$607 million to acquire LeoVegas AB<\/a> in a bid to expand into mature iGaming and sports wagering markets in Europe. LeoVegas is profitable and grew revenue at a double-digit compound annual growth rate for the five years ending 2021. MGM said the purchase will be accretive to earnings. Wieczynski has mixed views about the transaction.<\/p>\n<\/div>\n\u201cWhile this is a somewhat small acquisition in the grand scheme of things, with the potential for the economy to soften, we would rather have kept that $600M on the balance sheet for a rainy day,\u201d he said. \u201cWhat is encouraging, though, is that their online market share remained steady despite MGM spending significantly less than peers.\u201d<\/p>\n
Loving Las Vegas<\/h2>\n
As the dominant operator on the Strip, MGM is highly tethered to demand trends in the largest domestic casino center. For now, leisure travelers appear undaunted by inflation and rising interest rates. How long that enthusiasm lasts is up for debate.<\/p>\n
Should the group\/convention segment return to 2019 levels, MGM would have another obvious tailwind to offer investors.<\/strong><\/p>\n\u201cThe fundamental rebound in Las Vegas continues to accelerate, as evidenced by the results and commentary, and reference points to 2019 become less relevant,\u201d writes Jefferies analyst David Katz. \u201cFurther, we believe the quarter reflects the improved execution, capital allocation and growth opportunities which are core to our positive thesis. Ultimately, we believe estimates should continue to progress higher, which should drive share performance.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
MGM Resorts International (NYSE:MGM) is winning some praise from Wall Street following sturdy first-quarter results. At least one analyst believes it\u2019s possible the gaming company eventually revisits a takeover bid for Entain Plc (OTC:GMVHY). Citing strength in Las Vegas, where it\u2019s the largest operator on the Strip, the Mandalay Bay operator said revenue in the […]<\/p>\n","protected":false},"author":46,"featured_media":211741,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,81886],"tags":[],"acf":[],"yoast_head":"\n
MGM Resorts Earns Praise Following Strong Q1 Vegas Results<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n