MGM Resorts International reported a 5% increase in consolidated net revenue, reaching a record $4.18 billion for the third quarter of 2024. This figure fell just short of analysts projections of $4.21 billion. While they exceeded expectations in international and digital revenue, they faced challenges in a decline in their Las Vegas 바카라 revenue, where reported sales and profit were well below their expectations.
International growth is primarily attributed to MGMs growing China operations, which have record-breaking sales and profits in Macau. Macau saw a COVID-19 travel restriction lifted earlier this year, allowing the company to achieve revenue of $929 million and earnings of $237 million before interest, taxes, depreciation, and amortization.
Las Vegas challenges
In the companys largest market, Las Vegas, revenue increased by 1.3% to $2.13 billion, driven by higher hotel room sales. The strip has been recording revenue drops for three consecutive months, with a 13% decline in 바카라 revenue, notably impacted by a downturn in baccarat gaming. According to Bloomberg, adjusted earnings for the third quarter were reported at 54 cents per share, a decrease from the previous year and below the analysts’ average estimate of 59 cents.
CEO and President of MGM Resorts, Bill Hornbuckle, stated, We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China,” He added, “In Las Vegas, we drove sequential improvement throughout the quarter, and many key metrics are demonstrating strength including growth in ADR and occupancy,
CFO of MGM Resorts, Jonathan Halkyard, attributed the table-game revenue decline to issues in the high-end baccarat segment, This was almost entirely due to our high-end baccarat business. This is the way our business is, and the timing of the trips from these largest customers is not, of course, our choice, he stated.
Halkyard explained that, excluding baccarat, table-game revenue was up 12%. Hold was down 15% from the year before. And between that and missed business, its like an $80 million miss in baccarat for us.
MGM Resorts also emphasised its strategy for returning value to shareholders, with Halkyard noting that over $300 million was returned through share repurchases in the quarter. Since 2021, we have consistently demonstrated our commitment to returning cash to shareholders, reducing overall shares outstanding by 40%.
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