MGM Resorts International (MGM) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose 22% YoY to $4.4B; net income attributable to MGM Resorts was $313M, diluted EPS $0.92 and Adjusted EPS $1.06.

• FY revenue increased 23% YoY to $16.2B; net income attributable to MGM Resorts was $1.1B, diluted EPS $3.19 and Adjusted EPS $2.67.

• Las Vegas Strip and MGM China set quarterly and full-year Adjusted Property EBITDAR records; regional results faced strike and lower high-end-play headwinds.

• MGM China’s Q4 market share was 16.3%; BetMGM became profitable in 2H23 and set a $500M 2026 EBITDA target.

Financial highlights

• Q4 operating income was $419M versus a $2M operating loss YoY; comparisons reflected higher revenue and $1.2B lower amortization expense, partly offset by the prior-year $1.1B Mirage gain.

• FY operating income was $1.9B versus $1.4B; FY Adjusted EPS was $2.67 versus an adjusted loss of $2.73, while diluted EPS was $3.19 versus $3.49.

• Consolidated Adjusted EBITDAR was $1.2B in Q4 and $4.6B for FY 2023.

• FY operating cash flow was $2.7B, investing cash flow negative $714M, financing cash flow negative $5.0B and Free Cash Flow $1.8B.

• Year-end consolidated liquidity was $6.460B, including $4.453B of cash, cash equivalents and marketable debt securities and $2.007B of revolver availability.

Outlook and guidance

• 2024 domestic capital expenditures forecast at $830–$860M, including ~$600M maintenance capex; excludes land purchases.

• 2024 corporate expense forecast at $425–$460M excluding stock-based compensation, including $40–$50M related to MGM China.

• 2024 domestic net cash taxes forecast at $150–$250M, including an anticipated ~$160M refund; domestic gross cash interest forecast at $185–$205M.

• Marriott relationship launched in January 2024, with opportunities to grow convention room nights and international visitation; 16 brands planned by end of Q1.

• Longer-term plans include Japan and New York development, LeoVegas and MGM digital expansion, and BetMGM’s $500M 2026 EBITDA target.