MGM Resorts International (NYSE:MGM) announced a new $2 billion share repurchase program after having bought back 13 million common stock shares for $572 million during its third quarter.
CFO Jonathan Halkyard told shareholders that the company views share repurchases as an “attractive opportunity to return value to our shareholders."
So far this year, MGM has repurchased approximately $1.7 billion in stock. Its buyback program totals $6.2 billion since the beginning of 2021.
The move came as part of the release of MGM’s third quarter results, which showed the company increase its revenue and swing to a profit despite an extensive cybersecurity attack in September 2023.
During the three-month period to end September 30, 2023, the company posted consolidated net revenues of $4 billion, marking a 16% increase from the previous year, driven primarily by increased revenue at MGM China due to the lifting of COVID-19 related restrictions in Macau.
However, the positive trend was partially offset by reduced revenues at the Las Vegas Strip Resorts and Regional Operations due to the sale of The Mirage and Gold Strike Tunica, as well as a cybersecurity issue in September 2023.
Operating income stood at $370 million, a significant improvement from the $1 billion operating loss in the previous year, attributed to the rise in net revenues and a decrease in amortization expense. Net income attributable to MGM Resorts amounted to $161 million in the current quarter, a positive shift from the $577 million net loss in the prior year.
The company also reported consolidated Adjusted EBITDA of $1.1 billion, and Adjusted EPS of $0.64 in the current quarter, in contrast to a loss of $1.39 in the prior year quarter.
"We started the quarter with great momentum across our businesses. While we were faced with a difficult cybersecurity issue in September, our employees rose to the occasion with incredible resilience and determination,” CEO Bill Hornbuckle said in a statement.
With the incident now behind us, we are a stronger company having been through the challenge."
Shares of MGM Resorts rose 2.7% afterhours in New York at $38.65.