MGM Resorts International returned to net profit in the first quarter of its 2023 financial year after year-on-year growth across all operating segments pushed revenue up 35.8%.
The operator experienced increases within its Las Vegas Strip resorts, regional operations and MGM China businesses during the three months to March 31, while revenue from management and other operations also increased.
Chief executive Bill Hornbuckle praised the performance of the operator in Q1, adding that other recent developments will help drive future growth for the wider group.
Earlier this month, Japan’s Ministry of Land, Infrastructure, Transport and Tourism review committee approved the development of the Osaka Integrated Resort. MGM was previously awarded the contract the develop the site and will work with Japanese business Orix Corporation on the project.
In New York, Hornbuckle said work is ongoing on its application process, while the group’s wider, igaming expansion plans remain a core focus area. Digital growth plans were further strengthened with the news that MGM’s LeoVegas entity has agreed to acquire Push Gaming.
“Beyond our continued exceptional results, our future growth and expansion plans are promising.” Hornbuckle said. “In April, we achieved the landmark approval of MGM’s development plan in Osaka, Japan.
“The application process in New York is progressing and our global digital expansion plans remain a major focus as we continue to grow LeoVegas and the MGM digital brand worldwide.”
Q1 results
Looking at the first-quarter performance, group revenue reached $3.87bn, up from $2.85bn in the same period last year.
Casino revenue increased by 32.4% to $1.88bb, while rooms revenue was also up 52.3% to $848.5m, food and beverage revenue climbed 46.5% to $722.1m, and entertainment, retail and other revenue jumped 10.2% to $409.6m. MGM also noted $10.7m in reimbursed costs.
In terms of segmental operations, Las Vegas Strip revenue hiked 31.3% to $2.18bn, while the group’s regional business also reported a 6.2% increase in revenue to $945.8m. MGM China revenue climbed 129.9% to $617.6m, while management and other operations revenue was 313.9% higher at $133.7m.
Turning to costs, total operating expenses increased 13.7% to $3.07bn, while the operator also noted a $75.0m loss from unconsolidated affiliates and a further $85.2m in net finance costs.
This left a pre-tax profit of $645.7m, compared to a $71.1m loss at the same point in 2022. After paying $165.8m in tax, MGM posted $479.9m in net profit, in contrast to the $34.8m loss in the previous year.
However, after also taking into account a $13.1m loss from non-controlling interests, this meant net profit attributable to MGM was $466.8m, compared to an $18.0m loss in 2022. In addition, group earnings before interest, tax, depreciation and amortisation and rent costs (EBITDAR) for the quarter was $1.12bn.