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MGM Resorts International (NYSE:MGM) swung lower in postmarket trading after the casino operator reported Q2 earnings.
Revenue jumped 20.9% year-over-year to $3.94B to edge past the consensus estimate of $3.82B. Operating income fell to $371M during the quarter compared to $2.4B in the same quarter a year ago due to a $2.3B gain in the prior year related to the sale of MGM Growth Properties to VICI Properties, and an increase in rent expense related to the VICI and The Cosmopolitan leases. An increase in net revenue and a decrease in amortization expense related to the MGM Grand Paradise gaming subconcession also factored into the Q2 OI mark.
Consolidated adjusted EBITDAR for the quarter was $1.1B. Adjusted EBITDAR turned positive for the MGM China business and was higher than the pre-pandemic year of 2019. However, adjusted EBITDAR fell for regional operations and the Las Vegas Strip business, due primarily to increases in payroll related expenses.
Las Vegas resorts had an occupancy rate of 96% for the quarter and an average daily rate of $234. Revenue per available room rose 8% year-over-year to $224.
Regional casinos saw a 7% drop in revenue during the quarter, with table game drop off 14% and slot handle down 5%.
“Looking forward to the rest of 2023 and beyond, we are encouraged by the pacing of both Formula 1 and the Super Bowl and the announced relocation of the A’s, which will further solidify Las Vegas as the sports and entertainment capital of the world,” stated CEO Bill Hornbuckle.
Shares of MGM Resorts International (MGM) fell 5.60% in premarket trading on Thursday to $46.50 vs. the 52-week range of $29.20 to $51.35.
