US-based casino operator MGM Resorts International has seen third quarter revenue grow 26% year-on-year, to US$3.42bn, boosted by recent acquisitions and a recovering Las Vegas Strip.
Vegas and International Acquisitions
Both the Cosmopolitan of Las Vegas and Aria and Vdara, which were acquired in May 2022 and September 2021 respectively, helped boost revenues for the company. Even so, the quarter saw an operating loss of $1bn, compared to an operating income of $1.9bn for the same period in 2021. The net loss stood at $577m compared to a net income of $1.4bn in the prior-year quarter.
In a statement, the company said the operating loss was due to a “$1.2 billion increase in noncash amortization expense relating to a change in the useful life of the MGM Grand Paradise gaming subconcession as a result of new Macau gaming laws and related changes and due to the $2.3 billion gain on consolidation of CityCenter, net in the prior year quarter.”
The quarter also saw MGM close its acquisition of Stockholm-based online casino and sports betting provider LeoVegas, and submit a tender for a new 10-year gaming concession in Macau. The company says it has also made progress with its operations with BetMGM and development initiatives in both New York and Japan.
Commenting on the results, CEO and President of MGM Resorts International, Bill Hornbuckle, said: “We’re proud to report the best quarter in our Las Vegas Strip history, both on a revenue and Adjusted Property EBITDAR basis, driven by the continued appeal of our entertainment and meetings offerings.”
Good & Bad News from Macau
According to Bloomberg, earlier this week, Chinese authorities reintroduced strict COVID-19 regulations in Macau. This included locking down the MGM Cotai casino resort, owned by MGM China, and sealing more than 1,500 people inside the property.
However, there’s also been some good news for Macau, with the Chinese government now allowing mainland residents to use an online system to obtain visas to travel to the former Portuguese colony, which, like former British Hong Kong, is now a ‘Special Administrative Region.’