MGM Q1 Results Hit Record Helped by Las Vegas, Marriott Partnership
MGM Resorts International (NYSE: MGM) delivered record first-quarter results on Wednesday, helped in part by the operator’s Las Vegas Strip casino hotels and a recently launched points partnership with Marriott International (NASDAQ: MAR).
The MGM Grand on the Las Vegas Strip. Operator MGM Resorts International reported record first-quarter results on Wednesday. (Image: MGM Resorts)
The Aria operator said it generated earnings per share of 74 cents on a non-generally accepted accounting principles (GAAP) basis in the first three months of the year, while revenue checked in at $4.4 billion. Analysts expected per-share earnings of 58 cents on sales of $4.23 billion.
We achieved record consolidated revenues in the first quarter,” said MGM CEO Bill Hornbuckle in a statement. “The January launch of our license agreement with Marriott has surpassed our initial expectations with over 130,000 room nights booked and we expect the strategic relationship will be a growth driver this year.”
The MGM Collection with Marriott Bonvoy partnership covers MGM’s 17 domestic properties, including those on the Las Vegas Strip and the brand’s regional casino hotels, and allows customers to book stays at those venues on Marriott’s website. Members of the MGM Rewards can earn Marriott Bonvoy points.
MGM Mostly Strong on the Strip, Macau
While some rivals hinted at weakness in Las Vegas, MGM said its first-quarter revenue there climbed to $2.3 billion from $2.2 billion a year earlier, helped by a 4% increase in average daily room rates. Adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) declined to $828 million from $836 million.
There was also evidence of some softness at MGM’s regional casinos during the quarter — an increasingly prominent theme across the industry. The operator said same-store adjusted property EBITDAR for its regional venues dropped 9% in the first quarter to $274 million from $302 million a year earlier.
Stagnation at MGM’s regional casinos in the first three months of the year was easily offset by strength in the MGM China unit, which knocked the cover off the ball. In the March quarter, MGM China’s net revenue surged 71% to $1.1 billion as adjusted property EBITDA soared 78%. MGM owns about 56% of the Macau entity.
“The current quarter was positively affected by the continued ramp-up of operations after the removal of COVID-19 related travel and entry restrictions in the prior year quarter,” according to the statement.
MGM Continues Buying Back Shares
Helped by $377 million in generated free cash flow in the first quarter, MGM extended its proclivity for repurchasing its shares. During the first three months of 2024, the Bellagio operator bought back 12 million of its shares.
We repurchased 12 million shares at attractive valuations, providing our shareholders with incremental future benefits from the free cash flow growth of our resort operations, digital profitability, and the development opportunities of Japan and New York,” said CFO and Treasurer Jonathan Halkyard in the press release.
Since 2021, the gaming company has reduced its shares outstanding count by 36%, good for one of the largest such reductions of any US-based firm over that span.
The post MGM Q1 Results Hit Record Helped by Las Vegas, Marriott Partnership appeared first on Casino.org.
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