MGM Resorts International has presented its financial and operational outcomes for the third quarter of 2023.
Despite encountering a cybersecurity challenge in September, the company showcased stability.
The company reported on 11 September that a “cybersecurity issue” was affecting some of its systems, which it shut down to “protect our systems and data.” The systems took around ten days to return to normal functioning.
“With the incident now behind us, we are a stronger company having been through the challenge," said Bill Hornbuckle, chief executive officer and president of MGM Resorts in a statement.
Strategic milestones achieved
MGM Resorts has navigated the completion of the Japanese certification process for its integrated resort in Osaka.
During the quarter, the company repurchased $572m in shares and authorised a new $2bn share repurchase programme.
CEO perspective and future prospects
Looking ahead, CEO Bill Hornbuckle expressed optimism, stating: “Going forward we have much to be optimistic about with Formula 1's inaugural Las Vegas race next week and early next year the debut of the MGM Collection with Marriott Bonvoy followed by the Super Bowl.”
MGM China's performance and the development pipeline in New York and Japan were also highlighted.
Q3 2023 financial highlights
Consolidated results: Consolidated net revenues reached $4.0bn, a 16% increase compared to Q3 2022.
Operating income was $370m, a significant turnaround from the previous year's $1.0bn operating loss.
Net income attributable to MGM Resorts amounted to $161m, compared to a net loss of $577m in the same quarter of the previous year.
Las Vegas Strip resorts: Net revenues of $2.1bn reflected an 8% decrease, primarily attributed to the disposition of The Mirage and the cybersecurity issue.
Adjusted property earnings before interest, taxes, depreciation, amortisation and restructuring or rent costs (EBITDAR) witnessed a 16% decrease, with an adjusted property EBITDAR margin of 33.9%.
Regional operations: Net revenues of $925m represented a 5% decrease, influenced by the disposition of Gold Strike Tunica and the cybersecurity challenge. Adjusted property EBITDAR was $293m, reflecting a 9% decrease.
MGM China: Net revenues surged to $813m, an 829% increase from the previous year.
Adjusted property EBITDAR reached $226m, showcasing a remarkable turnaround from the previous year's loss.
