MGM Resorts International Q1 Earnings Highlights: Revenue And EPS Beat, Record Las Vegas EBITDAR, China Comes Back And BetMGM Update

Zinger Key Points
  • MGM Resorts International reports first-quarter revenue of $3.87 billion, up 36% year-over-year.
  • An update on the BetMGM sports betting joint venture.

 Casino resort operator and sports betting company MGM Resorts International MGM reported first-quarter financial results after the market close Monday. Here are the key highlights.

What Happened: MGM Resorts International reported first-quarter revenue of $3.87 billion, up 36% year-over-year. The revenue total came in ahead of a Street consensus estimate of $3.59 billion, according to data from Benzinga Pro.

The company reported earnings per share of 44 cents in the first quarter, beating a Street estimate of 10 cents.

MGM Resorts International reported revenue by segment as follows:

  • Las Vegas: $2.2 billion, +31% year-over-year
  • Regional Operations: $946 million, +6%
  • MGM China: $618 million, +130%

“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,” MGM Resorts CEO Bill Hornbuckle said.

In the first quarter, MGM Resorts repurchased 12 million shares for $487 million as part of its share buyback plan. A total of around $2 billion remains on the existing repurchase plans.

In a presentation for the first quarter, the company said BetMGM had revenue of $476 million in the first quarter. Two states were added in the first quarter, taking the company’s total for sports betting coverage to 26 North American states and territories.

BetMGM is the No. 3 sports betting operator by market share with around 17% to 18%, according to the presentation. BetMGM remains the iGaming leader in the United States with around a 28% market share. BetMGM is a joint venture between MGM Resorts and Entain.

Related Link: Japan Approves First Ever Casino And Resort, Here's The Public Stock That Could Benefit 

What’s Next: The company ended the quarter with $4.5 billion of cash, which is expected to be used for stock repurchases and “long-term growth opportunities.”

“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 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,” Hornbuckle said.

The BetMGM sports betting business is expected to be profitable in the second half of 2023. Guidance calls for the segment to have full year revenue of $1.8 billion to $2 billion.

MGM Price Action: MGM Resorts International shares are up 2% to $46.97 in after-hours trading Monday.

Read Next: MGM Resorts' LeoVegas Makes Major Move with Push Gaming Acquisition, Eyes Expansion

For more on the sports betting landscape and what could be next for popular betting segments and legislation, tune in to the Benzinga Sports Betting Titans virtual event on May 24. BetMGM CEO Adam Greenblatt will speak virtually at the event.  

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