MGM Resorts generated net revenues of $3.3bn compared to $2.3bn in the prior year quarter, marking an increase of 44 per cent with the current quarter benefitting from the inclusion of the operating results of The Cosmopolitan of Las Vegas and Aria and Vdara.
The operator said results improved over the prior year quarter due to increased business volume and travel activity primarily at the Las Vegas Strip Resorts, which generated revenues of $2.1bn, an increase of 113 per cent. The company’s reginal operations brought in revenues of $960m in the current quarter compared to $856m in the prior year quarter, an increase of 12 per cent due to an increase in business volume.
Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International, said: “We’ve been busy this year with our vision to be the world’s premier gaming company. I could not be prouder of the progress we’ve made, but understand that there’s more work to be done.”
“Our second quarter results were outstanding, representing the best ever Adjusted Property EBITDAR quarter at the company’s Las Vegas Strip Resorts and best second quarter Adjusted Property EBITDAR at our Regional Operations driven by consistent strong demand from the leisure consumer and a return from our convention customers,” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International. “We announced several important portfolio changes during the quarter, with the acquisition of the operations of The Cosmopolitan of Las Vegas and the announcement of the sale of Gold Strike Tunica. We look to the future with optimism, as our convention and event calendar for the next year remain notably strong and BetMGM continues to be a market leader with a roadmap for growth. We remain focused on achieving our vision to be the world’s premier gaming entertainment company.”
“We see exceptional value in our company’s shares and have returned capital to our shareholders by repurchasing over $1.1bn of our stock in the second quarter,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts International. “Since early 2021, the execution of our asset light strategy has allowed us to repurchase 31 per cent of our market cap while accumulating domestic cash in excess of debt on our balance sheet.”
One market prime for expansion for MGM is of course New York where the company operates the machine only Empire City
“We’re hopeful New York will solicit applications by the end of the year for one of three additional casino licenses,” Mr. Hornbuckle said. “We’re eager to respond and expand our existing property at Empire City, which is less than 15 miles from Manhattan, with an attractive footprint for development and growth.”
The company is already in the process of selling its Gold Strike Tunica casino in Mississippi to Cherokee Nation Entertainment for $450m and the Mirage in Las Vegas to Hard Rock International for $1.08bn.