21/09/21
MGM Revenues Increase by 36% in 2022
Lisa Cheban | 15 February, 2023 11:19 | Last update on: 15 February, 2023 11:19
MGM International Resorts recently released its full-year financial reports for 2022. According to the report, the hospitality and entertainment company posted an impressive 36% revenue growth in 2022. This amounts to $13.1 billion in net revenues, more than what was published in 2021. The report also shows that MGM’s Q4 revenues increased by 18% to $3.6 billion.
Following the solid financial statement, MGM Resorts’ CEO and President, Bill Hornbuckle, said that what the company accomplished in 2022 was “remarkable.” He said this results from the company’s strategic plan, talented team, brand strength, loyalty program, scale, and diverse geographies where MGM operates.
Meanwhile, the Las Vegas-based giant reported a $284 million net income, marking a $1.53 per share loss on the $3.6 billion Q4 revenue. Compared to Q4 of 2021, MGM Resorts had a $131 million net income of $2.77 per share on the $3.1 billion revenue.
The company attributed this drop to the $2 million operating income loss of the gaming sub-concession process of Macau’s MGM Grand Paradise. Interestingly, the company got another 10-year contract to continue offering its hospitality and entertainment services in the gambling mecca.
Remaining Optimistic in the 2023 Outlook
According to the management, MGM’s strong financial results in the last quarter of 2022 were partly due to The Cosmopolitan of Las Vegas joining the fold in May. In addition, MGM pocketed $1.1 billion following the sale of The Mirage to Hard Rock International in December. The company also saw increased business volumes and travel activities, especially at the Strip hotel and other regional properties.
MGM’s Chief Financial Officer and Treasurer, Jonathan Halkyard, said that the company remains optimistic in its outlook for 2023 despite posting exceptional results in Q4 of 2022.
The official added: “We are also focused on free cash flow and believe our company presents a compelling yield, especially when taking into account the value in our share price for excess cash, our ownership value of MGM China and BetMGM.”
During the fourth quarter of last year, Strip hotel posted an impressive 91% occupancy, which is 6% more compared to the same time in 2021. In addition, daily room rates increased by around 30%, from $201 to $260 in Q4 of 2022. Hornbuckle told Review-Journal that MGM Resorts expects to post the highest hotel revenues for a single month in March 2023.
Crossing over to China, MGM China faced a hard time last year due to pandemic-related restrictions. Thankfully, guests started returning in January, with the Chinese New Year holiday improving things.
According to Hubert Wang, MGM China’s President and Chief Operating Officer, room occupancy almost reached 100% during the celebrations. The official attributed this success to the non-gaming events that drew incremental visitors.
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