MGM Revenues Increase by 36% in 2022

MGM International Resorts has just rolled out their financial disclosures for last year. The figures indicate a substantial 36% rise in revenue for 2022, amounting to $13.1 billion in net income, surpassing 2021 figures. Additionally, a remarkable 18% surge was noted for Q4, reaching $3.6 billion.

Building off their strong financial results, MGM Resorts’ CEO, Bill Hornbuckle, expressed awe at their 2022 achievements, attributing success to strategic initiatives and a diverse operational footprint.

Meanwhile, based in Las Vegas, the colossal enterprise reported a $284 million profit loss, translating to a $1.53 per share setback on their $3.6 billion Q4 revenue. This contrasts starkly with Q4 2021, where a $131 million profit of $2.77 per share was recorded on $3.1 billion revenue.

The reason behind this decline lies in Macau's gaming sub-concession process, which hit MGM's Grand Paradise with a $2 million operating loss. Nevertheless, the company secured a new decade-long contract to continue contributing to Macau's hospitality and entertainment ecosystem.

Remaining Optimistic in the 2023 Outlook

MGM credits its robust Q4 financials partly to The Cosmopolitan of Las Vegas joining its ranks midyear. Moreover, a beneficial $1.1 billion was pocketed following the Hard Rock International's acquisition of The Mirage in December. The period also noticed a rise in both business volumes and travel activity across Strip hotel and regional facilities.

Optimism prevails for 2023 at MGM, as stated by CFO Jonathan Halkyard, despite the upward track in 2022's final quarter.

He further noted, “Concentration remains on free cash flow which, paired with our stock's significant value, dividends from MGM China, and BetMGM, reveals promising yields.”

Q4 of the previous year showcased a remarkable 91% occupancy at Strip hotel, a 6% rise compared to 2021's corresponding period. Also, room rates soared from $201 to $260, marking a 30% increment. Hornbuckle related to Review-Journal that MGM aims to record its highest monthly hotel revenues in March 2023.

In China, MGM struggled against pandemic impacts throughout last year. Guest traffic started to rebound in January, further uplifted by the Chinese New Year's influence.

MGM China’s operator, Hubert Wang, pointed out near-capacity room occupancy during the holidays, thanking non-gaming attractions for pulling in additional visitors.