After releasing its first-quarter earnings report on Monday, MGM Resorts‘ balance sheet continues to trend in the right direction.
The sports betting and online casino operator released its financial results for the quarter ending March 31, 2023, saying it was pleased with the results.
Consolidated net revenues stood at $3.9 billion, up 36% from Q1 2022. The $731 million in operating income was also up from the $106 million recorded in the first quarter of 2022.
MGM pleased with Q1 2023 results
In an MGM press release, Bill Hornbuckle, Chief Executive Officer and President of MGM said:
“MGM Resorts is executing across all of its geographies and channels with record first quarter Las Vegas Strip Adjusted Property EBITDAR, consistently strong Regional Operations profit, MGM China’s swift return to profitability, and BetMGM’s anticipated positive earnings later this year.”
Hornbuckle continued: “Beyond our continued exceptional results, our future growth and expansion plans are promising. In April, we achieved the landmark approval of MGM’s development plan in Osaka, Japan.
The application process in New York is progressing and our global digital expansion plans remain a major focus as we continue to grow LeoVegas and the MGM digital brand worldwide.”
Other Q1 highlights include:
- Record Q1 Adjusted Property EBITDAR for Las Vegas Strip Resorts up 41% YOY; seventh consecutive quarterly record
- MGM China Adjusted Property EBITDAR of $169 million, 88% recovery
- Closed on the sale of the operations of Gold Strike Tunica
- Received Official Certification of Area Development Plan for Osaka, Japan
- Repurchased approximately 12 million shares for $487 million during the quarter
- LeoVegas agreed to acquire a majority of digital game developer Push Gaming
Balance sheet trending upward
Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM elaborated on some of the financial numbers saying the company’s balance sheet continues to improve.
“MGM Resorts achieved net cash flow provided by operating activities of $704 million and Free Cash Flow of $564 million during the first quarter,” Halkyard said in the MGM press release.
“Our balance sheet continues to improve as we received $450 million in gross cash proceeds from the sale of Gold Strike Tunica and repaid $1.25 billion in unsecured notes upon maturity during the quarter.
With $4.5 billion of cash on the balance sheet, we expect to continue to return capital to our shareholders through ongoing stock repurchases and pursue long-term growth opportunities through international digital acquisitions and the development opportunities we have with Japan and New York.”
In February, MGM’s Q4 earnings report showed a net revenue for MGM’s Las Vegas Strip Resorts was in the green.
- Q4 2022 Las Vegas Strip Resorts‘ net revenues – $2.3 billion compared to $1.8 billion in Q4 2021.
- Adjusted property EBITDAR of $877 million, a 26% year-over-year increase compared to $699 million in the prior year.
For the current quarter, net revenues from the Las Vegas Strip Resorts stood at $2.2 billion. That figure is up from $1.7 billion reported in Q1 2022.
According to MGM, the current quarter benefited from two things. One, the inclusion of The Cosmopolitan and two, there has yet to be a new COVID-19 variant suppressing operations.
- Q1 2023 Las Vegas Strip Resorts’ net revenues – $2.2 billion compared to $1.7 billion Q1 2022, an increase of 31%.
- Adjusted Property EBITDAR of $836 million, an increase of 41% compared to $594 million in the prior year.