MGM Resorts International reported a record consolidated net revenue of $4.33 billion for the second quarter of 2024, marking a 9.8% year-on-year increase. This growth was largely driven by the performance of MGM China, which saw operations expand following the lifting of COVID-19 restrictions in Macau.
MGM China exhibited significant growth, with net revenues of $1.02 billion, a 37% increase, driven by the continued ramp-up of operations in Macau. The adjusted property EBITDAR for MGM China grew by 40% to a record $294 million.
Net income attributable to MGM Resorts stood at $187.1 million, a decrease of 6.8% from the previous year. Consolidated adjusted earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR) were $1.2 billion. Diluted earnings per share rose by 9% to $0.60, while adjusted diluted earnings per share increased by 45% to $0.86.
“MGM Resorts continued to drive positive financial results and solid growth in the second quarter, with record MGM China Adjusted Property EBITDAR and further growth in Las Vegas where our Marriott relationship continues to exceed expectations and our meetings and convention business continues to strengthen thanks to our recently completed remodel of Mandalay Bay,” said Bill Hornbuckle, CEO and President of MGM Resorts International.
“We made significant progress with our international digital strategy by adding both an in-house sports product and live dealer capabilities to our online gaming offerings. We’re excited by the progress we’re making as a company against our strategic priorities and anticipate carrying our current momentum forward into the back half of the year.”
MGM’s Las Vegas Strip resorts reported net revenues of $2.21 billion, up 2.7%, primarily due to an increase in room revenues driven by a higher average daily rate (ADR) and increased catering and banquet revenue. The adjusted property EBITDAR for these operations was $782.3 million, a slight increase of 0.6%. Room occupancy on the Strip reached 97%, with an ADR of $248, resulting in a revenue per available room (RevPAR) of $240.
Regional operations remained steady with net revenues of $927.1 million, though adjusted property EBITDAR decreased by 2% to $288.4 million.
During the quarter, MGM Resorts repurchased approximately 10 million shares of its common stock, amounting to $413 million. This buyback is part of the company’s strategy to return capital to shareholders, having reduced its outstanding shares by nearly 40% since 2021.
“We continued to deliver on our Free Cash Flow growth algorithm in the second quarter, driving strong financial returns thanks to a solid baseline of cash flow from our domestic resorts, the continued growth of our digital business, and the resumption of dividends from MGM China,” said Jonathan Halkyard, CFO and Treasurer of MGM Resorts International.
For the first half of 2024, net cash flow from operating activities was $1 billion, while investing and financing activities resulted in outflows of $385 million and $1.1 billion, respectively. The company’s free cash flow for the period stood at $613 million.
Original article: https://www.yogonet.com/international/noticias/2024/08/01/73925-mgm-resorts-achieves-record-433-billion-revenue-in-q2-driven-by-strong-china-business-recovery
