MGM Resorts has reported its third quarter financial results, posting $4bn in consolidated net revenue, a 16% year-on-year increase. This increase was due largely to the fact that MGM China’s sector revenue shot up from $87m in Q3 of 2022 to $813m in 2023, as the Covid-19 pandemic restrictions have eased in Macau; US segments, however, were not as successful.
During Q3 of 2022, MGM Resorts achieved record Las Vegas Strip resort revenue, which increased 26% at the time to $3.4bn. The third quarter of 2023 saw the Las Vegas segment revenue decline annually by 8% to $2.1bn. The financial results state that this was due to the ‘disposition of the Mirage in December’ as well as the cyber attacks experienced in September this year.
At the Global Gaming Expo Las Vegas in October, MGM Resorts CEO Bill Hornbuckle said the issues experienced with cybersecurity could cost the operator $100m in the end.
Of the total $2.1bn revenue achieved via properties on the Strip, $546m came from casino revenue (down 5% annually), while $695m came from room revenue (down 6% annually). Las Vegas properties achieved a Q3 adjusted EBITDAR of $714m, which has also decreased year-on-year from $846m.
Regional MGM Resorts operations posted net revenue of $925m, down from 2022’s third quarter result of $974m. The cybersecurity issue also affected these properties, as had the ‘disposition of Gold Strike Tunica in February 2023.’ Of the total regional property revenue, casino revenue accounted for $679m (down 6% annually). The regional adjusted EBITDAR result for Q3 this year was $293m, while in 2022 this figure was $322m.
Total consolidated adjusted EBITDAR for all of MGM Resorts’ properties was $1.1bn in Q3 this year, up from $846m this time last year, which was a record result at the time. The third quarter of 2021 only reached an adjusted EBITDAR result of $535m.
During the third quarter this year, fellow hotel and casino giant, Caesars Entertainment, posted a Q3 revenue of $3bn, up slightly from $2.9bn during the previous year’s third quarter. Unlike MGM Resorts, Caesars’ casino segment revenues rose annually, but only by 1%.
MGM Resorts’ Q3 net income increased greatly year-on-year from a net loss of $577m in 2022 to an income of $161m in 2023. Operating income also increased from a loss of $1bn in Q3 of 2022 to a $370m income in Q3 in 2023.
By comparison, Caesars increased its net income from $52m in Q3 of 2022 to $74m in 2023, but both its Las Vegas and Regional segments decreased their individual income by at least 3%.
Yesterday, Caesars reached a contract agreement with the hospitality workers union in Las Vegas, which was poised to go on strike tomorrow. MGM Resorts has not yet reached such an agreement, but Hornbuckle stated during the financial results call that this could happen shortly.
