MGM Reports Strong Q4 Earnings Amid Digital Growth and Expansion

MGM Resorts delivered a strong financial performance in 2024, with total revenue reaching $17.2 billion, marking another record year for the company. Growth was driven primarily by a 25% increase in revenue from China, which rose from $3.2 billion to $4.0 billion. EBITDAR in the region also saw a 25% boost, reaching $1.1 billion.

Las Vegas and Regional Properties See Mixed Results

MGM’s Las Vegas Strip properties remained stable, generating $8.8 billion in revenue and $3.2 billion in EBITDAR, both essentially flat year over year. The company’s 10 regional casinos, which include locations in National Harbor, Detroit, Biloxi, and Atlantic City, posted $3.7 billion in revenue and $1.1 billion in EBITDAR, also flat compared to 2023.

However, Q4 performance was weaker, with Las Vegas Strip revenue declining 6% and EBITDAR falling 11%, largely due to the underwhelming performance of the Las Vegas Grand Prix compared to expectations. Conversely, MGM’s regional casinos showed 7% revenue growth in Q4, with EBITDAR surging over 20% year over year.

MGM Digital Expands but Faces Higher Losses

MGM Digital, the company’s wholly owned online gaming division, reported a 28% revenue jump, growing from $432 million to $552 million. However, net losses widened from $32 million in 2023 to $77 million last year, largely due to expansion efforts, including the company’s new launch in Brazil.

During Q4 alone, MGM Digital’s revenue climbed 15%, but expansion costs weighed on profitability. The company’s net loss for the quarter increased from $20 million to $22 million, though this was partially offset by lower player acquisition costs in the UK.

MGM Digital’s Future and Strategic Moves

MGM Digital is separate from BetMGM, which remains a 50-50 joint venture with Entain. After an unsuccessful bid to buy out Entain’s stake in BetMGM, MGM shifted focus to expanding its own online gaming business.

In 2022, MGM acquired LeoVegas for over $600 million, followed by Push Gaming in 2023 and Tipico Group in 2024, bolstering its sports betting and online casino platform. With an estimated $7 billion total addressable market in Brazil and Europe, MGM sees significant long-term growth potential in these markets.

Additionally, the company has invested heavily in live dealer casino experiences, streaming games from iconic casino floors like the Bellagio in Las Vegas. MGM believes this will help differentiate its digital offerings from competitors.

Looking Ahead: A Promising 2025

Despite only modest EBITDAR growth from $2.3 billion to $2.4 billion, MGM considers 2024 a strategic building year. The company remains bullish on 2025, citing:

• China's strong recovery, with 25% revenue and EBITDAR growth

• Expanding digital presence, including recent acquisitions and Brazil’s massive market potential

• Growing in-house gaming content with Push Gaming and Tipico

• Ongoing dominance in land-based casinos, while also holding a 50% stake in BetMGM

With these strategic investments and anticipated growth in online gaming and new markets, MGM is positioning itself for significant digital expansion while maintaining its leadership in the traditional casino space.