gionnixxx/iStock Unreleased via Getty Images
MGM Resorts International (NYSE:MGM) traded higher in postmarket trading on Wednesday after a big jump in Macau revenue padded the casino giant’s overall numbers.
Consolidated revenue was up 13% year-over-year to $4.4B vs $4.2B consensus. The revenue growth was due primarily to an increase in revenue at MGM China resulting from the continued ramp up of operations after the removal of COVID-19 related entry restrictions in Macau in the prior year quarter. Las Vegas Strip resorts generated $2.3B in revenue, vs. $2.2B a year ago. Strip table games win was 12% higher for the quarter, but slot handle and slot win were both lower. Strip revenue per available room improved to $258 from $239 with the Super Bowl in February a factor. The Strip occupancy rate rose to 93% from 92% a year ago. Regional casinos saw a 4% drop in revenue during the quarter. Of note, BetMGM narrowed its operating loss share to MGM to $32.6M from $81.9M a year ago.
Consolidated adjusted EBITDAR for the quarter was $1.2B. EPS was $0.74 vs. $0.58 consensus and $0.44 a year ago.
CEO update: “Our strategic growth plan to drive sustainable free cash flow from our resort operations, develop free cash flow by investing in international digital and luxury integrated resorts, and return capital to shareholders through share repurchases continued to develop in the first quarter of 2024… Our venture in Japan continues to progress with financing now in place and our recent hedging program has provided significant cost advantages for the development of the country’s first integrated resort.”
Shares of MGM Resorts International (MGM) increased 1.89% in postmarket trading to $40.50.
