MGM RESORTS INTERNATIONAL REPORTS SECOND QUARTER 2024 FINANCIAL AND OPERATING RESULTS

Rhea-AI Summary

MGM Resorts International reported record Q2 2024 results, with consolidated net revenues of $4.3 billion, up 10% year-over-year. Key highlights include:

- Record MGM China Adjusted Property EBITDAR of $294 million, up 40% YoY
- Net income of $187 million and consolidated Adjusted EBITDAR of $1.2 billion
- Las Vegas Strip net revenues up 3% to $2.2 billion
- Repurchased ~10 million shares for $413 million

The company made progress on its international digital strategy, announcing the acquisition of Tipico's U.S. platform and a strategic relationship with Playtech. MGM remains focused on returning capital to shareholders and driving Free Cash Flow growth.

Positive

• Record Q2 consolidated net revenues of $4.3 billion, up 10% year-over-year
• Record MGM China Adjusted Property EBITDAR of $294 million, up 40% year-over-year
• Las Vegas Strip net revenues increased 3% to $2.2 billion
• Repurchased approximately 10 million shares for $413 million
• Free Cash Flow of $613 million for the first half of 2024
• Adjusted EPS increased to $0.86 from $0.59 in the prior year quarter

Negative

• Net income decreased to $187 million from $201 million in the prior year quarter
• Regional Operations Adjusted Property EBITDAR decreased 2% to $288 million
• Share of operating loss from unconsolidated affiliates increased to $34.2 million from $16.2 million

Insights

Financial Analyst

MGM Resorts' Q2 2024 results demonstrate solid performance across key segments. The company reported record consolidated net revenues of $4.3 billion, up 10% year-over-year, driven primarily by strong growth in MGM China. This growth reflects the continued recovery in Macau following the removal of COVID-19 restrictions.

Notably, MGM China achieved record Adjusted Property EBITDAR of $294 million, a 40% increase from the previous year. This impressive growth, coupled with a maintained mid-teens market share, indicates MGM's strong positioning in the rebounding Macau market.

The Las Vegas Strip Resorts segment showed moderate growth, with net revenues up 3% to $2.2 billion. The increase was primarily driven by higher room revenues and improved ADR, suggesting a healthy demand environment in Las Vegas.

However, the Regional Operations segment remained flat year-over-year, with a slight 2% decrease in Adjusted Property EBITDAR. This could indicate some challenges in non-Las Vegas domestic markets.

The company's focus on shareholder returns is evident, with $413 million spent on share repurchases in Q2, reducing overall shares by nearly 40% since early 2021. This aggressive buyback strategy could potentially boost EPS going forward.

Overall, while MGM shows strong performance in key markets like Macau and Las Vegas, investors should monitor the performance of Regional Operations and the impact of the company's digital strategy investments on future growth.

Tech Expert

MGM Resorts' Q2 2024 results highlight significant progress in its international digital strategy, which could be a game-changer for the company's long-term growth prospects. The announced acquisition of Tipico's U.S. platform is a strategic move that brings sports betting capabilities in-house. This vertical integration could lead to improved margins and greater control over the user experience in the highly competitive online sports betting market.

Furthermore, the strategic relationship with Playtech to offer live casino content from the Las Vegas Strip is an innovative approach. This makes MGM the only U.S. operator to provide such a unique offering, potentially creating a significant competitive advantage in the online gaming space. By leveraging its physical assets to enhance its digital offerings, MGM is creating a more integrated and immersive gaming experience for its customers.

However, it's worth noting that the company's share of operating loss from BetMGM increased to $38.4 million from $22.5 million in the prior year quarter. This suggests that while the digital strategy is progressing, it's still in an investment phase and may continue to impact short-term profitability.

The success of these digital initiatives will largely depend on MGM's ability to effectively integrate these new capabilities, cross-sell to its existing customer base and compete effectively in the rapidly evolving online gaming market. Investors should closely monitor key performance indicators in the digital segment in future quarters to assess the return on these strategic investments.

Market Research Analyst

MGM Resorts' Q2 2024 results reveal interesting trends in consumer behavior across different markets. In Las Vegas, we see strong demand for higher-end experiences, evidenced by the 9% increase in room revenue and a 6% rise in Average Daily Rate (ADR) to $248. The high occupancy rate of 97% suggests robust tourism and business travel to Las Vegas.

The performance of MGM China is particularly noteworthy. The 33% increase in main floor table games drop and 50% increase in main floor table games win indicate a strong recovery in mass-market gaming in Macau. This trend aligns with the broader shift in Macau's gaming market towards mass-market players rather than VIPs, which could provide more stable and sustainable revenue streams for operators like MGM.

However, the Regional Operations segment shows signs of potential consumer spending pressures. While casino revenue was up slightly, the 1% decrease in slot handle and flat overall revenues suggest that consumers in regional markets may be more cautious with their discretionary spending.

The growth in catering and banquets revenue in Las Vegas points to a recovery in the conventions and meetings business, which is important for midweek occupancy. This trend, combined with the Marriott relationship exceeding expectations, indicates that MGM is successfully positioning itself to capture both leisure and business travelers.

These diverse trends across markets underscore the importance of MGM's geographically diversified portfolio in navigating varying economic conditions and consumer behaviors. Investors should monitor how these trends evolve, particularly in light of broader economic uncertainties and their potential impact on consumer discretionary spending in different markets.

• Record 2Q consolidated net revenues of $4.3 billion
• Record 2Q MGM China Adjusted Property EBITDAR of $294 million; increase of 40% year-over-year as market share remained in the mid-teens
• 2Q net income attributable to MGM Resorts of $187 million and 2Q consolidated Adjusted EBITDAR of $1.2 billion
• International digital strategy progressed with announced acquisition of Tipico's U.S. platform bringing sports betting product in house and strategic relationship with Playtech to become only U.S. operator to offer live casino content from the Las Vegas Strip

LAS VEGAS, July 31, 2024 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") today reported financial results for the quarter ended June 30, 2024.

"MGM Resorts continued to drive positive financial results and solid growth in the second quarter, with record MGM China Adjusted Property EBITDAR and further growth in Las Vegas where our Marriott relationship continues to exceed expectations and our meetings and convention business continues to strengthen thanks to our recently completed remodel of Mandalay Bay," said Bill Hornbuckle, CEO and President of MGM Resorts International. "We made significant progress with our international digital strategy by adding both an in-house sports product and live dealer capabilities to our online gaming offerings. We're excited by the progress we're making as a company against our strategic priorities and anticipate carrying our current momentum forward into the back half of the year."

"We continued to deliver on our Free Cash Flow growth algorithm in the second quarter, driving strong financial returns thanks to a solid baseline of cash flow from our domestic resorts, the continued growth of our digital business, and the resumption of dividends from MGM China," said Jonathan Halkyard, CFO and Treasurer of MGM Resorts International. "We remain committed to returning capital to our shareholders. In the second quarter, we returned more than $400 million through share repurchases, reducing overall shares by nearly 40% since the beginning of 2021."

Second Quarter 2024 Financial Highlights:

Consolidated Results

• Net cash flow provided by (used in) operating, investing, and financing activities for the six months ended June 30, 2024 was $1.0 billion, ($385 million), and ($1.1 billion), respectively;
• Free Cash Flow⁽¹⁾ for the six months ended June 30, 2024 of $613 million;
• Consolidated net revenues of $4.3 billion, an increase of 10% compared to the prior year quarter, due primarily to an increase in revenue at MGM China resulting from the continued ramp up of operations after the removal of COVID-19 related entry restrictions in Macau in the first quarter of 2023;
• Net income attributable to MGM Resorts was $187 million in the current quarter compared to $201 million in the prior year quarter;
• Consolidated Adjusted EBITDAR⁽²⁾ of $1.2 billion in the current quarter;
• Diluted earnings per share of $0.60 in the current quarter compared to diluted earnings per share of $0.55 in the prior year quarter; and
• Adjusted diluted earnings per share ("Adjusted EPS")⁽³⁾ of $0.86 in the current quarter compared to $0.59 in the prior year quarter.

Las Vegas Strip Resorts

• Net revenues of $2.2 billion in the current quarter compared to $2.1 billion in the prior year quarter, an increase of 3%, due primarily to an increase in rooms revenue, driven by an increase in ADR, and an increase in catering and banquets revenue; and
• Adjusted Property EBITDAR⁽²⁾ of $782 million in the current quarter compared to $777 million in the prior year quarter, an increase of 1%.

Regional Operations

• Net revenues of $927 million in the current quarter, which was flat compared to the prior year quarter; and
• Adjusted Property EBITDAR of $288 million in the current quarter compared to $294 million in the prior year quarter, a decrease of 2%.

MGM China

• Net revenues of $1.0 billion in the current quarter compared to $741 million in the prior year quarter, an increase of 37%. The current quarter was positively affected by the continued ramp up of operations after the removal of COVID-19 related travel and entry restrictions in the first quarter of 2023; and
• Adjusted Property EBITDAR of $294 million in the current quarter compared to $209 million in the prior year quarter, an increase of 40%.

Adjusted EPS

The following table reconciles diluted earnings per share ("EPS") to Adjusted EPS (approximate EPS impact shown, per share; positive adjustments represent charges to income):

Three Months Ended June 30,	2024		2023
Diluted earnings per share	$                              0.60		$                              0.55
Property transactions, net	0.05		0.01
Non-operating items:
Loss (gain) related to debt and equity investments	0.07		(0.02)
Foreign currency transaction loss (gain)	(0.01)		0.02
Change in the fair value of foreign currency contracts	0.20		0.04
Loss on retirement of long-term debt	0.01		—
Income tax impact on net income adjustments(1)	(0.06)		(0.01)
Adjusted EPS	$                              0.86		$                              0.59

(1)	The income tax impact includes current and deferred income tax expense based upon the nature of the adjustment and the jurisdiction in which it occurs.

 

The current year quarter includes a non-cash income tax benefit of $25 million resulting from a decrease in the valuation allowance on Macau deferred tax assets.

Las Vegas Strip Resorts

The following table shows key gaming statistics for Las Vegas Strip Resorts:

Three Months Ended June 30,	2024		2023	% Change
	(Dollars in millions)
Casino revenue	$                          485		$                          492	(2) %
Table games drop	$                       1,506		$                       1,498	1 %
Table games win	$                          364		$                          345	6 %
Table games win %	24.2 %		23.1 %
Slot handle	$                       5,662		$                       5,947	(5) %
Slot win	$                          528		$                          551	(4) %
Slot win %	9.3 %		9.3 %

 

The following table shows key hotel statistics for Las Vegas Strip Resorts:

Three Months Ended June 30,	2024		2023	% Change
Room revenue (in millions)	$                          767		$                          707	9 %
Occupancy	97 %		96 %
Average daily rate (ADR)	$                          248		$                          234	6 %
Revenue per available room (RevPAR)4	$                          240		$                          224	8 %

 

Regional Operations

The following table shows key gaming statistics for Regional Operations:

Three Months Ended June 30,	2024		2023	% Change
	(Dollars in millions)
Casino revenue	$                          684		$                          679	1 %
Table games drop	$                          953		$                          935	2 %
Table games win	$                          200		$                          205	(3) %
Table games win %	21.0 %		22.0 %
Slot handle	$                       6,689		$                       6,771	(1) %
Slot win	$                          662		$                          649	2 %
Slot win %	9.9 %		9.6 %

 

MGM China

The following table shows key gaming statistics for MGM China:

Three Months Ended June 30,	2024		2023	% Change
	(Dollars in millions)
Casino revenue	$                          891		$                          670	33 %
Main floor table games drop	$                       3,835		$                       2,872	33 %
Main floor table games win	$                          939		$                          626	50 %
Main floor table games win %	24.5 %		21.8 %

 

Intercompany branding license fee expense, which eliminates in consolidation, was $18 million in the current quarter and $13 million in the prior year quarter.

Unconsolidated Affiliates

The following table summarizes information related to the Company's share of operating loss from unconsolidated affiliates:

Three Months Ended June 30,	2024		2023
	(In thousands)
BetMGM	$                         (38,391)		$                         (22,499)
Other	4,207		6,310
	$                         (34,184)		$                         (16,189)

 

MGM Resorts Share Repurchases 

During the second quarter of 2024, the Company repurchased approximately 10 million shares of its common stock for an aggregate amount of $413 million, pursuant to its repurchase plan. The remaining availability under the November 2023 stock repurchase plan was approximately $1.3 billion as of June 30, 2024. All shares repurchased under the Company's repurchase plan have been retired.

Conference Call Details 

MGM Resorts will host a conference call at 5:00 p.m. Eastern Time today, which will include a brief discussion of the results followed by a question and answer session. In addition, supplemental slides will be posted prior to the start of the call on MGM's Investor Relations website at http://investors.mgmresorts.com.

The call will be accessible via the internet through http://investors.mgmresorts.com/investors/events-and-presentations/ or by calling 1-888-317-6003 for domestic callers and 1-412-317-6061 for international callers. The conference call access code is 8961591.

A replay of the call will be available through August 7, 2024. The replay may be accessed by dialing 1-877-344-7529 or 1-412-317-0088. The replay access code is 9128139.

1."Free Cash Flow" is net cash flow provided by operating activities less capital expenditures. Free Cash Flow for the three months ended June 30, 2024 is calculated as the difference in net cash flow provided by operating activities for the six months ended June 30, 2024 and the net cash flow provided by operating activities for the three months ended March 31, 2024 less the difference between the capital expenditures for the six months ended June 30, 2024 and the capital expenditures for the three months ended March 31, 2024.

Free Cash Flow is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this liquidity measure is useful in evaluating the ability of the Company's operations to generate cash for uses other than capital expenditures, and is used for decision-making purposes related to investments and returning cash to shareholders through share repurchases. Free Cash Flow should not be construed as an alternative to net cash provided by operating activities as a measure of liquidity. The Company's definition of Free Cash Flow is limited in that it does not represent residual cash flows for discretionary expenditures due to the fact that it does not deduct payments for debt service or other obligations and does not reflect the total movement of cash as detailed in the Company's consolidated statements of cash flows. In addition, Free Cash Flow may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly titled non-GAAP measures of other companies. A reconciliation of GAAP net cash provided by operating activities to Free Cash Flow is included in the financial schedules in this release.

2."Adjusted EBITDAR" is earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net, rent expense related to triple-net operating leases and ground leases, and income from unconsolidated affiliates related to investments in real estate ventures. 

"Adjusted Property EBITDAR" is the Company's reportable segment GAAP measure, which management utilizes as the primary profit measure for its reportable segments and underlying operating segments. Adjusted Property EBITDAR is a measure defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening and start-up expenses, property transactions, net, rent expense related to triple-net operating leases and ground leases, income from unconsolidated affiliates related to investments in real estate ventures, and also excludes corporate expense and stock compensation expense, which are not allocated to each operating segment.

Adjusted EBITDAR information is a non-GAAP measure that is a valuation metric, should not be used as an operating metric, and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is widely used by analysts, lenders, financial institutions, and investors as a principal basis for the valuation of gaming companies. Management believes that while items excluded from Adjusted EBITDAR may be recurring in nature and should not be disregarded in evaluation of the Company's earnings performance, it is useful to exclude such items when analyzing current results and trends. Also, management believes excluded items may not relate specifically to current trends or be indicative of future results. For example, preopening and start-up expenses will be significantly different in periods when the Company is developing and constructing a major expansion project and will depend on where the current period lies within the development cycle, as well as the size and scope of the project(s). Property transactions, net includes normal recurring disposals, gains and losses on sales of assets related to specific assets within the Company's properties, but also includes gains or losses on sales of an entire operating resort or a group of resorts and impairment charges on entire asset groups or investments in unconsolidated affiliates, which may not be comparable period over period. In addition, management excludes rent expense related to triple-net operating leases and ground leases. Management believes excluding rent expense related to triple-net operating leases and ground leases provides useful information to analysts, lenders, financial institutions, and investors when valuing the Company, as well as comparing the Company's results to other gaming companies, without regard to differences in capital structure and leasing arrangements since the operations of other gaming companies may or may not include triple-net operating leases or ground leases. However, as discussed herein, Adjusted EBITDAR should not be viewed as a measure of overall operating performance, an indicator of the Company's performance, considered in isolation, or construed as an alternative to operating income or net income, or as an alternative to cash flows from operating activities, as a measure of liquidity, or as an alternative to any other measure determined in accordance with generally accepted accounting principles, because this measure is not presented on a GAAP basis and excludes certain expenses, including the rent expense related to triple-net operating leases and ground leases, and is provided for the limited purposes discussed herein. In addition, other companies in the gaming and hospitality industries that report Adjusted EBITDAR may calculate Adjusted EBITDAR in a different manner and such differences may be material. The Company has significant uses of cash flows, including capital expenditures, interest payments, taxes, real estate triple-net lease and ground lease payments, and debt principal repayments, which are not reflected in Adjusted EBITDAR. A reconciliation of GAAP net income to Adjusted EBITDAR is included in the financial schedules in this release.

3. "Adjusted EPS" is diluted earnings or loss per share adjusted to exclude property transactions, net, net gain/loss related to equity investments for which the Company has elected the fair value option of ASC 825 and equity investments accounted for under ASC 321 for which there is a readily determinable fair value and net gain/loss related to the Company's investments in debt securities, foreign currency transaction gain/loss, change in the fair value of foreign currency contracts, and loss on retirement of long-term debt.

Adjusted EPS is a non-GAAP measure and is presented solely as a supplemental disclosure to reported GAAP measures because management believes this measure is useful in providing period-to-period comparisons of the results of the Company's continuing operations to assist investors in reviewing the Company's operating performance over time. Management believes that while certain items excluded from Adjusted EPS may be recurring in nature and should not be disregarded in evaluating the Company's earnings performance, it is useful to exclude such items when comparing current performance to prior periods because these items can vary significantly depending on specific underlying transactions or events. Also, management believes certain excluded items, and items further discussed in footnote 2 above, may not relate specifically to current operating trends or be indicative of future results. Adjusted EPS should not be construed as an alternative to GAAP earnings per share as an indicator of the Company's performance. In addition, Adjusted EPS may not be defined in the same manner by all companies and, as a result, may not be comparable to similarly titled non-GAAP financial measures of other companies. A reconciliation of Adjusted EPS to diluted earnings per share can be found under "Adjusted EPS" included in this release.

4. RevPAR is hotel revenue per available room.

About MGM Resorts International

MGM Resorts International (NYSE: MGM) is an S&P 500® global gaming and entertainment company with national and international locations featuring best-in-class hotels and casinos, state-of-the-art meetings and conference spaces, incredible live and theatrical entertainment experiences, and an extensive array of restaurant, nightlife and retail offerings. MGM Resorts creates immersive, iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts portfolio encompasses 31 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, LV Lion Holding Limited, offers sports betting and online gaming through market-leading brands in several jurisdictions throughout Europe. The Company is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its "Focused on What Matters: Embracing Humanity and Protecting the Planet" philosophy, MGM Resorts commits to creating a more sustainable future, while striving to make a bigger difference in the lives of its employees, guests, and in the communities where it operates. The global employees of MGM Resorts are proud of their company for being recognized as one of FORTUNE® Magazine's World's Most Admired Companies®. For more information, please visit us at www.mgmresorts.com. Please also connect with us @MGMResortsIntl on Twitter as well as Facebook and Instagram.

Cautionary Statement Concerning Forward-Looking Statements

Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995 and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to: the Company's expectations regarding any benefits expected to be received from the Company's recent transactions, including the transactions with Push Gaming, Tipico, Playtech and the long-term license agreement with Marriott International; future results of the Company (including the Company's ability to maintain a strong balance sheet), and its unconsolidated affiliates, including BetMGM; expectations regarding the impact of macroeconomic trends on the Company's business; expectations regarding the Company's booking pace, liquidity position and the size and timing of future investments, including capital investments in the Company's properties; the Company's ability to execute on its strategic plans, including the development of an integrated resort in Japan, expansion of LeoVegas and the BetMGM brand in regulated markets, including Latin America, development of proprietary iGaming content and live casino content, positioning BetMGM as a leader in sports betting and iGaming (including expectations BetMGM's projected market share and profitability), and integration of The Cosmopolitan into the MGM Rewards Program; expectations regarding the performance of MGM China and continued payment of the MGM China dividend; and the Company's ability to return capital to shareholders (including the timing and amount of any share repurchases). These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include: the effects of economic conditions and market conditions in the markets in which the Company operates and competition with online gaming and sports betting operators and destination travel locations throughout the United States and the world; the design, timing and costs of expansion projects and capital investments; risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions; disruptions in the availability of the Company's information and other systems or those of third parties on which the Company rely, through cyber-attacks, such as the Company's September 2023 cybersecurity issue, or otherwise, which could adversely impact the Company's ability to service its customers and affect its sales and the results of operations; impact to the Company's business, operations and reputation from, and expenses and uncertainties associated with a cybersecurity incident, including the Company's September 2023 cybersecurity issue and any related legal proceedings, other claims or investigations and costs of remediation, restoration, or enhancement of information technology systems; the timing and outcome of the claims and class actions against the Company and of the investigations by state and federal regulators, related to the Company's September 2023 cybersecurity issue; the availability of cybersecurity insurance proceeds; and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS: 

Investment Community
SARAH ROGERS
Senior Vice President of Corporate Finance
(702) 730-3942 or srogers@mgmresorts.com

ANDREW CHAPMAN
Director of Investor Relations
(702) 693-8711 or achapman@mgmresorts.com

News Media
BRIAN AHERN
Director of Communications
media@mgmresorts.com

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
					Three Months Ended						Six Months Ended
					June 30,			June 30,			June 30,			June 30,
					2024			2023			2024			2023
Revenues:
	Casino				$	2,212,759		$	1,951,382		$	4,453,854		$	3,833,810
	Rooms					898,998			815,323			1,855,399			1,663,811
	Food and beverage					802,138			743,236			1,571,541			1,465,367
	Entertainment, retail and other					401,605			420,711			805,996			830,289
	Reimbursed costs					11,875			11,555			24,055			22,226
						4,327,375			3,942,207			8,710,845			7,815,503
Expenses:
	Casino					1,221,755			1,025,745			2,493,599			2,016,635
	Rooms					277,849			250,300			552,257			490,414
	Food and beverage					571,430			537,824			1,129,510			1,049,416
	Entertainment, retail and other					240,272			258,472			484,569			502,000
	Reimbursed costs					11,875			11,555			24,055			22,226
	General and administrative					1,210,968			1,144,390			2,405,650			2,279,930
	Corporate expense					124,078			117,088			253,744			244,647
	Preopening and start-up expenses					855			149			1,950			288
	Property transactions, net					16,477			5,614			33,631			(390,462)
	Depreciation and amortization					191,976			203,503			388,538			407,004
						3,867,535			3,554,640			7,767,503			6,622,098
Loss from unconsolidated affiliates						(34,184)			(16,189)			(59,308)			(91,188)
Operating income						425,656			371,378			884,034			1,102,217
Non-operating income (expense):
	Interest expense, net of amounts capitalized					(112,739)			(111,945)			(222,776)			(242,245)
	Non-operating items from unconsolidated affiliates					1,762			(441)			1,626			(1,625)
	Other, net					(43,431)			23,693			(48,237)			70,000
						(154,408)			(88,693)			(269,387)			(173,870)
Income before income taxes						271,248			282,685			614,647			928,347
	Benefit (provision) for income taxes					11,554			(39,141)			(32,119)			(204,920)
Net income						282,802			243,544			582,528			723,427
	Less: Net income attributable to noncontrolling interests					(95,730)			(42,748)			(177,980)			(55,824)
Net income attributable to MGM Resorts International					$	187,072		$	200,796		$	404,548		$	667,603
Earnings per share:
	Basic				$	0.60		$	0.56		$	1.28		$	1.82
	Diluted				$	0.60		$	0.55		$	1.27		$	1.80
Weighted average common shares outstanding:
	Basic					311,179			361,050			315,837			367,535
	Diluted					314,420			365,339			319,092			371,685

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)
						June 30,			December 31,
						2024			2023
ASSETS
Current assets:
	Cash and cash equivalents					$	2,414,195		$	2,927,833
	Accounts receivable, net						1,016,898			929,135
	Inventories						147,863			141,678
	Income tax receivable						207,601			141,444
	Prepaid expenses and other						622,579			770,503
		Total current assets					4,409,136			4,910,593
Property and equipment, net							5,715,638			5,449,544
Other assets:
	Investments in and advances to unconsolidated affiliates						237,821			240,803
	Goodwill						5,153,446			5,165,694
	Other intangible assets, net						1,658,403			1,724,582
	Operating lease right-of-use assets, net						23,785,252			24,027,465
	Other long-term assets, net						855,765			849,867
		Total other assets					31,690,687			32,008,411
						$	41,815,461		$	42,368,548
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
	Accounts and construction payable					$	401,924		$	461,718
	Accrued interest on long-term debt						57,506			60,173
	Other accrued liabilities						2,540,743			2,604,177
		Total current liabilities					3,000,173			3,126,068
Deferred income taxes, net							2,797,378			2,860,997
Long-term debt, net							6,292,676			6,343,810
Operating lease liabilities							25,110,920			25,127,464
Other long-term obligations							768,001			542,708
Redeemable noncontrolling interests							32,168			33,356
Stockholders' equity:
	Common stock, $0.01 par value: authorized 1,000,000,000 shares,
	issued and outstanding 304,964,825 and 326,550,141 shares						3,050			3,266
	Capital in excess of par value						-			-
	Retained earnings						3,172,243			3,664,008
	Accumulated other comprehensive income						37,383			143,896
		Total MGM Resorts International stockholders' equity					3,212,676			3,811,170
	Noncontrolling interests						601,469			522,975
		Total stockholders' equity					3,814,145			4,334,145
						$	41,815,461		$	42,368,548

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - NET REVENUES
(In thousands)
(Unaudited)
						Three Months Ended							Six Months Ended
						June 30,			June 30,			June 30,			June 30,
						2024			2023			2024			2023
Las Vegas Strip Resorts						$	2,205,462		$	2,146,650		$	4,460,491		$	4,322,802
Regional Operations							927,138			926,100			1,836,617			1,871,943
MGM China							1,018,191			740,955			2,074,208			1,358,547
Management and other operations							176,584			128,502			339,529			262,211
						$	4,327,375		$	3,942,207		$	8,710,845		$	7,815,503

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
SUPPLEMENTAL DATA - ADJUSTED PROPERTY EBITDAR and ADJUSTED EBITDAR
(In thousands)
(Unaudited)
						Three Months Ended						Six Months Ended
						June 30,			June 30,			June 30,			June 30,
						2024			2023			2024			2023
Las Vegas Strip Resorts						$	782,289		$	776,529		$	1,610,077		$	1,612,338
Regional Operations							288,378			293,767			562,480			606,942
MGM China							293,863			209,389			595,049			378,337
Unconsolidated affiliates (1)							(36,850)			(18,884)			(64,676)			(96,578)
Management and other operations							(3,394)			2,218			(6,239)			2,747
Stock compensation							(12,539)			(11,230)			(39,298)			(35,120)
Corporate (2)							(115,264)			(109,682)			(226,083)			(220,296)
						$	1,196,483					$	2,431,310

(1) Represents the Company's share of operating income (loss) excluding investments in real estate ventures, adjusted for the effect of certain basis differences.

(2) Three months ended June 30, 2024 includes amounts related to MGM China of $12 million, global development of $2 million, and transaction costs of $2 million. Six months ended June 30, 2024 includes amounts related to MGM China of $24 million, global development of $4 million, and transaction costs of $4 million. Three months ended June 30, 2023 includes amounts related to MGM China of $7 million and global development of $6 million. Six months ended June 30, 2023 includes amounts related to MGM China of $15 million, global development of $13 million, and transaction costs of $2 million.

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO MGM RESORTS INTERNATIONAL TO ADJUSTED EBITDAR
(In thousands)
(Unaudited)
						Three Months Ended						Six Months Ended
						June 30,			June 30,			June 30,			June 30,
						2024			2023			2024			2023
Net income attributable to MGM Resorts International						$	187,072		$	200,796		$	404,548		$	667,603
Plus: Net income attributable to noncontrolling interests							95,730			42,748			177,980			55,824
Net income							282,802			243,544			582,528			723,427
(Benefit) provision for income taxes							(11,554)			39,141			32,119			204,920
Income before income taxes							271,248			282,685			614,647			928,347
Non-operating (income) expense:
Interest expense, net of amounts capitalized							112,739			111,945			222,776			242,245
Other, net							41,669			(23,252)			46,611			(68,375)
							154,408			88,693			269,387			173,870
Operating income							425,656			371,378			884,034			1,102,217
Preopening and start-up expenses							855			149			1,950			288
Property transactions, net							16,477			5,614			33,631			(390,462)
Depreciation and amortization							191,976			203,503			388,538			407,004
Triple net operating lease and ground lease rent expense							564,186			564,158			1,128,525			1,134,713
Income from unconsolidated affiliates related to real estate ventures							(2,667)			(2,695)			(5,368)			(5,390)
Adjusted EBITDAR						$	1,196,483					$	2,431,310

 

MGM RESORTS INTERNATIONAL AND SUBSIDIARIES
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)
(Unaudited)
					Three Months Ended			Six Months Ended
					June 30,			June 30,
					2024			2024
Net cash provided by operating activities					$	474,238		$	1,023,509
Less: Capital expenditures						(238,242)			(410,322)
Free Cash Flow					$	235,996		$	613,187

 

View original content:https://www.prnewswire.com/news-releases/mgm-resorts-international-reports-second-quarter-2024-financial-and-operating-results-302210196.html

SOURCE MGM Resorts International

FAQ

What were MGM Resorts' (MGM) Q2 2024 financial results?

MGM Resorts reported record Q2 2024 consolidated net revenues of $4.3 billion, up 10% year-over-year. Net income was $187 million and consolidated Adjusted EBITDAR was $1.2 billion.

How did MGM China perform in Q2 2024?

MGM China achieved record Q2 Adjusted Property EBITDAR of $294 million, an increase of 40% year-over-year. Net revenues rose 37% to $1.0 billion.

What was MGM Resorts' (MGM) Adjusted EPS for Q2 2024?

MGM Resorts reported Adjusted EPS of $0.86 for Q2 2024, compared to $0.59 in the prior year quarter.

How much did MGM Resorts (MGM) spend on share repurchases in Q2 2024?

MGM Resorts repurchased approximately 10 million shares of its common stock for $413 million during Q2 2024.