MGM Resorts International (MGM) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 consolidated net revenues of $4.33 billion, up 10% year-over-year, driven by 37% growth at MGM China and 3% growth at Las Vegas Strip Resorts, with regional operations stable.

• Net income attributable to MGM Resorts was $187 million for Q2 2024, with consolidated Adjusted EBITDAR of $1.2 billion.

• Luxury resorts and Marriott integration were key Las Vegas growth drivers, with 75% of 2024 domestic property capital budget allocated to luxury properties.

• Digital and international expansion advanced through acquisitions (LeoVegas, Push Gaming, Tipico US platform) and partnerships (Playtech, Marriott), with BetMGM operating profitably.

• Regional properties remained stable, with Detroit fully recovered and margins in the low 30% range.

Financial highlights

• Q2 2024 net revenues: $4.33B (up 10% year-over-year); operating income: $426M (up 15%); net income: $187M; Adjusted EBITDAR: $1.2B.

• MGM China Q2 2024 revenue: HK$7.96B, up from HK$5.81B in Q2 2023; Adjusted Property EBITDAR in Macau reached $294 million, up 40% year-over-year, with 29% margins.

• Free cash flow for the six months ended June 30, 2024, was $613 million; net cash provided by operating activities was $1.0 billion.

• Over $924M returned to shareholders via repurchases in H1 2024; share count reduced by nearly 40% since 2021, now at 300 million shares.

• Consolidated liquidity as of June 30, 2024: $6.39B, with $2.4B in cash and equivalents; total debt: $6.3B.

Outlook and guidance

• Management anticipates continued momentum in H2 2024, supported by digital strategy, Las Vegas, and MGM China performance.

• Las Vegas room rates are up year-over-year for every month in Q3, with group bookings pacing up mid-single digits for 2024 and 2025.

• Planned capital expenditures for the remainder of 2024: $475M–$525M domestically and $130M–$180M at MGM China; total 2024 CapEx: $830–$860M.

• Ongoing share repurchases expected, with $1.3B remaining under the current plan.

• Exploring development opportunities in New York and Osaka, Japan, with significant future cash commitments anticipated.