Casino and resort operator MGM Resorts International MGM reported fourth-quarter financial results after the market close Tuesday.
Here are the key highlights.
What Happened: MGM Resorts reported fourth-quarter revenue of $4.38 billion, which was up 22% year-over-year. The revenue total beat a Street consensus estimate of $4.14 billion, according to data from Benzinga Pro.
The company reported earnings per share of $1.06 in the fourth quarter, which beat a Street estimate of 71 cents per share.
Las Vegas Strip revenue was $2.4 billion, which was up 3% year-over-year. The company cited the Formula 1 race in Las Vegas as a driver of the fourth-quarter results.
Regional operations revenue totaled $873 million, down 12% year-over-year. The company said the union strike at the MGM Grand Detroit impacted the results.
MGM China revenue was $983 million in the fourth quarter, up 462% year-over-year. The total was also 35% higher than the fourth quarter of 2019. The removal of COVID-19 entry restrictions in Macau and higher visit rates were named as positives for the fourth quarter.
"Our Las Vegas Strip Resorts and MGM China set new all-time records for full year and fourth quarter Adjusted Property EBITDAR," MGM Resorts CEO Bill Hornbuckle said.
What's Next: The company shared briefly on the impact of Super Bowl LVIII and the positive result it could have for the Las Vegas segment in the first quarter.
"Our premium positioning and offering in Las Vegas enable us to capture incremental profit during major events such as the inaugural Formula 1 race and our first Super Bowl," Hornbuckle said.
"2024 is off to a winning start with the launch of our Marriott relationship as well as opportunities to increase our convention room nights and international mix."
The company said it recently closed on an amendment and extension to its senior secured credit facility, which will provide an additional capacity of $610 million and extends the maturity to 2029, two years later than the previous facility.
MGM repurchased 54 million shares in 2023 and plans on buying more going forward.
"We continue to see value in our shares and are returning capital to shareholders by repurchasing our shares. We have already bought back approximately 6 million shares for an estimated $249 million year-to-date," MGM Resorts Chief Financial Officer Jonathan Halkyard said.
MGM Price Action: MGM shares are down 4% to $43.81 in after-hours trading Tuesday versus a 52-week trading range of $34.12 to $51.32.
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