The company reported “outstanding second-quarter performance” which was further boosted by a new long-term agreement with Marriott, allowing the company to expand its customer booking channel and add to future profitability, said company CEO and president Bill Hornbuckle.
MGM Reports Its Best Net Revenue Performance
Hornbuckle said that the company was excited about the rest of the year and beyond, with the Formula 1 and Super Bowl events now part of its immediate plans. He was joined by MGM Resorts CFO and Treasurer Jonathan Halkyard who hailed the company’s efforts in online and digital capabilities and said that these verticals will continue to drive long-term growth for the company.
Besides, there are significant development efforts underway in both Japan and New York, the United States, all of which are seen as positive events within the company. Getting down to brass tacks with the numbers, the Q2 performance was indeed strong.
Operating income stood at $371 million and consolidated net revenues hit $3.9 billion, or a 2.1% increase. Net income attributable to MGM Resorts was $201 million. Both operating income and net income were lower than Q2 2021’s numbers, but that was mostly attributable to new expenses, including rent to VICI and The Cosmopolitan. Regardless, the company did not speak of anything worrying about this.
MGM Resorts’ Las Vegas Strip Resorts posted net revenues of $2.1 billion, driving the bulk of the company’s results, and further consolidating it in the Silver State. In terms of regional net revenues, MGM Resorts reported $926 million, still a bit lower than the $960 million from a year before.
MGM China Surges in Q2 2023
MGM China surged, however, with $741 million in the present quarter compared to only $143 million a quarter earlier, or a 418% gain year-over-year. The results were generally hailed by the company as consolidated net revenue was the best the company has posted to date.
MGM China’s return to strong financial health was also encouraging. The Las Vegas Strip Resorts are also enjoying good booking rates and are likely to remain steady throughout the remainder of the year. The Marriott partnership was finally signed in July, so not really the second quarter, but it was still an important ticket on the company’s report.
Marriott International and MGM Resorts International have entered a 20-year licensing agreement to allow loyalty members to benefit from various rewards.