MGM Resorts International reported financial results for the quarter and full calendar year ending Dec. 31, 2022.
During the US gambling company’s earnings call, Bill Hornbuckle, CEO and President of MGM Resorts, shared that the company saw record earnings in Q4. He said:
“We achieved our fifth consecutive quarter of record-breaking Las Vegas Strip Resorts Adjusted Property EBITDAR in the fourth quarter. What we accomplished in 2022 is nothing short of remarkable, and is a testament to our strategic plan, scale, brand strength, talented team, loyalty program, and the diverse geographies and channels in which we operate.
We believe that there is strong momentum in our business and our 2023 outlook remains bright, driven by a robust events calendar domestically, MGM China’s rapid year-to-date return to profitability and BetMGM’s ongoing improvement in 2023.”
Hornbuckle also emphasized that Las Vegas Strip properties saw adjusted property EBITDAR grow by over 80% year-over-year.
Share buybacks continue to return capital to company shareholders
MGM Resorts remains optimistic in its expectation for the year. Jonathan Halkyard, Chief Financial Officer and Treasurer of MGM Resorts said: “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.
Our share buyback program continues to return capital to shareholders as we have already repurchased 4 million shares for $164 million year-to-date, adding to the 76 million shares we repurchased in 2022 and totaling approximately $4.7 billion since 2021. Beyond this, our Board of Directors authorized an additional $2 billion for share buybacks.”
MGM Resorts Q4 2022 by the numbers
During Q4 2022, MGM Resorts reported consolidated net revenues of $3.6 billion, an 18% increase compared to the year before.
The US gambling company reported an operating loss of $2 million compared to an operating income of $369 million in the prior year’s quarter.
The Las Vegas Strip Resorts‘ net revenues were $2.3 billion in the fourth quarter compared to $1.8 billion in Q4 2021. Adjusted property EBITDAR of $877 million is a 26% year-over-year increase compared to $699 million in the prior year.
The resort’s occupancy was 91% in 2022, compared to 86% of the hotel visits in 2021. Rooms revenue grew from $557 million in 2021 to $813 million in 2022, at a 46% increase. The average daily rate rose 30% yearly, while revenue per available room improved by 38%.
MGM dominates the US gambling market in 2022
For 2022, MGM Resorts stated consolidated net revenues of $13.1 billion. That’s a 36% year-over-year increase from 2021’s $9.7 billion.
Operating income was $1.4 billion compared to $2.3 billion in the prior year. Net income attributable to MGM Resorts was $1.5 billion in 2022.
The Las Vegas Strip Resorts shared net revenues of $8.4 billion in 2022, 77% more than $4.7 billion in 2021.
Adjusted property EBITDAR was $3.1 billion. That’s an 81% increase in comparison to $1.7 billion the year before. Regional operations generated $3.8 billion compared to 2021’s $3.4 billion, which is a 12 % increase.