Shares in MGM Resorts International witnessed a slight uptick last Wednesday in its after-hours trading, a reward for the company’s robust third-quarter results, a feat achieved in spite of an adverse September cyber incident. The major operator on the Las Vegas strip exceeded expected outcomes.
Primarily based at Cosmopolitan, MGM reported earnings of 64 cents a share over the third quarter, which spans July to September, amassing an impressive revenue of $3.97 billion. Analysts had predicted lower earnings, at 49 cents per share, with sales of $3.89 billion. Despite the unforeseen expenses related to a cyber attack last month, including one-time costs exceeding $10 million and an estimated $100 million drop in earnings, MGM prodigiously managed to flourish.
With the aftermath of the incident now in the rearview mirror, the resilience and dedication of MGM’s employees played an integral role in overcoming the challenge. The experience fortifies the company, aligned and navigated by President and CEO Bill Hornbuckle.
Opportunities for enhanced financial fortitude were sought and seized. MGM’s net revenue on the Las Vegas strip rounded out at $2.1 billion, down from $2.3 billion in the same quarter in the previous year. The primary factors for this decline include the cyber attack and the completion of the Mirage’s sale nearly a year ago.
Domestically, MGM reported reduced net revenues, falling from $974 million to $925 million, with pointers towards the cyber attack and the February sale of Gold Strike Tunica as contributive causes.
Despite this, MGM has chosen a path of optimism. In the third quarter, it repurchased its own stock worth a whopping $572 million. In addition to that, the company has also announced a new $2 billion buyback plan. This proactive approach to repurchasing shares is seen as a mark of self-confidence and a manifestation of faith in the company’s own value.
MGM has proved its dedication to buybacks, with an accumulated $6.2 billion since the beginning of 2021, reducing its share count by over 30%.
In other news, as the Las Vegas Grand Prix draws closer, MGM sports an optimist’s hat, selling out tickets for the Bellagio Fountain Club event, an additional 10,000 tickets for the race weekend, and posturing this as a record event for MGM Strip casinos.
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