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Consolidated Net Revenues: Record third quarter consolidated net revenues.
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Las Vegas Revenue: Increased by 1%.
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Las Vegas Adjusted Property EBITDA: Increased by 2%.
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Las Vegas ADR: Increased by 3%.
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Las Vegas Occupancy: Increased by 250 basis points.
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Las Vegas Slot Handle: Grew by 4%.
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Regional Properties Revenue: Increased by 3%.
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Regional Properties Adjusted Property EBITDA: Increased by 2%.
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MGM China Net Revenues: Increased by 14% year over year.
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MGM China Adjusted Property EBITDA: Increased by 5% with a 26% margin.
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MGM China Market Share: 15% for the quarter.
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BetMGM Performance: Achieved profitability with a 70% increase in first-time depositors.
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Free Cash Flow: Approximately $904 million through the first nine months of the year.
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Cash from Operations: $1.7 billion generated in the first nine months.
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Capital Expenditures: Approximately $750 million.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MGM Resorts International (NYSE:MGM) posted record third quarter consolidated net revenues and adjusted property EBITDA at MGM China.
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Las Vegas properties saw a 3% increase in ADR and a 250 basis point increase in occupancy.
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MGM China achieved a 14% year-over-year increase in net revenues and a 5% rise in adjusted property EBITDA.
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BetMGM achieved profitability with record-high gaming results and a 70% increase in first-time depositors.
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MGM's strategic ventures, such as the partnership with Grupo Globo in Brazil, are expected to expand their digital footprint and tap into emerging markets.
Negative Points
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Las Vegas table game volume was down significantly, attributed to timing issues with high-end bulk business.
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The fourth quarter is expected to face a $70 million headwind due to last year's high hold percentage.
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MGM's Macau margins were slightly lower than expected due to one-time costs and entertainment spend.
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The Formula One event is expected to result in a $30 million year-over-year EBITDA headwind.
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MGM faces challenges in maintaining growth in Las Vegas and regional markets amidst economic headwinds and competitive pressures.
Q & A Highlights
Q: Can you explain the softness in Las Vegas table game volumes and your expectations for future trends? A: Jonathan Halkyard, CFO, explained that the decline in table game volumes was primarily due to timing issues with high-end baccarat customers. He emphasized that this is not indicative of a broader trend and expects margins to remain in the mid-30s on an EBITDA basis. William Hornbuckle, CEO, added that excluding high-end baccarat, gross profit from other segments was up 12%, indicating strong fundamentals.