Casino and hospitality company MGM Resorts International (NYSE: MGM) reported second-quarter financial results after the market close Wednesday. Here are the key highlights.
What Happened: MGM Resorts reported second-quarter revenue of $3.94 billion, which was up 21% year-over-year. The revenue total beat a Street consensus estimate of $3.82 billion, according to data from Zenger News Pro. This marks a company record for quarterly net revenue.
The company reported earnings per share of 55 cents, which beat a Street consensus estimate of 54 cents per share.
Revenue by segment was:
- Las Vegas: $2.1 billion, flat
- Regional Operations: $926 million, -3% year-over-year
- MGM China: $741 million, +418% year-over-year
BetMGM posted operating losses of $22.5 million for the company in the quarter, compared to a loss of $71.2 million one year ago.
“BetMGM reported that it achieved its first positive EBITDA quarter and remains on track to achieve its next milestone of second-half profitability,” said MGM CEO Bill Hornbuckle in a statement.
What’s Next: Hornbuckle highlighted the company’s recently announced partnership with Marriott International (NASDAQ: MAR).
“We also cemented a long-term agreement with Marriott which will provide us with an expansive customer booking channel to further bolster our profitability,” said the CEO said.
“Looking forward to the rest of 2023 and beyond, we are encouraged by the pacing of both Formula 1 and the Super Bowl and the announced relocation of the A’s, which will further solidify Las Vegas as the sports and entertainment capital of the world.”
The company also plans to continue growth opportunities in regions like Japan and New York.
MGM Price Action: MGM shares are down 6.1% to $46.25 in after-hours trading Wednesday versus a 52-week trading range of $29.22 to $51.35.
According to PR Newswire, during the second quarter of 2023, MGM repurchased approximately 15 million shares of its common stock for an aggregate amount of $626 million, pursuant to its repurchase plan.
“The remaining availability under the February 2023 repurchase plan was approximately $1.4 billion as of June 30, 2023. All shares repurchased under the Company’s repurchase plan have been retired,” said PR Newswire in a report.
Produced in association with Benzinga
Edited by Priscilla Jepchumba and Judy J. Rotich
