MGM Resorts International

MGM Resorts International had a solid first quarter financial performance in 2023. Its all-around beat was led by a strong Las Vegas quarter and a considerable rebound at its MGM China. The company also improved its property and remodeled the casino floors at both MGM Macau and MGM Cotai to focus on mass and premium mass. It also added 57 high-end villa suites at its Cotai property. The company is also actively leveraging its customer database to bring global customers to their properties. Its food and beverage segment performed well during the quarter. Moreover, BetMGM generated net gaming revenues of $476 million in Q1, representing a 76% increase over 2022. The company also launched BetMGM in Ohio and Massachusetts in the first quarter, bringing its total active markets to 26. Based on this result, BetMGM is anticipated to remain on track to hit fiscal ’23 revenue guidance of $1.8 billion to $2 billion. BetMGM is further progressing towards profitability later this year while expanding and improving its product offering with the company’s joint venture partner, Entain. Another highlight of the quarter includes the signing of an agreement by the company’s subsidiary LeoVegas to acquire the majority of the game developer Push Gaming. We give MGM Resorts International a ‘Hold’ rating with a revised target price.