MGM Resorts International has reported its financial results for the third quarter of 2024, showcasing record consolidated net revenues and significant growth across various business segments.
MGM China recorded its highest-ever third-quarter net revenue and Adjusted Property EBITDAR, underscoring the positive impact of the removal of COVID-19 travel restrictions in early 2023. Additionally, a special dividend declared by MGM China in August 2024 resulted in approximately US$200 million (£154.2 million/€184.2 million) in cash inflows for MGM Resorts this year.
The company highlighted over US$300 million in share repurchases during the quarter, bringing the total to approximately US$1.3 billion year-to-date, which has reduced outstanding shares by 40 percent since 2021.
BetMGM, the company’s digital division, experienced nearly 20 percent year-over-year growth in net revenues, more than doubling the revenue increase achieved in the second quarter.
Brazil
MGM Resorts also made strides in its international digital strategy by partnering with Grupo Globo to pursue a sports betting and iGaming license in Brazil, aiming to introduce the BetMGM brand to the market.
For the nine months ending September 30, 2024, MGM Resorts reported a net cash flow provided by operating activities of US$1.7 billion, with cash used in investing and financing activities at US$879 million and US$774 million, respectively.
The company’s free cash flow for this period was US$944 million. Consolidated net revenues reached US$4.2 billion, representing a five percent increase from the prior year, largely driven by revenue growth at MGM China following the easing of pandemic restrictions. Net income attributable to MGM Resorts for the current quarter was US$185 million, up from US$161 million in the prior year, with consolidated Adjusted EBITDAR at US$1.1 billion.
Diluted earnings per share were US$0.61, an increase from US$0.46 in the same period last year, while adjusted diluted earnings per share stood at US$0.54, compared to US$0.64 in the prior year.
Vegas Strip
The Las Vegas Strip Resorts segment reported net revenues of US$2.1 billion, reflecting a one percent year-over-year increase due to higher non-gaming revenue, which offset a decrease in casino revenue.
Regional operations saw net revenues climb to US$952 million, up three percent, y-o-y, driven by a rise in casino revenue.
MGM China’s net revenues grew to US$929 million, a 14 percent increase from the prior year, influenced by the recovery of operations post-pandemic restrictions.
“We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China. In Las Vegas, we drove sequential improvement throughout the quarter and many key metrics are demonstrating strength including growth in ADR and occupancy,” said Bill Hornbuckle, CEO and President of MGM Resorts International.
“MGM Resorts is well positioned for long-term growth driven by the positive inflection to come in our digital investments alongside the enviable integrated resorts pipeline of development that we have in Japan as well as opportunities in New York and beyond.”
