MGM Resorts Chief Executive suggests company may expand further as H1 revenues reach over $6bn

Home » MGM Resorts Chief Executive suggests company may expand further as H1 revenues reach over $6bn

MGM Resorts International’s gaming business is doing quite well in 2022, so much so that the company may be looking to expand into new areas. Recent acquisitions of the Aria and Cosmopolitan helped the H1 revenues grow by over 56%, leading chief executive of the company, Bill Hornbuckle, to suggest that new territories may be on the agenda.

Acquisitions Help with Bottom Line

MGM Resorts just completed its acquisition of The Cosmopolitan in May, with the Las Vegas playing an integral role in performance so far. The Aria was acquired in September after MGM purchased the 50% CityCenter Holdings interest held by Infinity World Development Corp. The City Center development includes the resort, Veer Towers residential area, and Vdara hotel.

MGM also recently offloaded the Gold Strike Tunica, selling to the Cherokee Nation Entertainment Gaming Holdings in Mississippi. The sale came in at $450 million. For its online operations, MGM Resorts has been busy acquiring LeoVegas. The company is paying $607 million to obtain the brand.

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This deal is not completed, though. In a recent earnings call, Hornbuckle stated that it should be concluded by the end of the third quarter. According to Hornbuckle, the company was interested in LeoVegas and its talented management team and technology platforms.

The goal of this latest acquisition is for MGM Resorts to develop a digital presence in Europe. The existing brand will certainly help the company to achieve this goal.

More Deals Likely Amidst Strong Second-Quarter Performance

After the LeoVegas deal is completed, it would not be surprising to see more deals in the future. MGM Resorts may be looking into moving into even more new territories in the future. The recent second quarter revenue performance will certainly help with any new deal opportunities.

The company’s second quarter, three-month earnings came in at $3.26 billion. This was a jump of more than 43% when compared to 2021. Revenue on the Strip was up 110% thanks to the Aria and Cosmopolitan. A total of $2.10 billion was earned there. Regional operations increased by over 12% with $960 million in revenues.

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Unfortunately, the company did take a hit with its Macau revenues via  MGM China. The casino dropped 54% due to COVID-19 closures. The only revenues earned in the quarter were $143 million. Overall, casinos brought in the most money with $1.35 billion. Room revenues jumped considerably thanks to the new acquisitions with $774.7 million in earnings.

It will be interesting to see where the company ends up next once the LeoVegas deal is complete. Will MGM look to expand into new US states or venture for another international location?

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