MGM Reports Strong Q3 Results despite September Cyberattack

The global gaming and entertainment company, MGM Resorts International, released its latest unaudited financial report, revealing details regarding its performance for the third quarter of 2023. The new report covers the three-month period ending September 30, 2023, revealing strong growth of consolidated net revenues. Overall, MGM Resorts posted consolidated net revenues of $4 billion. This result, when compared to the corresponding period in 2022, represented an increase of 16%.

The company explained that the strong growth was the result of the outstanding performance of MGM China in light of the lifted COVID restrictions in Macau. The strong performance of MGM China was able to partially offset the impact of the cyberattack against the company that disrupted its Las Vegas and regional operations. Additionally, MGM China’s performance helped cushion the impact of the dispositions of The Mirage, as well as Gold Strike Tunica.

In its trading update, the company revealed that net revenue for its Las Vegas Strip Resorts decreased by 8% to $2.1 billion. Regional operations for Q3 this year also marked a decrease with revenues down 5% to $925 million. In contrast, MGM China’s revenues for the latest trading period soared. According to the recent report, MGM China’s net revenues hit $813 million, up by a staggering 829% when compared to the $87 million result from Q3 in 2022.

The Company Enjoys Progress in Osaka

Besides the strong performance of MGM China, MGM Resorts reminded of its progress in the Asia region. In Q3 this year, the company was able to finalize the certification process in Japan by signing an Implementation Agreement for its integrated resort in Osaka. This marked a major step for the project in the region.

Further details within MGM’s recent report reveal that its operating income for Q3 this year hit $370 million. In contrast, for the same period in 2022, the company posted an operating loss of $1.0 billion. According to MGM, the positive result this year comes after an increase in its net revenues in combination with decreasing amortization expenses.

After the Cyberattack, MGM Is Stronger than Before

Jonathan Halkyard, MGM Resorts’ CFO and treasurer, revealed that the company continues to explore options for share repurchases as an “attractive opportunity” to return value to its shareholders. “Year-to-date, we have repurchased approximately $1.7 billion in stock. Our buyback program totals $6.2 billion since the beginning of 2021, reducing our share count by over 30%,” he explained.

“We started the quarter with great momentum across our businesses. While we were faced with a difficult cybersecurity issue in September, our employees rose to the occasion with incredible resilience and determination.“

Bill Hornbuckle, CEO and president of MGM Resorts

Bill Hornbuckle, MGM Resorts’ CEO and president, explained that the company started Q3 with a positive momentum. He acknowledged that in September, MGM was impacted by an unprecedented cybersecurity issue. However, according to Hornbuckle, the company’s dedicated team of experts showed resilience that helped it overcome the incident. He added that after the incident, MGM emerged stronger than before.

Hornbuckle spoke about the solid performance of MGM China that helped offset the negative impact of the cybersecurity issue. Focusing on the future, he said that the company is looking forward to the upcoming F1 Grand Prix in Las Vegas and the debut of the MGM Collection with Marriott Bonvoy.

In Q3 2023, MGM posted a net income of $161 million, compared to a net loss of $577 million for the corresponding period last year. The recent trading update revealed that consolidated adjusted EBITDAR in Q3 this year was $1.1 billion.