MGM Resorts International has posted record-breaking financial results for Q3, driven by high occupancy rates and a strong recovery in Macau, while also making progress in its share repurchase program.
Strong growth across key metrics
For the third quarter, MGM reported a consolidated net revenue of $4.2 billion, a 5% increase year-over-year, largely fueled by the resurgence of MGM China following the lifting of COVID-19 restrictions in Macau.
The company’s net income reached $185 million, showcasing a significant year-over-year rise, while consolidated adjusted EBITDAR hit $1.1 billion for the quarter. MGM’s year-to-date free cash flow, ending September 30, was reported at $944 million, with diluted earnings per share at $0.61 and adjusted diluted earnings per share at $0.54.
In line with its ongoing share buyback strategy, MGM repurchased approximately 8 million shares for a total of $326 million. All shares repurchased under this program have been retired.
Revenue growth across all segments
MGM’s Las Vegas operations remained a major revenue contributor, generating $2.1 billion, a 1% increase over the prior year. Adjusted property EBITDAR for Las Vegas was $731 million, reflecting a 2% year-over-year growth.
Regional operations contributed $952 million in net revenue, a 3% year-over-year increase, primarily due to heightened casino activity. Adjusted property EBITDAR for the segment was $300 million, up by 2%.
MGM China’s net revenues surged to $929 million, a 14% year-over-year rise attributed to the removal of anti-pandemic measures in Macau. Adjusted property EBITDAR for MGM China stood at $237 million.
Executive reflections on growth and shareholder returns
MGM Resorts’ President and CEO, Bill Hornbuckle, expressed satisfaction with the record-breaking consolidated revenues, emphasizing MGM’s solid position:
“MGM Resorts is well positioned for long-term growth driven by positive momentum in our digital investments and a promising pipeline of integrated resort developments, including projects in Japan and potential opportunities in New York and beyond.”
CFO Jonathan Halkyard highlighted the share buyback program’s success, noting that since 2021, MGM has focused on returning cash to shareholders, with a commitment to reducing outstanding shares by 40%. He added that MGM’s balance sheet, with low net debt and strong liquidity, provides a solid foundation for continued growth.
