Total revenue for 2024 surpassed the $16.16 billion reported during the previous year by 6.7%. It is also the highest annual amount ever posted by MGM, the operator confirmed yesterday (12 February).
Revenue was flat across two of MGM’s four core divisions – Las Vegas Strip Resorts and Regional Operations. However, significant growth in China, accompanied by a similar increase in digital revenue, pushed the yearly total up.
“We are proud to report the best full-year consolidated net revenues in the history of the company,” CEO Bill Hornbuckle said. “This was driven by a record performance from MGM China. We’re also encouraged by the strong demand we’re seeing in the business so far in 2025, which positions us well for continued growth.”
MGM China revenue rises 27.6%
The stand-out performance in 2024 was MGM China, with revenue here jumping 27.6% to $4.02 billion. This is now the second-highest source of revenue for MGM, overtaking the group’s Regional Operations and second only to Las Vegas Strip.
MGM put this down to the recovery of operations after the removal of all remaining Covid-19 measures that were still in place in early 2023. These included entry restrictions in Macau, but the region is now fully open again to tourists.
“In Macau, we achieved the best full-year segment-adjusted EBITDA in the history of MGM China,” Hornbuckle said. “We continue to be a high-performing outlier in the market with exceptional execution by the team.
“Macau 2049, our first residency show at MGM Cotai and the Poly Art Museum at MGM Macau, which sold over 10,000 people in one day during Chinese New Year’s are both important steps to drive non-gaming revenues and visitation to Macau.”
Digital dreams for MGM
Another highlight for MGM in 2024 was digital. For the 12-month period, MGM introduced a new reporting segment in the form of MGM Digital.
This comprises its LeoVegas operations, but not its BetMGM JV with Entain in North America. However its joint Brazilian venture with Grupo Globo will fall under this reporting segment.
Annual net revenue for this segment amounted to $552 million. This is 27.7% higher than the comparable period in the previous year, representing a growth rate similar to that of MGM China.
However, adjusted EBITDAR for the year was a loss of $77 million, compared to a loss of $32 million in the prior year.
Hornbuckle told analysts the digital business was solidly profitable in 2024, when excluding new brands. He said the operator was beginning to realise operating leverage against LeoVegas and Push’s more mature operations, including the UK. Therefore the cost burden from building these businesses is subsiding.
“We’ve added features to this business such as content development with the acquisition of Push and sports betting with the purchase of Tipico’s US betting technology,” he said.
LeoVegas’ BetMGM brand in Europe and Brazil is leveraging the MGM branding across its online casino portfolio, particularly its live-streamed tables from the MGM Grand and Bellagio in Las Vegas.
“Our digital businesses are also on a positive trajectory, with our BetMGM venture in North America expected to be profitable this year and our global MGM Digital business integrating and scaling to address its significant $41 billion market opportunity,” Hornbuckle said.
Hornbuckle has set the digital business a target of achieving $1 billion in top line revenue, as well as healthy margins, in the medium-term.
The operator expects to go live with Tipico’s in-house betting platform in its core market as soon as next week, while additional markets will roll out the tech in Q2. The integration of these assets is expected to complete by the end of H1.
MGM CFO Jonathan Halkyard said although losses are narrowing in the UK from decreased marketing spend, increased spending related to the launch of BetMGM in Brazil will result in MGM Digital’s 2025 EBITDAR losses remaining relatively consistent with those in 2024.
In Brazil MGM expects its BetMGM online business to gain a 10% market share in the long-term, while in Europe the LeoVegas business should maintain a 1% to 5% share of the total addressable market.
Revenue flat in the US
As for the other two divisions, revenue was largely flat year-on-year. The Las Vegas Strip Resorts segment remains MGM’s primary source of revenue at $8.82 billion.
Revenue from its Regional Operations was also flat for the year at $3.72 billion. This now ranks behind MGM China in terms of the amount of yearly revenue generated for MGM.
An additional $129.7 million in revenue came from management and other operations.
As for overall revenue, casino generated $8.79 billion in total, rooms $3.69 billion, food and beverage $3.08 billion and entertainment, retail and other, $1.69 billion.
Gold Strike Tunica sale skews bottom line comparison
In terms of costs, 2024 group operating expenses were up 10.6% to $15.70 billion, while operating profit dropped 21.2% to $1.49 billion.
After non-operating expenses, pre-tax profit for the year hit $1.12 billion, a decline of 23.8%. MGM paid $52.5 million in tax and discounted $318.1 million in profit from non-controlling interests. As such, it ended the year with a net profit of $746.6 million, down 34.6%.
However, MGM said the bottom line comparison was impacted by the sale of operations at Gold Strike Tunica Resort in Mississippi to CNE Gaming Holdings in February 2023.
Consolidated adjusted EBITDA, on the other hand, made for more positive reading, rising by 3.2% to $2.41 billion.
Q4 on par with 2023
Looking to the final quarter of the year, group revenue in Q4 was almost level year-on-year at $4.35 billion. Growth was apparent across the MGM China, MGM Digital and Regional Operations divisions, but Las Vegas revenue declined.
Operating costs increased 1.3%, while after also including non-operating expenses, pre-tax profit dropped 35.7% to $205.7 million. MGM received $32.3 million in tax benefit but, after excluding profit from non-controlling interests, bottom line net profit was down 49.8% to $157.4 million.
As for consolidated adjusted EBITDA in Q4, this was 16.4% lower at $528.5 million.
Original article: https://igamingbusiness.com/finance/full-year-results/china-drives-mgm-record-revenue-2024/
