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  • Q4 2023: MGM revenue jumps 22% thanks to Macau recovery
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Growth in MGM Resorts’ Macau casinos continued to recover in Q4 2023, despite being partially offset by a decline in the firm’s regional US operations.

MGM Q4 results

The BetMGM operator reported a 22% revenue increase for the three-month period ended 31 December, to $4.4bn.

This resulted from the removal of Covid-19 related restrictions in Macau and a subsequent increase in visitor numbers and available tables. This represents the continuation of a trend seen throughout 2023.

Overall, revenue for the Macau segment shot up 462% compared to Q4 2022, to $983m.

Compared with Q4 2019, the last pre-Covid quarter, the figure represented a 35% increase.

However, MGM China’s growth was partially offset by a decline in MGM’s regional US operations, where revenue fell 12% to $893m.

According to the land-based giant, this was due to the impact of industrial action at MGM Grand Detroit, as well as a fall in high-end table volume at MGM National Harbor.

The company’s Las Vegas operations were more stable, recording a 3% rise to $2.4bn. MGM highlighted the Las Vegas Grand Prix and an increase in casino revenue as responsible for the growth.

Full-year results

On a full-year basis, the story was largely similar as revenue grew 23% to $16.2bn.

Again, MGM saw a rapid recovery in its Macau operations, as well as growth in non-gaming revenue at the Las Vegas Strip partially offset by a decline in regional operations.

After EBITDAR of $4.6bn, net income for the year stood at $1.9bn, up 35.7% from the $1.4bn the company reported in FY 2022.

“Our Las Vegas Strip Resorts and MGM China set new all-time records for full year and fourth quarter adjusted property EBITDAR,” said MGM Resorts president Bill Hornbuckle.

“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.”

The results come the day after MGM closed on an extension to its senior secured credit facility, which will provide the business with $610m in new liquidity and extend the loan’s deadline to 2029.

MGM chief financial officer Jonathan Halkyard also hinted that the buoyant results could see additional capital returned to shareholders in 2024 through repurchases.

The operator has bought approximately 6 million shares for $249m since the beginning of 2024. This is on top of 54 million shares rebought in 2023, totalling around $7.1bn in total repurchases since 2021.

“I see a double-digit yield opportunity in our shares, which is why I see share repurchases as a responsible and accretive use of our capital,” he said.

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