MGM Resorts Sees Group Revenue Swell by 23% in 2023

Article by : Erik Gibbs Feb 14, 2024

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In its earnings conference call on Tuesday, MGM Resorts International disclosed a robust financial performance, reporting a noteworthy revenue of $4.4 billion for the fourth quarter of 2023. This marked a substantial achievement, capping off the year with a cumulative revenue of $16.2 billion.

The fourth-quarter figures reflected a remarkable 22% year-over-year surge, translating into an operating income of $419 million, a significant leap from the operating loss of $2 million during the corresponding period in 2022.

The consolidated adjusted EBITDAR for the quarter stood at an impressive $1.2 billion. Zooming out to encompass the entire year, the revenue for 2023 showcased a substantial 23% upswing compared to 2022.

The operating income for the year reached $1.9 billion, demonstrating a notable increase from the $1.4 billion recorded in 2022. The consolidated adjusted EBITDAR for the year stood strong at $4.6 billion, underlining the company’s robust financial performance.

MGM Resorts International’s President and CEO, Bill Hornbuckle, credited the exceptional results to the unwavering resilience of the company’s workforce.

Hornbuckle expressed enthusiasm during the call, highlighting the milestone of an all-time high in EBITDAR for the year. Notably, seven of the company’s properties continued to break records, fostering optimism for the future.

Hornbuckle emphasized MGM’s strong positioning in Macau, a promising digital landscape, and the company’s long-term commitment, exemplified by the launch of its digital brand, LeoVegas, expanding its presence globally.

The focal point of MGM’s stellar fourth-quarter performance was its Las Vegas Strip properties, which amassed a substantial revenue of $2.4 billion, reflecting a commendable year-over-year increase of 3.0%.

Despite a marginal 1.0% decrease, the adjusted EBITDAR for properties on the Strip stood robust at $864 million.

During the quarter, regional operations reported revenue of $873 million, a decrease from $991 million in the same period in 2022.

MGM attributed this 12% decline to various factors, including a reduction in casino revenues linked to the union strike at MGM Grand Detroit, a drop in high-end table volume at MGM National Harbor in Maryland and the sale of Gold Strike Tunica to CNE Gaming Holdings in February 2023.

Adjusted EBITDAR for regional properties also saw a 22.0% decrease, dropping from $297 million in the fourth quarter of 2022 to $233 million.

In contrast, Las Vegas Strip properties experienced a revenue increase of $420 million to bring the total to $8.4 billion in 2023, marking a 5.0% rise compared to 2022. The adjusted EBITDAR for Strip properties saw a modest 2.0% increase, reaching $3.2 billion for the year.

In the same period, MGM’s regional properties contributed $3.7 billion in revenue for 2023, reflecting a 4.0% decrease. The adjusted EBITDAR for these properties also experienced a decline of 12%, falling from $1.1 billion in the previous year to its current figure.