MGM Resorts Enjoys Record-Breaking Q3 Revenue Despite Cyberattack
LISTEN TO THIS ARTICLE:MGM Resorts International reported revenue of $3.97 billion for the third quarter, despite significant disruptions due to a substantial cyberattack. The incident, which took place on September 11th, led to the shutdown of several systems and had an approximately $100 million negative impact on adjusted property EBITDAR.
Despite these setbacks, the company’s CEO, Bill Hornbuckle, noted the company’s exceptional resilience, contributing to record results for the quarter. A significant part of this success was due to the robust performance of MGM China, which compensated for the downturns in the U.S. market.
MGM’s Strategic Expansion into the UK Market
The company also broadened its market reach in the UK during the third quarter with the launch of BetMGM. Rolled out by its subsidiary LeoVegas, BetMGM has begun offering online gaming and sports betting services in the UK market.
Hornbuckle praised the company’s perseverance and positive outlook. He highlighted the considerable growth in China, potential improvements in Las Vegas and the regional business, and looked forward to future events such as the first Formula 1 race in Las Vegas and the introduction of the MGM Collection with Marriott Bonvoy.
Revenue and Profit Highlights in Q3
The leading source of revenue for MGM in the third quarter was its casino segment, which saw a 45.8% increase to $2.05 billion. Despite the cyberattack, room revenues remained constant, but there was a decrease in other areas, including food and beverage and entertainment, retail, and other revenues.
MGM China’s revenue surged by 834.5% to $813 million following the removal of pandemic-related travel and entry restrictions. This figure also exceeded the pre-COVID-19 revenues from the third quarter of 2019.
In profitability terms, MGM reported a pre-tax profit of $224.3 million, contrasting sharply with the previous year’s loss. This outcome was supported by reduced operating costs, earnings from unconsolidated affiliates, and decreased non-operating costs, culminating in a net profit of $161.1 million for the quarter.
Looking at the year-to-date performance, MGM’s revenue climbed to $11.79 billion, marking a 23.6% increase from the previous year. Casino revenue saw a significant rise, and while there was growth in food and beverage, a slight decline was noted in entertainment, retail, and other revenue.
The company encountered heightened operating expenses, resulting in a pre-tax profit of $1.15 billion for the nine-month period and a net profit of $829.7 million, although this was 30.3% less than the previous period. The adjusted EBITDAR for this period was reported at $3.39 billion.
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