China drives MGM Resorts to record revenue in 2024

MGM Resorts International has achieved a remarkable milestone, posting a record $17.24 billion (£13.80 billion/€16.53 billion) in consolidated net revenue for its 2024 financial year, a surge primarily attributed to its flourishing operations in the China market.

In comparison to the previous year’s total revenue of $16.16 billion, the growth for 2024 represents a 6.7% increase, marking it as the highest annual revenue ever recorded by MGM, as officially announced on February 12.

While revenue remained stable across two of MGM’s four key divisions—Las Vegas Strip Resorts and Regional Operations—substantial gains in its China-facing business, coupled with an increase in digital revenues, were pivotal in driving the overall growth.

“We take immense pride in reporting the best full-year consolidated net revenues in the history of MGM Resorts,” stated CEO Bill Hornbuckle. “This success is largely driven by unprecedented performance from MGM China. Furthermore, we are optimistic about the robust demand we are experiencing in early 2025, which positions us for continued advancement.”

MGM China’s Revenue Soars by 27.6%

The standout achievement in 2024 came from MGM China, where revenues surged by 27.6% to $4.02 billion. This growth positions MGM China as the second-largest revenue source for the company, overtaking the group’s Regional Operations and trailing only behind the Las Vegas Strip.

This increase can be attributed to the full recovery of operations following the lifting of remaining COVID-19 restrictions in early 2023, allowing Macau to reopen fully to international tourists.

“In Macau, we registered the best full-year segment-adjusted EBITDA in the history of MGM China,” Hornbuckle noted. “Our team has demonstrated exceptional execution, making us a standout performer in the market.”

He added, “Our ‘Macau 2049’ residency show at MGM Cotai and the Poly Art Museum at MGM Macau, which attracted over 10,000 visitors in a single day during the Chinese New Year, are significant strides in enhancing our non-gaming revenue streams and increasing visitation to Macau.”

The Digital Landscape: Expanding Horizons for MGM

MGM also witnessed substantial advancements in its digital segment in 2024, introducing MGM Digital as new reporting category that encompasses its LeoVegas operations, excluding its BetMGM joint venture with Entain in North America. Notably, the joint Brazilian venture with Grupo Globo will also be included under this segment.

The annual net revenue for MGM Digital reached $552 million, marking a 27.7% increase from the previous year, showcasing a growth trajectory akin to that of MGM China.

Although MGM Digital reported an adjusted EBITDAR loss of $77 million compared to a loss of $32 million the previous year, CEO Hornbuckle clarified that excluding new brands, the digital business appeared solidly profitable. “We are now starting to realize operating leverage from our acquisitions like LeoVegas and Push, reducing the cost burden associated with building these brands,” he stated.

Furthermore, MGM has enhanced its digital operations by integrating new features such as content development through the acquisition of Push, and the expansion of sports betting capabilities with the purchase of Tipico’s US technology.

LeoVegas’ BetMGM brand is benefitting from MGM’s established branding across its online casino product line, particularly its live-streaming offerings from iconic venues like MGM Grand and Bellagio in Las Vegas.

“Our digital ventures are on an upward trajectory, with our BetMGM business in North America projected to achieve profitability this year, and our global digital segment striving to harness a significant $41 billion market opportunity,” Hornbuckle added.

He set an ambitious target for the digital unit to reach $1 billion in top-line revenue, along with healthy margins in the medium term. The operator anticipates launching Tipico’s in-house betting platform in its core market imminently, with broader rollouts planned for Q2. The integration of these digital assets is expected to be completed by the end of the first half of the year.

MGM CFO Jonathan Halkyard indicated that while losses in the UK are narrowing due to reduced marketing expenses, increased investment for the BetMGM launch in Brazil may lead to relatively consistent EBITDAR losses for MGM Digital in 2025 compared to those in 2024.

In Brazil, MGM expects its BetMGM online business to capture a long-term market share of 10%, while its LeoVegas operations in Europe aim to secure a market share between 1% and 5% of the total addressable market.

Revenue Stability in the US Market

Conversely, revenue remained relatively flat in MGM’s other two segments. The Las Vegas Strip Resorts segment continued to be MGM’s primary revenue driver, generating $8.82 billion, while revenue from its Regional Operations held steady at $3.72 billion, now ranking below MGM China in annual revenue contributions.

An additional $129.7 million was reported in revenue from management and other operations.

Breaking down the overall revenue: casinos yielded $8.79 billion, rooms generated $3.69 billion, food and beverage produced $3.08 billion, and other categories—including entertainment and retail—accounted for $1.69 billion.

Impact of Gold Strike Tunica Sale on Bottom Line

In terms of expenses, MGM’s group operating costs increased by 10.6% in 2024, totaling $15.70 billion. Consequently, operating profit fell by 21.2% to $1.49 billion. After accounting for non-operating expenses, the pre-tax profit for the year stood at $1.12 billion, reflecting a 23.8% decline. MGM incurred $52.5 million in tax expenses and discounted $318.1 million from non-controlling interests, concluding the year with a net profit of $746.6 million, which is down 34.6%.

However, the company clarified that its net profit comparison was skewed by the sale of its operations at Gold Strike Tunica Resort in Mississippi to CNE Gaming Holdings in February 2023.

In a more positive light, consolidated adjusted EBITDA rose by 3.2% to reach $2.41 billion, indicating resilient operational performance amidst changing market dynamics.

Q4 Financial Performance: Consistency Amidst Challenges

In the fourth quarter, MGM’s total revenue remained nearly even year-on-year at $4.35 billion, with notable growth across MGM China, MGM Digital, and Regional Operations, though revenues from the Las Vegas segment saw a decline.

Operating costs rose marginally by 1.3%, and when integrating non-operating expenses, pre-tax profits declined by 35.7% to $205.7 million. MGM benefited from a tax benefit of $32.3 million; however, net profit—after excluding profit from non-controlling interests—dropped by 49.8% to $157.4 million.

Consolidated adjusted EBITDA for Q4 reported a decline of 16.4%, totaling $528.5 million, highlighting the need for strategic adjustments as MGM navigates a complex and evolving landscape within the gambling industry.