By Anandita Mehrotra
(Reuters) - MGM Resorts (NYSE:MGM) International beat first-quarter Wall Street estimates on Wednesday, driven by strength in its China operations as the casino operator continues to benefit from easing post-pandemic entry restrictions.
Shares of the company were up about 3.14% in extended trading.
Casino operators such as MGM and Wynn have benefited from the surge in traffic at their gaming hubs in Macau after a resurgence of travel and tourism spending in the world's second-largest economy.
Adjusted property EBITDAR for MGM China (OTC:MCHVY) was 78% higher in the first quarter compared with last year.
" We achieved record results in the first quarter of 2024 driven by strong performance at MGM China and in Las Vegas specifically at our luxury resort properties," CEO Bill Hornbuckle said in a statement.
The company also said that regional operations in the U.S. were impacted by poor winter weather in January followed by a quick recovery in February and acceleration into March.
Earlier this week, casino giant Caesars (NASDAQ:CZR) Entertainment also flagged a hit from weather conditions in January and February which battered its first-quarter results.
"In the longer term, we have an enviable pipeline of limited license development projects in New York, Japan and potentially the United Arab Emirates which will drive free cash flow growth over the next decade," said CFO Jonathan Halkyard in a post-earnings call.
MGM's total revenue jumped 13% to $4.38 billion in the quarter through March, above analysts' estimate of $4.24 billion, according to LSEG data.
Its quarterly adjusted profit per share of 74 cents also came ahead of Wall Street expectations of 56 cents.