MGM Resorts International Financial Review for 2023

Introduction

MGM Resorts International, one of the largest entertainment and hospitality companies in the world, completed the 2023 financial year with notable achievements and challenges. This article reviews the company’s financial performance, development strategy, stock price dynamics, and key events for the reporting period from January 1 to December 31, 2023.

Financial Performance

Revenue and Earnings: In 2023, MGM Resorts International earned $16.2 billion, representing a 23.13% increase compared to 2022. The primary contributors to revenue growth were casinos ($8.1 billion), rooms ($3.5 billion), and food and beverage ($2.9 billion).

Operating Profit: The company’s operating profit amounted to $2.2 billion, which is 7% higher than the previous year. The increase in operating profit is attributed to improved operational efficiency and successful marketing campaigns.

Net Profit: Net profit for 2023 was $1.5 billion, 10% higher than in 2022. This growth was driven by increased operating profit and reduced debt servicing costs.

Assets and Liabilities: As of December 31, 2023, total equity amounted to $4.3 billion, a 16.81% decrease compared to the end of 2022. Total current liabilities were $3.1 billion, while current assets stood at $4.9 billion.

Company Strategy

MGM Resorts International continued to implement its long-term strategy focused on diversification and growth. Key elements of the strategy include:

1. Expanding International Presence: The company is actively working on expanding its operations in Asia, particularly in Japan and Macau. New facilities in these regions are planned to open in 2024-2025.
2. Investing in Digital Technologies and Online Gambling: In 2023, MGM made significant investments in developing its online platform, BetMGM, which continues to grow its market share in the US.
3. Sustainable Development: MGM is actively implementing sustainable development initiatives aimed at reducing its carbon footprint and improving the environment. In 2023, the company announced achieving interim targets of reducing CO2 emissions by 25%.

Stock Price Dynamics

Throughout 2023, MGM Resorts International’s stock showed steady growth. At the beginning of the year, the stock price was $39, and by the end of the year, it reached $52, representing a 33% increase. This growth was driven by positive financial results and optimistic analyst forecasts regarding the company’s future prospects.

Key Events

1. Acquisition of Push Gaming: On August 31, 2023, LeoVegas, a subsidiary of MGM, acquired 86% of digital game developer Push Gaming for $145 million.
2. Expansion of BetMGM: BetMGM continued its expansion into new US markets, obtaining licenses in several new states and increasing its client base by 20%.
3. Environmental Initiatives: Throughout the year, MGM implemented several major environmental projects, including installing solar panels on the roofs of its Las Vegas properties.

2023 was a successful year for MGM Resorts International, with improved financial performance, steady stock growth, and active development of strategic directions. The company continues to strengthen its market position by investing in innovation and sustainable development, providing a solid foundation for future growth.

Summary

MGM Resorts International was registered in the state of Delaware in 1986 by Kirk Kerkorian. The company operates resorts and casinos in Las Vegas, Massachusetts, Michigan, Mississippi, Maryland, Ohio, and New Jersey, and is expanding its presence in Asia through integrated resorts in Japan. MGM’s shares trade on the NYSE under the ticker symbol MGM. In 2023, the total number of shares outstanding was 319,678,271.