MGM Resorts International (MGM) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 consolidated net revenues and Adjusted Property EBITDA, led by strong MGM China performance, sequential improvement in Las Vegas, and robust digital growth, including BetMGM profitability and international expansion initiatives in Brazil, Japan, and Dubai.

• Nearly doubled Las Vegas EBITDA since 2019 and grown regional EBITDA by almost 20% over the same period; MGM China market share increased from 9.5% in 2019 to 15.9% in Q3 2024 YTD.

• Net revenues rose 5% year-over-year for Q3 2024, with a 14% increase at MGM China and modest growth at Las Vegas Strip and Regional Operations.

• Operating income declined 15% year-over-year for Q3 2024, mainly due to higher payroll, gaming taxes, and promotional expenses, partially offset by insurance proceeds from the 2023 cybersecurity incident.

• BetMGM delivered record Q3 net revenues, up nearly 20% year-over-year, and digital operations reached profitability with a 70% increase in first-time depositors.

Financial highlights

• Q3 2024 net revenues: $4.2 billion (up 5% year-over-year); nine months: $12.89 billion (up 9%).

• Q3 2024 net income attributable to MGM: $185 million (up from $161 million); nine months: $589.1 million (down from $828.7 million).

• Adjusted EBITDAR for Q3 2024: $1.14 billion; nine months: $3.57 billion.

• Free cash flow for the first nine months: $944 million, with $1.7 billion cash from operations and $750 million in capex.

• MGM China Q3 2024 revenue was HK$7.25 billion, up from HK$6.36 billion in Q3 2023; Adjusted EBITDA was HK$1.98 billion, up from HK$1.00 billion.

Outlook and guidance

• Management expects continued organic growth in resorts, incremental value from a New York gaming license, and significant value from digital operations, with digital business expected to generate $400M–$500M in cash flow by 2026.

• 2024 corporate expense forecasted at $425–$460 million, including $40–$50 million for MGM China; capital expenditures expected at $830–$860 million domestically.

• Exploring development opportunities in New York and Osaka, Japan, with significant future cash commitments anticipated.

• Fixed-rate interest with no near-term maturities and relatively flat maintenance capital.

• 2025 expected to see modest EBITDA growth in Las Vegas and regional markets, with a $200M cost-saving initiative underway.