While inflation and recessions worries have cast doubt on the state of the American consumer, gamblers haven’t been phased, at least according to DraftKings CEO Jason Robins.
Shares of casino stock MGM Resorts (NYSE: MGM) jumped as much as 5.6% in trading on Thursday after the company reported second-quarter financial results. Revenue jumped 44% versus a year ago to $3.3 billion, and net income was $1.8 billion after a gain related to the deconsolidation of MGM Growth Properties. Adjusted earnings per share were $0.03, and adjusted earnings before interest, taxes, depreciation, amortization, and rent (EBITDAR), which is a proxy for cash flow from resorts, was $920 million.
MGM Resorts (MGM) second-quarter performance benefits from robust regional operations, courtesy of strong leisure demand and a better convention business.