MGM Resorts International (MGM) Bundle
A Brief History of MGM Resorts International
MGM Resorts International, a leading global entertainment company, has established a significant presence in the hospitality and gaming industries. As of 2024, MGM operates a diverse portfolio of resort and casino properties, primarily located on the Las Vegas Strip and in several international markets.
Company Overview
Founded in 1986, MGM Resorts has grown through strategic acquisitions and developments. The company operates 29 properties across the globe, including iconic locations such as Bellagio, MGM Grand, and Mandalay Bay. As of September 30, 2024, MGM Resorts reported total assets of approximately $31.1 billion and total liabilities of $25.2 billion.
Financial Performance
For the nine months ended September 30, 2024, MGM Resorts reported net revenues of $12.89 billion, an increase of 9% compared to the same period in 2023. The operating income for the same period was $1.2 billion, reflecting a decrease of 19% year-over-year due to increased payroll and promotional expenses.
| Financial Metrics | 2024 (YTD) | 2023 (YTD) |
|---|---|---|
| Net Revenues | $12.89 billion | $11.78 billion |
| Operating Income | $1.20 billion | $1.47 billion |
| Net Income | $826.69 million | $935.31 million |
Segment Performance
MGM's operations can be segmented into three main categories: Las Vegas Strip Resorts, Regional Operations, and MGM China.
| Segment | Net Revenues (2024 Q3) | Net Revenues (2023 Q3) |
|---|---|---|
| Las Vegas Strip Resorts | $2.13 billion | $2.11 billion |
| Regional Operations | $952.15 million | $924.96 million |
| MGM China | $929.46 million | $812.53 million |
Debt and Liquidity
As of September 30, 2024, MGM Resorts had a total debt of $6.91 billion, with significant financial obligations due in the coming years. The company reported cash and cash equivalents of $3 billion, indicating a solid liquidity position. The expected cash interest payments over the next twelve months are estimated between $380 million to $400 million.
Recent Developments
MGM Resorts has been actively pursuing growth opportunities, including a $2 billion commercial gaming facility in New York and an integrated resort in Osaka, Japan, which requires a commitment of approximately $1.9 billion over the next five years.
Stock Performance and Shareholder Returns
In the nine months ended September 30, 2024, MGM Resorts repurchased $1.2 billion of its common stock, showcasing its commitment to returning capital to shareholders. The company declared dividends amounting to $169 million to noncontrolling interests.
| Stock Metrics | 2024 (YTD) |
|---|---|
| Total Stock Repurchases | $1.2 billion |
| Dividends Declared | $169 million |
Conclusion
MGM Resorts International continues to leverage its strong brand and diverse portfolio to enhance its market position. With ongoing investments and strategic initiatives, MGM is poised for future growth in the competitive gaming and hospitality landscape.
A Who Owns MGM Resorts International (MGM)
Ownership Structure
MGM Resorts International (MGM) is publicly traded on the New York Stock Exchange under the ticker symbol MGM. As of 2024, the ownership of MGM is divided among institutional investors, retail investors, and company insiders.
Major Shareholders
The table below summarizes the major shareholders of MGM Resorts International as of September 30, 2024:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| Vanguard Group, Inc. | 8.5% | 25,385,000 |
| BlackRock, Inc. | 7.2% | 21,900,000 |
| State Street Corporation | 4.5% | 13,650,000 |
| Wellington Management Group LLP | 3.8% | 11,530,000 |
| Invesco Ltd. | 3.1% | 9,300,000 |
| Insider Holdings (Executives and Directors) | 1.2% | 3,600,000 |
| Other Institutional Investors | 67.7% | 204,990,000 |
Stock Performance
As of September 30, 2024, MGM's stock price was approximately $40.00 per share. The company has experienced a fluctuation in its stock price, with a year-to-date increase of approximately 12%. The market capitalization of MGM Resorts International is approximately $12 billion.
Recent Financial Highlights
MGM Resorts reported consolidated net revenues of $4.18 billion for the three months ended September 30, 2024, representing a 5% increase compared to the same period in 2023. The operating income for the same period was $314.9 million, and net income attributable to MGM Resorts International was $184.6 million.
Share Repurchase Program
As part of its capital allocation strategy, MGM Resorts announced a stock repurchase plan of up to $2.0 billion in November 2023. By September 30, 2024, the company had repurchased approximately 30 million shares for a total of $1.2 billion.
Dividends
MGM China, a subsidiary of MGM Resorts, declared a special dividend of $51 million in March 2024, with MGM Resorts receiving approximately $29 million of that amount.
Debt and Liquidity
As of September 30, 2024, MGM Resorts International had total debt of approximately $7.0 billion, with cash and cash equivalents totaling $3.0 billion.
Conclusion
The ownership of MGM Resorts International is largely comprised of institutional investors, with the Vanguard Group and BlackRock being the largest shareholders. The company's financial performance has shown positive trends with increased revenues and a proactive approach to shareholder returns through share repurchases and dividends.
MGM Resorts International (MGM) Mission Statement
Mission Statement Overview
MGM Resorts International aims to create unparalleled experiences for its guests by offering world-class hospitality, entertainment, and gaming options. The company is committed to sustainable practices and enhancing the communities it serves. MGM's mission reflects its dedication to innovation, excellence, and customer satisfaction.
Financial Performance Metrics
The following table outlines key financial performance metrics for MGM Resorts International as of September 30, 2024:
| Financial Metric | Q3 2024 | Q3 2023 | Year-to-Date (YTD) 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenues | $4,183,138,000 | $3,973,183,000 | $12,893,983,000 | $11,788,686,000 |
| Operating Income | $314,857,000 | $369,936,000 | $1,198,891,000 | $1,472,153,000 |
| Net Income | $244,164,000 | $211,885,000 | $826,692,000 | $935,312,000 |
| Adjusted EBITDAR | $1,135,934,000 | $1,233,460,000 | $4,035,984,000 | $3,831,077,000 |
Key Revenue Segments
The following table presents a breakdown of net revenues by segment for MGM Resorts International:
| Segment | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Las Vegas Strip Resorts | $2,132,213,000 | $2,105,839,000 | $6,592,704,000 | $6,428,641,000 |
| Regional Operations | $952,148,000 | $924,957,000 | $2,788,765,000 | $2,796,900,000 |
| MGM China | $929,456,000 | $812,525,000 | $3,003,664,000 | $2,171,072,000 | Corporate and Other | $169,321,000 | $129,862,000 | $508,850,000 | $392,073,000 |
Operational Highlights
MGM Resorts International reported an increase in key operational metrics as follows:
- Las Vegas Strip Resorts Adjusted Property EBITDAR increased by 1% for the nine months ended September 30, 2024.
- MGM China's casino revenues increased by 12% for Q3 2024 compared to Q3 2023.
- Adjusted EBITDAR margin for Las Vegas Strip Resorts was 35.5% for the nine months ended September 30, 2024.
Gaming Statistics
The following table summarizes key gaming statistics for MGM Resorts as of September 30, 2024:
| Gaming Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Table Games Drop | $1,386,000,000 | $1,491,000,000 | $4,430,000,000 | $4,513,000,000 |
| Slot Handle | $5,920,000,000 | $5,698,000,000 | $16,999,000,000 | $17,403,000,000 |
Stock Performance and Share Repurchases
MGM Resorts has been active in managing its capital structure through stock repurchases:
- In the nine months ended September 30, 2024, MGM repurchased approximately 30 million shares for an aggregate amount of $1.3 billion.
- The remaining availability under the November 2023 $2.0 billion stock repurchase plan was $946 million as of September 30, 2024.
Debt and Liquidity Position
MGM Resorts' liquidity position as of September 30, 2024, includes:
- Cash and cash equivalents of $3.0 billion.
- Total principal amount of indebtedness of $7.0 billion, including $2.9 billion related to MGM China.
Future Outlook and Investments
MGM Resorts International is exploring strategic investments, including:
- Expansion of its global online gaming presence.
- Development of a commercial gaming facility in New York, estimated project cost of approximately $2 billion.
- Investment in the integrated resort project in Osaka, Japan, with remaining funding anticipated at $1.9 billion over the next five years.
How MGM Resorts International (MGM) Works
Overview of Operations
MGM Resorts International operates through various segments, primarily focusing on the Las Vegas Strip Resorts, Regional Operations, and MGM China. The company generates revenue from gaming, hotel accommodations, food and beverage services, entertainment, and retail operations.
Financial Performance
As of September 30, 2024, MGM Resorts reported the following consolidated financial results:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Revenues | $4,183,138,000 | $3,973,183,000 | $12,893,983,000 | $11,788,686,000 |
| Operating Income | $314,857,000 | $369,936,000 | $1,198,891,000 | $1,472,153,000 |
| Net Income | $244,164,000 | $211,885,000 | $826,692,000 | $935,312,000 |
| Net Income Attributable to MGM | $184,578,000 | $161,117,000 | $589,126,000 | $828,720,000 |
Segment Performance
The following table presents net revenues by segment for Q3 2024 and YTD 2024:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YTD 2024 Revenue | YTD 2023 Revenue |
|---|---|---|---|---|
| Las Vegas Strip Resorts | $2,132,213,000 | $2,105,839,000 | $6,592,704,000 | $6,428,641,000 |
| Regional Operations | $952,148,000 | $924,957,000 | $2,788,765,000 | $2,796,900,000 |
| MGM China | $929,456,000 | $812,525,000 | $3,003,664,000 | $2,171,072,000 |
Gaming Statistics
Key gaming statistics for MGM Resorts are as follows:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Table Games Drop (Las Vegas Strip) | $1,386,000,000 | $1,491,000,000 | $4,430,000,000 | $4,513,000,000 |
| Table Games Win (Las Vegas Strip) | $328,000,000 | $405,000,000 | $1,081,000,000 | $1,096,000,000 |
| Slot Handle (Las Vegas Strip) | $5,920,000,000 | $5,698,000,000 | $16,999,000,000 | $17,403,000,000 | Slot Win (Las Vegas Strip) | $554,000,000 | $531,000,000 | $1,592,000,000 | $1,625,000,000 |
Adjusted EBITDAR
Adjusted Property EBITDAR for the segments is detailed below:
| Segment | Q3 2024 EBITDAR | Q3 2023 EBITDAR | YTD 2024 EBITDAR | YTD 2023 EBITDAR |
|---|---|---|---|---|
| Las Vegas Strip Resorts | $731,037,000 | $714,086,000 | $2,341,114,000 | $2,326,424,000 |
| Regional Operations | $299,985,000 | $293,257,000 | $862,465,000 | $900,199,000 |
| MGM China | $237,356,000 | $226,117,000 | $832,405,000 | $604,454,000 |
| Corporate and Other | $(132,444,000) | $(87,946,000) | $(468,740,000) | $(437,193,000) |
Capital Expenditures and Cash Flow
Cash flows and capital expenditures for the nine months ended September 30, 2024:
| Category | Amount (in millions) |
|---|---|
| Capital Expenditures | $747 |
| Cash Provided by Operating Activities | $1,700 |
| Cash Used in Investing Activities | $(879) |
| Cash Used in Financing Activities | $(774) |
Debt and Liquidity
As of September 30, 2024, MGM Resorts had the following debt and liquidity positions:
| Metric | Amount (in billions) |
|---|---|
| Total Indebtedness | $7.0 |
| Cash and Cash Equivalents | $3.0 |
| Available Borrowings under Credit Facility | $2.3 |
How MGM Resorts International (MGM) Makes Money
Revenue Streams
MGM Resorts International generates revenue through various segments, with the primary ones being its Las Vegas Strip resorts, regional operations, and MGM China.
Las Vegas Strip Resorts
The Las Vegas Strip resorts are a significant source of revenue, contributing to the overall financial performance of MGM. The following table summarizes the net revenues for the Las Vegas Strip Resorts for the three and nine months ended September 30, 2024, compared to the prior year.
| Category | Three Months Ended September 30, 2024 (In thousands) | Three Months Ended September 30, 2023 (In thousands) | Nine Months Ended September 30, 2024 (In thousands) | Nine Months Ended September 30, 2023 (In thousands) |
|---|---|---|---|---|
| Casino | $476,434 | $546,273 | $1,458,721 | $1,539,048 |
| Rooms | $743,261 | $694,554 | $2,337,808 | $2,152,960 |
| Food and Beverage | $574,587 | $545,850 | $1,798,109 | $1,727,248 |
| Entertainment, Retail and Other | $337,931 | $319,162 | $998,066 | $1,009,385 |
| Total Net Revenues | $2,132,213 | $2,105,839 | $6,592,704 | $6,428,641 |
Regional Operations
Regional operations also contribute significantly to MGM's revenue. The following table highlights the net revenues from regional operations for the same periods.
| Category | Three Months Ended September 30, 2024 (In thousands) | Three Months Ended September 30, 2023 (In thousands) | Nine Months Ended September 30, 2024 (In thousands) | Nine Months Ended September 30, 2023 (In thousands) |
|---|---|---|---|---|
| Casino | $692,654 | $678,565 | $2,061,659 | $2,074,972 |
| Rooms | $88,275 | $85,267 | $232,740 | $229,500 |
| Food and Beverage | $116,378 | $107,952 | $336,037 | $331,322 |
| Entertainment, Retail and Other | $54,841 | $53,173 | $158,329 | $161,106 |
| Total Net Revenues | $952,148 | $924,957 | $2,788,765 | $2,796,900 |
MGM China
MGM China has shown substantial growth, especially following the recovery from COVID-19-related restrictions. The following table provides an overview of MGM China's net revenues.
| Category | Three Months Ended September 30, 2024 (In thousands) | Three Months Ended September 30, 2023 (In thousands) | Nine Months Ended September 30, 2024 (In thousands) | Nine Months Ended September 30, 2023 (In thousands) |
|---|---|---|---|---|
| Casino | $800,208 | $713,961 | $2,611,497 | $1,938,891 |
| Rooms | $52,029 | $47,270 | $168,415 | $108,442 |
| Food and Beverage | $64,356 | $44,460 | $192,716 | $105,058 |
| Entertainment, Retail and Other | $12,863 | $6,834 | $31,036 | $18,681 |
| Total Net Revenues | $929,456 | $812,525 | $3,003,664 | $2,171,072 |
Adjusted Property EBITDAR
Adjusted Property EBITDAR is a crucial measure of profitability across MGM's segments. The following table presents the Adjusted Property EBITDAR for the three and nine months ended September 30, 2024.
| Segment | Three Months Ended September 30, 2024 (In thousands) | Three Months Ended September 30, 2023 (In thousands) | Nine Months Ended September 30, 2024 (In thousands) | Nine Months Ended September 30, 2023 (In thousands) |
|---|---|---|---|---|
| Las Vegas Strip Resorts | $731,037 | $714,086 | $2,341,114 | $2,326,424 |
| Regional Operations | $299,985 | $293,257 | $862,465 | $900,199 |
| MGM China | $237,356 | $226,117 | $832,405 | $604,454 |
| Corporate and Other | ($132,444) | ($87,946) | ($468,740) | ($437,193) |
| Total Adjusted EBITDAR | $1,135,934 | $1,233,460 | $4,035,984 | $3,831,077 |
Financial Performance Overview
MGM's financial performance has shown resilience, with consolidated net revenues increasing by 9% for the nine months ended September 30, 2024, compared to the prior year period, primarily due to a 38% increase at MGM China and a 3% increase at Las Vegas Strip Resorts. However, operating income decreased by 19% due to increased payroll expenses and other operational costs.
Debt and Cash Management
As of September 30, 2024, MGM Resorts reported total indebtedness of approximately $7.0 billion, with cash and cash equivalents of $3.0 billion. The company continues to manage its cash flows effectively, maintaining liquidity while investing in growth opportunities.
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Article updated on 8 Nov 2024
Resources:
- MGM Resorts International (MGM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MGM Resorts International (MGM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MGM Resorts International (MGM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.