MGM Board Adds $300 Million to Stock Buyback Program

Private company unveiled yearly earnings yesterday

MGM

MGM’s board of directors has authorized an additional $300 million in stock buybacks for its ongoing share repurchase plan.

“I am very pleased with the board’s authorization to increase our buyback program by $300 million,” Gary Barber, MGM’s chairman and CEO, said Friday. “We remain focused on driving stockholder value and believe that these future repurchases will be accretive to earnings, a good use of our capital, and will be executed opportunistically while maintaining a very strong and flexible balance sheet.”

Since the inception of the plan in 2011, the company has repurchased more than 26 million shares, or 33 percent of the originally issued shares of common stock, for approximately $1.1 billion.

On Thursday, Metro Goldwyn Mayer reported a third straight year of record profits, driven by last fall’s James Bond movie “Spectre,” the acquisition of United Artists Media Group, and a one-time tax break. The 24th James Bond movie delivered $880 million in worldwide grosses.

Net income was up $97 million — or 62 percent — over 2014. The company’s adjusted earnings posted a 5 percent increase from last year, the highest in MGM’s modern history. Revenue rose 8 percent.

Read more about the annual earnings here.

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