MGM Resorts enjoys record-setting 2023 as F1 provides boost

MGM Grand sign
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MGM Resorts has celebrated a history-making 2023 in multiple jurisdictions as the casino operator set new records for revenues and adjusted EBITDA on the Las Vegas strip

Publishing its financial results, MGM Resorts declared consolidated net revenue for Q4 of $4.4bn, up 22% year-over-year (Q4 2022: $3.6bn). 

Casino revenue during the quarter rose to $2.2bn, up from $1.5bn in 2022, while increases were also seen across rooms at $1bn (Q4 2022: $897.9m), food and beverage at $727.9m (Q4 2022: $710.6m) and entertainment, retail and other at $422m (Q4 2022: $421.7m).

For the full-year MGM reported revenue of $16.2bn, up 23% YoY (2022: $13.1bn), with casino revenue coming in at $8.1bn (2022: $5.7bn), rooms at $3.5bn (2022: $3.1bn), food and beverage at $2.9bn (2022: $2.6bn) and entertainment, retail and other at $1.6bn (2022: $1.7bn).

MGM stated that net revenue rose last year“due primarily to an increase in revenue at MGM China and an increase in non-gaming revenues at Las Vegas Strip Resorts, partially offset by a decrease in casino revenue at our Regional Operations”. 

“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.”

MGM noted that one of the key reasons for the uptick in revenue was the F1 Las Vegas Grand Prix which took place in November. The event, which resulted in an uptick in footfall on the strip for an entire weekend, ensured that MGM had much more custom as it had multiple grandstands positioned around the track and the operator put on special experiences for F1 fans.

The result was that November became the second-best month over for Strip casinos, trailing only July 2023. Across the whole of November, Nevada casinos posted $1.37 billion in gaming win for the month. It is a 12.6% increase YoY.

MGM Resorts’ Chief Financial Officer Jonathan Halkyard told a Bank of America conference that the race “met every one of our expectations” in terms of making the event a successful one. Despite having incredibly high expectations, he revealed that the weekend was the highest-grossing weekend from hotel revenue in company history.

He said: “When you think about other events that have happened in Las Vegas over the years, and in the scale of our company, that’s quite something to have a record weekend on what was otherwise the slowest weekend of the year. It met our expectations in terms of casino volume, food and beverage and, most importantly, the guests and our employees, I think, had a very good experience during the long weekend.”

This is a large development for Las Vegas as it becomes a sporting destination as well as a casino resort location. As well as hosting an F1 race, Sin City recently hosted Super Bowl LVIII and will become home to the Oakland As, which is constructing a stadium at the location of the Tropicana

As one of the two major operators on the strip, MGM will be in a prime position to take advantage of Vegas’s rise as a sporting powerhouse of America.