Globally famous land-based gaming, iGaming and entertainment company MGM Resorts International shared its latest financial and operating results for the second quarter of this year, ended on June 30th, 2023.
About main indicators for the period, consolidated net revenues reached USD 3.9 billion, an increase of 21% compared to the prior year quarter, due primarily to the removal of COVID-19 related entry restrictions in Macau. Operating income was USD 371 million compared to USD 2.4 billion in the prior year quarter, due to a USD 2.3 billion gain in the prior year quarter related to the sale of MGM Growth Properties LLC to VICI Properties Inc., and an increase in rent expense related to the VICI and The Cosmopolitan leases.
Moreover, net income attributable to MGM Resorts was USD 201 million; consolidated Adjusted EBITDAR was USD 1.1 billion; free cash flow for the six months ended June 30th, 2023 was USD 887 million, and adjusted diluted earnings per share were USD 0.59 in the current quarter compared to USD 0.04 in the prior year quarter.
Most of these positive numbers are a consequence of the recuperation of MGM China’s operations. For instance, net revenues there were USD 741 million, compared to USD 143 million in Q2 2022, an increase of 418%, and an upsurge of 5% compared to the second quarter of 2019. The current quarter was positively affected by the removal of COVID-19 related travel and entry restrictions and an increase in visitation. The Adjusted Property EBITDAR was USD 209 million in the current quarter compared to a loss of USD 52 million in Q2 2022, with an expansion of 21% compared Q2 2019.
Regarding Las Vegas Strip Resorts, net revenues were USD 2.1 billion in the current quarter, which was flat compared to the prior year quarter, while Adjusted Property EBITDAR was USD 777 million compared to USD 825 million in the prior year quarter, a decrease of 6%.
When considering Regional Operations, net revenues were USD 926 million in Q2 2023 compared to USD 960 million in the prior year quarter, a decrease of 3%, due primarily to the disposition of Gold Strike Tunica in February 2023. Adjusted Property EBITDAR was USD 294 million compared to USD 340 million in Q2 2022, a reduction of 14%.
Bill Hornbuckle, CEO and President of MGM Resorts, stated: “Beyond MGM’s outstanding second quarter performance, we also cemented a long-term agreement with Marriott which will provide us with an expansive customer booking channel to further bolster our profitability. Also, BetMGM reported that it obtained its first positive EBITDA quarter and remains on track to achieve its next milestone of second half profitability. Looking forward to the rest of 2023 and beyond, we are encouraged by the pacing of both Formula 1 and the Super Bowl, and the announced relocation of the A’s, which will further solidify Las Vegas as the sports and entertainment capital of the world.”
As for Jonathan Halkyard, CFO and Treasurer of MGM Resorts, he remarked: “We expect to continue to pursue long-term growth opportunities by expanding our global online presence and digital capabilities and through our development efforts in Japan and New York.”
The MGM Resorts portfolio encompasses 32 unique hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The company’s 50/50 venture, BetMGM LLC, offers sports betting and online gaming in North America through market-leading brands, including BetMGM and partypoker, and the company’s subsidiary, LeoVegas AB, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe. The Group is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan.