MGM Resorts International Releases Strong Financial Report for Q3 2023

MGM Resorts International has recently released its unaudited financial report for the third quarter of 2023, detailing its performance during the period. The report, which covers the three months ending on September 30, 2023, highlights a significant growth in consolidated net revenues for the company, totaling $4 billion. This represents a 16% increase compared to the same period in 2022.

The company credited the outstanding performance of MGM China for the strong growth, particularly in light of the lifted COVID restrictions in Macau. This growth partially offset the impact of a cyberattack against the company, which disrupted its Las Vegas and regional operations. Additionally, MGM China’s performance helped cushion the impact of the dispositions of The Mirage and Gold Strike Tunica.

Despite the overall positive results, the company noted a decrease in net revenue for its Las Vegas Strip Resorts, which decreased by 8% to $2.1 billion. Regional operations also experienced a decrease with revenues down 5% to $925 million. In contrast, MGM China’s net revenues soared to $813 million, marking an 829% increase compared to the same period in 2022.

In addition to the strong performance of MGM China, the company highlighted its progress in the Asia region, specifically in Osaka, Japan. During Q3, MGM Resorts finalized the certification process in Japan by signing an Implementation Agreement for its integrated resort in Osaka, a significant step for the project in the region.

The report also revealed that the company’s operating income for Q3 reached $370 million, a significant improvement compared to an operating loss of $1.0 billion during the same period in 2022. MGM attributed this positive result to an increase in net revenues combined with decreasing amortization expenses.

Jonathan Halkyard, MGM Resorts’ CFO and treasurer, expressed the company’s commitment to exploring options for share repurchases to return value to its shareholders. Meanwhile, CEO and president Bill Hornbuckle acknowledged the company’s resilience in the face of a cybersecurity issue in September, stating that MGM emerged stronger than before. He also emphasized the company’s focus on the future, including the upcoming F1 Grand Prix in Las Vegas and the debut of the MGM Collection with Marriott Bonvoy.

In terms of financial performance, MGM posted a net income of $161 million for Q3 2023, a significant improvement compared to a net loss of $577 million for the corresponding period in 2022. Additionally, the company’s consolidated adjusted EBITDAR for Q3 reached $1.1 billion.

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