MGM Resorts International Reports Q2 2022 Operating Results
LAS VEGAS—MGM Resorts International reported financial results for the quarter ended June 30, 2022. Highlights include:
- Record Las Vegas Strip adjusted property EBITDAR and record Q2 regional operations adjusted property EBITDAR
- Acquired the operations of The Cosmopolitan Las Vegas; announced the sale of the operations of Gold Strike Tunica for $450 million
- Repurchased $1.1 billion of shares of common stock during the second quarter, or 8 percent of outstanding shares
- Continue to pursue a commercial gaming license in New York and the development of an integrated resort in Osaka, Japan
“Our second quarter results were outstanding, representing the best ever adjusted property EBITDAR quarter at the company’s Las Vegas Strip Resorts and best second-quarter adjusted property EBITDAR at our regional operations driven by consistent strong demand from the leisure consumer and a return from our convention customers,” said Bill Hornbuckle, CEO and president of MGM Resorts International. “We announced several important portfolio changes during the acquisition of the operations of The Cosmopolitan of Las Vegas and the announcement of the sale of Gold Strike Tunica. We look to the future with optimism, as our convention and event calendar for the next year remains notably strong and BetMGM continues to be a market leader with a roadmap for growth. We remain focused on achieving our vision to be the world’s premier gaming entertainment company.”
“We see exceptional value in our company’s shares and have returned capital to our shareholders by repurchasing over $1.1 billion of our stock in the second quarter,” said Jonathan Halkyard, chief financial officer and treasurer of MGM Resorts International. “Since early 2021, the execution of our asset-light strategy has allowed us to repurchase 31 percent of our market cap while accumulating domestic cash in excess of debt on our balance sheet.”
- Consolidated net revenues of $3.3 billion compared to $2.3 billion in Q2 2021, an increase of 44 percent. Q2 2022 benefited from the inclusion of the operating results of The Cosmopolitan of Las Vegas and Aria and Vdara upon the acquisition in May 2022 and September 2021, respectively. Additionally, results improved over Q2 2021 due to increased business volume and travel activity primarily at the Las Vegas Strip resorts.
- Net income attributable to MGM Resorts of $1.8 billion, which included a gain related to the deconsolidation of MGM Growth Properties LLC compared to $105 million in Q2 2021.
- Diluted earnings per share of $4.20 in Q2 2022 compared to $0.14 in Q2 2021.
- Adjusted diluted earings per share was $0.03 in Q2 2022 compared to a loss of $0.13 in Q2 2022.
- Consolidated adjusted EBITDAR of $920 million and consolidated adjusted EBITDAR margin of 28.2 percent in Q2 2022
Vegas Strip Resorts
- Net revenues of $2.1 billion in Q2 2022 compared to $1.0 billion in 2021, an increase of 113 percent. The current quarter benefited from the inclusion of The Cosmopolitan and Area and an increase in business volume and travel activity compared to Q2 2021.
- Same-store net revenues (adjusted for acquisitions/dispositions) of $1.6 billion in Q2 2022, an increase of 60% compared to Q2 2021.
- Adjusted property EBITDAR of $825 million in Q2 2022 compared to $397 million in Q2 2021, an increase of 108 percent.
- Same-store adjusted property EBITDAR of $599 million in Q2 2022 compared to $397 million in Q2 2021, an increase of 51 percent.
- Adjusted property EBITDAR margin of 38.6 percent in Q2 2022 compared to 39.5 percent in Q2 2021, a decrease of 89 basis points due primarily to an increase in contributions from lower-margin non-gaming outlets and venues.
- Net revenues of $960 million in Q2 2022 compared to $856 million in Q2 2021, an increase of 12 percent due to an increase in business volume.
- Adjusted property EBITDAR margin of 35.4 percent in Q2 2022 compared to 37.2 percent in the prior year quarter, a decrease of 176 basis points due primarily to an increase in contribution from lower-margin non-gaming outlets and venues.
- Net revenues of $143 million in Q2 2022 compared to $311 million in Q2 2021, a decrease of 54 percent. Q2 2022 and Q2 2021 were significantly impacted by travel and entry restrictions in Macau.
- Adjusted property EBITDAR loss of $54 million in Q2 2022 compared to adjusted property EBITDAR of $9 million in Q2 2021.
Adjusted Diluted Earnings Per Share
Q2 2022 included a non-cash income tax charge of $90 million resulting from an increase in the valuation allowance on Macau deferred tax assets and a non-cash income tax benefit of $37 million to record the impact of the VICI transaction on state deferred tax liabilities.
Corporate expense, including share-based compensation for corporate employees, increased to $120 million in Q2 2022 from $97 million in Q2 2021, partially due to an increase in payroll expense. Q2 2022 also included $21 million in transaction costs and Q2 2021 included $6 million in transaction costs.
MGM Resorts Dividend and Share Repurchases
On August 3, 2022, the company’s Board of Directors approved a quarterly dividend of $0.0025 per share. The dividend will be payable on September 15, 2022, to holders of record on September 9, 2022.
During Q2 2022, the company repurchased approximately 32 million shares of its common stock at an average price of $34.42 per share of an aggregate amount of $1.1 billion, pursuant to the February 2020 and March 2022 repurchase plans. In connection with these repurchases, the February 2020 $3.0 billion stock repurchase program was completed. The remaining availability under the March 2022 repurchase program was $1.1 billion as of June 30, 2022. All shares repurchased under the company’s programs have been retired.