“Chief Financial Officer of MGM, Halkyard, Reports that F1 Race Achieved Record-breaking Revenue”

Posted on: November 29, 2023, 02:38h.

Last updated on: November 29, 2023, 02:38h.

The Las Vegas Grand Prix on Nov. 18 marked the first appearance of Formula One (F1) in Sin City in 40 years and proved to be a windfall for MGM Resorts International (NYSE: MGM) as it recorded the highest-grossing weekend in its history. MGM’s CFO Jonathan Halkyard disclosed these details at the Bank of America Leveraged Finance Conference, mentioning it was the best weekend for the company’s properties in Las Vegas since 2019, surpassing even the lucrative CES tradeshow

MGM CFO Jonathan Halkyard. At the Bank of America Leveraged Finance Conference he said the Las Vegas Grand Prix was a record breaker for MGM. (Image: Hotel Business)

Halkyard indicated the significance of the F1 Grand Prix in boosting casino, food and beverage volumes at MGM properties. He addressed some discord leading up to the event and predicted that November 2023 will be a record month for MGM’s Las Vegas hotel revenue.

Halkyard Says MGM Capital Deployment to Focus on Growth

The casino operator’s CFO also discussed deploying capital for growth-related purposes, focusing on expansion at Empire City Casino in Yonkers, NY, and pursuing an integrated resort in Osaka, Japan.

“We have been repaying debt, deploying capital from real estate sales to repurchase shares. We’ve already repurchased over 1/3 of the company’s shares in the last 2.5 years,” Halkyard stated.

Furthermore, MGM announced its intent to repurchase up to $2 billion worth of shares following third-quarter earnings, signaling the possibility of issuing high-yield debt, albeit more likely to be allocated to growth and share repurchases.

BetMGM Comments

Halkyard briefly commented on the performance of BetMGM, in which MGM holds a 50% stake, acknowledging the business success and expressing continued commitment to its growth.

Against a backdrop of activist investors circling Entain, the UK-based owner of BetMGM, BetMGM is set to hold an investor day on Dec. 4.

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