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MGM Resorts International reported record revenue in Q1 2024, driven by growth in Las Vegas and its MGM China subsidiary.

The Las Vegas tentpole reported revenue of $4.38bn in the three-month period ending 31 March, up 13.2% from the previous year.

MGM said this was primarily driven by the continued ramp up of its Macau operations after the end of Covid-19 travel restrictions in Q1 2023.

As a result, MGM China, which oversees the Macau operations, saw a 71.0% revenue increase to $1.06bn.

This compared to a 3.6% revenue increase recorded in MGM’s Las Vegas revenue, to $2.26bn.

Regional operations, meanwhile, reported $909.5m in revenue, a 3.8% decline from Q1 2023.

MGM said the reduction resulted from the sale of its Gold Strike Tunica property in February 2023, and a decline in casino revenue.

MGM CEO Bill Hornbuckle said: “Our strategic growth plan to drive sustainable free cash flow from our resort operations, develop free cash flow by investing in international digital and luxury integrated resorts, and return capital to shareholders through share repurchases continued to develop in the first quarter of 2024.”

“We achieved record consolidated revenues in the first quarter. The January launch of our licence agreement with Marriott has surpassed our initial expectations with over 130,000 room nights booked and we expect the strategic relationship will be a growth driver this year.”

The operator earned EBITDAR of $1.2bn in Q1, a 71% increase from 2023,

MGM’s net income for the period declined to $217m, however, compared to $467m the previous year.

The business highlighted a tough comparative period, with Q1 2023 benefitting from the Gold Strike Tunica sale.

Hornbuckle highlights strength of JV

Jefferies analyst David Katz grilled Hornbuckle during the earnings call about the company’s BetMGM joint venture partner Entain.

Hornbuckle called Entain’s new interim CEO Stella David a “breath of fresh air” who has been heavily involved in BetMGM.

He said: “We think it’s movement in the right direction, and it’s something that, frankly, heretofore hadn’t happened.

“And so, that’s all affirmative and positive. Everyone is agreeing to the road map. It’s an extensive road map on product development, and it’s going to take some time and energy and some investment, particularly on Entain’s behalf, and they’re fully supportive of that.”

Hornbuckle also expanded on the business’ international expansion plans in the wake of the launch of its LeoVegas-powered BetMGM brand in the Netherlands.   

He added: “If you think about then the digital side of our other business, meaning the LeoVegas business, it is about the extension of BetMGM’s brand and what it could mean in certain established markets.

“And the focus on places like South America of note and Latam, we see long-term real growth potential there if we can get ourselves established in the proper regulated markets.”

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