This year’s Super Bowl was a milestone for Las Vegas, confirming it as the new sports and entertainment capital of the world. During MGM Resorts International‘s fourth-quarter and full-year 2023 earnings call, President and CEO Bill Hornbuckle highlighted the event’s positive impact on the company’s business.
MGM Resorts has net revenue of more than US$4 billion in the last quarter of 2023
With the Super Bowl in the city, average nightly rates at MGM Resorts hotels reached almost US$1,000, boosting revenue.
Thus, the event also generated three of the top five revenue days ever recorded by the company, in addition to near-record volumes of event games.
According to Hornbuckle, both the Super Bowl and the Formula 1 race, which took place in November, were huge successes for MGM Resorts.
But the Super Bowl had a broader impact, boosting demand across the board and drawing thousands of people to the MGM Grand’s ballrooms.
So brand exposure during these events was significant, thanks to the proximity to Allegiant Stadium, the F1 track and T-Mobile Arena. This allowed the company to expand its reach throughout the city.
To give you an idea, in the fourth quarter of 2023, MGM Resorts recorded consolidated net revenue of US$4.4 billion, an increase of 22% compared to the previous year. Operating profit was US$419 million.
In the previous year, in the same period, the hotel suffered an operating loss of US$ 2 million. Consolidated adjusted earnings before interest, taxes, depreciation, amortization and restructuring or rental costs reached $1.2 billion.
But through 2023, MGM Resorts’ consolidated net revenue reached $16.2 billion, up from $13.1 billion in 2022.
Operating revenue was US$1.9 billion, up from US$1.4 billion in the previous year, and consolidated adjusted EBITDAR totaled US$4.6 billion.
Outlook for 2024
Therefore, Bill Hornbuckle expressed optimism regarding the future of MGM Resorts, highlighting Las Vegas’ robust urban calendar for this year. The partnership with Marriott International is also seen as a boost for the segment.
This partnership will bring a new customer base at a lower acquisition cost and leading to higher rates and more property spend.
The renovation of the Mandalay Bay Convention Center is nearing completion, which is expected to bring more than 100,000 people per group to the Las Vegas Strip.
The company also plans to invest around US$600 million in maintenance and improvement projects at its national properties, all focused on luxury.
In relation to the international scenario, MGM Resorts properties in Macau are performing well, with a growing market share. Upcoming plans include:
- Develop a new casino resort in Osaka, Japan.
- New gaming license in New York, the application process is already underway and the goal is to obtain a gaming license in 2024.
Therefore, MGM Resorts International continues to strengthen its position as a global leader in entertainment and hospitality with positive prospects for the future.
