© Reuters. A general view of the casino inside MGM Cotai in Macau, China February 13, 2018. REUTERS/Bobby Yip
(Reuters) – MGM Resorts (NYSE:) International beat Wall Street profit estimates for the second quarter on Wednesday, as visitor rebound in China surpassed pre-pandemic levels.
However, costs for casino operations, hotel rooms and food and beverages rose, sending shares down 6.05% in aftermarket trade.
The post-pandemic travel rebound in China and Macau has been a tailwind for casino operators such as MGM Resorts and Las Vegas Sands (NYSE:) Corp.
Inflation-driven operating costs have also risen, especially as casino operators invest in non-gaming segments such as dining and retail to lure visitors.
Adjusted property EBITDAR for MGM China (OTC:) was 21% higher in the quarter, over 2019 levels.
However, the Las Vegas strip saw some weakness, with second-quarter net revenue flat and same-store adjusted property EBITDAR down 8%, compared to last year.
Consolidated net revenue of $3.94 billion in the quarter marked an all-time record, but was only slightly above analysts’ estimates of $3.82 billion
Adjusted second-quarter earnings per share of 59 cents came above analysts’ estimates of 54 cents, according to Refinitiv data.