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MGM Resorts International Posts Strong Financial Performance in Q3 2023
MGM Resorts International, a leading global gaming and entertainment company, has released its unaudited financial report for the third quarter of 2023. The report covers the three-month period ending September 30, 2023, and outlines the company’s performance during this time.
According to the report, MGM Resorts posted consolidated net revenues of $4 billion, representing a 16% increase compared to the same period in 2022. The company attributed this strong growth to the outstanding performance of MGM China, which was able to partially offset the impact of a cyberattack that disrupted its Las Vegas and regional operations. MGM China’s performance also cushioned the impact of dispositions of The Mirage and Gold Strike Tunica.
While net revenue for Las Vegas Strip Resorts decreased by 8% to $2.1 billion, regional operations saw a 5% decrease in revenues to $925 million. In contrast, MGM China’s net revenues skyrocketed to $813 million, marking an 829% increase compared to the same period in 2022.
In addition to its strong performance, MGM Resorts highlighted its progress in the Asia region, particularly in Osaka, where it finalized the certification process by signing an Implementation Agreement for its integrated resort. This development marked a major step for the company’s project in the region.
The company’s operating income for Q3 2023 reached $370 million, a significant improvement compared to the 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, highlighted the company’s continued exploration of options for share repurchases as a way to return value to its shareholders. MGM has repurchased approximately $1.7 billion in stock year-to-date and has a buyback program totaling $6.2 billion since the beginning of 2021, reducing its share count by over 30%.
Bill Hornbuckle, CEO and president of MGM Resorts, acknowledged the impact of a cybersecurity issue in September but emphasized the company’s resilience in overcoming the incident. He stated that after the incident, MGM emerged stronger than before. Looking ahead, Hornbuckle expressed excitement for the upcoming F1 Grand Prix in Las Vegas and the debut of the MGM Collection with Marriott Bonvoy.
Overall, MGM Resorts posted a net income of $161 million in Q3 2023, a significant improvement from a net loss of $577 million during the same period last year. The report also revealed that consolidated adjusted EBITDAR in Q3 2023 was $1.1 billion.