
MGM has released its first-quarter financial results, seeing a 13% increase in total revenue year-on-year.
However, net income and regional operations saw decreases, with net income dropping from $467m to $217m and regional operations going down $35m in revenue. The operator believes these numbers are affected by a change in operating income, which was driven by a $398m gain on the disposition of Gold Strike Tunica in Q1 2023.
MGM China was the main source of growth for MGM as Covid-19 restrictions in the area continue to lessen and more guests can visit. MGM China alone accounted for $1.1bn of net revenue compared to $618m made in Q1 2023, an increase of 71%, while its adjusted property EBITDAR rose from $169m to $301m. MGM’s Las Vegas properties accounted for $2.3bn of net revenue, only a slight increase of 4% from its Q1 2023 total.
"We achieved record results in the first quarter of 2024 driven by strong performance at MGM China and in Las Vegas specifically at our luxury resort properties. 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," MGM CFO and Treasurer Jonathan Halkyard said.
"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.”
MGM’s strategic partnership with Marriott launched across 16 brands in the first quarter and saw its Japan IR venture complete work on its credit facility, the largest project financing in the country’s history.
MGM also still reported higher Q1 revenue numbers than comparable companies VICI Properties ($951.5m) who announced an up to $700m investment through its Partner Property Growth Fund strategy to fund extensive reinvestment projects at The Venetian Resort in Las Vegas, and Caesars ($2.7bn).
"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,” MGM President and CEO Bill Hornbuckle said.
“We achieved record consolidated revenues in the first quarter. The Jan. 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.”