LAS VEGAS, Nevada—MGM Resorts International reported financial results for the quarter and year ended Dec. 31, 2023.
“Our Las Vegas Strip Resorts and MGM China set new all-time records for full year and fourth quarter Adjusted Property EBITDAR,” said Bill Hornbuckle, CEO and president of MGM Resorts. “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.”
“Yesterday, we closed on an amendment and extension to our senior secured credit facility, providing us with $610 million in additional capacity and extending the maturity by over two years to 2029,” said Jonathan Halkyard, chief financial officer and treasurer of MGM Resorts. “We continue to see great value in our shares and are returning capital to shareholders by repurchasing our shares. We have already bought back approximately 6 million shares for an estimated $249 million year-to-date, adding to the approximate 54 million shares that we repurchased in 2023, totaling $7.1 billion of repurchases since 2021.”
For the fourth quarter:
Consolidated Results
- Consolidated net revenues of $4.4 billion, an increase of 22 percent compared to the prior year quarter, due primarily to an increase in revenue at MGM China due to the removal of COVID-19-related entry restrictions in Macau, partially offset by a decrease in casino revenues at Regional Operations and the dispositions of The Mirage and Gold Strike Tunica;
- Operating income was $419 million compared to an operating loss of $2 million in the prior year quarter due primarily to the increase in net revenues in the current quarter and a decrease in amortization expense of $1.2 billion relating to the MGM Grand Paradise gaming sub-concession, partially offset by a $1.1 billion gain on the disposition of The Mirage in the prior year quarter;
- Net income attributable to MGM Resorts of $313 million compared to $284 million in the prior year quarter. Net income attributable to MGM Resorts was primarily impacted by the items affecting operating income/loss;
- Consolidated Adjusted EBITDAR of $1.2 billion in the current quarter;
- Diluted earnings per share of $0.92 in the current quarter compared to $0.69 in the prior year quarter; and
- Adjusted diluted earnings per share of $1.06 in the current quarter compared to Adjusted EPS loss of $1.54 in the prior-year quarter.
Las Vegas Strip Resorts
- Net revenues of $2.4 billion in the current quarter compared to $2.3 billion in the prior year quarter, an increase of 3 percent, due primarily to an increase in ADR, partially due to Formula 1 and an increase in casino revenues that benefited from a higher win percentage, partially offset by the disposition of The Mirage;
- Same-store net revenues (adjusted for dispositions) of $2.4 billion in the current quarter compared to $2.2 billion in the prior year quarter, an increase of 10 percent;
- Adjusted property EBITDAR of $864 million in the current quarter compared to $877 million in the prior year quarter, a decrease of 1 percent;
- Same-store adjusted property EBITDAR of $864 million in the current quarter compared to $836 million in the prior year quarter, an increase of 3 percent; and
- Adjusted property EBITDAR margin of 36.5 percent in the current quarter compared to 38.2 percent in the prior year quarter, a decrease of 173 basis points due primarily to an increase in payroll-related expenses, partially offset by the increase in net revenues, discussed above.
Regional Operations
- Net revenues of $873 million in the current quarter compared to $991 million in the prior year quarter, a decrease of 12 percent due primarily to a decrease in casino revenues, partially attributable to the effects of the union strike at MGM Grand Detroit and a decrease in high-end table volume at MGM National Harbor, as well as due to the disposition of Gold Strike Tunica;
- Same-store net revenues (adjusted for dispositions) of $873 million in the current quarter compared to $936 million in the prior year quarter, a decrease of 7 percent;
- Adjusted property EBITDAR of $233 million in the current quarter compared to $320 million in the prior year quarter, a decrease of 27 percent;
- Same-store adjusted Property EBITDAR of $233 million in the current quarter compared to $297 million in the prior year quarter, a decrease of 22 percent; and
- Adjusted property EBITDAR margin of 26.7 percent in the current quarter compared to 32.2 percent in the prior year quarter, a decrease of 555 basis points compared to the prior year quarter due primarily to the decrease in net revenues, discussed above.
MGM China
- Net revenues of $983 million in the current quarter compared to $175 million in the prior year quarter, an increase of 462 percent, and an increase of 35 percent compared to the fourth quarter of 2019. The current quarter was positively affected by the removal of COVID-19-related entry restrictions in Macau and an increase in visitation compared to the prior year’s quarter, as well as an increase in authorized tables in 2023;
- Adjusted property EBITDAR of $262 million compared to adjusted property EBITDAR loss of $55 million in the prior year quarter and an increase of 42 percent compared to the fourth quarter of 2019; and
- Adjusted property EBITDAR margin of 26.7 percent in the current quarter compared to 25.5 percent in the fourth quarter of 2019.
For the full year:
Consolidated Results
- Consolidated net revenues of $16.2 billion in the current year compared to $13.1 billion in the prior year, an increase of 23 percent, due primarily to an increase in revenue at MGM China and an increase in non-gaming revenues at Las Vegas Strip Resorts, partially offset by a decrease in casino revenue at regional operations. The current year includes a full year of the operating results of The Cosmopolitan after its acquisition in May 2022 and the results of Gold Strike Tunica until its disposition in February 2023, and excludes the results of The Mirage due to its disposition in December 2022;
- Operating income was $1.9 billion compared to $1.4 billion in the prior year, due to the increase in net revenues, a $2.5 billion decrease in noncash amortization expense relating to the MGM Grand Paradise gaming sub-concession, and a $399 million gain on the disposition of Gold Strike Tunica in the current year, partially offset by the $2.3 billion gain on REIT transactions, net, and the $1.1 billion gain on the disposition of The Mirage in the prior year, as well as a current year increase in rent expense of $313 million primarily related to the VICI and The Cosmopolitan leases, which commenced in April 2022 and May 2022, respectively;
- Net income attributable to MGM Resorts of $1.1 billion in 2023 compared to $1.5 billion in the prior year. Net income attributable to MGM Resorts was primarily impacted by the items affecting operating income;
- Diluted earnings per share of $3.19 in 2023 compared to $3.49 in 2022;
- Adjusted EPS of $2.67 in 2023, compared to adjusted EPS loss of $2.73 in 2022;
- Consolidated adjusted EBITDAR of $4.6 billion in 2023;
- Net cash flow provided by (used in) operating, investing, and financing activities for the twelve months ended Dec. 31, 2023, was $2.7 billion, ($714 million), and ($5.0 billion), respectively; and
- Free cash flow for the twelve months ended Dec. 31, 2023, of $1.8 billion.
Las Vegas Strip Resorts
- Net revenues of $8.8 billion in the current year compared to $8.4 billion in the prior year, an increase of 5 percent;
- Same-store net revenues (adjusted for acquisitions and dispositions) of $7.5 billion in the current year compared to $7.1 billion in the prior year, an increase of 7 percent;
- Adjusted property EBITDAR of $3.2 billion in the current year compared to $3.1 billion in the prior year, an increase of 2 percent;
- Same-store adjusted property EBITDAR of $2.7 billion in the current year compared to $2.7 billion in the prior year, an increase of 1 percent; and
- Adjusted property EBITDAR margin of 36.3 percent in the current year compared to 37.4 percent in the prior year, a decrease of 116 basis points, due primarily to an increase in payroll-related expenses.
Regional Operations
- Net revenues of $3.7 billion in the current year compared to $3.8 billion in the prior year, a decrease of 4 percent;
- Same-store net revenues (adjusted for dispositions) of $3.6 billion in the current year compared to $3.6 billion in the prior year, an increase of 1 percent;
- Adjusted property EBITDAR of $1.1 billion in the current year compared to $1.3 billion in the prior year, a decrease of 12 percent;
- Same-store-adjusted property EBITDAR of $1.1 billion in the current year compared to $1.2 billion in the prior year, a decrease of 6 percent; and
- Adjusted property EBITDAR margin of 30.9 percent in the current year compared to 33.9 percent in the prior year, a decrease of 305 basis points due primarily to the decrease in net revenues and an increase in payroll-related expenses and insurance costs.
MGM China
- Net revenues of $3.2 billion in the current year compared to $674 million in the prior year, an increase of 368 percent, and an increase of 9 percent compared to 2019;
- MGM China adjusted property EBITDAR of $867 million in the current year compared to adjusted property EBITDAR loss of $203 million in the prior year, and an increase of 18 percent compared to 2019; and
- Adjusted property EBITDAR margin of 27.5 percent in the current year compared to 25.3 percent in 2019.
The current year includes a non-cash income tax benefit of $149 million due to a decrease in the valuation allowance on foreign tax credit carryforwards. The prior year also included a non-cash income tax benefit of $296 million to record the deferred tax impact of the extension of the exemption from the Macau 12 percent complementary tax and a non-cash income tax benefit of $37 million to record the impact of the VICI transaction on state deferred tax liabilities, partially offset by a non-cash income tax charge of $90 million resulting from an increase in the valuation allowance on Macau deferred tax assets and a non-cash income tax charge of $59 million to record the deferred tax impact of income tax regulations governing combined reporting in New Jersey that were issued in the prior year.
MGM Resorts Share Repurchases
During the fourth quarter of 2023, the company repurchased approximately 15 million shares of its common stock for an aggregate amount of $629 million, pursuant to the February 2023 repurchase plan. The remaining availability under the February 2023 and November 2023 repurchase plans was $2.2 billion as of Dec.31, 2023. All shares repurchased under the company’s program have been retired.
