MGM Resorts International (NYSE:MGM) is poised to announce its third-quarter 2023 results on November 8, 2023, after the close of the market. The company’s performance is expected to be bolstered by the robust showing of MGM China, its international expansion efforts, and the promising prospects in sports betting and iGaming.
MGM China is anticipated to be a key driver of growth in the third quarter. The upswing in business volume and travel activity at MGM China presents a positive outlook for the company. The management remains optimistic about MGM China’s performance, fueled by the strength in the premium mass segment. In the second quarter of 2023, MGM China witnessed significant contributions, thanks to the easing of COVID-19-related travel restrictions and an increase in visitation. This trend is expected to have continued into the third quarter.
Our projections indicate that MGM China’s quarterly revenues are likely to surge by an impressive 791.2% year over year, reaching $779.7 million. We estimate that MGM China’s revenue segments, including Casino, Rooms, Food and Beverage, Entertainment, Retail, and Others, will experience substantial year-over-year growth, with increases of 818.7%, 100.7%, 0.7%, and 36.8%, respectively. This translates to estimated revenues of $646.1 million, $14.0 million, $116.2 million, and $3.4 million in their respective categories.
On the other hand, we anticipate a decline in revenues for Las Vegas Strip and Regional operations, with decreases of 12.5% to $2,013.6 million and 16% to $818.6 million, respectively.
Looking at the overall expectations for the third quarter, the Zacks Consensus Estimate for earnings is currently set at 59 cents per share, indicating a substantial 142.5% year-over-year growth. Moreover, the consensus estimate for revenues is projected at $3.87 billion, reflecting a commendable 13.4% year-over-year improvement.
With a focus on MGM China and the broader international expansion strategy, MGM Resorts’ Q3 earnings announcement promises to be a significant event in the gaming and entertainment sector.
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