MGM Resorts clocks $4 billion revenue in Q3, fueled by 829% surge in Macau operations

Benefiting from the relaxation of pandemic-related entry restrictions in Macau, MGM Resorts International exceeded market expectations for the third quarter, witnessing a substantial upswing in both profit and revenue.

Consolidated net revenues increased 16% to $4 billion in Q3 from $3.4 billion in the same period last year. This was primarily attributed to an increase in revenue at MGM China due to the removal of COVID-19-related entry restrictions in Macau.

The gains in China partially offset the decrease in revenues at its Las Vegas Strip Resorts and Regional Operations due to the dispositions of The Mirage and Gold Strike Tunica, as well as the cybersecurity issue in September 2023.

"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.

The company recorded an operating income of $370 million compared to an operating loss of $1 billion 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 $1.2 billion relating to the MGM Grand Paradise gaming sub-concession.

Net income attributable to MGM Resorts was $161 million in the current quarter compared to a net loss of $577 million in the prior year period.

MGM China recorded net revenues of $813 million during the quarter, an increase of 829% from $87 million in the prior year Q3. The numbers also mark an increase of 10% compared to the third quarter of pre-pandemic 2019. The current quarter was positively affected by the removal of COVID-19-related travel and entry restrictions and an increase in visitation.

Adjusted Property EBITDAR was at $226 million in Q3 compared to a loss of $70 million in the prior year quarter, and marked an increase of 23% compared to the third quarter of 2019.

In the Las Vegas Strip, the company registered net revenues of $2.1 billion in Q3 2023 compared to $2.3 billion in the prior year quarter, which marks a decrease of 8%. Same-store net revenues (adjusted for dispositions) stood at $2.1 billion compared to $2.2 billion in the prior year quarter while adjusted Property EBITDAR decreased 16% to $714 million from $846 million in Q3 2022.

Room revenues from the Strip decreased 6% to $695 million from $736 million in the previous year and casino revenue dropped 5% to $546 million. Earnings from table games win increased by 4% to $405 million.

In its regional operations, MGM clocked net revenues of $925 million for the third quarter compared to $974 million in Q3 2022.

Diluted income per share was at $0.46 in the current quarter compared to diluted loss per share of $1.45 in the prior year quarter. Adjusted diluted earnings per share stood at $0.64 in the third quarter compared to a loss of $1.39 in the same period last year. The company clocked a consolidated Adjusted EBITDAR of $1.1 billion.

Going forward, officials said MGM has 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," pointed out Hornbuckle.

The company has also reached a tentative agreement with the Culinary Union on a new five-year contract, ending the specter of a major strike on the Las Vegas Strip less than 24 hours before the deadline.