MGM Resorts International, a leading name in the gaming and hospitality industry, released its third-quarter earnings report after the market closed on Wednesday, revealing a mixed bag of results. While the company fell short of analysts’ expectations on both revenue and earnings per share, its China operations delivered a strong performance, contributing to record consolidated net revenues for the quarter.
The company reported earnings of 54 cents per share, missing the analyst consensus estimate of 61 cents. Revenue for the quarter came in at $4.2 billion, slightly below the analyst consensus estimate of $4.21 billion. Despite the miss, MGM’s performance was driven by the robust performance of its China operations.
MGM China recorded net revenues of $929 million in the current quarter, a significant increase of 14% compared to the same period last year. This growth was attributed to the recovery of operations following the removal of COVID-19 related travel and entry restrictions in the first quarter of 2023.
In Las Vegas, MGM’s Strip Resorts recorded net revenues of $2.1 billion in the quarter, a slight increase of 1% compared to the prior year. This growth was driven by a rise in non-gaming revenue, which offset a decline in casino revenue. While the Las Vegas operations showed modest growth, the company reported sequential improvement throughout the quarter, with key metrics like ADR and occupancy demonstrating strength.
Despite the mixed results, MGM CEO Bill Hornbuckle expressed optimism about the company’s future prospects. “We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China. In Las Vegas, we drove sequential improvement throughout the quarter and many key metrics are demonstrating strength including growth in ADR and occupancy,” Hornbuckle stated. “MGM Resorts is well positioned for long-term growth driven by the positive inflection to come in our digital investments alongside the enviable integrated resorts pipeline of development that we have in Japan as well as opportunities in New York and beyond.”
In the after-hours trading session, MGM Resorts shares dipped by 5.82% to $39 per share following the earnings announcement. While the company fell short of analysts’ expectations, the strong performance of its China operations and the positive outlook for its future development pipeline suggest that MGM Resorts remains a formidable force in the global gaming and hospitality industry.
