MGM reveals $2B buyback plan after Q3 results beat estimates

MGM Resorts International recently revealed its Q3 earnings for 2023. The biggest Las Vegas Strip operator beat every estimate despite experiencing a cyberattack.

As expected, the announcement saw MGM shares rise during the after-hours trading session. The Cosmopolitan operator stated that it secured 64 cents per share on 3.97 billion dollars in revenue. 

This revenue was accumulated from July 2023 to September 2023. Previously, experts had expected earnings of 49 cents per share on 3.89 billion dollars in revenue. The gaming giant has previously informed investors that its Q3 EBITDAR would be pared by 100 million dollars.

Moreover, the company had incurred a one-time cost of 10 million dollars due to the cyberattack. Bill Hornbuckle, the CEO and President of MGM commented on the situation as well.

According to Hornbuckle, the quarter started with amazing momentum for MGM. However, the company faced issues in September, especially because of the cyberattack. But the team fended off the negativity with determination and resilience. Now that the incident has passed, MGM is stronger than before, according to the CEO.

During the quarter, MGM registered a net revenue on the Las Vegas Strip of 2.1 billion dollars, which was slightly down from 2.3 billion dollars in 2022. The primary reasons behind this dip were the sale of the Mirage and the cyberattack.

Additionally, MGM experienced a decline in net revenue from 974 million dollars to 925 million dollars from its domestic regional casinos. Even then, the gaming giant has revealed a $2 billion buyback plan.

According to casino news, MGM has been buying back its shares for several years now. Ever since the company suspended dividends during the pandemic’s beginning, it has been buying back shares to reward shareholders. 

The shareholders are expected to be thrilled as the company is ready to invest 2 billion dollars in its shares again.