logo
Vegas Information
MGM Resorts relies on China sales despite F1 coming to Vegas


MGM Resorts International (NYSE:MGM) relied on its Chinese operations as a key driver of growth despite its core business on the Las Vegas strip reaching record revenues thanks to the inaugural F1 race in the city. In the fourth quarter, the casino and resort operator posted adjusted earnings per share (EPS) of 92 cents for the three months to December 31, lifting from 69 cents in 2022. However, full-year EPS tumbled from US$3.49 in 2022 to US$3.19, largely driven by its decrease in regional earnings. Revenues at its regional operations fell by 4% over the full financial year to US$3.7 billion, experiencing a 12% drop in the fourth quarter due to strikes at its MGM Detroit site and the slowing of “high-end table volume” at its resort in Maryland. In China, the lifting of COVID-19 measures meant revenues jumped 462% year-on-year and by 35% compared to 2019, to reach US$873 million in the fourth quarter. Las Vegas operations grew by around US$1 million to reach US$2.4 billion, with the first F1 event and an increase in casino revenues driving the growth. Throughout the full-year Las Vegas operations rallied 5% to reach US$8.8 billion. Bill Hornbuckle, chief executive officer and president of MGM Resorts said: “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.” Shares traded more than 3.5% lower at US$44 on Wednesday, following the release of the results.

This content was originally published here.

contentstudio









©2024 VEGAS INFORMATION • ALL RIGHTS RESERVED