Las Vegas and MGM China drive record Q1 performance for MGM Resorts International

MGM Resorts International announced its record financial achievements for the first quarter ending 31st March 2024, showcasing robust growth across its diverse portfolio of global operations.

The first quarter financial highlights include:

• Consolidated net revenues of $4.4 billion, marking a 13% increase compared to the prior year quarter, driven primarily by the impressive performance of MGM China.
• Net income attributable to MGM Resorts stood at $217 million, reflecting a solid operational performance despite a change in operating income.
• Consolidated Adjusted EBITDAR reached $1.2 billion.
• Diluted earnings per share of $0.67 and adjusted diluted earnings per share of $0.74.

Under the leadership of Bill Hornbuckle, CEO & president, MGM Resorts International celebrated a significant milestone with record consolidated revenues in Q1.

"Our strategic growth plan to drive sustainable free cash flow from our resort operations, develop free cash flow by investing in international digital and luxury integrated resorts, and return capital to shareholders through share repurchases continued to develop in the first quarter of 2024," said Mr Hornbuckle. "We achieved record consolidated revenues in the first quarter. The January launch of our license agreement with Marriott has surpassed our initial expectations with over 130,000 room nights booked and we expect the strategic relationship will be a growth driver this year."

Jonathan Halkyard, CFO & treasurer, echoed Mr Hornbuckle's sentiments, highlighting the company's focused efforts towards enhancing shareholder value. "We achieved record results in the first quarter of 2024 driven by strong performance at MGM China and in Las Vegas specifically at our luxury resort properties. We repurchased 12 million shares at attractive valuations, providing our shareholders with incremental future benefits from the free cash flow growth of our resort operations, digital profitability, and the development opportunities of Japan and New York," said Halkyard.

In Las Vegas, while the company reported record first-quarter net revenues of $2.3 billion, a four per cent increase year-over-year, Adjusted Property EBITDAR witnessed a slight decrease, signalling potential challenges in operational management.

Regional Operations experienced a marginal decrease in net revenues, largely attributed to the disposition of Gold Strike Tunica in February 2023. However, same-store net revenues remained relatively stable, indicating the company's ability to navigate market dynamics.

MGM China emerged as a notable performer, with net revenues soaring to $1.1 billion, a remarkable 71 per cent increase year-over-year. However, the region also faced challenges, including ongoing economic uncertainties and regulatory changes.

The successful completion of Japan IR venture's credit facility and the recent hedging program position MGM Resorts International for future growth. However, uncertainties surrounding global economic conditions and regulatory environments remain key considerations for the company moving forward.

While MGM Resorts International has achieved significant milestones during the first quarter of 2024, the company remains focused on addressing operational challenges, enhancing shareholder value, and navigating evolving market dynamics in the global gaming and entertainment industry.