LAS VEGAS—MGM Resorts Worldwide reported monetary outcomes for the quarter ended March 31, 2023.
“MGM Resorts is executing throughout all of its geographies and channels with report first quarter Las Vegas Strip Adjusted Property EBITDAR, persistently robust Regional Operations revenue, MGM China’s swift return to profitability, and BetMGM’s anticipated constructive earnings later this yr,” stated Invoice Hornbuckle, CEO and president of MGM Resorts. “Past our continued distinctive outcomes, our future progress and enlargement plans are promising. In April, we achieved the landmark approval of MGM’s improvement plan in Osaka, Japan. The appliance course of in New York is progressing and our international digital enlargement plans stay a significant focus as we proceed to develop LeoVegas and the MGM digital model worldwide.”
“MGM Resorts achieved web money movement offered by working actions of $704 million and free money movement of $564 million throughout the first quarter,” stated Jonathan Halkyard, chief monetary officer and treasurer of MGM Resorts. “Our stability sheet continues to enhance as we obtained $450 million in gross money proceeds from the sale of Gold Strike Tunica and repaid $1.25 billion in unsecured notes upon maturity throughout the quarter. With $4.5 billion of money on the stability sheet, we anticipate to proceed to return capital to our shareholders by way of ongoing inventory repurchases and pursue long-term progress alternatives by way of worldwide digital acquisitions and the event alternatives we have now with Japan and New York.”
Consolidated Outcomes
- Consolidated web revenues of $3.9 billion, a rise of 36 p.c in comparison with the prior-year quarter. The present quarter benefited from the inclusion of the working outcomes of The Cosmopolitan of Las Vegas, which was acquired in Might 2022, partially offset by the disposition of The Mirage and Gold Strike Tunica in December 2022 and February 2023, respectively. Moreover, outcomes improved over the prior yr quarter as a result of elevated enterprise quantity and journey exercise primarily at MGM China and Las Vegas Strip Resorts;
- Working earnings was $731 million in comparison with $106 million within the prior yr quarter as a result of a $398 million acquire on the disposition of Gold Strike Tunica within the present quarter and the rise in web revenues mentioned above, partially offset by a rise in lease expense associated to the VICI and The Cosmopolitan leases, which commenced in April 2022 and Might 2022, respectively;
- Internet earnings attributable to MGM Resorts was $467 million, which was impacted by the gadgets affecting working earnings above, in comparison with a web loss attributable to MGM Resorts of $18 million within the prior yr quarter;
- Diluted earnings per share of $1.24 within the present quarter in comparison with diluted loss per share of $0.06 within the prior yr quarter;
- Adjusted diluted earnings per share of $0.44 within the present quarter in comparison with $0.01 within the prior yr quarter;
- Consolidated Adjusted EBITDAR of $1.1 billion;
- Internet money movement offered by (utilized in) working, investing, and financing actions was $704 million, $212 million, and ($2.4 billion), respectively; and
- Free money movement of $564 million.
Las Vegas Strip Resorts
- Internet revenues of $2.2 billion within the present quarter in comparison with $1.7 billion within the prior yr quarter, a rise of 31 p.c. The present quarter benefited from the inclusion of The Cosmopolitan, a rise in enterprise quantity because the early a part of the prior yr quarter was negatively affected by the unfold of the omicron variant, and a rise in RevPAR, partially offset by the disposition of The Mirage;
- Identical-store web revenues (adjusted for acquisitions and inclinations) of $1.9 billion within the present quarter in comparison with $1.5 billion within the prior yr quarter, a rise of twenty-two p.c;
- Adjusted Property EBITDAR of $836 million within the present quarter in comparison with $594 million within the prior yr quarter, a rise of 41 p.c;
- Identical-store adjusted property EBITDAR of $706 million within the present quarter in comparison with $561 million within the prior yr quarter, a rise of 26 p.c; and
- Adjusted property EBITDAR margin of 38.4 p.c within the present quarter in comparison with 35.7% within the prior yr quarter, a rise of 271 foundation factors primarily as a result of a rise in rooms income, as mentioned above.
Regional Operations
- Internet revenues of $946 million within the present quarter in comparison with $891 million within the prior yr quarter, a rise of 6 p.c, due primarily to a rise in non-gaming enterprise quantity;
- Identical-store web revenues (adjusted for inclinations) of $919 million within the present quarter in comparison with $833 million within the prior yr quarter, a rise of 10 p.c;
- Adjusted property EBITDAR of $313 million, which was flat in comparison with the prior yr quarter;
- Identical-store adjusted property EBITDAR of $302 million within the present quarter in comparison with $285 million within the prior yr quarter, a rise of 6 p.c; and
- Adjusted property EBITDAR margin of 33.1 p.c within the present quarter in comparison with 35.2 p.c within the prior yr quarter, a lower of 206 foundation factors, due primarily to a rise in contribution from decrease margin non-gaming income.
MGM China
- Internet revenues of $618 million within the present quarter in comparison with $268 million within the prior yr quarter, a rise of 130 p.c, and a lower of 16 p.c in comparison with the primary quarter of 2019. The present quarter was positively affected by the removing of COVID-19-related journey restrictions;
- Adjusted property EBITDAR of $169 million within the present quarter in comparison with Adjusted property EBITDAR lack of $26 million within the prior yr quarter, which included a cost of $18 million associated to litigation reserves, and a lower of 12 p.c in comparison with the primary quarter of 2019; and
- Adjusted property EBITDAR margin of 27.4 p.c within the present quarter in comparison with 26.3 p.c within the first quarter of 2019.
Company Expense
Company expense, together with share-based compensation for company workers, elevated to $128 million within the first quarter of 2023 from $111 million within the prior yr quarter, due primarily to a rise in payroll expense.
MGM Resorts Share Repurchases
Throughout the first quarter of 2023, the corporate repurchased roughly 12 million shares of its widespread inventory for an mixture quantity of $487 million, pursuant to its repurchase plans. The remaining availability beneath the February 2023 repurchase plan was roughly $2.0 billion as of March 31, 2023. All shares repurchased beneath the corporate’s repurchase plans have been retired.