MGM Resorts International has reported a record revenue of $3.97 billion in the third quarter, despite facing a major cyberattack toward the end of the period. The attack, which occurred on September 11, forced MGM to shut down certain systems and resulted in an estimated negative adjusted property EBITDAR impact of approximately $100 million.
CEO Bill Hornbuckle described the experience as going “to hell and back,” but the company still managed to achieve record results for the quarter, largely thanks to the success of MGM China, which offset declines in the US. Additionally, MGM made its way into the UK market in Q3 with the launch of BetMGM, an online gaming and sports betting platform.
Hornbuckle expressed his satisfaction with the company’s performance in the face of the cyberattack and highlighted upcoming opportunities for growth, including a Formula 1 race in Las Vegas, the debut of the MGM Collection with Marriott Bonvoy, and the continued growth and development of the international digital business and BetMGM.
In terms of revenue breakdown, MGM’s casino activities were the primary source of income, with revenue from this sector increasing by 45.8% to $2.05 billion. However, other revenue streams, such as food and beverage, entertainment, and retail, experienced declines in Q3.
MGM’s performance in different segments varied, with Las Vegas Operations and Regional Operations seeing declines in revenue, while MGM China’s revenue skyrocketed due to the removal of pandemic-related travel and entry restrictions in the region.
In the third quarter, MGM recorded a pre-tax profit of $224.3 million, a significant turnaround from the $1.19 billion loss in the previous year. The company ended the quarter with a net profit of $161.1 million, compared to a $576.8 million loss in the same period last year. Overall, MGM is pleased with its performance in Q3 despite facing significant challenges like the cyberattack.
Looking at year-to-date performance, MGM’s revenue in the first nine months of the year was ahead of the previous year, with casino revenue, rooms revenue, and food and beverage revenue all showing increases. However, net profit for the period was 30.3% lower at $829.7 million compared to the previous year.
Despite the challenges faced, MGM remains optimistic about its future prospects and believes it has put itself back on track following the cyberattack.