Sammy Dean
Wet Republic at MGM Grand in Las Vegas
Monday, May 1, 2023 | 5:05 p.m.
MGM Resorts International has marked a seventh straight record-breaking quarter with revenue from its Las Vegas operations, which saw a 41% increase in Adjusted Property EBITDAR — earnings before interest, taxes, depreciation, amortization and restructuring or rent costs — for a total $836 million in the first quarter of 2023.
Major events like March Madness helped drive the “exceptional” quarter, which ended March 31, in Las Vegas, President and CEO Bill Hornbuckle said during earnings call today. He also cited the dedication of MGM’s thousands of employees.
“I got to say I’m extremely proud of the entire team,” Hornbuckle said. “It’s arguably one of our best quarters ever.”
Room rates at the company’s Las Vegas Strip properties averaged $258, which CFO and Treasurer Jonathan Halkyard said during the call was up 31% from the first quarter of 2022. Occupancy rates improved 14 percentage points, from 78% to 92%.
Increased occupancy also benefits revenue from the food and beverage sector, he added.
“The strength in Las Vegas really has been driven mostly … by weekend rates,” Halkyard said, though he noted continued growth in midweek room rates, as well. “That’s where the real pricing power’s been.”
Overall, MGM generated a consolidated net revenue of $3.9 billion in the first quarter — up 36% from the same time last year — following a strong reopening in Macau and the acquisition of the Cosmopolitan of Las Vegas.
“We couldn’t be happier about the quarter and the progress that we’ve made on so many fronts,” said Hornbuckle, who also spoke to MGM’s future with a recently approved development in Japan, its pursuit of the same opportunity in New York and its subsidiary LeoVegas’ acquisition of Push Gaming.
