Quarterly earnings reveal high revenue but modest profits for MGM during the second quarter
Buckle up, trade secrets from MGM's rollercoaster Q2 financial report are slammin'!
In the Q2 press release, MGM Boss Man Bill Hornbuckle shouted out roaring financial success in China and the wonderland that is Las Vegas, an unbeatable bond with Marriott, and chest-thumping victories in the meetings and convention game, thanks to a killer remodel of Mandalay Bay.
Numbers-wise, that meant a revenue whopper of an impressive $4.3 billion for Q2 2024 – an outstanding 9.8% increase compared to last year's Q2.
MGM China's revenue skyrocketed, mainly due to Macau shaking off the chains of Covid-19 restrictions. The China division dealt out a cool $294 million in EBITDAR, a 40% holy moly increase compared to last year. But, the good times didn't stop there – the revenue only translated to a net income of a still significant, if slightly deflated, $187.1 million – a noticeable 6.8% drop from Q2 2023.
Las Vegas’ property takings were up 2.7% to $2.21 billion. The average daily hotel bill for Sleeping Beauty’s suite in town during the second quarter clocked in at a not-too-shabby $248 a night, with an impressive 97% occupancy rate.
Just like other casino operators singing their earnings tales, a headline act has been the never-ending pursuit of high-rolling customers. MGM execs call Aria, Bellagio, and the Cosmopolitan the "Big 3" show-stoppers at the heart of the Vegas Strip. Oh, FANNY, these joints bring in serious cash and are the mainstays for MGM’s lofty revenue. In fact, a huge 75% of MGM's 2024 US capital expenditure budget will be plowed into these no-frills, lap-of-luxury spots. The majority of the buzz will go towards lavish suite revamping at all Vegas hotels.
Hornbuckle confessed that MGM has splurged over a billion bucks on the klieg lights of their properties in the last three years, with the juicy bits being mostly centered on the shimmering halls of Bellagio.
The company's still workin' the paperwork for the Bellagio expansion, so no firm details are available just yet. Hornbuckle hinted that the company would have more exciting information on this soon enough, ready to drop during the next earnings call.
Whilst the spotlight's on the "Big 3," MGM hasn't forgotten the plebs. The budget for upgrades to Excalibur’s hotel rooms is next up, with officials planning to get creative – swapping old furniture for the discarded pieces from the MGM Grand's upcoming renovation.
Old MGM buddy, Marriott Bonvoy, has soldiers marching into the casino fray. Hornbuckle claims that the partnership with Marriott Bonvoy has sold over 410,000 rooms since its launch and has resulted in guests forking out an additional $100 on average, per stay.
But not everything in Vegas is goin' swimmingly. The Las Vegas Grand Prix hasn't quite taken the pole position like it did last year. The excitement for this year's race isn't at the starting line yet. Hornbuckle noted that the Grand Prix will be underway on the night of Nov. 23 this year and that the Raiders have a home match on Nov. 24, so the action will mostly be happening on the south end of town – Mandalay Bay, Luxor, and Excalibur will be the places to catch the NFL fans.
Game on, Sin City! Stay tuned for more updates from MGM Boss Man – Bill Hornbuckle!
- In Q2 2024, MGM expected a substantial increase in income, with the finance report indicating an impressive $4.3 billion revenue, particularly for the business divisions in Las Vegas and China.
- The finance report also highlighted MGM's focus on the casino-and-gambling sector, with 75% of their 2024 US capital expenditure budget earmarked for upgrades and lavish suite revamping at Aria, Bellagio, and the Cosmopolitan in Las Vegas.
- The MGM-partnered Marriott Bonvoy program has been a lucrative venture, having sold over 410,000 rooms since its inception, resulting in an average $100 increase in guest spending per stay.
- Despite the overwhelming success of MGM's major properties, such as Aria, Bellagio, and Cosmopolitan, efforts are also being made to upgrade Excalibur's hotel rooms, with old furniture being replaced from the MGM Grand's renovation project.
