MGM Resorts has reported its highest-ever annual revenue, hitting $17.2 billion in 2024, a 7% increase from the previous year. The casino giant’s strong financial results were fueled by record-breaking performance from MGM China and steady growth in digital gaming. However, challenges in Las Vegas Strip operations tempered the overall outlook.
MGM China Leads the Way with Record Earnings
One of the biggest highlights of MGM’s financial report was the staggering performance of MGM China. The segment delivered an adjusted EBITDAR (Earnings Before Interest, Taxes, Depreciation, Amortization, and Restructuring/Rent costs) of $1.1 billion for 2024. That’s a 25% jump compared to 2023, underscoring the company’s expanding influence in Macau’s lucrative gaming sector.
CEO Bill Hornbuckle acknowledged the impact of MGM China, stating, “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.”
MGM China’s numbers reflect the broader rebound of Macau’s gaming industry, which has continued to recover after pandemic-related restrictions were lifted. With increasing visitor numbers and growing demand for high-end gaming, MGM’s investment in the region is paying off in a big way.
Digital Gaming Shows Strong Growth, Eyes Profitability
While physical casinos remain MGM’s bread and butter, digital gaming is becoming an increasingly important revenue driver. MGM Digital brought in $140 million in the fourth quarter, marking a 15% increase from the same period in 2023. The company credited this growth to new market entries and expanding online gaming operations.
BetMGM, the company’s sports betting and iGaming venture, experienced a strong year and is on track to turn profitable in 2025. This is a crucial milestone, given the competitive nature of the online gambling industry.
Hornbuckle remains optimistic about MGM’s digital expansion, stating, “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.”
Las Vegas Strip Revenues Decline Amid Formula 1 Comparison
While MGM’s overall revenue was up, its Las Vegas Strip resorts reported a 6% decline in fourth-quarter revenue, bringing in $2.2 billion compared to $2.4 billion in Q4 2023. The dip was largely attributed to a slowdown in casino and room revenues, with executives pointing to tough year-over-year comparisons due to the Formula 1 Las Vegas Grand Prix, which drove strong results in 2023.
However, there are signs of recovery heading into 2025. Hornbuckle noted, “December was our highest convention booking month on record, and in January we saw revenue growth in our Las Vegas Strip resorts and regional operations as well as strong future bookings.”
Share Buybacks and Financial Strategy
MGM Resorts continued its aggressive stock buyback program, repurchasing 33 million shares in 2024 for a total cost of $1.4 billion. This move reduced outstanding shares by over 40% since 2021, a strategy aimed at boosting shareholder value.
CFO Jonathan Halkyard emphasized the long-term benefits of the repurchase plan, stating, “As we grow our core operations and realize returns from digital and development investments, this reduced share count will accelerate the free cash flow per share generation for our shareholders.”
In Q4 alone, MGM repurchased 3 million shares, signaling confidence in its financial position despite some areas of declining revenue.
Regional Operations and Union Strike Impact
MGM’s regional operations fared better, with fourth-quarter revenue reaching $932 million, a 7% increase from Q4 2023. The company attributed the boost to higher casino revenue, which was partially driven by the resolution of the labor strike at MGM Grand Detroit.
Labor issues have been a recurring challenge in the industry, and MGM was not immune. The union strike at MGM Grand Detroit disrupted operations in 2023, but with that issue settled, the company saw a rebound in regional gaming performance.
Stock Performance and Market Sentiment
MGM Resorts stock ended Wednesday at $34.37 on the Nasdaq, up $0.95, or 0.28%. Investors seem cautiously optimistic about the company’s long-term trajectory, particularly given the strength of its Macau and digital segments.
Looking ahead, MGM remains focused on expanding its digital presence, growing its international footprint, and capitalizing on a strong convention and event calendar. While challenges remain—particularly in the Las Vegas Strip segment—the company is well-positioned for continued growth in 2025.
