MGM Resorts Drop On Worse-Than-Expected Q3 Bottom-Line Performance
MGM Resorts International (NYSE: MGM) reported third-quarter FY22 sales growth of 26% year-on-year to $3.42 billion, beating the consensus of $3.24 billion.
Results improved over last year due to increased business volume and travel activity primarily at the Las Vegas Strip Resorts.
Q3 benefited from the inclusion of the operating results of The Cosmopolitan of Las Vegas and Aria and Vdara upon their acquisition in May 2022 and September 2021, respectively.
Segment Revenues: Casino grew 0.5% to $1.4 billion, Rooms increased 68.7% to $827.4 million, Food and beverage rose 73.6% to $722.9 million, Entertainment, retail and other climbed 41.7% to $447.6 million.
The company recorded an operating loss of $(1.0) billion versus a profit of $1.9 billion last year, due to a $1.2 billion increase in noncash amortization expense.
The company held $5.3 billion in cash and equivalents as of September 30, 2022.
Adjusted EBITDAR for the quarter was $950 million.
Adjusted EPS of $(1.39) missed the analyst consensus of $0.23.
The company's Board of Directors approved a quarterly dividend of $0.0025 per share, payable on December 15, 2022, to holders of record on December 9, 2022.
Also Read: Why MGM Stock Is Falling During Wednesday's After-Hours Session
Price Action: MGM shares are trading lower by 4.59% at $33.50 in premarket on the last check Thursday.
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