Global Travel Propels MGM Resorts’ Q2 Revenue
BY PYMNTS | AUGUST 2, 2023
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MGM Resorts reported Wednesday (Aug. 2) a second-quarter revenue of $3.94 billion, representing a 21% year-over-year increase. The company also beat Wall Street’s consensus estimate of $3.82 billion, with earnings per share of 55 cents per share.
The company said its performance was driven by near-record second-quarter adjusted property results at MGM China and a positive first quarter at BetMGM.
The lifting of travel and entry restrictions to China put in place during the pandemic, was a boon to MGM China, which had net revenues of $741 million in Q2 ending June 30, compared to $143 million in the prior year’s quarter — an increase of 418%.
Commenting on the growth in the earnings call Wednesday, MGM Resorts CEO Bill Hornbuckle, said, “BetMGM reported … its first positive … quarter and remains on track to achieve its next milestone of second-half profitability.”
He also gave a nod to the bookings of hotels and ticket sales in the Las Vegas market, remarking that “Las Vegas has become the world’s premier sports and entertainment destination.”
The hospitality industry’s demand trends in Las Vegas have been strong and hotel revenues are forecasted to be the highest fourth-quarter hotel revenues. Moreover, MGM Resorts has negotiated a long-term agreement with Marriott International to create a new “MGM Collection with Marriott Bonvoy,” for sports, music, culinary and entertainment experiences.
In its presentation to shareholders, MGM Resorts said the agreement “offers Marriott’s 180 million members the opportunity to earn and redeem Bonvoy points at MGM Resorts properties.”
Hornbuckle further discussed the dynamics of the hospitality industry and that “we can begin to motivate [consumers] back into the property level with tournaments and other activity cases or drive people back into brick and mortar.”
The MGM Resorts portfolio encompasses 32 hotel and gaming destinations worldwide and is expanding in Asia. Its BetMGM offers sports betting and online gaming in North America and its subsidiary, LeoVegas AB, offers sports betting and online gaming in Europe.
