Land based and online gambling operator MGM Resorts International announced record revenues in Q2 as its online division BetMGM reported the first EBITDA-positive quarter.
MGM reported $1.95bn of revenue for Q2, an increase of 43.4% over the same period last year. According to MGM, the operator attributed the growth primarily due to the lifting of entry restrictions related Covid-19 in Macau.
Bill Hornbuckle, CEO of MGM and President Bill Hornbuckle chose also to emphasize the progress that its joint venture online with Entain BetMGM has made.
He said that “BetMGM has reported its first EBITDA positive quarter, and is on course to reach its next milestone – second half profitability.”
The online gaming platform recorded $22.5m in losses during the third quarter. The losses are down 68.4% compared with the $71.2m in the same period last year.
MGM posts steady profit in Q2
The business reported an operating profit of $371m for the period, which is a significant increase from the $2.4bn it had in the prior year.
MGM stated that this increased total is primarily due to its sale of MGM Growth Properties LLC, a real estate investment trust.
The sale of MGM also affected the company’s net profit, which was $201m in Q2 and stood at $1.8bn.
In Q2 of 2023, the company’s adjusted EBITDAR was $1.1bn.
Macau’s reopening brings higher costs
The business costs increased to $3.55bn in line with MGM Macau’s recovery.
The casino costs have increased by 65.5%, to $1.03bn. The cost of rooms, food, beverages, reimbursements and general expenses all increased modestly. MGM’s corporate and entertainment expenses decreased slightly.
The company’s six-month earnings ended 30th June at $3.83bn. This is a 21% increase from last year. The company generated an operating profit of $1.10bn, and a total net income of $666.7m.
New York license on schedule for 2024
Hornbuckle expressed optimism during the earnings call of the MGM New York license application.
This operator is well known for being amongst the top applicants to win one of the upcoming casino licences in the city.
Hornbuckle expressed his confidence that progress will be made quickly, despite the frustration of some operators, including Ray Pineault, in an interview with iGB.
Hornbuckle said, “I hope that in the coming month we will hear from the Commission and get the process moving.”
He added, “We don’t have any indications as to when it might happen but are optimistic.” We hope and expect that this will happen in the year 2024.
Marriott deal opportunities for BetMGM
MGM announced in July that it was entering a partnership with Marriott International.
Hornbuckle said that the agreement included digital integrations of Marriott Bonvoy and the booking platform, but also highlighted the possibility to sell BetMGM products to Marriott Bonvoy customers.
Hornbuckle said, “It’s ultimately our ability to reach their clients and their customer’s having the opportunity to view BetMGM in its context.”
We have a program that, I believe, will ultimately motivate Bonvoy Points for these folks. Today, it is independent of BetMGM. But I believe that this will be an important driver.
The 180 million awareness of the product is significant, and we believe it to be interesting. They can earn Bonvoy points, and do other things both within that organization and finally back in our own.
