Casino operator and sports betting company MGM Resorts International MGM reported second-quarter financial results after the market close Wednesday. Here are the key highlights.
What Happened: MGM reported second-quarter revenue of $3.26 billion, up 43.6% year-over-year. The revenue total beat a Street consensus estimate of $3.04 billion, according to data from Benzinga Pro.
Adjusted property EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) hit a record for the company’s Las Vegas segment and a second-quarter record for the regional operations segment.
Adjusted earnings per share were 3 cents for the second quarter.
Acquisitions of several properties were included in the operating results that were not present in last year’s results.
Las Vegas segment revenue was $2.1 billion in the second quarter, up 113% year-over-year. The company cited the inclusion of new properties and increased business volume and travel activity.
Regional segment revenue was $960 million in the second quarter, up 12% year-over-year. The company cited an increase in business volume for the quarter.
MGM China revenue was $143 million in the second quarter, down 54% year-over-year. The company cited travel restrictions in Macau in the quarter.
“Our second quarter results were outstanding, representing the best ever Adjusted Property EBITDAR quarter at the company’s Las Vegas strip resorts and best second quarter Adjusted Property EBITDAR at our regional operations driven by consistent strong demand from the leisure consumer and a return from our convention customers,” MGM Resorts CEO Bill Hornbuckle said.
Hornbuckle said the company’s BetMGM joint venture continues to be a “market leader with a roadmap for growth.”
MGM repurchased $1.1 billion of its shares in the second quarter, completing a previously announced $3 billion share buyback plan in February 2020.
“Since early 2021, the execution of our asset light strategy has allowed us to repurchase 31% of our market cap while accumulating domestic cash in excess of debt on our balance sheet,” MGM Resorts CFO Jonathan Halkyard said.
Related Link: What's Next For The BetMGM Joint Sports Betting Venture
What’s Next: Plans to pursue a commercial gaming license in the state of New York were cited as a potential future growth item. The company is also developing an integrated resort in Japan.
“We look to the future with optimism, as our convention and event calendar for the next year remain notably strong,” Hornbuckle said. “We remain focused on achieving our vision to be the world’s premier gaming entertainment company.”
MGM Price Action: MGM shares are up 2% to $34.72 in after-hours trading Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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