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MGM Resorts net revenue grows by 36% in Q1 2023

1 May 2023

(PRESS RELEASE) -- MGM Resorts International today reported financial results for the quarter ended 31 March 2023.

"MGM Resorts is executing across all of its geographies and channels with record first quarter Las Vegas Strip Adjusted Property EBITDAR, consistently strong Regional Operations profit, MGM China's swift return to profitability, and BetMGM's anticipated positive earnings later this year," said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts. "Beyond our continued exceptional results, our future growth and expansion plans are promising. In April, we achieved the landmark approval of MGM's development plan in Osaka, Japan. The application process in New York is progressing and our global digital expansion plans remain a major focus as we continue to grow LeoVegas and the MGM digital brand worldwide."

"MGM Resorts achieved net cash flow provided by operating activities of $704 million and Free Cash Flow of $564 million during the first quarter," said Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts. "Our balance sheet continues to improve as we received $450 million in gross cash proceeds from the sale of Gold Strike Tunica and repaid $1.25 billion in unsecured notes upon maturity during the quarter. With $4.5 billion of cash on the balance sheet, we expect to continue to return capital to our shareholders through ongoing stock repurchases and pursue long-term growth opportunities through international digital acquisitions and the development opportunities we have with Japan and New York."

First Quarter 2023 Financial Highlights:

Consolidated Results:

  • Consolidated net revenues of $3.9 billion, an increase of 36% compared to the prior year quarter. The current quarter benefited from the inclusion of the operating results of The Cosmopolitan of Las Vegas ("The Cosmopolitan"), which was acquired in May 2022, partially offset by the disposition of The Mirage and Gold Strike Tunica in December 2022 and February 2023, respectively. Additionally, results improved over the prior year quarter due to increased business volume and travel activity primarily at MGM China and Las Vegas Strip Resorts

  • Operating income was $731 million compared to $106 million in the prior year quarter due to a $398 million gain on the disposition of Gold Strike Casino Resort in the current quarter and the increase in net revenues discussed above, partially offset by an increase in rent expense related to the VICI and The Cosmopolitan leases, which commenced in April 2022 and May 2022, respectively

  • Net income attributable to MGM Resorts was $467 million, which was impacted by the items affecting operating income above, compared to net loss attributable to MGM Resorts of $18 million in the prior year quarter

  • Diluted income per share of $1.24 in the current quarter compared to diluted loss per share of $0.06 in the prior year quarter

  • Adjusted diluted earnings per share ("Adjusted EPS") of $0.44 in the current quarter compared to $0.01 in the prior year quarter

  • Consolidated Adjusted EBITDAR of $1.1 billion

  • Net cash flow provided by (used in) operating, investing, and financing activities was $704 million, $212 million, and ($2.4 billion)

  • Free Cash Flow of $564 million

Las Vegas Strip Resorts:

  • Net revenues of $2.2 billion in the current quarter compared to $1.7 billion in the prior year quarter, an increase of 31%. The current quarter benefited from the inclusion of The Cosmopolitan, an increase in business volume as the early part of the prior year quarter was negatively affected by the spread of the omicron variant, and an increase in REVPAR, partially offset by the disposition of The Mirage

  • Same-store net revenues (adjusted for acquisitions and dispositions) of $1.9 billion in the current quarter compared to $1.5 billion in the prior year quarter, an increase of 22%

  • Adjusted Property EBITDAR of $836 million in the current quarter compared to $594 million in the prior year quarter, an increase of 41%

  • Same-Store Adjusted Property EBITDAR of $706 million in the current quarter compared to $561 million in the prior year quarter, an increase of 26%

  • Adjusted Property EBITDAR margin of 38.4% in the current quarter compared to 35.7% in the prior year quarter, an increase of 271 basis points primarily due to an increase in rooms revenue, as discussed above

Regional Operations:

  • Net revenues of $946 million in the current quarter compared to $891 million in the prior year quarter, an increase of 6%, due primarily to an increase in non-gaming business volume;

  • Same-store net revenues (adjusted for dispositions) of $919 million in the current quarter compared to $833 million in the prior year quarter, an increase of 10%

  • Adjusted Property EBITDAR of $313 million, which was flat compared to the prior year quarter

  • Same-Store Adjusted Property EBITDAR of $302 million in the current quarter compared to $285 million in the prior year quarter, an increase of 6%

  • Adjusted Property EBITDAR margin of 33.1% in the current quarter compared to 35.2% in the prior year quarter, a decrease of 206 basis points, due primarily to an increase in contribution from lower margin non-gaming revenue

MGM China:

  • Net revenues of $618 million in the current quarter compared to $268 million in the prior year quarter, an increase of 130%, and a decrease of 16% compared to the first quarter of 2019. The current quarter was positively affected by the removal of COVID-19 related travel restrictions

  • Adjusted Property EBITDAR of $169 million in the current quarter compared to Adjusted Property EBITDAR loss of $26 million in the prior year quarter, which included a charge of $18 million related to litigation reserves, and a decrease of 12% compared to the first quarter of 2019

  • Adjusted Property EBITDAR margin of 27.4% in the current quarter compared to 26.3% in the first quarter of 2019

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MGM Resorts net revenue grows by 36% in Q1 2023 is republished from CasinoVendors.com.