MGM Reports Record Revenues in Third Quarter of 2024
MGM Resorts International has recently unveiled its Q3 2024 financial results, showcasing a remarkable achievement with net revenues hitting $4.2 billion. This milestone reflects an upward trajectory for the company, primarily fueled by a robust performance in MGM China, where revenues surged by 14%. This growth follows the full restoration of operations in Macau after pandemic-related constraints heavily impacted tourism in Q3 2023.
Additionally, the burgeoning online casino sector has significantly contributed to the uplift in regional net revenues, underscoring the shifting landscape of the gambling industry.
Q3 2024 Key Highlights
Group Performance
- Net Revenues: $4.2 billion (up 5%)
- Net Income: $185 million (up 14.9%)
- Consolidated Adjusted EBITDAR: $1.1 billion
- Diluted Earnings per Share: $0.61 (up 32.6%)
Las Vegas Operations
- Net Revenues: $2.1 billion (up 1%)
- Adjusted Property EBITDAR: $731 million (up 2%)
Regional Analysis
- Net Revenues: $952 million (up 3%)
- Adjusted Property EBITDAR: $300 million (up 2%)
MGM China Performance
- Net Revenues: $929 million (up 14%)
- Adjusted Property EBITDAR: $237 million (up 5%)
Bill Hornbuckle, the CEO and President of MGM Resorts International, articulated the company’s satisfaction with the record results: “We are very pleased to report record consolidated net revenues for the third quarter, with exceptional performance from MGM China. In Las Vegas, we saw steady improvement throughout the quarter, highlighted by strong growth in average daily rates (ADR) and occupancy rates. MGM Resorts is strategically positioned for long-term prosperity, bolstered by our positive trajectory in digital investments and a promising pipeline of integrated resort developments in Japan, as well as opportunities in New York and beyond.”
Furthermore, Jonathan Halkyard, CFO and Treasurer of MGM Resorts International, emphasized the company’s commitment to shareholder return: “During this quarter, we returned over $300 million to shareholders via share repurchases, totaling approximately $1.3 billion year-to-date. Our sustained strategy since 2021 has resulted in reducing overall shares outstanding by 40%. Our balance sheet, characterized by low net debt and high liquidity, uniquely positions us for strategic investments and ongoing growth.”
Kenneth Feng, President and Executive Director of MGM China, echoed optimism regarding the recovery in Macau: “We are thrilled to witness the resurgence of Macau as a global tourist destination while diversifying the city’s offerings. We remain dedicated to realizing this vision through our concession commitments. Additionally, we are allocating resources for significant capital improvements across our properties, including refurbishments at MGM MACAU and the transformation of select rooms at MGM COTAI into luxurious suites. We are also excited to announce our upcoming residency show, ‘Macau 2049,’ set to launch by year-end. Our focus is on enhancing customer experiences, increasing organic visitation, and providing unique attractions for Macau tourists.”
Conclusion
MGM Resorts International’s quarterly report not only reflects a strong financial recovery post-pandemic but also highlights the company’s strategic initiatives aimed at sustaining growth in an ever-evolving gambling landscape. With significant advancements in both technology and customer engagement, MGM Resorts is poised to lead the charge in redefining the future of the gambling industry.
