Revived MGM Resorts China Division Drives Strong 4Q Revenue Growth

14 Feb, 2024

Revived MGM Resorts China Division Drives Strong 4Q Revenue Growth

MGM Resorts International experienced a significant surge in revenue during the fourth quarter, driven by the resurgence of its business operations in China, which effectively countered softer performance in regional sectors.

In the quarter ending on December 31, the renowned Las Vegas-based hotel and casino enterprise reported a profit of $313 million, or 92 cents per share, marking an increase from $284 million, or 69 cents per share, recorded in the previous year. Analysts surveyed by FactSet had anticipated earnings per share of 69 cents.

Upon excluding certain exceptional items, adjusted earnings per share stood at $1.06, surpassing the analysts' forecast of 71 cents, according to FactSet data.

Total revenue climbed by 22% to reach $4.38 billion, exceeding the anticipated $4.14 billion projected by analysts polled by FactSet.

MGM China witnessed a remarkable surge in revenue, nearly six times higher, attributed to the relaxation of Covid-19 restrictions in Macau and a rise in visitor numbers.

This surge effectively offset a 12% decline in revenue from MGM's regional operations, which was influenced in part by a labor strike at MGM Grand Detroit and reduced high-end table activity at MGM National Harbor.

Meanwhile, revenue from Las Vegas Strip Resorts saw a 3% uptick during the period.