MGM Resorts International recently announced its financial outcomes for both the final quarter and the entirety of 2023. The company saw its Q4 net revenues climb to $4.4 billion, marking a 22% rise from the previous year, thanks to eased entry restrictions in Macau. For the entire year, MGM reported a 23% increase in net revenues, reaching $16.2 billion.
Bill Hornbuckle, CEO and President, highlighted the record-breaking performances in Las Vegas and MGM China, attributing the success to strategic offerings and major events that drew significant profit. He said:
“Our Las Vegas Strip Resorts and MGM China set new all-time records for full year and fourth quarter Adjusted Property EBITDAR.”
The Q4 operating income rebounded to $419 million from a loss the previous year, largely due to higher revenues and lower amortization expenses from the MGM Grand Paradise gaming sub-concession. Net income for the quarter also saw an increase, reaching $313 million.
A significant revenue jump was noted in MGM China, with Q4 earnings hitting $983 million, a stark rise from the previous year, fueled by lifted COVID-19 restrictions and increased visitation.
In contrast, the Las Vegas Strip reported a modest 3% increase in net revenues for Q4, totaling $2.4 billion. However, regional operations witnessed a 12% decrease in revenues, impacted by a union strike and lower high-end table volume.
Despite some declines in regional operations, MGM’s overall revenue grew thanks to contributions from Las Vegas and China, with notable events and acquisitions like The Cosmopolitan bolstering Las Vegas revenues. MGM China benefited greatly from the removal of COVID-19 restrictions, showcasing substantial growth.
2024 revenues were significantly driven by casino activities and bolstered by room, food and beverage, and entertainment revenues. MGM’s performance in Macau was particularly strong, reflecting a significant recovery in the region.
Operating costs rose in line with revenue growth, but the company managed to significantly increase its operating profit and pre-tax profit year-over-year, concluding 2023 with a net profit of $1.14 billion and an adjusted EBITDAR of $4.59 billion.
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