MGM Resorts International Wednesday reported revenue of $4.4 billion for this year’s first quarter, a quarterly record, and a 13% year-over-year increase. Net income for the quarter was $217 million compared to $467 million in 1Q23 and adjusted EBITDAR reached $1.2 billion.
In an earnings call, MGM Chief Financial Officer Jonathan Halkyard attributed part of the record revenue to the company’s ongoing results on the Las Vegas Strip.
“Our luxury resorts on the Strip served as a distinct competitive advantage, driving top-line growth of 5 percent during the quarter,” Halkyard said. “Looking ahead to the rest of the year, rate is pacing ahead of prior year for each of the remaining three quarters and group rooms on the books are up year over year.”
“Our strategic growth plan to drive sustainable free cash flow from our resort operations, develop free cash flow by investing in international digital and luxury integrated resorts, and return capital to shareholders through share repurchases continued to develop in the first quarter of 2024,” said MGM Resorts CEO and President Bill Hornbuckle in a statement. “We achieved record consolidated revenues in the first quarter. The January launch of our agreement with Marriott has surpassed our initial expectations, with over 130,000 room nights booked, and we expect the strategic relationship will be a growth driver this year.”
For the first quarter, Las Vegas Strip resorts posted revenue of $2.3 billion, a year-over-year increase of 4%. Strip adjusted EBITDAR was $828 million compared to $836 million in 1Q23.
MGM’s regional operations yielded revenue of $909 million compared to $946 million in 1Q23, a decrease of 4%. Adjusted regional EBITDAR was $274 million, a 12% decrease from the $313 million during the same time period in 2023.
Macau operations generated revenue of $1.1 billion in 1Q24, a 71% increase from the $618 million posted in the first quarter of 2023. Adjusted EBITDAR of Macau properties was $301 million; in 1Q23, adjusted EBITDAR was $169 million.
MGM Resorts stock closed at $39.75 on the Nasdaq, up $0.31, or 079%. After hours, the stock rose to $40.75, up $1, or 2.52%.
Rege Behe is lead contributor to CDC Gaming. He can be reached at rbehe@cdcgaming.com. Please follow @RegeBehe_exPTR on Twitter.
