MGM Resorts International has reported record net revenues in the third quarter of 2024, primarily driven by growth in MGM China operations.
Reflecting on the results, CEO and President Bill Hornbuckle noted that the operator is “well positioned for long-term growth” thanks to the “positive inflection to come” from digital investments and integrated resort developments and opportunities globally including in Japan and New York.
Publishing its financials, MGM Resorts declared a record Q3 consolidated net revenue of $4.18bn, up 5% YoY (Q3 2023: $3.97bn).
The global gaming and entertainment company attributed the growth to “an increase in revenue at MGM China resulting from the recovery of operations after the removal of COVID-19 related entry restrictions in Macau” in Q1 2023.
However, the quarter’s revenue was slightly down on the $4.3bn reported during Q2.
Net income attributable to MGM Resorts in the quarter was $185m (2023: $161m), while consolidated adjusted EBITDAR stood at $1.1bn.
Revenue per segment, casino was $2.12bn (2023: $2.1bn), rooms stood at $883.6m (2023: $827.1m), food and beverage came in at $755.3m (2023: $698.3m) while entertainment, retail and other was $411.3m (2023: $385.7m). Reimbursed costs were $11.9m (2023: $11.6m).
Operations per location, Las Vegas Strip Resorts revenue increased by 1% YoY to $2.13bn (2023: $2.11bn) due to “an increase in non-gaming revenue, partially offset by a decrease in casino revenue”.
Vegas’ adjusted property EBITDAR increased by 2% YoY to $731m (2023: $714m) and included “approximately $37m of business interruption insurance proceeds related to the September 2023 cybersecurity issue”.
Net revenues for regional operations rose by 3% YoY to $952m (2023: $925m) primarily due to casino revenue increasing. Regional adjusted Property EBITDAR stood at $300m (2023: $293m) and included approximately $15m of business interruption insurance proceeds related to the aforementioned cybersecurity issue.
MGM China revenue grew by 14% YoY to a record $929m (2023: $813m) as operations benefited from the removal of COVID-19-related restrictions which occurred in Q1 2023. The segment’s adjusted property EBITDAR increased by 5% to a new high of $237m (2023: $226m).
Revenue from BetMGM – MGM Resorts’ online joint venture in the US with Entain – increased by nearly 20% YoY, which the operator says was “more than doubling the revenue growth” achieved in Q2.
During the quarter, MGM Resorts announced its intentions to enter Brazil’s regulated online sports betting and igaming market via a new venture with Grupo Globo, bringing the BetMGM brand to the country in early 2025 if the Secretariat of Prizes and Betting approves its licence.
Hornbuckle commented: “We are pleased to report record consolidated net revenues for the third quarter, driven by record results from MGM China.
“In Las Vegas, we drove sequential improvement throughout the quarter and many key metrics are demonstrating strength including growth in ADR and occupancy.”
For the nine months ended September 30, 2024, MGM Resorts net cash flow provided by (used in) operating, investing, and financing activities was $1.7bn, ($879m), and ($774m), respectively. Meanwhile, free cash flow for the same period was $944m.
During Q3, the operator also repurchased over $300m of shares, bringing the year-to-date amount to approximately $1.3bn and reducing overall shares outstanding by 40% since 2021.
In addition, MGM China declared a special dividend in August 2024, “resulting in approximately $200m in cash to MGM Resorts in total this year”.
“During the quarter, we returned over $300m to shareholders through share repurchases, bringing our year-to-date total to approximately $1.3bn,” stated Jonathan Halkyard, CFO and Treasurer of MGM Resorts.
“Since 2021, we have consistently demonstrated our commitment to returning cash to shareholders, reducing overall shares outstanding by 40%. Our balance sheet, characterised by low net debt and significant liquidity, positions us exceptionally well for strategic investments and sustained growth.”
Hornbuckle also expressed optimism for MGM Resorts’ future, noting that the operator is positioned well for long-term growth.
He said: “MGM Resorts is well positioned for long-term growth driven by the positive inflection to come in our digital investments alongside the enviable integrated resorts pipeline of development that we have in Japan as well as opportunities in New York and beyond.”
Flutter Entertainment reported an uptick in revenue and adjusted EBITDA for the third quarter of 2024, while its net loss also improved.
Described as an “excellent” quarter by CEO Peter Jackson, the company’s revenue increased by over 25%, adjusted EBITDA rose by more than 70% and net loss improved by over 50% compared to the same quarter the previous year.
The group’s 2024 guidance was also raised by 1% across revenue and adjusted EBITDA, reflecting a strong Q3 group ex-US performance. However, Flutter also said that “excellent US momentum in Q3 has subsequently been more than offset by unfavourable sports results in Q4 to date”.
Publishing its Q3 results, Flutter declared a 27% year-over-year increase in revenue to $3.25bn (Q3 2023: $2.56bn), while average monthly players (AMPs) grew by 16% to 12.9 million (2023: 11.1 million). Excluding US operations, revenue rose by 15% YoY to $2bn (2023: $1.7bn).
For the quarter, net loss improved to $114m, up 56% YoY (2023: $262m loss), which the company says was “driven by strong revenue growth”. The net loss “included non-cash impacts of $128m acquired intangibles amortisation charge and $121m fair value loss on Fox Option liability (Q3 2023 $18m gain)”.
Adjusted EBITDA increased by 74% YoY to $450m (2023: $258m) with a margin of 13.9% (2023: 10.1%). Group ex-US adjusted EBITDA rose by 24% to $392m (2023: $313m).
Net cash from operating activities dropped by 48% to $290m (2023: $554m) “primarily due to the impact of derivative settlements in the current and prior year period”. Free cash flow declined by 74% to $112m (2023: $434m).
Jackson commented: “Flutter had an excellent quarter with revenue growth accelerating to 27%, well ahead of market expectations, and increases to our revenue and Adjusted EBITDA guidance for 2024.”
In the US, revenue grew by 51% YoY to $1.3bn (2023: $828m) while AMPs rose by 28% to 3.2 million. Flutter noted it had a “strong start to NFL season driven by new product launches and favourable Q3 sports results combined with continued igaming strength”.
Igaming revenue grew by 46% YoY to $368m with AMPs rising by 43%. Flutter stated that its “focus on exclusive content and market-leading generosity continued to drive strong direct casino and cross-sell customer engagement”.
Sportsbook revenue rose by 62% YoY to $822m, “driven by a 36% increase in stakes and a 130 basis point expansion in structural revenue margin to 12.8%” in addition to a positive swing in sports results during the quarter which was mostly reinvested into promotional spend.
Adjusted EBITDA for the US increased to $58m (2023: $55m loss), which Flutter says demonstrates the “ongoing transformation” of its US earnings profile.
Jackson noted: “In the US, we had a fantastic start to the new NFL season with peak wagers per minute already higher than Super Bowl LVII. Our proprietary product offering continued to drive strong parlay penetration as well as a step up in live betting handle.”
Outside the US, UKI revenue grew by 18% YoY to $846m (2023: $719m) with AMPs rising by 13% to 4.1 million. Igaming revenue increased by 29% to $454m, which Flutter attributed to “excellent player momentum with AMPs 17% higher driven by the continuous product improvements being delivered across the igaming portfolio and strong cross-sell from sportsbook”.
Sportsbook revenue in the region increased by 9% YoY to $356m, “benefitting from a strong conclusion to the Euros, which accounted for 8% of sportsbook stakes in the quarter”.
UKI adjusted EBITDA increased by 29% YoY to $237m (2023: $184m), “also benefitting from the in-year phasing of Euros sales and marketing spend, with the majority of spend in Q2 to engage and acquire players at the start of the tournament”.
Updating investors during Flutter’s Q3 earnings call, CFO Rob Coldrake emphasised that as they enter a new regulatory era in the UK market, the group is “very pleased” about its market share.
International revenue rose by 15% to $781m (2023: $679m), while AMPs increased by 14% to 4.4 million. Flutter noted that International operations were driven by a “strong performance in Sisal and the addition of MaxBet from January 2024, which contributed revenue of $50m in the quarter”.
Sportsbook revenue grew by 31% YoY to $160m while igaming revenue increased by 29% to $589m. Adjusted EBITDA rose by 28% to $152m (2023: $119m).
Flutter reported that “constant currency revenue growth in Italy (13%, Sisal Italy online revenue +41%), Turkey (+104%), Georgia (+21%), Armenia (+14%) and Brazil (+10%) remains strong. In India, revenue was 17% lower in Q3 but more than doubled year-over-year in October as Junglee lapped tax changes introduced in October 2023”.
Before the quarter’s close in September, Flutter expanded its International segment further with the acquisition of Snaitech in Italy and NSX Group in Brazil, a Brazilian operator whose brands include Betnacional.
During its earnings call, Flutter also outlined that it is still anticipating the launch of the regulated market in Brazil on 1 January.
Australia revenue (sportsbook only) increased by 12% YoY to $371m (2023: $332m) with AMPs rising by 6% to 1.2 million. The company noted that growth was primarily driven by favourable sports results. Adjusted EBITDA rose by 14% to $72m (2023: $63m).
“Outside of the US, all divisions delivered a strong performance in the quarter as they leveraged the benefits of the Flutter Edge,” said Jackson.
“In UKI, a broader product range across both sports and igaming drove player and revenue growth. Sisal continued to make significant share gains in Italy as we look to expand our presence there with the addition of Snai. In Australia, Sportsbet has been demonstrating encouraging trends.”
As a result of its Q3 performance, Flutter has raised its revenue and adjusted EBITDA guidance for 2024 by 1%, reflecting a strong group ex-US performance during the period. However, as previously mentioned, the company noted that momentum in the US has been more than offset by unfavourable sports results during the current quarter.
The improvement implies a 22% YoY increase in group revenue and a 35% increase in adjusted EBITDA at the midpoints.
Against existing guidance, the US guidance range has fallen at the midpoint by 1% to $6.15bn for revenue and 4% to $710m for adjusted EBITDA. Group ex-US guidance has increased by 3% to $8.2bn for revenue and to $1.82bn for adjusted EBITDA.
Jackson concluded: “On September 25, we hosted our Investor Day where we outlined how we are an ‘and’ business, with opportunities to deploy capital organically and in M&A, such as the Snai and NSX acquisitions, and also in shareholder returns.
“We believe that the group has exciting growth prospects due to our unparalleled leadership positions across the world, underpinned by access to the Flutter Edge. We expect to have significant capital to deploy over the coming years and I am excited to commence the share repurchase program in Q4.”
