MGM Resorts International has reported a record year in 2024 in terms of consolidated net revenue, which grew by 7% year-over-year to more than $17bn.
MGM Digital and MGM China operations both saw their net revenue increase in comparison to the previous year, while Las Vegas Strip resorts and regional operations remained flat.
While revenue performance in the fourth quarter dipped slightly YoY to over $4bn, the operator has stated that it is already off to a strong start in 2025 following a decent Super Bowl weekend for BetMGM and Las Vegas operations, with European investments for the BetMGM brand performing as well.
Speaking on MGM Resorts’ earnings call, CEO and President Bill Hornbuckle said: “We’re off to a great start in 2025. The Super Bowl was just played Sunday, and from a casino perspective, was a strong event for us here in Las Vegas and at BetMGM.
“As we look into the rest of this quarter and the remainder of the year, we are seeing positive indicators, with revenues up in our domestic operations in January, as well as ADRs on pace to continue to grow for most of the year.
“All of this great momentum is backed by a solid balance sheet, characterised by low net debt and significant liquidity.”
Regarding BetMGM in Europe, Gary Fritz, President of MGM Interactive, stated that investments in organic growth with the brand in select markets – the UK, the Netherlands and Sweden – are “going well” so far in 2025.
Fritz said: “Growth is strong, and we believe the operating losses associated with the market entries are going to narrow throughout 2025, setting us up with a really strong exit rate and a meaningful opportunity for operational inflection going into ’26.”
Record 2024
For the full year, MGM Resorts’ consolidated net revenues rose by 7% YoY to $17.2bn (2023: $16.2bn), primarily due to MGM China revenue increasing following the removal of COVID-19 related entry restrictions in Macau in Q1 2023.
Net income declined to $747m (2023: $1.1bn) primarily due to “the gain on the disposition of Gold Strike Tunica in the prior year”. Consolidated adjusted EBITDA stood at $2.4bn (2023: $2.3bn), diluted earnings per share were $2.40 (2023: $3.19), while adjusted EPS were $2.59 (2023: $2.67).
Las Vegas Strip resorts’ revenue was flat in comparison to the previous year at $8.8bn, with a 3% YoY decline in segment adjusted EBITDAR to $3.1bn (2023: $3.2bn). Regional operations revenue was also flat at $3.7bn, with segment adjusted EBITDAR coming in flat as well at $1.1bn.
MGM China and MGM Digital revenue both increased by 28% YoY to $4bn (2023: $3.2bn) and $552m (2023: $432m) respectively. MGM China segment adjusted EBITDAR grew by 25% YoY to $1.1bn (2023: $867m), but MGM Digital segment adjusted EBITDAR came in at a $77m loss (2023: $32m loss).
MGM Resorts stated it repurchased over 33 million shares in 2024, meaning that since 2021, shares outstanding have reduced by over 40%.
The operator also commented on BetMGM, who published its 2024 financial results earlier this month, mentioning that it “accelerated its revenue growth through 2024 and expects to be profitable in 2025”.
Hornbuckle said: “MGM Resorts is proud to report the best full-year consolidated net revenues in the history of the company, driven by record performance from MGM China. We’re also encouraged by the strong demand we’re seeing in the business so far in 2025, which positions us well for continued growth.
“In fact, December was our highest convention booking month on record, and in January, we saw revenue growth in our Las Vegas Strip Resorts and Regional Operations as well as strong future bookings.
“Our digital businesses are also on a positive trajectory, with our BetMGM venture in North America expected to be profitable this year and our global MGM Digital business integrating and scaling to address its significant $41bn market opportunity.”
CFO and Treasurer Jonathan Halkyard added: “We continue to see significant value in our stock at current levels, and as such, we repurchased three million shares in the quarter, bringing our total for 2024 to 33 million shares repurchased at $1.4bn.
“As we grow our core operations and realise returns from digital and development investments, this reduced share count will accelerate the free cash flow per share generation for our shareholders, creating significant value.”
Q4 results
For Q4, MGM Resorts’ consolidated net revenues declined by 1% YoY to $4.3bn, net income stood at $157m (Q4 2023: $313m), consolidated adjusted EBITDA was $528m (Q4 2023: $632m), diluted earnings per share stood at $0.52 (Q4 2023: $0.92) and adjusted EPS stood at $0.45 (Q4 2023: $1.06).
Las Vegas Strip resorts’ net revenue in the quarter fell by 6% YoY to $2.2bn (Q4 2023: $2.4bn) due to casino and room revenues declining following “strong results from Formula 1 in the prior year”. Segment adjusted EBITDAR dropped by 11% to $765m (Q4 2023: $864m).
Regional operations net revenue increased by 7% YoY to $932m (Q4 2023: $873m) following an increase in casino revenue “partially attributable to the effects of the union strike at MGM Grand Detroit in the prior year”. Segment adjusted EBITDAR rose by 21% to $281m (Q4 2023: $233m).
MGM China’s net revenue rose by 4% YoY to $1bn (Q4 2023: $983m), primarily attributable to “an increase in casino revenues from favourable hold compared to the prior year”. Segment adjusted EBITDAR fell by 3% to $255m (Q4 2023: $262m).
Following entry into new markets, MGM Digital’s net revenue increased by 15% YoY to $140m (Q4 2023: $122m). Segment adjusted EBITDAR stood at a $22m loss (Q4 2023: $20m loss).
Brazil and Vegas live casino progress
During MGM Resorts’ earnings call, Fritz commented on BetMGM’s progress in Brazil, where it has a partnership with the media group Grupo Globo, in addition to the live casino content from its Vegas casinos.
The MGM Interactive President stated that the operator is “very happy” with its partnership so far following its soft launch in Brazil alongside the country’s regulated iGaming market going live in January, with a full media hard launch scheduled for next week.
“We’ve built a local management team on the ground in Brazil. It’s a $7bn TAM we believe in Brazil and we’re excited to compete there on a level playing field,” Fritz said.
Regarding its live casino operations, Fritz added: “We’re live already with our dual-play business, which continues to grow day over day, and we’ll have expanded studio capacity coming up in the first half of this year.
“When you put all of that together, we feel confident we’re largely done deploying capital against the owned and operated digital business. We are definitely set up for the potential for that business to be $1bn-plus in revenue with healthy double-digit margins going forward.”
