MGM Resorts International’s latest financial report paints a picture of striking contrasts: a booming market in China sharply offsetting challenges closer to home. The company’s third quarter results revealed a 2% increase in consolidated net revenues, reaching $4.3 billion, largely fueled by unprecedented success across the Pacific.
MGM China experienced a record-breaking quarter, achieving both its highest-ever third quarter adjusted EBITDAR and a significant 15.5% market share. This surge in performance underscores the region’s growing importance to the company’s overall financial health and future prospects.
Despite the overall revenue increase, consolidated adjusted EBITDA dipped to $506 million, a decrease from the $574 million reported in the same period last year. This shift highlights the complex dynamics at play within the broader portfolio.
CEO and President Bill Hornbuckle emphasized the company’s resilience, stating that MGM Resorts continues to benefit from its operational scale and diverse holdings. The exceptional performance of MGM China was specifically cited as a key driver of this continued growth.
A particularly bright spot was the BetMGM venture, which demonstrated accelerated growth throughout the quarter. This success prompted an upward revision of full-year guidance for the second consecutive time, and the exciting announcement of cash distributions to MGM Resorts, beginning with an initial payment of at least $100 million.
While Las Vegas has faced recent scrutiny regarding a potential slowdown, MGM reports encouraging signs of stabilization. The return of large group and convention business, coupled with the completion of a major renovation at the MGM Grand, are contributing to this positive trend.
However, Las Vegas Strip resorts still saw a 7% decrease in net revenues, totaling $2 billion compared to $2.1 billion in the prior year. This decline was primarily attributed to the MGM Grand remodel, a dip in RevPAR, lower table game win percentages, and reduced food and beverage spending.
The situation stands in stark contrast to that of competitor Caesars Entertainment, which simultaneously announced a $110 million loss for the quarter. This divergence further emphasizes the differing strategies and outcomes within the competitive Las Vegas landscape.
