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US – MGM records $1.4bn net revenues at Las Vegas Strip resorts in Q3

By - 4 November 2021

In the company’s third quarter financial and operating results, MGM’s Las Vegas Strip resorts recorded net revenues of $1.4bn, an increase of 187 per cent compared to the prior year quarter and a decrease of eight per cent compared to the third quarter of 2019.

While the current quarter benefited from the removal of mandated operational and capacity restrictions as well as an increase in travel, the prior year quarter was negatively affected by temporary property closures at certain properties and operational restrictions.

Adjusted property EBITDAR was $535m compared to $15m in the prior year quarter, and an increase of 21 per cent compared to 2019.

“We delivered another strong quarter led by our domestic operations resulting in new historical Adjusted Property EBITDAR records for our Las Vegas Strip and U.S. regional segments.

“These results demonstrate the continued robust demand for our gaming entertainment offerings across the U.S. and the effectiveness of our operating model,” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International.

Through September, MGM repurchased $1bn of shares of common stock. “The completion of our asset light strategy will allow us to simplify our corporate structure and bolster our liquidity,” added Mr. Hornbuckle.

“I am also excited about our long-term growth prospects, including: BetMGM, which continues to establish itself as a clear leader in U.S. sports betting and iGaming; our selection as Osaka’s partner to build and operate a large-scale integrated resort in Japan; and the announcement of our agreement to acquire the operations of The Cosmopolitan of Las Vegas.

“The company remains focused on achieving our vision to be the world’s premier gaming entertainment company.”

Across the business, consolidated net revenues were $2.7bn, an increase of 140 per cent compared to the prior year quarter, consolidated operating income was $1.9bn compared to a loss of $495m in 2020, and net income attributable to MGM Resorts was $1.4bn compared to a net loss of $535m.

Consolidated cash and cash equivalents balance as of September 30 was $5.6bn, which included $320m at the MGP Operating Partnership and $331m at MGM China;

Total liquidity was $9.8bn, which included $1.7bn at the MGP Operating Partnership and $1.7bn at MGM China comprised of cash, cash equivalents and capacity under the revolving credit facilities of the company, MGP Operating Partnership and MGM China.

“Our strong liquidity position, coupled with our confidence in the long-term recovery of our core business, has allowed us to continue to focus on maximising long-term shareholder value.

“To that end, we continued to repurchase our stock in the third quarter, reaching over $1bn of share repurchases since beginning the programme this year,” commented Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts International.

“As we navigate future uses of our capital, we will remain disciplined in maintaining a strong balance sheet, pursuing targeted growth opportunities and returning cash to shareholders.”

MGM’s regional operations saw net revenues of $925m, an increase of 66 per cent compared to the prior year quarter and a decrease of one per cent compared to the third quarter of 2019.

Adjusted property EBITDAR was $348m, an increase of 139 per cent compared to the prior year quarter, and an increase of 29 per cent compared to two years ago.

For MGM China, net revenues were $289m, an increase of 517 per cent compared to the prior year quarter and a decrease of 61 per cent compared to the third quarter of 2019.

The prior year quarter was more significantly impacted by travel and entry restrictions in Macau as well as other operational restrictions related to the pandemic than in the current quarter.

Adjusted property EBITDAR was $7m compared to a loss of $96m last year, and a decrease of 96 per cent compared to Q3 2019.

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