MGM Las Vegas Strip resorts achieve record revenue for 2023; but regional operations down
Increase in revenues at MGM China have helped overall results.
MGM Resorts International has released its financial results for the fourth quarter of 2023 and the full year of 2023, showing overall growth.
Q4 results
For Las Vegas Strip resorts, there was a slight increase of 3% in net revenue to $2.4bn, primarily due to an increase in ADR because of the Formula 1, which took place in Vegas in mid-November, and an increase in casino revenue that benefited from a higher win percentage. Adjusted property EBITDAR, however, was valued at $864m, which was actually a decrease of 1%.
In terms of regional operations in Q4 2023, net revenue saw a decrease of 12% to $873m, which came about due to the union strike at MGM Grand Detroit, a decrease in high-end table volume at MGM National Harbor and the disposition of Gold Strike Tunica. Adjusted property EBITDAR also fell, by 27%, to $233m.
Full-year 2023 results
Consolidated net revenue was $16.2bn for FY2023, up from $13.1bn in 2022. This increase, though, was mainly due to the rise in revenue at MGM China and an increase in non-gaming revenues at Las Vegas Strip resorts, though there was a decrease in casino revenue at MGM’s regional operations.
Las Vegas Strip resorts saw a rise in net revenue of 5% to $8.8bn for the full year of 2023, while adjusted property EBITDAR also went up, by 2%, to $3.2bn.
However, as mentioned, regional operations took a slight dip in net revenue, going down from $3.8bn to $3.7bn. Adjusted property EBITDAR was valued at $1.1bn, representing a decrease of 12%.
MGM China
Much of the positivity surrounding MGM’s results has come from the rise in revenue at MGM China, which achieved record full-year and fourth-quarter adjusted property EBITDAR. For the fourth quarter of 2023, overall consolidated net revenue saw growth mainly due to MGM China, because of the removal of Covid-19-related entry restrictions in Macau.
Comments
MGM Resorts President and CEO Bill Hornbuckle said: “Our Las Vegas Strip resorts and MGM China set new all-time records for full year and fourth quarter adjusted property EBITDAR.
“Our premium positioning and offerings in Las Vegas enable us to capture incremental profit during major events such as the inaugural Formula 1 race and our first Super Bowl. 2024 is off to a winning start with the launch of our Marriott relationship as well as opportunities to increase our convention room nights and international mix.”
MGM Resorts CFO and Treasurer Jonathan Halkyard added: “Yesterday, we closed on an amendment and extension to our senior secured credit facility, providing us with $610m in additional capacity and extending the maturity by over two years to 2029.
“We continue to see great value in our shares and are returning capital to shareholders by repurchasing our shares. We have already bought back approximately 6 million shares for an estimated $249m year-to-date, adding to the approximate 54 million shares that we repurchased in 2023, totaling $7.1bn of repurchases since 2021.”
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