MGM Resorts International has exceeded expectations and generated $2.9 billion in revenue for the first quarter of 2022. With surpassing analysts’ estimation of $2.7 billion and reporting decreased losses as compared to 2019, the period was mostly a positive one.
The 73% boost has been attributed to the recovery of MGM Resort’s land-based properties. The Las Vegas strip alone brought in $1.7 billion in revenue, a year-on-year increase of 205%.
Bill Hornbuckle, CEO and President of MGM Resorts International, said, “We delivered a strong first quarter in our domestic operations driven by weekend demand and a better mix of business. The results demonstrate the robust demand for our gaming entertainment offerings with the backdrop of increased sports and entertainment programming in the Las Vegas market.”
The gaming, entertainment and hospitality company reported a net loss of $18 million in Q1 2022, compared to $332 million in Q1 2021. On a per-share basis, it had a loss of 6 cents. Earnings, adjusted for non-recurring costs, were 1 cent per share.
Parallelly, the real estate arm of MGM Resorts – MGM Growth Properties, closed a deal with VICI Properties. The partnership is set to pursue a commercial gaming license in Pennsylvania and begin development on an integrated resort in Osaka, Japan.
Bill added, “We reached another milestone in the completion of our asset light strategy with the closing of the VICI transaction, allowing us to simplify our corporate structure and bolster our liquidity while deploying capital into growth projects with the highest shareholder return.”
This financial report came amid a surprise bid of $607m for the iGaming company LeoVegas, which is the five-time winner of Online Casino Operator of the Year at the Global Gaming Awards, much suited to help expand MGM’s market position in Europe. The company, which offers casino and sports betting in Sweden, Malta, and the Canadian province of Ontario, generated $104 million in revenue in Q1 2022, a 2% increase year-over-year.
It has until August 2022 to accept the offer, which would give MGM a paramount fiscal start as it prepares to acquire The Cosmopolitan of Las Vegas from the Pennsylvania-based investment firm, Blackstone Group, for $1.6 billion.
Speaking on this, Hornbuckle added, “We announced this morning the tender offer for 100% of the shares of LeoVegas which will allow us to expand into international online gaming with a world class management team, strong IT platform and growth prospects. We remain focused on achieving our vision to be the world’s premier gaming entertainment company.”
“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 first quarter, reaching over $1bn during the first quarter of 2022 and we repaid $1bn of notes in March,” concluded Jonathan Halkyard, CFO and Treasurer of MGM Resorts International.