MGM Resorts’ Q1 Report Says Company Results Were “Exceptional”
MGM Resorts International posted its Q1 2023 report this week, and it’s basically been good news all around for the biggest operator in Las Vegas.
Despite overall Strip revenues falling in March, MGM’s quarterly revenues and profits were up significantly over the same period in 2022.
MGM’s strip casinos, including the Bellagio and The Cosmopolitan, netted some $2.2 billion in revenue over the first three months of the year. That’s up 31% on the previous year’s figure.
“MGM Resorts is executing across all of its geographies and channels, with record first quarter Las Vegas Strip Adjusted Property EBITDAR,” said Bill Hornbuckle, CEO and president of MGM Resorts.
EBITDAR is earnings before interest, taxes, depreciation, amortization, and rent.
Free Cash Flow
As well as operational revenues going strong, MGM Resorts’ balance sheet isn’t looking bad either.
“MGM Resorts achieved net cash flow provided by operating activities of $704 million, and free cash flow of $564 million during the first quarter,” said company CFO and Treasurer Jonathan Halkyard.
“With $4.5 billion of cash on the balance sheet, we expect to continue to return capital to our shareholders through ongoing stock repurchases, and pursue long-term growth opportunities,” he added.
As an example of its aggressive market strategy in recent years, this week the MGM-owned Leo Vegas brand acquired online slot game developer Push Gaming for an undisclosed fee.
Last year, MGM sold the land under the Mandalay Bay and the MGM Grand Casinos in Las Vegas to real estate investment trust VICI Properties. It now operates the casinos on a leased basis.
In return, MGM generated a huge lump sum, which it has used to invest across its portfolio.
“Beyond our continued exceptional results, our future growth and expansion plans are promising,” said Hornbuckle. “In April, we achieved the landmark approval of MGM’s development plan in Osaka, Japan. The application process in New York is progressing, and our global digital expansion plans remain a major focus.”
This, of course, leaves out the profits pouring in from its online sports betting operation BetMGM, which will be published separately. BetMGM is a joint venture with Entain, who published its stats in April.
In the first Quarter of 2023, MGM Resorts’ spending has been paying off. Operating income was $731 million for the three months, compared to $106 million in the same quarter last year.
This has led to a big increase in income per share, which will please shareholders. The income per share capped out at $1.24 in this quarter, compared to a loss of $0.06 per share last year.
Revenues were not only helped by investments, but offset by sales, too.
Not only did it sell the land under some of its biggest Las Vegas casinos, but the end of 2022 saw MGM Resorts complete the sale of operating rights to The Mirage.
Hard Rock Entertainment completed the purchase of Mirage operating right for $1.075 billion in December 2022. That was followed by the MGM sale of the Gold Strike Tunica site in Mississippi in February this year for $450 million.