MGM reported a roughly 1% year-over-year revenue growth for its Las Vegas Strip properties during its third quarter earnings release Wednesday. The gain comes a day after rival Caesars reported a roughly 1% year-over-year decline during that same period.
“In Las Vegas, we drove sequential improvement throughout the quarter and many key metrics are demonstrating strength including growth in ADR (average daily rate) and occupancy," said MGM CEO Bill Hornbuckle in a statement announcing the results.
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MGM saw Q3 net revenues of $2.1 billion for its Las Vegas Strip properties, a gain that the company attributed primarily to an increase in non-gaming revenue that was partially offset by a decrease in casino revenue. The company generated Adjusted Property EBITDAR of $731 million in the quarter compared to $714 million in the prior year quarter, an increase of 2%.
The quarter included roughly $37 million of business interruption insurance proceeds related to a September 2023 cybersecurity hack, per a company release announcing the results.
Caesars Las Vegas properties generated $1.062 billion in net revenues in the third quarter of 2024, a 1.3% year-over-year decline compared to Q3 2023.
The results from America’s largest gambling market come roughly a year after MGM solidified its stranglehold on properties on the Strip’s southern end by acquiring operations of the Cosmopolitan. Caesars operates many of the casinos along the Strip’s midpoint.
$MGM reports a slight increase in net revenues for its properties along the Las Vegas Strip in Q3 2024 compared to Q3 2023; Strip rival Caesars yesterday reported slight declines during that same time
— Ryan Butler (@ButlerBets) October 30, 2024
MGM also topped Caesars in regional property results.
Regional net revenues were $952 million for Q3 2024 compared to $925 million in the prior year quarter, an increase of 3%. MGM said the gain came due primarily to an increase in casino revenue.
Adjusted Property EBITDAR was $300 million in the quarter against $293 million Q3 2024, an increase of 2%. The quarter’s financial results also took into account $15 million of business interruption insurance proceeds for its regional properties related to the 2023 cybersecurity issue.
Caesars regional property revenue declined 7.6% between Q3 2023 and Q3 2024, dropping from $1.57 billion to $1.45 billion. Caesars CEO Tom Reeg attributed the declines to “new competition, construction disruption and difficult comparisons versus the prior year,” in a release announcing his company’s results Tuesday.
Caesars bottom line in the quarter was also dinged by investments in new properties in New Orleans and Danville, Virginia.
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Even in what the company has called an “investment” year, MGM has seen success in its digital division.
MGM saw “accelerating growth” at BetMGM with record, Q3 net revenues increasing nearly 20% year-over-year, more than doubling the revenue growth achieved, per company release. MGM and European gaming giant Entain, its 50/50 joint venture partner for BetMGM in the U.S., has said they were focusing on revamping the platform in 2024 and 2025.
Wednesday’s results show some promising early returns.
Caesars, which also challenges MGM for online gaming dollars in Nevada and across roughly two-dozen other states, also reported strong growth for its digital gaming platform Tuesday. The gains come as the two brick-and-mortar gaming giants look to show profitability after hundreds of millions of dollars in losses – and make up ground on national market share leaders FanDuel and DraftKings.
In Wednesday’s release, MGM also reaffirmed its commitment to launch the BetMGM brand in Brazil. The company has a deal with Grupo Globo to launch iGaming and sports betting in the country.
