Despite some issues with the weather early in 2024 and a one-time dip in regional operations, MGM Resort International’s 2024 first-quarter earnings call revealed that the company had record-breaking quarterly results.
Most of that success was due to Las Vegas operations and MGM’s international business in China, but BetMGM Illinois made its mark.
MGM does not have an Illinois casino, and any iGaming presence is impossible until the online casino industry is legalized in the state. Despite that, MGM is thriving in the Illinois sports betting market.
MGM China and Las Vegas Properties Propelled MGM to Record First Quarter
MGM Resorts International Chief Executive Officer and President Bill Hornbuckle wasted no time sharing how impressive 2024 has been for the company so far. “We achieved record consolidated revenues in the first quarter,” he said.
MGM generated $4.4 billion of consolidated net revenue in the first quarter of 2024, which was a 13% increase year over year, thanks to record-breaking performances in China and Las Vegas.
China saw a 71% boost in revenue thanks to lifted COVID-19 travel restrictions, which led to $1.1 billion of net revenue. Additionally, Las Vegas set a record for first-quarter net revenue, which totaled $2.3 billion.
There was a third key to the unprecedented quarter for MGM: its licensing partnership with Marriott International. Hornbuckle said the partnership has been more successful than expected and could continue to grow throughout the year.
“The January launch of our license agreement with Marriott has surpassed our initial expectations, with over 130,000 room nights booked, and we expect the strategic relationship will be a growth driver this year,” Hornbuckle said.
BetMGM Illinois, Like Other Regional Operations, Saw Drop-Off In Q1
MGM’s regional operations, which includes its share of the Illinois sports betting market, was not a hot topic during the earnings call, but that does not minimize its importance.
Overall, MGM saw a 4% dip in its net revenue from regional operations, from $946 million in the first quarter of 2023 to $909 million in the first quarter of 2024. When adjusting figures for the sale of one of its casinos, MGM saw a decrease of 1% in same-store net revenues.
There are a couple of one-off reasons MGM saw these two dips. First, the weather across the East Coast in January and February was particularly severe. Second, MGM sold a Mississippi casino, which takes away from net revenue generated.
BetMGM’s mobile sportsbook in Illinois had the same dip in revenue as the rest of MGM’s regional operations. February 2024 saw about 1% less revenue than the year prior. Still, hovering around $50 million in revenue per month is not a bad place to be.
MGM Continues Same Growth Plan That Led To Record-Breaking Q1
After a successful first quarter of 2024, MGM sees no reason to stray from the path .
MGM Resorts International Chief Financial Officer and Treasurer Jonathan Halkyard said international expansion and awarding shareholders with capital is the plan moving forward.
“We achieved record results in the first quarter of 2024 by strong performance at MGM China and in Las Vegas, specifically at our luxury resort properties. We repurchased 12 million shares at attractive valuations, providing our shareholders with incremental future benefits from the free cash flow growth of our resort operations, digital profitability and the development opportunities of Japan and New York. Our venture in Japan continues to progress, with financing now in place, and our recent hedging program has provided significant cost advantages for the development of the country’s first integrated resort.”
