Casino and hotel operator MGM Resorts has reported a record revenue for 2023 helped by a significant increase in revenues from its operations in China as well as non-gaming revenues from Las Vegas Strip Resorts.

MGM Resorts, iconic gaming and hospitality player, says it achieved consolidated net revenues of USD 16.2 billion in 2023, a record for the group and reflecting a growth of 23 pc over the previous year.

In a press statement, MGM Resorts says that its revenues in 2022 stood at USD 13.1 billion and the growth in 2023 was driven by an increase in revenue at MGM China and an increase in non-gaming revenues at Las Vegas Strip Resorts, partially offset by a decrease in casino revenue at its Regional Operations unit.

MGM says that the revenues include a full year of the operating results of the Cosmopolitan subsequent to its acquisition in May 2022 and the results of Gold Strike Tunica until its disposition in February 2023, and excludes the results of The Mirage due to its disposition in December 2022.

MGM says that at the group level, its operating income was USD 1.9 billion compared to USD 1.4 billion in the prior year, due to the increase in net revenues, discussed above, a USD 2.5 billion decrease in noncash amortisation expense relating to the MGM Grand Paradise gaming subconcession, and a USD 399 million gain on the disposition of Gold Strike Tunica in the current year, partially offset by the USD 2.3 billion gain on REIT transactions, net, and the USD 1.1 billion gain on the disposition of The Mirage in the prior year, as well as a current year increase in rent expense of USD 313 million primarily related to the VICI and The Cosmopolitan leases, which commenced in April 2022 and May 2022, respectively.

However, the net profit of the group dropped from USD 1.5 billion in 2022 to USD 1.1 billion in 2023, a fall of almost 25 pc. The company says that its net profit or net income fell due to the transactions attributed to various divisions and highlighted above.

Accordingly, its diluted earnings per share was USD 3.19 in 2023 compared to USD 3.49 in 2022. However, the adjusted Earnings Per Share rose to USD 2.67 in 2023, compared to a loss of USD 2.73 per share.

China, Las Vegas operations drive growth

Providing a breakup of the source of its revenues through various divisions, MGM Resorts says that the increase in revenue came through two of its divisions, the flagship Las Vegas Strip Resorts and MGM China.

The net revenues of its Las Vegas Strip Resorts unit were USD 8.8 billion, a rise of 5 pc over USD 8.4 billion in 2022 and accounted for over 54 pc of the group revenues.

MGM China performed spectacularly, thanks to the reopening of the Chinese economy and market after the Covid-19 pandemic and its net revenues soared to USD 3.2 billion in 2023, a rise of 368 pc from USD 674 million and even higher than 2019 which it exceeded by 9 pc.

‘‘Our Las Vegas Strip Resorts and MGM China set new all-time records for full year and fourth quarter Adjusted Property EBITDAR. Our premium positioning and offerings in Las Vegas enable us to capture incremental profit during major events such as the inaugural Formula 1 race and our first Super Bowl. 2024 is off to a winning start with the launch of our Marriott relationship as well as opportunities to increase our convention room nights and international mix,’’ says said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts.