MGM Resorts International has reported record-breaking first quarter results, driven by strong performances in both its Las Vegas and Macau properties.
The casino and resort operator announced a 23% increase in revenue to $3.2 billion for the first quarter of 2021, surpassing analysts’ expectations. This marked the highest quarterly revenue in the company’s history.
The strong performance was largely attributed to the robust recovery in visitation and spending at MGM’s Las Vegas properties. The company’s Las Vegas Strip resorts saw a significant increase in occupancy rates and average daily room rates during the quarter, as tourists flocked back to the city following the easing of pandemic restrictions.
In Macau, MGM’s flagship property, MGM Macau, also reported a strong rebound in revenue and earnings. The resort saw a surge in visitor numbers from mainland China during the quarter, as travel restrictions were gradually lifted. This led to a 45% increase in revenue at the Macau property, compared to the same period last year.
MGM’s CEO, Bill Hornbuckle, expressed his optimism about the company’s future prospects, citing the strong momentum in both Las Vegas and Macau.
“We are encouraged by the recovery we are seeing in our key markets, and believe that the ongoing vaccination efforts and easing of travel restrictions will continue to drive growth in the coming quarters,” said Hornbuckle.
The company also announced plans to further expand its presence in Macau, with the construction of a new integrated resort on the Cotai Strip. The project, named MGM Cotai, is expected to open in late 2023 and will feature luxury accommodations, gaming facilities, and entertainment options.
Investors reacted positively to the news, with MGM’s stock price surging more than 5% in after-hours trading following the announcement of the record-breaking results.
Overall, MGM’s strong Q1 performance underscores the resilience of the gaming industry and suggests a promising outlook for the company as global travel restrictions continue to ease. With a strong presence in both Las Vegas and Macau, MGM Resorts International is well positioned to capitalize on the rebound in tourism and consumer spending in the post-pandemic era.
