MGM Resorts International (MGM) has released its second-quarter financial results, which continue to show a positive trend.
The US online gambling operator reported it had achieved a record for consolidated net revenue. The company also revealed a Q2 2023 net income of $200.8 million. Compared to last year, MGM Resorts’ Las Vegas Strip revenue for the quarter was flat.
MGM also announced a long-term agreement with Marriott International to drive higher profitability from access to Marriott’s extensive global database.
Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts said:
“Beyond MGM’s outstanding second quarter performance, we also cemented a long-term agreement with Marriott which will provide us with an expansive customer booking channel to further bolster our profitability.
Also, BetMGM reported that it achieved its first positive EBITDA quarter and remains on track to achieve its next milestone of second-half profitability.
Looking forward to the rest of 2023 and beyond, we are encouraged by the pacing of both Formula 1 and the Super Bowl and the announced relocation of the A’s, which will further solidify Las Vegas as the sports and entertainment capital of the world.”
MGM’s Q2 2023 financial highlights
MGM achieved a record for consolidated net revenue, reaching $3.94 billion, a 1.8% increase from the previous quarter ($3.87 billion). The figure is also of 21% yearly increase compared to Q2 2022, primarily due to the removal of COVID-19-related entry restrictions in Macau.
The post-pandemic travel upturn in China and Macau helped increase the company’s growth for casino operators like MGM Resorts and Las Vegas Sands Corp. MGM China outperformed Macau’s market recovery. Adjusted property EBITDAR for MGM China was 21% higher in Q2 2023, surpassing 2019 levels.
Inflation-driven casino operations costs have risen, mainly due to investment in non-gaming segments like dining and retail aiming to attract visitors.
MGM noted that Las Vegas Strip Resorts achieved solid results with ADR and occupancy growth year-over-year. The booking pace remains up for the rest of 2023. However, the Las Vegas strip saw some flaws. Second-quarter net revenue was flat, with same-store adjusted property EBITDAR showing a yearly 8% drop.
During the quarter, the company repurchased about 15 million shares for $626 million. As of June 30, 2023, the remaining availability under the February 2023 repurchase plan was around $1.4 billion.
According to the company’s press release, Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts, commented:
“We expect to continue to pursue long-term growth opportunities by expanding our global online presence and digital capabilities and through our development efforts in Japan and New York.”
BetMGM expects to be self-sustaining in the second half of 2023
Last week, BetMGM provided an update on its first-half performance and outlook for the full-year 2023. The company said it is confident it will be self-sustaining in the back half of the year.
The US gambling conglomerate said it would require no additional investments from either Entain or MGM Resorts outside the $150 million previously committed for the year.
MGM’s sports betting numbers continue to rise, with sports revenue per player going up by 65%. The company also noted each of its online sportsbooks (launched between 2019 and 2022) brought positive contribution profit in Q2.