MGM Resorts’ 2022 fourth-quarter results mirrored the gaming operator’s year-end figures. While the company posted a net loss in the quarter and for the year, net revenue increased over both periods.
CEO and President Bill Hornbuckle stated that his company “drove record fourth-quarter EBITDAR for Las Vegas and regional resorts.” He added that the MGM’s Las Vegas adjusted property EBITDAR increased by more than 80% year over year.
“These outstanding results are evidence of our focus on optimizing growth in our business and operations,” Hornbuckle said during Wednesday’s investor’s call, “as well as our strategic vision of becoming the world’s premier gaming entertainment company.”
MGM generated revenue of $3.6 billion in the fourth quarter, a year-over-year increase of 18%. The company cited an increase in business and travel volume at its Las Vegas Strip properties as one of the reasons for the revenue boost, along with the inclusion of operating results from the Cosmopolitan, acquired in May 2022.
MGM posted a $2 million loss for the quarter, compared to operating income of $369 million over the same period in 2021. The disparity was due to a $1.2 billion increase in noncash amortization expense relating to the MGM Grand Paradise gaming sub-concession and an increase of $338 million of rent recorded within general and administrative expense related to the VICI and the Cosmopolitan of 15 leases, which started in April and May 2022, respectively. The loss was partially offset by the sale of the Mirage on the Vegas Strip to Hard Rock International in December for $1.1 billion.
Net income for the quarter was $284 million, compared to $131 million in the fourth quarter of 2021.
MGM’s Las Vegas Strip properties generated revenue of $2.3 billion, an increase of 27%, compared to $1.8 billion in fourth quarter of 2021.
Regional properties brought in $991 million, a year over year increase of 10% over compared to the $900 million fourth quarter of 2021.
MGM Resorts stock closed at $41.43 on the New York Stock Exchange, a drop of 56 cents (1.3%). After hours, the stock rose $1.97 to $43.40, a 4.76% increase.
