MGM Resorts International has announced its financial results for the fourth quarter of 2022, revealing significant growth in revenue compared to the same period the previous year. The company’s impressive performance is attributed to increased business and travel activity at its Las Vegas Strip properties, as well as the addition of the Cosmopolitan, which was acquired in May 2022.
Robust Q4 Performance:
MGM Resorts reported a notable revenue of $3.6 billion for the fourth quarter of 2022, representing an impressive 18% increase compared to the corresponding period in the previous year. This growth trajectory can be attributed to multiple factors, including heightened business and travel demand at the Las Vegas Strip properties.
Contributing Factors:
The company’s success in the fourth quarter can be linked to several key factors. Among these, the boost in business and travel volume at MGM’s Las Vegas Strip properties played a pivotal role. Additionally, the inclusion of operating results from the Cosmopolitan, which was acquired in May 2022, further amplified the positive financial outcome.
Financial Highlights:
Despite the revenue surge, MGM Resorts posted a modest $2 million loss for the quarter. However, when compared to the operating income of $369 million during the same period in 2021, this loss is put into perspective. Notably, net income for the quarter showed significant improvement, reaching $284 million compared to $131 million in Q4 2021.
Segment Performance:
MGM’s Las Vegas Strip properties emerged as a significant revenue generator, contributing $2.3 billion—a substantial 27% increase—compared to the $1.8 billion reported in Q4 2021. Regional properties also showcased growth, reporting $991 million in revenue, marking a year-over-year increase of 10% compared to $900 million in the same period of 2021.
CEO’s Perspective:
Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International, highlighted the remarkable achievement of “record fourth-quarter EBITDAR for Las Vegas and regional resorts.” He attributed this success to the company’s strategic focus on optimizing growth in business and operations. Hornbuckle also emphasized MGM’s overarching vision of becoming the premier gaming entertainment company on a global scale.
Annual Performance:
MGM Resorts’ annual performance for 2022 further underscores its financial strength. The company reported revenue of $13.1 billion, reflecting a substantial 36% increase from the previous year’s $9.7 billion. Notably, net income for 2022 reached $1.5 billion, showcasing steady growth from $1.4 billion in the previous year. Operating income for the year was $1.4 billion compared to $2.3 billion in 2021.
Segment Analysis:
MGM’s Las Vegas Strip properties stood out as a major revenue contributor for the year, reporting revenue of $8.4 billion—an impressive 77% year-over-year increase compared to the $4.7 billion generated in 2021. Regional operations also demonstrated growth, generating $3.8 billion in revenue, marking a 12% increase from the $3.4 billion reported in 2021.
MGM Resorts International’s strong financial performance in the fourth quarter and throughout 2022 underscores its position as a major player in the gaming and entertainment industry. The company’s strategic focus on optimizing growth, coupled with the positive impact of acquisitions and increased business activity, has resulted in a remarkable financial outcome. As MGM continues to prioritize its strategic vision, it is poised to cement its status as a global leader in the gaming entertainment sector.