MGM Resorts posts Q4 and FY22 results

MGM Resorts International has become the latest company to post its full-year and fourth-quarter results for the period that ended on December 31, 2022. The company hailed what its Chief Executive Officer, Bill Hornbuckle, described as a "record-breaking" performance for the Las Vegas Strip Resorts, and global assets.

Hornbuckle praised the company’s efforts in solidifying its position in the land-based gambling market last year and said that the accomplishments were remarkable. MGM Resorts International reported improvements across the board with the company’s team members, loyalty programs, and visitation rates picking up.

This gives the company a strong foothold as it steps into 2023 and prepares to carry on with its expansion plans in the year. The company and its executive are equally optimistic about MGM China’s prospects, having braved a slew of regulatory changes in Macau, where the entity operates, but are equally encouraged by the strong performance of the BetMGM brand and its continuous growth in the interactive gambling market in the United States, which will continue throughout the present year.

Among the results reported by the company are record-adjusted property EBITDAR in the four quarters and the full year for Las Vegas Strip Resorts. The company praised the new 10-year gaming concession awarded to MGM China and remained optimistic about the return to profitability of Macau’s gaming hub. MGM Resorts International has been able to achieve this while also engaging in a share buyback program which has been generating capital for investors and shareholders.

So far, noted MGM Resorts CFO and Treasurer Jonathan Halkyard, the company has been able to repurchase 4m shares at a cost of around $164m year-to-date. The company’s net revenues stood at $3.6bn in the fourth quarter, an increase of 18% compared to Q4 2021.

The company reported a $2m operating loss compared to an operating income of $369m year-over-year, but this development was because of the increase in the noncash amortization expense pertaining to the MGM Grand Paradise sub-concession, Halkyard explained. In terms of full-year results, the company’s net revenues stood at $13.1bn ahead of $9.7bn from a year earlier. This was an increase of 36%.

Once again, the MGM Grand Paradise gaming sub-concession had a bearing on the operating income which was put at $1.4bn, down from the $2.3bn a year earlier. MGM Resorts International saw in this no reason to worry, confident that the company is in a solid financial position to maintain growth in the new quarter.

Hornbuckle offered some insight into the recent speculation that his company is looking to buy out Entain, with which MGM Resorts is collaborating for BetMGM. He said that the company has "moved on" and has no immediate plans to attempt and acquire the company.

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