MGM Resorts tops estimates, cites gains in Vegas and Macau

MGM Resorts International, the largest operator of casinos on the Las Vegas Strip, reported first-quarter results that beat Wall Street estimates, crediting growth in Nevada and a rebound in Macau.

Earnings soared to 44 US cents a share, excluding some items, Las Vegas-based MGM said on Monday (May 1), beating the 10 US cent average of analysts’ estimates. Revenue grew by more than a third to US$3.87 billion and beat Wall Street projections of US$3.59 billion.

MGM’s business in Las Vegas, its largest market, is booming, with revenue up 31 per cent to US$2.2 billion. Adjusted earnings increased 41 per cent to US$836 million from a year earlier when resorts were hurt by the Covid-19 Omicron variant. The company’s hotels were 92 per cent full during the quarter, taking in an average of US$258 a night.

China is on the mend, too. Business in Macau more than doubled, reflecting the recovery that’s followed the lifting of Covid-19 travel restrictions. Adjusted property earnings came to US$169 million, following a year-earlier loss. Last year, MGM got around 5 per cent of its revenue from Macau, down from almost 25 per cent before the pandemic.

Shares of MGM rose 2.5 per cent to US$46.04 at the close in New York. They have gained 37 per cent this year.

Earlier Monday, MGM announced the purchase of a majority stake in Push Gaming Holding, a maker of online and mobile slot machine games, through it LeoVegas unit.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

MGM has been expanding into digital products, with the market for land-based casinos already built out and new licences hard to win.

That effort has accelerated since Barry Diller’s IAC began acquiring shares three years ago and more states began legalising online betting. IAC is now the largest investor in MGM, with a 17 per cent stake.

The company expects to make more online acquisitions internationally. Domestically it operates BetMGM, a joint venture with Entain.

SEE ALSO

Chinese tourists flock to gambling hub Macau for Labour Day holiday

As Marina Bay Sands enters its teens, an elevation towards new era of luxury hospitality

MGM is also pressing ahead with efforts to develop casinos in Japan and New York. Management aims to open a resort in Osaka in 2020, and MGM is one of several companies vying to operate a casino resort in the New York City area. BLOOMBERG