, an increase of 418%, and an increase of 5% compared to the second quarter of 2019. MGM China outperformed the rest of the market at the Macau gambling hub.

“Looking forward to the rest of 2023 and beyond, we are encouraged by the pacing of both Formula 1 and the Super Bowl and the announced relocation of the A’s, which will further solidify Las Vegas as the sports and entertainment capital of the world,” the company’s CEO added.

The company has big plans for the remainder of the year. During the earnings call, Hornbuckle told investors that MGM wants to build better connectivity with the Oakland Athletics’ planned stadium in the Strip since MGM owns the resort properties on three corners at Tropicana Avenue and Las Vegas Boulevard, as reported by the Las Vegas Review-Journal.

To learn more about the planned stadium, and more details on how MGM plans to get more into the sports and entertainment scene, read the original article by YogoNet.com https://www.yogonet.com/international/noticias/2023/08/03/68176-mgm-revenue-reaches-alltime-high-of-39b-in-q2-driven-by-macau-rebound