Casino Operator MGM beats fourth-quarter estimates on China travel rebound
(Reuters) - MGM Resorts 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.
"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 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.
(Reporting by Anandita Mehrotra in Bengaluru; Editing by Alan Barona)
