MGM Resorts Reports Mixed Q3 Results with 5% Revenue Growth, Decreased Operating Income

MGM Resorts International reported its financial results for the third quarter and nine months ended September 30, 2024, showcasing a mixed performance in revenue and profitability compared to the previous fiscal period.

For the three months ended September 30, 2024, consolidated revenues reached $4,183,138,000, marking a 5% increase from $3,973,183,000 in the same period of 2023. The growth was driven by increases in casino revenue, which rose to $2,121,049,000 from $2,050,584,000, and rooms revenue, which increased to $883,564,000 from $827,091,000. Food and beverage revenue also saw a rise, reaching $755,322,000 compared to $698,261,000 in the prior year. However, operating income decreased by 15% to $314,857,000 from $369,936,000, primarily due to higher payroll-related expenses, gaming taxes, and promotional costs.

Net income for the third quarter was $244,164,000, an increase from $211,885,000 in 2023. Net income attributable to MGM Resorts International rose to $184,578,000 from $161,117,000. For the nine months ended September 30, 2024, net income totaled $826,692,000, down from $935,312,000 in the same period of 2023.

MGM China reported significant growth, with net revenues for the third quarter increasing by 14% to $929,456,000, and a 38% increase for the nine months to $12,385,133,000, attributed to the recovery of operations in Macau. In contrast, Las Vegas Strip Resorts experienced a modest revenue increase of 1% for the third quarter and 3% for the nine months.

The company’s total current liabilities increased to $3,886,758,000 as of September 30, 2024, from $3,126,068,000 at the end of 2023. Total stockholders’ equity decreased to $3,821,541,000 from $4,334,145,000, reflecting a decline in retained earnings from $3,664,008,000 to $3,037,397,000.

Strategically, MGM Resorts completed the acquisition of an 86% stake in Push Gaming for $146 million in August 2023 and sold Gold Strike Tunica for $450 million in February 2023, recognizing a gain of $399 million. The company also repurchased approximately 30 million shares for $1.3 billion during the nine months ended September 30, 2024, under its $2.0 billion stock repurchase plan.

MGM Resorts continues to navigate challenges, including a cybersecurity breach in September 2023, which has led to ongoing investigations and potential liabilities. The company is also exploring development opportunities, including a potential $2 billion commercial gaming facility in New York and a $1.9 billion integrated resort in Osaka, Japan.