Operator News
MGM enjoys record quarter with Las Vegas and Macau both reaching new highs
By Phil - 2 May 2024
MGM Resorts International generated its best ever results in the first quarter of 2024 with Las Vegas strong performance continuing with record 1Q net revenues and MGM China also achieving record quarterly results.
Revenues came in at $4.4bn, an increase of 13 per cent compared to the prior year quarter, due primarily to an increase in revenue at MGM China resulting from the continued ramp up of operations after the removal of COVID-19 related entry restrictions in Macau in the prior year quarter.
Las Vegas produced $2.3bn in the current quarter compared to $2.2bn in the prior year quarter, an increase of four per cent, due primarily to an increase in ADR, whilst MGM China generated revenues of $1.1bn in the current quarter compared to $618m in the prior year quarter, an increase of 71 per cent.
In its regional markets, MGM generated revenues of $909m in the current quarter compared to $946m in the prior year quarter, a decrease of four per cent, due primarily to the disposition of Gold Strike Tunica in February 2023 and a decrease in casino revenue.
“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 Bill Hornbuckle, Chief Executive Officer & President of MGM Resorts International. “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.”
“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 Jonathan Halkyard, Chief Financial Officer & Treasurer. “Our venture in Japan continues to progress with financing now in place and our recent hedging program has provided significant cost advantages for the development of the country’s first integrated resort.”
Kenneth Feng, President and Executive Director of MGM China, said: “Our outstanding performance demonstrates our deep understanding of customers with continued improvements in service levels. It is also a testament to our team’s continuous innovation in crafting compelling experiences for our customers.
“The resumption of dividend demonstrates our confidence in the future of Macau and MGM China, along with our commitment on bringing return on investment to shareholders,” said Kenneth Feng.
With a guest-centric focus, MGM is awarded in February seven Five-Star awards by Forbes Travel Guide 2024. This demonstrates our leading position in the hospitality industry and its commitment to providing the finest service and resort amenities.
During the quarter, MGM China has proudly delivered a series of non-gaming events and excitements to Macau. In January, we hosted Bruno Mars, the 15-time Grammy Awards-winner, and his The One & Only Night concert at MGM COTAI, bringing in an entertainment and performing event to feature Macau as the World Center of Tourism and Leisure.
As a supporter of cultural tourism, MGM has jointly presented with world-renowned musician Tan Dun his symphonic masterpiece Buddha Passion at the MGM Theater at MGM COTAI. Empowered by the vast spectacle of the MGM Theater’s 28 million pixels LED screen, the epic – composed and scripted by Tan Dun – has achieved its first-ever immersive fusion of music and technology. The performance pays homage to Chinese intangible cultural heritages and further illuminates Macau as the City of Performing Arts. This cultural mega event also serves as a grand tribute to the 75th anniversary of the founding of the People’s Republic of China and the 25th anniversary of Macao’s return to the Motherland. “
“We are committed to bringing more unique and integrated experiences to our customers, with the view to align our offerings with the Macau Government’s vision to develop the city into a global and diversified tourist destination.”
