MGM Resorts International (NYSE: MGM) reported third-quarter earnings today, emphasizing its continuous share repurchase program and revenue growth at its BetMGM segment.
The Bellagio operator reported record consolidated net revenue of $4.2 billion for the September quarter, up 5% year on year. Adjusted profits per share fell to 54 cents from 64 cents a year ago.
While analysts have cited difficult year-over-year comparisons for some Las Vegas Strip operators, MGM said its third-quarter Strip revenue increased 1% to $2.1 billion, with adjusted earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs (EBITDAR) rising to $731 million from $714 million. MGM is the largest operator on the Strip.
MGM reported revenues at its regional casinos increased to $952 million from $925 million, with adjusted EBITDAR rising 2% to $300 million from $293 million.
BetMGM Shows Strong Improvement.
BetMGM, a 50/50 joint venture between the casino behemoth and Entain Plc (OTC: GMVHY), currently behind competitors like FanDuel and DraftKings (NASDAQ: DKNG) in terms of market share, but it’s making progress, as seen by the July to September period.
BetMGM’s growth is accelerating, with record 3Q net sales climbing over 20% year on year, more than tripling revenue growth in the previous quarter, according to a statement.
See also:
- Experts predict that Japan’s IR period will continue amid politics
- MGM quarterly EBITDA increased 14 percent to US$255 million
- MGM Cotai converts 160 rooms to about 60 suites: Feng
The US sports wagering industry is virtually a duopoly dominated by FanDuel and DraftKings, whereas iGaming is more open and has better margins and profit possibilities. BetMGM is making a fresh drive to acquire market share in this sector, which might pay off in the long run.
iGaming’s long-term growth potential makes it critical for companies like BetMGM. Currently, just seven states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia — allow that type of wagering, but that number is projected to rise in the coming years as legislatures look for new income streams.
Buybacks remain part of MGM’s playbook.
MGM has been one of the gaming industry’s most consistent purchases of its own shares in recent years, and this trend continued in the third quarter.
“During the quarter, we returned over $300 million to shareholders through share repurchases, bringing our year-to-date total to approximately $1.3 billion,” CFO Jonathan Halkyard stated in the news statement.
Since 2021, the gaming firm has decreased its outstanding shares by 40% through share repurchases. MGM ended the third quarter with $944 million in free cash flow, and its comparatively low debt and strong liquidity enable continuous share buybacks.
Join us on all our social channels and groups
Gameongazette is present on:
