Las Vegas’ true value lies in delivering iconic, one-of-a-kind experiences
MGM Resorts has reported a record first quarter with revenues hitting $4.5bn, an increase of four per cent driven by its digital operations and improvements in Macau, as well as the first Las Vegas growth in six quarters.
Management highlighted the role sports are playing in driving business to its casino resorts in Las Vegas but highlighted that there was a ‘growing prevalence of frivolous litigation’ that had cost the company $37m in Las Vegas and $9m regionally.
Macau saw a healthy increase of nine per cent, taking revenues to $1.1bn whilst digital soared by 43 per cent to reach $183m. In Las Vegas, net revenues of $2.2bn in the current quarter increased slightly compared to the prior year quarter, whilst the regional markets improved by two per cent to hit $918m.
Bill Hornbuckle, President and CEO of MGM Resorts International, said: “Las Vegas’ true value lies in delivering iconic, one-of-a-kind experiences. We look forward to welcoming the Super Bowl back at Allegiant Stadium in 2029, particularly given our proximity to the venue, which drove outsized benefits during the 2024 Super Bowl. In the near term, Allegiant will host the College Football Playoff National Championship in 2027 and the Final Four in 2028. That same year, the A’s are set to begin their inaugural season in Las Vegas.”
During the quarter, Las Vegas was also named a target city for the NBA expansion team, and MGM is actively engaged in discussions with the league and respective team owners.
Hornbuckle added: “If successful, no US city will have assembled all four major professional sports leagues faster than Las Vegas. The ability to attract professional sports franchises and tentpole events exemplifies Las Vegas’ structural resilience.”
“We are pleased to report record 1Q consolidated net revenues driven primarily by MGM China and MGM Digital, as well as growth at our BetMGM North America Venture. MGM Resorts’ Las Vegas Strip Resorts delivered comparable period quarterly top line growth for the first time in over a year and monthly net revenues that strengthened into March. Looking into the second quarter and beyond, we are seeing signs of strength driven by solid convention bookings, our newly launched all-inclusive promotion, and our recently refreshed rooms at the MGM Grand Las Vegas.”
Jonathan Halkyard, CFO of MGM Resorts International, said: “We are encouraged by the incremental momentum driven by our all-inclusive program, as well as the convention strength we have on the books. Our regional operations proved resilient in the first quarter, exhibiting top-line growth of two per cent, and similar to the Las Vegas story, segment adjusted EBITDAR decreased by $20m in part due to an increase in self-insurance expense of $9m and a decrease in business interruption proceeds of $10 million versus last year.
“Borgata and National Harbor also faced some weather-related disruptions, but we ended March on a very solid footing, and those trends continued into April,” he added. “This month we closed on the sale of the operations of MGM Northfield Park for $546m, reflecting a significantly higher multiple than currently ascribed to our premium and diverse operations. The proceeds provide MGM Resorts with incremental liquidity to be deployed in line with our priorities of maintaining a strong balance sheet including the return of capital to shareholders through share repurchases.”
Halkyard added: “I do want to briefly address this external factor that continues to pressure operating costs across our industry and drove a meaningful portion of the increase in our self-insurance expenses this quarter, and that is the growing prevalence of frivolous litigation, often backed by large pools of capital, including private equity,” leading to $37 million in Las Vegas and $9 million regionally. He added, “We certainly hope it will not recur and that it is an unusual one-time item.”
The post With Las Vegas showing growth for the first time in six quarters, MGM heralds its ability to attract professional sports teams appeared first on G3 Newswire.
Las Vegas’ true value lies in delivering iconic, one-of-a-kind experiences MGM Resorts has reported a record first quarter with revenues hitting $4.5bn, an increase of four per cent driven by its digital operations and improvements in Macau, as well as the first Las Vegas growth in six quarters. Management highlighted the role sports are playing in…
The post With Las Vegas showing growth for the first time in six quarters, MGM heralds its ability to attract professional sports teams appeared first on G3 Newswire.