MGM Resorts International, one of the leading casino operators, announced a remarkable performance in the third quarter of 2023, with total revenue surging approximately 16 percent to $3.97 billion. The company also exceeded analysts’ expectations by reporting an adjusted profit of 64 cents per share, outpacing the predicted 49 cents.
The resurgence in travel following the COVID-19 pandemic, particularly in the Chinese and Macau markets, has provided significant momentum for MGM Resorts International, as well as other industry giants such as Las Vegas Sands. MGM’s CEO, Bill Hornbuckle, expressed his optimism, stating, “MGM China is performing exceptionally well,” reflecting the company’s strong position in the recovering travel and entertainment sector.
However, MGM Resorts International faced challenges in the past quarter, with a cyberattack disrupting its operations and prompting a system shutdown. The cyberattack resulted in an anticipated $100 million hit to the company’s Q3 results. The incident highlighted the growing threat of cyberattacks to businesses, including those in the hospitality and gaming industry.
Furthermore, MGM Resorts, in conjunction with Wynn Resorts, is currently facing the imminent threat of a labor strike. Approximately 35,000 Las Vegas hospitality workers are poised to walk off the job on November 10 if they do not reach a labor contract agreement by that date. The outcome of these labor negotiations could have significant implications for both MGM Resorts International and the broader Las Vegas hospitality industry.
As MGM Resorts International continues to navigate these challenges, the company’s impressive Q3 performance suggests that it remains resilient and well-positioned to capitalize on the ongoing recovery in the global travel and tourism sector.