- Las Vegas Strip Resorts achieved record full year and fourth quarter net revenue and Adjusted Property EBITDAR
- MGM China achieved record full year and fourth quarter Adjusted Property EBITDAR
- $2.3 billion in share repurchases in 2023 and $629 million during the quarter
- MGM Resorts senior secured credit facility expanded to $2.3 billion, providing increased liquidity
LAS VEGAS, Feb. 19, 2024 — MGM Resorts International (NYSE: MGM) (“MGM Resorts” or the “Company”) today reported financial results for the quarter and year ended December 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, Chief Executive Officer 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.”
Fourth Quarter 2023 Financial Highlights:
Consolidated Results
- Consolidated net revenues of $4.4 billion, an increase of 22% 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 operating loss of $2 million in the prior year quarter due primarily to the increase in net revenues in the current quarter, discussed above, and a decrease in amortization expense of $1.2 billion relating to the MGM Grand Paradise gaming subconcession, 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 discussed above;
- Consolidated Adjusted EBITDAR(2) 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 (“Adjusted EPS”)(1) 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%, 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%;
- Adjusted Property EBITDAR(2) of $864 million in the current quarter compared to $877 million in the prior year quarter, a decrease of 1%;
- Same-Store Adjusted Property EBITDAR(2) of $864 million in the current quarter compared to $836 million in the prior year quarter, an increase of 3%; and
- Adjusted Property EBITDAR margin(2) of 36.5% in the current quarter compared to 38.2% 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% 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%;
- Adjusted Property EBITDAR of $233 million in the current quarter compared to $320 million in the prior year quarter, a decrease of 27%;
- 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%; and
- Adjusted Property EBITDAR margin of 26.7% in the current quarter compared to 32.2% 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%, and an increase of 35% 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 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% compared to the fourth quarter of 2019; and
- Adjusted Property EBITDAR margin of 26.7% in the current quarter compared to 25.5% in the fourth quarter of 2019.
