MGM Resorts International proudly announces unprecedented first-quarter earnings, setting a new benchmark for the industry. Bolstered by robust performances in Las Vegas and Macau, the company reports a staggering $4.4 billion in revenue for the initial quarter of the fiscal year, marking a remarkable 13% increase compared to the same period last year.
Jonathan Halkyard, Chief Financial Officer & Treasurer of MGM Resorts, offered insights into the exceptional quarter, stating, “We are delighted to achieve record-breaking results in the first quarter of 2024, driven by stellar performances at MGM China and our esteemed luxury resort properties in Las Vegas. Additionally, our strategic share repurchases totaling 12 million shares at favorable valuations underscore our commitment to delivering sustained value to our shareholders, leveraging the growth potential of our resort operations, digital ventures, and forthcoming development projects in Japan and New York.”
In contrast to recent disclosures from industry peers, MGM Resorts maintained a measured stance on its online gaming division, BetMGM, during its earnings call. Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts, emphasized a forward-looking approach regarding BetMGM, acknowledging present challenges in the North American market while affirming the company’s dedication to enhancing its product offerings.
MGM Resorts’ Remarkable Performance in Q1 2024
MGM Resorts (NYSE: MGM) attributes its exceptional revenue surge to the thriving operations in Macau, a key driver behind the impressive $4.4 billion revenue figure for the first quarter. MGM China reported net revenue of $1.1 billion, reflecting a remarkable 71% increase from the previous year’s first-quarter revenue of $618 million. The company attributes this growth to the continued recovery and expansion of operations following the relaxation of COVID-19 restrictions in Macau.
In Las Vegas, MGM Resorts posted net revenues of $2.3 billion for the quarter, registering a modest 4% increase from $2.2 billion in the corresponding period last year. Notably, the city’s hosting of its inaugural Super Bowl significantly contributed to the uptick in average daily hotel room rates, rising from $258 to $277 year-over-year for the first quarter.
Impact of BetMGM on Earnings
While BetMGM did not directly contribute to MGM Resorts’ bottom line in the first quarter, the company reported a reduced loss of $32.6 million, down from $81.8 million in the same period last year. Anticipating imminent growth, Halkyard expressed confidence in BetMGM’s potential to generate substantial free cash flow in the coming years, thus fueling future expansion initiatives and promising minimum mid-teens returns.
Looking Ahead for BetMGM
BetMGM’s adoption of a unified wallet system across all jurisdictions, with plans to implement a similar system in Nevada ahead of the football season, underscores the company’s commitment to enhancing user experience and engagement. Hornbuckle highlighted the forthcoming launch of live dealer online blackjack games from Las Vegas by summer, with further plans to develop proprietary online casino games to sustain growth and innovation within the division.
MGM’s Marriott Partnership Surpasses Expectations
MGM Resorts’ strategic collaboration with Marriott International has surpassed initial expectations, delivering remarkable results for the company during the first quarter. The partnership facilitated 130,000 room nights at MGM Resorts properties nationwide, surpassing projections and generating substantial revenue uplift. Notably, the integration of BetMGM Rewards with Marriott accounts further enhances the synergy between the two entities, promising even greater room night sales and revenue opportunities in the future.
MGM Resorts International’s record-breaking first-quarter earnings attest to the company’s unwavering commitment to excellence, strategic innovation, and sustained growth across its diversified portfolio. With promising developments on the horizon, including the evolution of BetMGM and the continued success of strategic partnerships, MGM Resorts remains poised for continued success and industry leadership in the global gaming and hospitality landscape.
