MGM Resorts International (MGM, Financial) released its 8-K filing on February 12, 2025, reporting its financial results for the fourth quarter and full year of 2024. The company, known as the largest resort operator on the Las Vegas Strip, achieved record full-year consolidated net revenues of $17.2 billion, a 7% increase from the previous year, surpassing the annual revenue estimate of $17.178 billion. However, the fourth quarter presented some challenges with consolidated net revenues of $4.3 billion, slightly above the estimated $4.273 billion, marking a 1% decrease compared to the prior year quarter.

Company Overview

MGM Resorts International operates a vast portfolio of properties, including iconic Las Vegas Strip resorts such as MGM Grand, Mandalay Bay, and Bellagio. The Strip accounted for approximately 62% of the company's total EBITDAR in 2023. MGM also has regional assets in the U.S., contributing a low 20s share of EBITDAR, and operates MGM China casinos, which represented 17% of total EBITDAR in 2023. The company's digital ventures, including BetMGM, are expanding, with expectations of profitability in 2025.

Performance and Challenges

The fourth quarter saw a decline in net income attributable to MGM Resorts, which was $157 million compared to $313 million in the prior year quarter. The diluted earnings per share (EPS) for the quarter was $0.52, above the estimated $0.34, but a decrease from $0.92 in the previous year. Adjusted EPS was $0.45, also falling short of the prior year's $1.06. These results highlight challenges such as decreased casino and room revenues on the Las Vegas Strip, primarily due to strong results from Formula 1 events in the prior year.

Financial Achievements

Despite quarterly challenges, MGM Resorts achieved significant financial milestones in 2024. The company reported record full-year consolidated net revenues, driven by a 28% increase in MGM China's revenues, reaching $4.0 billion. MGM China also achieved a record Segment Adjusted EBITDAR of $1.1 billion, a 25% increase from the previous year. These achievements underscore the company's successful recovery from COVID-19 restrictions and its strategic focus on international markets.

Key Financial Metrics

For the full year, MGM Resorts reported a net income of $747 million, down from $1.1 billion in the prior year, primarily due to the gain on the disposition of Gold Strike Tunica in the previous year. The company's Consolidated Adjusted EBITDA was $2.4 billion, slightly up from $2.3 billion in the prior year. The diluted EPS for the year was $2.40, above the estimated $2.26, and Adjusted EPS was $2.59, compared to $2.67 in the prior year.

MGM Resorts is proud to report the best full-year consolidated net revenues in the history of the Company, driven by record performance from MGM China," said Bill Hornbuckle, Chief Executive Officer & President of MGM Resorts International.

Analysis and Outlook

MGM Resorts' performance in 2024 reflects a strong recovery and strategic growth, particularly in international markets. The company's ability to achieve record revenues despite quarterly challenges demonstrates resilience and effective management. However, the decline in quarterly earnings highlights the need for continued focus on optimizing operations and capitalizing on growth opportunities, especially in digital ventures and international expansions.

Overall, MGM Resorts International's 2024 results present a mixed picture, with record annual revenues and strategic achievements offset by quarterly challenges. The company's ongoing investments in digital and international markets, along with share repurchases, position it for potential future growth and shareholder value creation.

Explore the complete 8-K earnings release (here) from MGM Resorts International for further details.