MGM Resorts International reported a record consolidated revenue of $4.5 billion for the second quarter of the year, marking a 1% increase from the previous year. The company shared its Q2 results on July 30, highlighting a nearly 5% rise in revenue from Las Vegas Strip operations.
MGM China, a subsidiary, is also on the rebound following the World Cup, despite reporting a 7.4% decline in profits during the same quarter. Executive Director Kenneth Feng informed reporters that MGM's casinos in Macao are experiencing a significant increase in business after the World Cup.
This news is particularly encouraging for MGM, a major player on the Las Vegas Strip, as there have been concerns about an impending slowdown in Las Vegas and a drop in VIP table spending in Macao.
In terms of online gaming, MGM Digital showed promising growth with a 20% increase in revenues compared to last year, providing further optimism for investors. However, the company's future remains uncertain due to an ongoing takeover bid from billionaire Barry Diller and his company, People, Inc.
While Chandler Pohl, MGM’s Vice President and Legal Counsel, sidestepped questions regarding Diller’s intentions for MGM’s East Asia operations, CEO Bill Hornbuckle reaffirmed the company’s commitment to expanding in Japan, stating plans for the world’s largest integrated resort, MGM Osaka, are on track for a 2030 opening.
On the ground in Macao, Feng mentioned that tourism was disrupted during the World Cup, affecting various sectors. Yet, he reported that post-World Cup casino revenue is now exceeding first-quarter levels. MGM holds a market share of around 16% in Macao, with visitor numbers increasing by 9% to nearly 116,000 in the first half of the year, especially at the MGM Cotai resort.
However, not all areas are thriving; MGM’s sports betting division, BetMGM, experienced a 3% decrease in active monthly users. The firm attributed this downturn to prediction markets, forecasting delays in achieving its EBITDA target of $500 million.
On the Las Vegas Strip, segment-adjusted earnings climbed 3% year-on-year, reaching $735 million. Diller's acquisition bid values MGM Resorts at $48.30 per share, while shares currently trade just above $45 on the New York Stock Exchange. If Diller’s acquisition succeeds, it could lead to MGM Resorts being taken private, following a similar trend in the industry with Caesars Entertainment and Golden Nugget owner Tilman Fertitta.
