MGM Resorts International has cemented its status as a leading force in the global hospitality and entertainment industry, reporting a substantial revenue uptick for the year 2023. The renowned group announced an impressive figure of $16.20 billion, a striking 23.7% increase from the previous year, spurred by substantial growth in its pivotal markets.
The Las Vegas Strip continued to be a goldmine for MGM, contributing a 4.8% rise in revenue compared to the prior year. This financial surge owes much to the timely acquisition of The Cosmopolitan in May 2022 and a bustling calendar of events, spotlighted by the city’s inaugural Formula 1 race in November.
MGM China outshone its counterparts with the highest growth rate over the year, which the group attributes to the lifting of all COVID-19 restrictions that had dampened its prior year’s performance.
The company’s Regional Operations sector witnessed a slight dip; however, this was eclipsed by the robust growth in the ‘management and other operations’ sector. One of the stars of this segment has been BetMGM, a joint enterprise with Entain, which not only achieved full-year financial goals but also marked its expansion beyond the United States with its launch in the United Kingdom. Furthermore, last week heralded a fresh partnership for BetMGM with an undisclosed entity.
MGM’s CEO, Bill Hornbuckle, lauded the company during an investor call, celebrating its record results despite the hurdles faced, including a severe cyber-attack on its systems in September. Hornbuckle enthused over the seven domestic properties shattering their individual records for adjusted property EBITDAR over the full year, demonstrating the team’s agility and resilience amid a challenging operational landscape.
Hornbuckle highlighted the indomitable strength of the Las Vegas market and the record-breaking adjusted EBITDAR figures achieved in Macau, both quarterly and annually. With BetMGM soaring to hit its net revenue and profitability goals in the second half of 2023, the company now prepares to enter its 29th market with the upcoming North Carolina launch.
The breakdown of 2023 revenue reveals that casino operations remained the largest revenue contributor at $8.09 billion, followed by rooms, food and beverage, and entertainment, retail, and other revenues. The vibrant Las Vegas Strip marked a revenue of over $8.80 billion for the year, a figure bolstered by the Cosmopolitan’s full year of operations, though partially offset by the sale of The Mirage to Hard Rock International in December 2022.
Conversely, Regional Operations revenue experienced a 3.8% slide to $3.67 billion, affected in part by the sale of Gold Strike Tunica Resort operations in Mississippi. In a dramatic turnaround, MGM’s Macau operations burgeoned with a 368.1% revenue increase to $3.15 billion, as the region emerges from the shadow of pandemic-related restrictions.
The ‘management and other operations’ revenue also witnessed a meteoric rise, partially buoyed by BetMGM’s UK market debut. Despite BetMGM being a product of collaboration with Entain, this UK venture did not involve Entain’s participation.
Tracking operating expanses for 2023, there was a 23.2% increase, with general and administrative costs being the highest outlay, driving the operating profit up by 31.4%. Despite non-operating costs coming in at $418.7 million, the pre-tax profit escalated sharply by 62.9% year-over-year. Nevertheless, following deductions for taxes and non-controlling interests, the net profit stood at $1.14 billion, slightly lagging behind the prior year, which had factored in proceeds from the Mirage sale.
Focusing on the fourth quarter outcomes, MGM reported a 21.8% revenue increase to $4.38 billion, with Las Vegas continuing its climb and China witnessing a spectacular 462.4% surge. Management and other operations also showed a 15.8% uptick, despite a decline in regional operations revenue.
Hornbuckle concluded with gratitude towards the dedicated employees and highlighted MGM’s strategic initiatives, including a major development project for the Empire City Casino in New York, subject to the award of one of the coveted full commercial casino licences, and a planned launch of an integrated casino resort in Osaka that will see construction commencement in 2025 and hopes to open doors in 2030. The tenacity and vision of MGM Resorts International thus promise to propel the company into a future ripe with opportunity and growth.
