Record year for MGM capped by record fourth quarter

February 13, 2024 8:19 PM
Photo: Shutterstock
  • Rege Behe, CDC Gaming Reports
February 13, 2024 8:19 PM
  • Rege Behe, CDC Gaming Reports
  • United States
  • Nevada

During its earnings conference call Tuesday, MGM Resorts International reported revenue of $4.4 billion for the fourth quarter of 2023, the cherry on top of the year’s $16.2 billion in revenue.

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The fourth-quarter revenue was a 22% year-over-year increase, yielding operating income of $419 million compared to an operating loss of $2 million in the same time period of 2022. Consolidated adjusted EBITDAR was $1.2 billion.

The revenue for 2024 was a 23% increase compared to 2022, with operating income of $1.9 billion compared to $1.4 billion in 2022 and consolidated adjusted EBITDAR of $4.6 billion.

MGM President and CEO Bill Hornbuckle attributed the results to the “resiliency” of the company’s employees.
“We had an all-time EBITDAR year,” Hornbuckle said during the call. “Seven of our properties continued to break records, so we’re anxious for the future. Macau is well positioned. We’ve ended up in a great space in digital and we’re in the game for real for the long haul. We launched our own digital brand (LeoVegas) in business in the rest of world.”

MGM’s fourth-quarter results were led by its Las Vegas Strip properties, which generated revenue of $2.4 billion, a year-over-year increase of 3.0%. Adjusted EBITDAR for properties on the Strip was $864 million, a slight decrease of 1.0%.

Regional operations for the quarter generated revenue of $873 million compared to $991 million during the same period in 2022. MGM stated that 12% decrease was “due primarily to a decrease in casino revenues partially attributable to the union strike at MGM Grand Detroit and a decrease in high-end table volume at MGM National Harbor (in Maryland), as well as the disposition of Gold Strike Tunica,” which was sold to CNE Gaming Holdings in February 2023. Adjusted EBITDAR for regional properties was $233 million compared to $297 million in the fourth quarter of 2022, a 22.0% decline.

Las Vegas Strip properties generated revenue of $8.4 billion in 2023 compared to $8.4 billion in 2022, a 5.0% increase. Adjusted EBITDAR for Strip properties for the year was $3.2 billion, a 2.0% increase.
MGM’s regional properties were responsible for revenue of $3.7 billion in 2023, a decrease of 4.0%. Adjusted EBITDAR was $1.1 billion, a decrease of of 12%.

MGM Resorts shares closed at $45.66 on the Nasdaq, a decline of $1.36 or 2.9%.