MGM Resorts International has published its financial results for the third quarter of 2021, where it has continued its strong bounce back from last year which was affected by the COVID-19 pandemic.
For Q3, ending September 30, 2021, MGM reported consolidated net revenues of $2.7bn, an 140% increase compared to the prior year, as the current quarter benefited from the removal of mandated operational and capacity restrictions as well as an increase in travel.
The firm’s consolidated operating income for the quarter was $1.9bn (Q3 2020: consolidated operating loss of $495m) and a net income attributable to MGM Resorts of $1.4bn (Q3 2020: net loss attributable to MGM Resorts of $535m).
MGM recorded diluted earnings per share of $2.77 in Q3 (Q3 2020: diluted loss per share of $1.08), adjusted diluted earnings per share (adjusted EPS) of $0.03 (Q3 2020: adjusted EPS loss per share of $1.08), and a consolidated adjusted EBITDAR of $765m.
CEO and President, Bill Hornbuckle, commented: “We delivered another strong quarter led by our domestic operations resulting in new historical Adjusted Property EBITDAR records for our Las Vegas Strip and US regional segments. These results demonstrate the continued robust demand for our gaming entertainment offerings across the US and the effectiveness of our operating model.”
MGM’s Las Vegas Strip Resorts recorded net revenues of $1.4bn in Q3, an 187% increase compared to Q3 2020, but an 8% decrease compared to Q3 2019. Its regional operations earned net revenues of $925m, a 66% increase on Q3 2020, but a 1% decrease compared to Q3 2019.
MGM’s consolidated cash and cash equivalents balance as of September 30, was $5.6bn, which included $320m at the MGP Operating Partnership and $331m at MGM China.
Total liquidity was $9.8bn, which included $1.7bn at the MGP Operating Partnership and $1.7bn at MGM China, which was comprised of cash and cash equivalents and capacity under the revolving credit facilities at the company, MGP Operating Partnership and MGM China, and principal amount of consolidated indebtedness was $12.7bn, including $4.2bn at the MGP Operating Partnership and $3.0bn at MGM China.
CFO and Treasurer, Jonathan Halkyard, stated: “Our strong liquidity position, coupled with our confidence in the long-term recovery of our core business, has allowed us to continue to focus on maximizing long-term shareholder value. To that end, we continued to repurchase our stock in the third quarter, reaching over $1bn of share repurchases since beginning the program this year.”
“As we navigate future uses of our capital, we will remain disciplined in maintaining a strong balance sheet, pursuing targeted growth opportunities, and returning cash to shareholders.”
Hornbuckle added: “The completion of our asset light strategy will allow us to simplify our corporate structure and bolster our liquidity. I am also excited about our long-term growth prospects, including: BetMGM, which continues to establish itself as a clear leader in US sports betting and igaming; our selection as Osaka’s partner to build and operate a large-scale integrated resort in Japan; and the announcement of our agreement to acquire the operations of The Cosmopolitan of Las Vegas.
“The company remains focused on achieving our vision to be the world’s premier gaming entertainment company.”