MGM Resorts cites a post-Covid revenue boost of 73% in Q1

These positive numbers come amid a surprise bid for the iGaming brand LeoVegas.

MGM Resorts International has released its financial results for the first quarter of 2022. With improved revenue and decreased losses when compared to 2019, the period was a mostly positive one. 

Specifically, consolidated net revenue for the quarter was $2.9bn, a 73% boost when compared to the $1.6bn of the prior year period. This improvement has been attributed to the recovery of MGM Resort’s land-based properties. 

Much of this revenue was fueled by improved results on the Las-Vegas strip, with the company’s properties there bringing in $1.7bn in revenue, a year-on-year increase of 205%.

“We delivered a strong first quarter in our domestic operations driven by weekend demand and a better mix of business. The results demonstrate the robust demand for our gaming entertainment offerings with the backdrop of increased sports and entertainment programming in the Las Vegas market,” said Bill Hornbuckle, CEO and President of MGM Resorts International.

Losses were also down for the gaming stalwart, coming in at $18m compared to the $332m of 2021. While losses in 2021 were disproportionately affected by Covid-19, the numbers recorded in Q1 2022 also improved upon those found in 2019. 

“We reached another milestone in the completion of our asset light strategy with the closing of the VICI transaction, allowing us to simplify our corporate structure and bolster our liquidity while deploying capital into growth projects with the highest shareholder return.”

These results come amid a surprise bid of $607m for the iGaming company LeoVegas, as MGM Resorts looks to increase its influence in the European market and solidify its position in US iGaming.

This bid, while seemingly unexpected, will come as no surprise to those familiar with the iGaming brand, which is the five-time winner of Online Casino Operator of the Year at the Global Gaming Awards. 

Speaking on this, Hornbuckle added: “We announced this morning the tender offer for 100% of the shares of LeoVegas which will allow us to expand into international online gaming with a world class management team, strong IT platform and growth prospects. We remain focused on achieving our vision to be the world’s premier gaming entertainment company.”

MGM Growth Properties, the real estate arm of MGM Resorts, also closed a deal with VICI Properties during this period. The partnership will see the two pursue a commercial gaming license in New York and begin development on an integrated resort in Osaka, Japan.

“Our strong liquidity position, coupled with our confidence in the long-term recovery of our core business, has allowed us to continue to focus on maximizing long-term shareholder value. To that end, we continued to repurchase our stock in the first quarter, reaching over $1bn during the first quarter of 2022 and we repaid $1bn of notes in March,” concluded Jonathan Halkyard, CFO and Treasurer of MGM Resorts International.

Henry Moore

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