MGM Posts Record Q3 Metrics, Reports Share-Buyback Progress

MGM Resorts International posted its Q3 report, outlining record-breaking revenue figures. The quarter also saw MGM make progress with its share buyback program.

The Company’s Metrics Surged

In the third quarter of the year, the international casino and hospitality powerhouse reported record-breaking results, underpinned by high hotel occupancy.

Consolidated net revenues hit $4.2 billion, marking an increase of 5% year on year. The increase was largely attributed to the recovery of MGM China following the removal of COVID-19 restrictions in Macau.

Net income for the period stood at $185 million, marking a significant YOY increase. Consolidated adjusted EBITDAR, on the other hand, was $1.1 billion for the quarter.

In the meantime, year-to-date free cash flow for the nine months ended September 30, was $944 million. MGM Resorts also reported diluted earnings per share of $0.61 and adjusted diluted earnings per share of $0.54.

In Q3, MGM Resorts repurchased roughly 8 million shares of its common stock. This significant share buyback cost it some $326 million and was in line with its overall share-buyback plan. All repurchased shares under the program have been retired.

All Segments Recorded Growth

Las Vegas remained a key revenue driver and was responsible for $2.1 billion of MGM Resorts’ net revenues for the quarter, up 1% year-on-year. Adjusted property EBITDAR for Las Vegas was $731 million, marking a 2% YOY increase.

The company’s regional operations brought in net revenues of $952 million, up 3% year-on-year. The increase was attributed to high casino activity, according to the official report. Adjusted property EBITDAR from the segment was $300 million, marking a slight 2% increase.

MGM China also played an important role to the business and generated $929 million in net revenues, up 14% year-on-year. The significant increase, as mentioned, was attributed to the end of the anti-pandemic measures. Adjusted property EBITDAR from the region, on the other hand, was $237 million.

MGM Resorts Executives Praise the Growth

MGM Resorts’ president & chief executive officer, Bill Hornbuckle, commented on the report, praising the company’s growth across the board. He was pleased with the record consolidated net revenues and said that they demonstrate the company’s favorable position.

MGM Resorts is well positioned for long-term growth driven by the positive inflection to come in our digital investments alongside the enviable integrated resorts pipeline of development that we have in Japan as well as opportunities in New York and beyond.

Bill Hornbuckle, president & CEO, MGM Resorts

Jonathan Halkyard, MGM Resorts International’s treasurer and chief financial officer, also chimed in, commenting on the share-buyback program. He noted that, since 2021, the company has been firmly committed to returning cash to shareholders and reducing its overall outstanding shares by 40%.

Halkyard added that MGM’s balance sheet continues to be characterized by low net debt and powerful liquidity, positioning the company for sustained growth.