MGM CFO Halkyard Says F1 Broke Vegas Records, Sees More Share Buybacks
The Nov 18 Las Vegas Grand Prix, Formula One’s (F1) world-class visit to Sin City inward 4 decades, delivered for Strip operators as the case represented the highest-grossing weekend in the account of MGM Resorts International (NYSE: MGM).
Jonathan Halkyard, chief financial ship's officer (CFO) of the largest Strip operator, confirmed as a great deal on Tues at the Bank of America Leveraged Finance Conference. The F1 race topped the 2019 CES tradeshow as the topper weekend inwards the story of MGM’s Strip properties.
So when you believe most other events that have got happened inward Las Vegas over the years, and the scurf of our company, that’s quite something to have got a put down weekend on what was otherwise the slowest weekend of the year,” said Halkyard. “It met our expectations inwards terms of gambling casino volume, solid food and beverage, and to the highest degree importantly, the guests and our employees, i think, had a really sound have during the long weekend.”
Acknowledging that at that place was “a lot of friction” that irritated locals inward the months leading upward to the event, Halkyard added that the Las Vegas Grand Prix was so potent inward terms of revenue generation that November 2023 is likely to be the topper November on record for MGM’s Las Vegas hotel revenue.
Halkyard Says MGM Washington Deployment to Focus on Growth
In discussing the operator’s counterbalance flat solid and plans for uppercase spending, Halkyard added that MGM’s translation to an operating troupe complex body part is mostly complete, substance deployed great will mostly be directed to development initiatives.
He told group discussion attendees that MGM is eyeing enlargement of its Empire City Casino inward Yonkers, NY and that some working capital testament clear live directed to a planned integrated resort hotel in Osaka, Japan.
We make been repaying debt. We’ve been deploying the great that we realized from those existent landed estate sales to repurchase shares. We’ve repurchased over 1/3 of the company’s shares in the in conclusion 2.5 years,” Halkyard noted.
Buybacks feature been MGM’s preferred method of shareholder rewards for several years now, and when the operator announced third-quarter earnings earliest this month, it said it testament repurchase upwardly to another $2 1000000000000 worth of its shares. The CFO also noted it’s possible the Bellagio manipulator could egress high-yield debt inward the future, “but it’s more potential that the upper-case letter testament be allocated to maturation and and then some additional deal repurchases.”
BetMGM Comments
Halkyard briefly discussed the BetMGM structure, which is 50% ownership past MGM with the other half controlled past progressively castled Entain (OTC: GMVHF). He gave an arguably tepid blurb of that partnership.
We have got three Board seats. Entain has threesome Board seats. It certainly — is e'er a right thing when the business sector is performing comfortably the likes of BetMGM has, but our sharpen at MGM is to pee-pee BetMGM as successful as possible,” observed the MGM CFO. “And I cogitate that’s not to speak for them, but i consider that Entain’s interestingness as well.”
Those comments arrived against a backcloth of activistic investors circling Entain, and with the Ladbrokes owner dealing with gillyflower downgrades as some analysts and investors hypothecate the UK-based company’s missteps could call for unwanted takeover advances, potentially from MGM, or strength Entain to count remedies for its BetMGM stake. BetMGM holds an investor twenty-four hours on Dec 4.
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