Casino Operator MGM beats fourth-quarter estimates on China travel rebound
Reuters
Published Feb 13, 2024 06:07PM ET
(Reuters) - MGM Resorts (NYSE:MGM) International beat market expectations for fourth-quarter on Tuesday, as its China business benefited from th removal of certain pandemic-related restrictions in gambling hub Macau.
Travel rebound in China and Macau has been a tailwind for casino operators such as MGM and Wynn Resorts (NASDAQ:WYNN).
"Premium positioning and offerings in Las Vegas enable us to capture incremental profit during major events such as the inaugural Formula 1 race and our first Super Bowl," CEO Bill Hornbuckle said in a statement.
Adjusted property EBITDAR for MGM China (OTC:MCHVY) was 18% higher in the quarter, over 2019 levels.
The Las Vegas-based company's quarterly regional operations revenue fell 12% to $873 million, due to a decrease in casino revenues that were partially attributable to effects of the union strike at MGM Grand Detroit.
Last year, after negotiations, MGM reached a five-year agreement with Las Vegas hospitality unions to increase wages for employees.
MGM's total revenue rose 22% to $4.38 billion in the quarter through December, compared with analysts' average estimate of $4.14 billion, according to LSEG data.
Its quarterly adjusted profit per share of $1.06 also came ahead of Wall Street expectations of 71 cents.
Shares of the company were down 3.6% in extended trading.
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Written By: Reuters
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