MGM Resorts International announced a record-breaking first quarter during its first-quarter earnings call.
It credited three things for its successful three-month stretch: MGM China, MGM’s performance in Las Vegas and its new partnership with Marriot.
The newly legalized North Carolina sports betting market played a minor role in the first quarter, but that will change going forward.
Three Keys to MGM’s Record-Breaking First Quarter of 2024
MGM generated an unprecedented $4.4 billion of consolidated net revenue in the first quarter of 2024, a 13% increase from the same time frame a year ago.
According to MGM Resorts International Chief Executive Officer and President Bill Hornbuckle, MGM’s partnership with Marriott gave it an unexpected boost in the first quarter.
“We achieved record consolidated revenues in the first quarter. The January launch of our license agreement with Marriott has surpassed our initial expectations, with over 130,000 room nights booked, and we expect the strategic relationship will be a growth driver this year.”
Big spikes in net revenue in Las Vegas and China helped considerably as well. Once COVID-19 travel restrictions were eased in China, MGM saw its net revenue jump by 71% year over year, from $618 million in first-quarter 2023 to $1.1 billion in first-quarter 2024.
Las Vegas properties combined to generate a first-quarter record for net revenue. In total, MGM operations in Las Vegas brought in $2.3 billion, which is 4% more than in the first quarter of 2023.
BetMGM Among First Wave of Operators in North Carolina
All in all, MGM’s regional operations, which include North Carolina sports betting, saw a dip of 4% due to extreme weather in the first couple of months of 2024.
In the first quarter of 2023, MGM generated $946 million of net revenue, but this year, that total came in at $909 million. The weather factored in, but the biggest factor was the loss of revenue from the sale of Gold Strike Tunica casino in Mississippi. If the casino sale were removed from the equation, revenue would have fallen by about 1%.
North Carolina sports betting began taking its first wagers on March 11 and has only 21 days of reported figures. The market is in its infancy, but despite that, it generated a statewide handle of $659.3 million, which led to a gross wagering revenue of $66.5 million in its first 21 days.
North Carolina does not report its figures by operator, but getting in on the ground floor of the new market will benefit BetMGM North Carolina in future quarters.
MGM Will Stay The Course After Successful Q1 of 2024
After its record-setting first quarter, MGM seems poised to continue down the path it has already chosen.
MGM Resorts International Chief Financial Officer and Treasurer Jonathan Halkyard said as much in prepared remarks.
“We achieved record results in the first quarter of 2024 by strong performance at MGM China and in Las Vegas, specifically at our luxury resort properties. We repurchased 12 million shares at attractive valuations, providing our shareholders with incremental future benefits from the free cash flow growth of our resort operations, digital profitability and the development opportunities of Japan and New York. Our venture in Japan continues to progress, with financing now in place, and our recent hedging program has provided significant cost advantages for the development of the country’s first integrated resort.”
Image Credit: Ty O’Neil / AP Images
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