Record sales for MGM Resorts International

Last week, the MGM Resorts International published the annual report for the second quarter this year. A record turnover can be found. The company’s turnover increased particularly through the online sector.

Strong performance in both online and terrestrial sector

The BetMGM website, on which sports betting and also gambling are offered, contributed significantly to the record sales. According to this, the online gambling website has been able to record many customers for a long time. But not only the online sector, but also the land-based Gambling I achieved good results for MGM Resorts internationally. A consolidated net turnover – also called EBITDAR – was created in the amount of USD 2.3 billion. This sum does not correspond to quite 2 billion euros. Compared to the same period in the same period, in which only a turnover of $ 289.8 million – just under 2.5 million $ – could be booked, the profit rose very much.

Profit through Corona loosening

Compared to the previous year, the company benefited from the relaxation of the Corona measures this year. Both operating and capacity restrictions are even in full again this year. In addition, the company benefited from an increase in travel traffic. The increasing occupancy rates in the resorts have led to this positive result. According to Chief Financial Officer from MGM Resorts – Jonathan Halkyard – around 77 percent of the rooms were occupied in the second quarter. On weekends, the occupancy rate was sometimes even 94 percent. On the other hand, the company was from the temporary closures of the land -based Casinos “Has been heavily stressed”.

When the Corona measures were lifted in June this year, according to Halkyard, the utilization had increased to 83 percent again. The occupancy rate was 96 percent on the weekends. The CEO and President of MGM Resorts- Bill Hornbuckle- commented on record sales as follows: “We delivered a strong second quarter, driven by robust demand and productivity efforts in our entire domestic sports folio. Our adjusted EBITDAR margins in Las Vegas Strip and regional business achieved all-time records and our regional activities also achieved a quarterly all-time record with the adjusted real estate Ebitdar. ”

Continues to be increasing balance

According to Hornbuckles, the sports betting and Igaming company BetmGM continues to be excellent nationwide on the websites offered and perform. For 2023, the CEO for BetMGM alone predicted net sales of more than 1 billion USD – more than 852.4 million euros. According to Halkyard, the sector in the land -based sector would continue to increase the occupancy rates in the third quarter. Not only young people, but also older customers have already returned to the terrestrial casinos. According to Halkyard, the company has now attracted “the older population group over 65 in [their] locations on the strip at a level that [the company] has recorded before pandemy”. .

By acquiring the spin-off MGM Growth Properties by Vici Properties for $ 17.2 billion-converted into around 14.7 billion euros-MGM resorts will have more financial flexibility, according to the CEO. Hornbuckle explained that “our solid liquidity position […] offers us considerable flexibility, since our business continues to improve and stabilize. Therefore, in the second quarter we returned capital to shareholders through stock returns and assume that we will continue to pursue our approach for the rest of the year. ” As a result, the concentration in maximizing growth in the core business could be placed and the strong balance sheet.