MGM Resorts beats second-quarter profit estimates, but sees higher costs
MGM Resorts International beat Wall Street profit estimates for the second quarter on Wednesday (Aug 2), as visitor rebound in China surpassed pre-pandemic levels.
However, costs for casino operations, hotel rooms and food and beverages rose, sending shares down 6.05 per cent in aftermarket trade.
The post-pandemic travel rebound in China and Macau has been a tailwind for casino operators such as MGM Resorts and Las Vegas Sands.
Inflation-driven operating costs have also risen, especially as casino operators invest in non-gaming segments such as dining and retail to lure visitors.
Adjusted property EBITDAR for MGM China was 21 per cent higher in the quarter, over 2019 levels.
However, the Las Vegas strip saw some weakness, with second-quarter net revenue flat and same-store adjusted property EBITDAR down 8 per cent, compared to last year.
Consolidated net revenue of US$3.94 billion in the quarter marked an all-time record, but was only slightly above analysts’ estimates of US$3.82 billion
Adjusted second-quarter earnings per share of 59 US cents came above analysts’ estimates of 54 US cents, according to Refinitiv data. REUTERS
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