MGM Q3 Trouble And Strife Spared By Post Covid Macau Bounce Back
MGM blushes were more than spared by the post-Covid19 revival of their Macau China division cash cow in Q3 – despite the debilitating impact of a widely-reported cyber attack on their operations, and the sale of the iconic Mirage and Gold Strike Tunica casinos in their Las Vegas powerbase.
The gambling giant reported a 16 percent, year-on-year, increase in Net Revenue to US$4 billion (£3.27bn) for the quarter ending September 30.
Standout vertical in the quarter was undoubtedly MGM China with revenue tha rocketed 834.5 percent to US$813 million (£665.35m).
MGM Resorts Group operating income for the quarter was US$370 million (£302.8m), a significant improvement on the US$1 billion (£818.39m) loss posted in the same period last year.
This change, reported MGM, was mainly because of the increased revenues and lower amortization expenses related to the MGM Grand Paradise gaming sub concession.
Net income for MGM Resorts was US$161 million (£131.76m), again in good contrast to a net loss of US$577 million (£472.21m) in Q3 2022.
Earnings per share were reported at $0.46cents, compared to a loss per share of US$1.45 the previous year. When adjusted for certain items, earnings-per-share were $0.64cents, against the loss-per-share of US$1.39 in the same quarter of the previous year.
For the first nine months of 2023, the company’s cash flow from operating activities was US$2 billion (£1.63bn).
Meanwhile, MGM Resorts International has signed the necessary agreement with Japanese authorities in Osaka to begin building the very first “integrated resort” in the nation.
The company also bought back US$572 million (£468.12m) of its own shares and has been authorized to purchase an additional US$2 billion (£1.63bn) of shares by its Board of Directors.
“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,” affirmed Bill Hornbuckle, CEO and President of MGM Resorts.
“With the incident now behind us, we are a stronger company having been through the challenge.
“Going forward we have 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.”
Added MGM Resorts CFO and Treasurer Jonathan Halkyard: “We continue to view share repurchases as an attractive opportunity to return value to our shareholders.
“Year-to-date, we have repurchased approximately US$1.7 billion (£1.39bn) in stock. Our buyback program totals US$6.2 billion (£5.07bn) since the beginning of 2021, reducing our share count by over 30 percent.”
Which begs the question: Whoever said it’s impossible to buy one’s way out of trouble?