Record Net Revenues: $4.4 billion, up 13% from the previous year.
Net Income: $217 million.
Adjusted EBITDAR: Over $1.2 billion.
Cash from Operating Activities: $549 million, including MGM China’s $215 million.
Free Cash Flow: $377 million.
Las Vegas Revenue Growth: 4%, with ADRs up 7% year-over-year.
Macau Net Revenues: Up 71% year-over-year, earning MGM China its first-ever $300 million quarter in adjusted property EBITDA.
Future Guidance
Rate Pacing: Ahead of the previous year for the remaining quarters of 2024.
Group Rooms: Bookings are up year-over-year.
Digital Business: Expected to begin generating significant free cash flow in the coming years.
Financial Strategy: Aim to drive compound annual growth rate of free cash flow per outstanding share to mid-teens through 2028 while investing in the Japan Integrated Resort.
Capital Expenditures: Continued investment in property enhancements and digital expansion.
Trends, Market Conditions, Sentiment
Luxury Offerings Drive Growth: MGM’s luxury resort offerings on the Strip have created a distinct competitive advantage, contributing significantly to revenue growth.
Market Recovery in Macau: The substantial year-over-year revenue increase in Macau signifies strong recovery and market demand returning to pre-pandemic levels.
Digital Expansion Focus: MGM is focused on the significant potential of the digital business and international expansion, particularly in Japan, the United Arab Emirates, and potentially Texas and Thailand.
Operational Efficiency: Mention of maintaining high margins despite wage impacts and other challenges, highlighting operational resilience and efficiency.
Risk of Poor Weather Impact: Acknowledgment of poor winter weather impacting regional business performance but noted quick recovery.
Global Financing Achievements: Successful closing on significant project financing for MGM’s Osaka Integrated Resort, marking a major milestone and investment confidence.
Balance Sheet Fortification: Aggressive share buyback strategy and effort to extend liquidity profile while reducing annual interest expense.
Notable Quotes
“We delivered another record quarter across our company’s consolidated businesses, generating record net revenues of $4.4 billion, up 13% from last year.” - Jonathan Halkyard.
“Given the strength in MGM China’s operating performance over the past 15 months, MGM China and MGM Resorts both agree there is no longer a need for MGM to support its liquidity.” - Jonathan Halkyard.
“We see this algorithm as driving the compound annual growth rate of free cash flow per outstanding share to be the mid-teens through 2028.” - Jonathan Halkyard.
“Our luxury resort offerings on the Strip served as a distinct competitive advantage, driving top line growth up 5% during the quarter.” - Jonathan Halkyard.
“Despite all of this, we’ve continued to maintain the margins… Our Net Promoter Scores have never been higher.” - William Hornbuckle.
”We are focused with BetMGM on our product and Angstrom integration and we’re working hard at that.” - William Hornbuckle discussing the potential of their digital offerings and future focuses.
