Casino operator MGM Resorts International has exceeded second-quarter earnings estimates, driven by a strong rebound in its Macau business, according to a report released by Yahoo Finance on Wednesday.
The company reported total revenues of $3.93 billion in the second quarter, surpassing analyst expectations of $3.76 billion. MGM’s Macau operations played a significant role in this strong performance, as revenue from its Macau properties increased by 13% compared to the same period last year.
MGM’s CEO, Bill Hornbuckle, attributed the company’s success in Macau to the robust recovery in the region’s gaming industry. “We are pleased to see strong demand for our services and amenities in Macau, which has allowed us to outperform expectations in the second quarter,” Hornbuckle said in a statement.
In addition to its operations in Macau, MGM also saw positive results from its domestic properties, with revenues from its Las Vegas Strip resorts increasing by 10% year-over-year. The company’s regional properties, including those in Detroit and Maryland, also performed well in the second quarter.
Despite the positive outlook, MGM cautioned that the COVID-19 pandemic continues to pose a risk to its business in the near term. The company reported a net loss of $86 million in the second quarter, compared to a profit of $24 million in the same period last year, due to increased expenses related to health and safety protocols.
Looking ahead, MGM remains cautiously optimistic about the future, as travel restrictions continue to ease and vaccination rates increase. The company recently announced plans to reopen its Mirage Resort in Las Vegas in August, after temporarily closing the property last year due to the pandemic.
Investors reacted positively to MGM’s strong earnings report, with the company’s stock price rising by 5% in after-hours trading on Wednesday. Analysts are also optimistic about MGM’s prospects, with many raising their price targets for the stock in the coming months.
Overall, MGM’s solid performance in the second quarter, fueled by the recovery in its Macau business, bodes well for the company’s future growth and profitability. As the gaming industry continues to rebound from the impact of the pandemic, MGM remains well-positioned to capitalize on the opportunities in both the domestic and international markets.
