MGM Resorts Drop On Worse-Than-Expected Q3 Bottom-Line Performance

  • MGM Resorts International MGM reported third-quarter FY22 sales growth of 26% year-on-year to $3.42 billion, beating the consensus of $3.24 billion.
  • Results improved over last year due to increased business volume and travel activity primarily at the Las Vegas Strip Resorts.
  • Q3 benefited from the inclusion of the operating results of The Cosmopolitan of Las Vegas and Aria and Vdara upon their acquisition in May 2022 and September 2021, respectively.
  • Segment Revenues: Casino grew 0.5% to $1.4 billion, Rooms increased 68.7% to $827.4 million, Food and beverage rose 73.6% to $722.9 million, Entertainment, retail and other climbed 41.7% to $447.6 million.
  • The company recorded an operating loss of $(1.0) billion versus a profit of $1.9 billion last year, due to a $1.2 billion increase in noncash amortization expense.
  • The company held $5.3 billion in cash and equivalents as of September 30, 2022.
  • Adjusted EBITDAR for the quarter was $950 million.
  • Adjusted EPS of $(1.39) missed the analyst consensus of $0.23.
  • The company's Board of Directors approved a quarterly dividend of $0.0025 per share, payable on December 15, 2022, to holders of record on December 9, 2022.
  • Also ReadWhy MGM Stock Is Falling During Wednesday's After-Hours Session
  • Price Action: MGM shares are trading lower by 4.59% at $33.50 in premarket on the last check Thursday.
  • Photo Via Company
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