MGM Las Vegas Strip resorts achieve record revenue for 2023; but regional operations down

February 14, 2024
By
Leer en Español

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." 

State-by-State

Product Spotlight

Bragg Gaming Group

Bragg Gaming Group is a global content-driven iGaming technology provider, serving online and land-based gaming operators with its proprietary and exclusive content and cutting-edge technology.
GA HUDDLE #087

John Connelly - Interblock preparing to launch online by the end of year

John Connelly, the Global CEO of Interblock, joins the Huddle to talk about:
- The company's conversion to the online space
- The performance of ETGs
- Interblock's new philanthropic efforts
- The trend of companies going private
- And more!
GA HUDDLE #086

Michael Hershman - Dispelling casino 'myths:' New York needs to lose fear of the unknown

Michael Hershman, CEO of the Soloviev Group, joins Tim Poole on the Huddle to put forward his case that the Freedom Plaza is the way to go for one of New York's casino licences. He fields a variety of questions - not shying away from any of them - on why 'myths' about casinos and a fear of the unknown should be dispelled, as well as acknowledging the strength of rival bids and discussing opposition to the project.

As the Tribal gaming sector congregates once more in the Golden State, is it too cliché of me to suggest we are heading for a golden era of Tribal gaming? With the industry set to meet at the Indian Gaming Association t...

10-11-From-the-top
From The Top: Will youth be served by Sports Betting?
Two recent interviews in our Huddle podcast revealed to Las Vegas correspondent Brian Joseph just how young sports betting entrepreneurs are becoming.
12-GA-MAR-10-year-v2
The Global Gaming Awards: Rewarding Excellence
The 10th edition of the Global Gaming Awards took place in Las Vegas last year. Gaming America looks back... and ahead to this year's.
16-18-IGA-Preview
Preview: Indian Gaming Tradeshow & Convention
Gaming America looks ahead to the 2024 Indian Gaming Tradeshow & Convention and what attendees can expect when they arrive at the Anaheim Convention Centre.
20-22-GA-Mar-888-Holding-article
888 and the US Market: A cautionary tale
Gaming America explores the risk of resting on your laurels and the challenge of remaining relevant in a rapidly expanding market.