Key points:
- Q3 revenue totalled $4.18bn, up 5.3% year-on-year, while revenue for the nine-month period totalled $12.89bn
- MGM China reported $3bn in revenue for the nine-month period ended 30 September 2024; up 137% from 2019
- Las Vegas Strip resort revenue remained relatively stagnant, up 1.2% in Q3 to $2.13bn
MGM Resorts International has reported its Q3 and 9M results for the period ended 30 September 2024, including a more detailed breakdown of the earnings of MGM China over the nine-month period.
In total, Q3 revenue for the operator came to $4.18bn for the quarter, up 5.3% year-on-year, while 9M revenue came to $12.89bn, up 9.3% year-on-year. Adjusted property EBITDAR came to $1.14bn for Q3, or $3.57bn for the nine-month period, while net income attributable to MGM Resorts came to $184.6m for Q3, up 14.6%, or $589.1m for 9M – a drop of 28.9% year-on-year.
Of the $4.18bn total, $2.12bn, or 50.7%, came from casino revenue. This is up from the $2.05bn reported in Q3 2023.
By segment: MGM China
Net revenue from operations at MGM China totalled $929.5m for Q3, up 14.4%, or $3bn for the nine-month period; an increase of over $800m year-on-year, or 38.3%. Adjusted property EBITDAR came to $237.4m, growth just shy of 5%, while for the nine-month period this growth rate shot up to 37.7%, totalling $832.4m in adjusted property EBITDAR.
Comparing these figures to those reported pre-Covid, net revenue for the nine-month period was up 137% compared to 2019 figures, while adjusted EBITDA was up 150% from the same time period.
MGM China’s market share for the period was up by over 5% compared to 2019, growing from 9.5% to 15.9%.
In terms of visitation numbers, those were up 65% year-on-year and 157% from 2019. Daily gross gaming revenue (GGR) was up 40% year-on-year and 129% from 2019, while mass GGR (including slots) were up 46% year-on-year or 180% from 2019.
Casino revenue for Q3 totalled $800m, up 12%, with main floor table game win up 21% to $858m. Despite this, main floor table game drop was only up by 4%, with win up 3.4% to 24.9%.
MGM Cotai reported a 2024 market share of 9.4%, with a revenue of HK$13.7bn (US$1.76bn), up 48.9%. Adjusted EBITDA was also up, growing by HK$1.3bn from 2023, totalling HK$4bn for the nine-month period.
MGM Macau, meanwhile, reported a market share of 6.5%, with revenue for the period totalling HK$9.8bn, HK2bn more than this time last year. Adjusted EBITDA totalled HK$2.9bn, up 26.1% year-on-year.
On the results, MGM China President and Executive Director Kenneth Feng said: "We are delighted to see the recovery in Macau, along with the diversification development of the city. We are committed to developing Macau into a global and diversified tourist destination through our concession commitments.
"Meanwhile, we are also investing in several capital improvements across our properties. These initiatives include the renovation of our MGM MACAU villas and converting some hotel rooms at MGM Cotai into suites... We are devoted in enhancing the stay for our customers, driving organic visitation and bringing in unique experience for Macau visitors.”
Indeed, diversification, especially into non-gaming sectors, has become a key driver for the Macau gaming market following the pandemic, which saw casinos across the territory struggle significantly as a result of lockdown measures. MGM China President Hubert Wang spoke on his experience in the 2023 edition of Gambling Insider’s CEO Special.
Good to know: BetMGM, a joint subsidiary of MGM Resorts and Entain, reported $3.2m in operating income for MGM in the quarter – falling significantly from the $12.6m reported last year
A few recent examples of these diversification efforts in Macau – both from MGM and others – include Wynn’s hypercar exhibit at Wynn Macau and Wynn Palace, Melco’s hosting of the ‘Glow your way to Macau’ tourism roadshow and MGM China’s hosting of Oktoberfest Macau 2024.
By segment: Las Vegas Strip
Looking at MGM’s Vegas Strip results, revenue for the quarter came to $2.13bn, up slightly at 1.2%, while nine-month revenue came to $6.59bn, up 2.5%. Adjusted property EBITDAR came to $731m, up from last year’s $714.1m, with nine-month revenue also seeing an increase from last year, growing from $2.33bn to $2.34bn.
Looking at further statistics, casino revenue saw a decline at MGM’s Las Vegas Strip resorts in Q3, dropping 13% to $476m. Table games saw a dip in both drop and win, with the amount dropped declining by 7% and table game win declining by 19%. However, slots saw a consistent increase in both handle and win, both up 4% year-on-year, with handle coming to $5.92bn and win coming to $554m.
Room revenue was up 7% to $743m, likely aided by a 3% increase in average daily room rate and 6% increase in revenue per available room. Occupancy was also up 2%, coming to 94%.
By segment: Regional operations
Regional operations from MGM Resorts faced some challenges this quarter, particularly in its nine-month metrics. While Q3 revenue was up 2.9% to $952.1m, nine-month period revenue slipped slightly, down from $2.8bn to $2.79bn. Q3 adjusted property EBITDAR came to $300m, up 2.3%, while nine-month adjusted property EBITDAR fell 4.2% to $862.5m.
For Q3, casino revenue came to $693m, up 2%, with both table game drop and win remaining unchanged from last year. Slot handle was up 3% to $6.95bn and slot win was up 6% to $693m, with a 10% slot win percentage compared to last year’s 9.7%.
Comments
On the results, MGM Resorts International CEO and President Bill Hornbuckle said: "We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China. In Las Vegas, we drove sequential improvement throughout the quarter and many key metrics are demonstrating strength including growth in ADR and occupancy.
"MGM Resorts is well positioned for long-term growth driven by the positive inflection to come in our digital investments alongside the enviable integrated resorts pipeline of development that we have in Japan as well as opportunities in New York and beyond."
