Operator News
US – MGM reports record net revenue with Macau surpassing 2019’s figures
By Phil - 3 August 2023
MGM Resorts International achieved an all-time record for consolidated net revenue in its second quarter with MGM China outperforming Macau market recovery with Adjusted Property EBITDAR and net revenues surpassing 2Q19.
The company’s Las Vegas Strip Resorts achieved solid results with ADR and occupancy growth year-over-year whilst bookings pace remains up for remainder of 2023.
“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,” said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts. “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.”
“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,” said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts.
Consolidated net revenues of $3.9bn showed an increase of 21 per cent compared to the prior year quarter, due primarily to the removal of COVID-19 related entry restrictions in Macau;
On the Las Vegas Strip, net revenues of $2.1bn in the current quarter were flat compared to the prior year quarter. Regionally, net revenues came in at $926m in the current quarter compared to $960m in the prior year quarter, showing a decrease of three per cent, due primarily to the disposition of Gold Strike Tunica in February 2023.
MGM China continued to outperform the market amid of industry recovery. Net revenue of the Group grew by 231.2 per cent year-on-year to HK$10.6bn. Visitation recovered to 95 per cent of 19Q2. Daily GGR was 98 per cent of 19Q2. Revenue of the Group was HK$5.8bn, 105 per cent of 19Q2. By segment, the Group’s mass GGR (including slot) in second quarter was 124 per cent of 19Q2, versus market’s estimated 88 per cent. VIP GGR recovered to 50 per cent of 19Q2, compared to market’s estimated 23 per cent.
Kenneth Feng, President and Executive Director of MGM China, said: “We are committed to helping shape the future of Macau as a global tourism destination through our concession commitments, with investment beginning this year. The investment will cover a wide range of opportunities, including investments in Art and Culture, entertainment, and expansion of our international customer base. I would like to thank the Macau SAR government for their continued support.”
