#United States #Las Vegas #BetMGM #MGM Resorts #MGM China

Financial Success: MGM Resorts International's Record Year for 2024

MGM Resorts International has unveiled its financial performance for the fourth quarter and the full year of 2024, showcasing impressive growth and resilience in a competitive market. Notably, the company achieved consolidated net revenues of $17.2 billion, marking a significant 7% increase from the previous year. This achievement highlights MGM's continuous efforts to enhance its operational efficiency and capitalizes on the rebounding hospitality and leisure sectors after pandemic challenges.

Robust Performance in Key Segments

1. MGM China

The standout performer for MGM in 2024 was MGM China, which registered an impressive segment adjusted EBITDAR of $1.1 billion, up 25% from the prior year. This remarkable growth stemmed from the region's recovery following the easing of COVID-19 related restrictions, alongside favorable gaming revenues amidst increasing patronage.

2. Las Vegas Strip Resorts

Although the Las Vegas Strip Resorts reported a dip in revenues to $2.2 billion, a 6% decrease from the previous year, this development can largely be attributed to exceptional results during the previous year's Formula 1 event. Nonetheless, the sector continues to attract visitors thanks to a variety of high-profile events, leading to strong forward bookings for both 2025 and beyond.

3. Regional Operations

Conversely, MGM's regional operations posted a 7% increase in net revenues, totaling $932 million for the quarter. This growth is a testament to the gambling establishments' popularity and a boosted consumer spending trend within regional markets.

4. MGM Digital

The digital segment, which includes BetMGM, saw revenues rise to $140 million, a 15% increase compared to the previous year. While the segment adjusted EBITDAR is currently in a loss position, the venture anticipates profitability by 2025, driven by strategic expansion into new markets and a stable operational framework.

Share Repurchases Enhance Value

As part of its commitment to returning shareholder value, MGM Resorts repurchased approximately 33 million shares in 2024, representing a reduction of over 40% in shares outstanding since 2021. This strategic decision aims to enhance the free cash flow per share for stakeholders, demonstrating MGM's confidence in its financial health and market position.

Future Outlook

Bill Hornbuckle, CEO of MGM Resorts, expressed optimism regarding the future as the company experiences strong demand indicators early in 2025, including its best convention bookings ever in December. Furthermore, MGM Digital's growth trajectory hints at an exciting expansion phase, particularly with a global market opportunity valued at $41 billion.

Conclusion

MGM Resorts International's robust performance in 2024 showcases a well-rounded growth strategy that leverages both traditional gaming avenues and modern digital platforms. With an eye on sustainable practices and community impacts, MGM remains committed to enhancing guest experiences while navigating the evolving landscape of the hospitality and entertainment sectors.