Strategic alliance pairs MGM Resorts' gaming expertise with Grupo Globo's superior reach and consumer knowledge in the Brazilian marketLAS VEGAS, Aug. 15, 2024 /PRNewswire/ -- MGM Resorts International (NYSE: MGM) ("MGM Resorts" or the "Company") and Grupo Globo, Latin America's largest media group, today announced the formation of a new venture to seek a sports betting and iGaming license in Brazil. If its license is approved later this year, the new venture will launch in Brazil in early 2025 under the Be ...

MGM Resorts International's global expansion and partnership with Marriott continue to shape its growth potential.As the casino and hospitality industry bounces back from the challenges of the pandemic, MGM Resorts International (MGM -0.96%) continues to prove its strength. Record first-quarter earnings and innovative strategic expansions, including a lucrative partnership with Marriott International (MAR 1.01%), highlight its robust recovery and growth prospects. There's every indication the company might ...

Core Viewpoint - MGM is currently undervalued in the market despite its strong fundamentals and global presence, with a significant debt load of $31.3 billion being a primary concern for investors [1][4][7]. Financial Performance - MGM's total revenue for 2023 is projected at $16.16 billion, up from $12.87 billion in 2019, with a forecast of $16.67 billion for 2024 [8]. - The company has a current ratio of 1.57, indicating reasonable short-term financial health [1][7]. - Long-term debt, including capital net leases, stands at $31.3 billion, with a debt-to-equity ratio of 1.8 [7]. Market Position and Strategy - MGM has a strong presence in the U.S. casino market, particularly on the Vegas Strip, and is expanding its footprint internationally, including Macau and Japan [1][6]. - The company operates the third-largest sports betting platform in the U.S., BetMGM, which is now profitable [8]. - MGM's strategy includes partnerships and acquisitions, such as the acquisition of Scandinavian sports betting platform LeoVegas for $607 million [4][6]. Management and Leadership - The leadership of CEO Bill Hornbuckle, who has a solid background in the gaming industry, is viewed positively, contributing to the company's resilience during crises [3][4]. - Recent management purchases of 210,000 shares indicate confidence in the company's future [6]. Analyst Sentiment and Valuation - Analyst consensus price targets for MGM range from $56 to $66, with some valuations suggesting it is 43% undervalued [8]. - The company is seen as a "sleeping giant" in the sector, with potential for significant price appreciation as market sentiment shifts [8].

MGM Resorts is generating cash and buying back stock, so why is the market worried?MGM Resorts (MGM -4.85%) reported solid numbers in the second quarter, but the stock dropped like a rock after earnings. What is the market seeing and why is this a buying opportunity? That's exactly what Travis Hoium covers in this video.*Stock prices used were end-of-day prices of Aug. 1, 2024. The video was published on Aug. 2, 2024. ...

NEW YORK, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Inspired Entertainment, Inc. (NASDAQ: INSE), a leading provider of B2B gaming content, technology, hardware, and services, and BetMGM, a leading iGaming and sports betting operator, announced today that the innovative Hybrid Dealer® game MGM Bonus City is now available in Michigan. The game debuted in October 2023 in New Jersey and is available exclusively at BetMGM Casino. “MGM Bonus City is an immersive experience for players and Inspired did a fantastic job com ...

Core Viewpoint - MGM Resorts reported better-than-expected second-quarter 2024 financial results, but shares dropped significantly due to concerns about future performance and specific comments regarding upcoming events [1][2]. Financial Performance - Quarterly revenue increased from $3.94 billion to $4.33 billion year-over-year, while net income decreased from $200.8 million to $187.1 million due to higher labor costs [2]. - Earnings per share rose by $0.05 to $0.60, driven by share buybacks, with reported adjusted earnings per share at $0.86, surpassing analyst expectations of $0.59 [2]. Investor Concerns - Investors are worried about the anticipated weaker performance of the 2024 Formula 1 race compared to the inaugural race in 2023, with management indicating that room rates would not exceed $1,000 per night as they did last year [2]. - There are concerns regarding the performance of BetMGM and the potential need for additional capital in online gambling operations, both for BetMGM and MGM's international online gambling ventures [2]. Company Outlook - MGM Resorts is recognized as a strong cash generator within the gambling industry, with stable operations over the past year, but growth appears limited and uncertainty about future performance exists [3]. - Management has executed significant share buybacks, acquiring 40% of the company's outstanding shares, including $400 million in the second quarter, and anticipates double-digit cash flow growth in the coming years, positioning the company as a value stock [3].

Key TakeawaysMGM Resorts International raised concerns about advance bookings for a Formula 1 car race in Las Vegas scheduled for November, and the company's shares slid Thursday.Chief Executive Officer (CEO) Bill Hornbuckle said Wednesday that MGM Resorts' room rates around the event are showing some softness, which could affect fourth-quarter results.The hotel and casino operator's second-quarter profit and sales released Wednesday beat estimates. Shares of hotel and casino operator MGM Resorts Internatio ...

MGM Resorts International (MGM) reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. The top and the bottom line increased on a year-over-year basis.During the quarter, the company exhibited strong financial performance and growth, setting a record for MGM China Adjusted Property EBITDAR. Also, it stated the benefits of Las Vegas expansion and strategic partnership with Marriott. MGM’s meetings and convention business witnessed improvement, sup ...

Financial Data and Key Metrics - Net revenues in Las Vegas grew 3% year-over-year, driven by higher room rates and occupancy [7] - MGM China net revenues grew 37% year-over-year, achieving a market share of 16% [9] - Adjusted property EBITDAR for MGM China reached $294 million, marking a 40% increase with margins at 29% [9] - The company has reduced its share count to around 300 million shares from close to 500 million, a 40% reduction in float over three years [11] Business Line Performance - Luxury resorts in Las Vegas drove the majority of top-line growth, with 75% of the 2024 domestic property capital budget focused on these properties [8] - MGM China's performance was strong, with MGM Macau becoming the top producer on the Peninsula side [16] - BetMGM was profitable in Q2 2024, driven by the iGaming business, which contributes about $400 million annually [19] Market Performance - Las Vegas room rates are up year-over-year for every month in Q3, with group rooms pacing up mid-single-digits for the rest of 2024 and 2025 [7] - MGM China's market share in Macau remains strong, with the market only returning to 80% recovery, while MGM is well above that [16] - The regional markets remain stable, with margins holding at 30%+ [15] Strategic Direction and Industry Competition - The company is focusing on luxury offerings in Las Vegas, with significant capital investments in properties like Bellagio [26] - MGM is exploring opportunities in new markets, including Japan, the UAE, and potentially Thailand [28] - The company is investing in digital businesses, with BetMGM reaching an inflection point and LeoVegas expanding into new markets [10][25] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong performance in Las Vegas, driven by transient and group demand, and the successful integration of Marriott [12] - Formula One in Q4 is showing some softness, which could present a headwind, but overall, the outlook for Las Vegas remains strong [14] - The company is optimistic about the long-term prospects of its digital strategy, particularly with the Live Dealer product and the expansion of BetMGM [19][25] Other Important Information - The company has a favorable supply dynamic in Las Vegas, with the closing of the Mirage and Tropicana taking approximately 1.5 million room nights off the market [14] - MGM is investing in technology, including the integration of the Cosmopolitan into the MGM Rewards program [8] - The company is focused on reducing labor costs and improving variable labor effectiveness to maintain margins [9] Q&A Session Summary Question: Contribution from Marriott connectivity and Formula One softness [32] - The Marriott partnership contributed 410,000 room nights year-to-date, with 60% already stayed and the rest booked for future months [33] - Formula One is showing softness in room rates, particularly at luxury properties, but gaming remains strong [34] Question: Core gaming customer trends in Las Vegas [37] - The core gaming customer remains solid, with high-end performance and database optimization driving results [38] Question: Digital strategy and investment [39] - The digital ventures, excluding BetMGM, are largely self-funding, with modest investments needed for new market launches [40] Question: EBITDA growth and Formula One impact [42] - Q3 is expected to be strong, but Q4 depends on Formula One performance, which is currently showing softness [43] Question: BetMGM investment and future contributions [44] - The company does not anticipate additional significant investments in BetMGM beyond what has already been allocated [45] Question: Digital strategy convergence and value capture [47] - The company is focused on scaling its digital businesses, including BetMGM and LeoVegas, with potential for convergence in the future [48] Question: BetMGM cost structure and flow-through [51] - Product enhancements, particularly with Angstrom, are expected to improve gross gaming margins and reduce costs [52] Question: Las Vegas supply dynamics and customer trends [55] - The closure of Mirage and Tropicana has created a favorable supply dynamic, with MGM well-positioned to capture market share [56] Question: MGM China margins and performance [58] - MGM China's margins are driven by disciplined reinvestment and an increase in mass revenue mix [59] Question: Las Vegas room revenue growth vs. ancillary spend [62] - Room revenue growth is outpacing ancillary spend, driven by Marriott integration and convention demand [63] Question: Share repurchases and debt financing [66] - The company is open to using debt to finance share repurchases, given its strong balance sheet and low net debt [67] Question: Formula One performance and regional trends [69] - Formula One is expected to perform better at non-luxury properties, with the Raiders game providing additional support [70] - Regional markets are seeing strength in middle to high-end customers, with some softening at the lower end [73] Question: UAE development and online gaming opportunities [74] - The company is optimistic about the UAE market, with potential for both integrated resorts and online gaming [75] Question: Macro factors and gaming trends [79] - The company does not see significant macro factors impacting gaming growth, with strong performance from core customers [80] Question: Las Vegas margins and labor costs [82] - Margins in Las Vegas are expected to remain stable, with labor cost increases tapering off [84] Question: Las Vegas property investments and renovations [85] - The company is focused on luxury property investments, with room remodels planned for ARIA and MGM Grand [86] Question: Market share growth in Las Vegas [87] - The company sees opportunities to gain further market share in Las Vegas, particularly in high-end retail and nightlife [88] Question: Digital business pivot and core business focus [91] - The company remains committed to its digital strategy but will reassess if results do not meet expectations [92] Question: Cross-sell opportunities in Las Vegas [94] - The company is optimistic about its ability to capture in-market share through property connectivity and customer personalization [95] Question: BetMGM outlook and investment changes [96] - The company is focused on regaining sports market share and will adjust investments based on performance [97]

For the quarter ended June 2024, MGM Resorts (MGM) reported revenue of $4.33 billion, up 9.8% over the same period last year. EPS came in at $0.86, compared to $0.59 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $4.18 billion, representing a surprise of +3.56%. The company delivered an EPS surprise of +30.30%, with the consensus EPS estimate being $0.66.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...