MGM Resorts US revenues up 5% in Q4 2017
Worldwide casino giant, MGM Resorts International has reported a 5% year-on-year increase in its US domestic revenues for the fourth quarter of 2017, posting revenues of $1.9bn.
MGM Resorts operating income from its US resorts dipped year-on-year by 2% during Q4 2017, falling to $305m, while net income attributable to these resorts topped $1.4bn during the quarter and its adjusted EBITDA increased 1% year-on-year to $496m.
Operating income derived from MGM China dropped 40% year-on-year to $43m compared to the $72m reported in Q4 2016, while its adjusted EBITDA rose 7% year-on-year to $147m, also representing a 25% increase when compared to the third quarter of 2017.
Reflecting on the company’s financial results, Jim Murren, Chairman & CEO of MGM Resorts said: “Our fourth quarter results further exhibited the strength and durability of our organisation, and I am proud of the 78,000 men and women within our MGM family, who remain dedicated to the continued success and evolution of our Company.
“Over the years, our plan of instilling a culture of continuous improvement to elevate the guest experience, drive profitability, and enhance our financial position has allowed us to further demonstrate our disciplined approach to capital allocation and maximising shareholder value. Our success in executing on this plan continued to mark milestone achievements in 2017.”
Completing its financial reporting cycle for the full year 2017, the company reported consolidated net revenues of $10.8bn and domestic resorts net revenues of $8.3bn, an increase of 18% on 2016’s figures.
Operating income at MGM’s US resorts topped $1.8bn during 2017, while net income attributable to MGM Resorts during 2017 rose 81% to $2.0bn from a 2016 figure of $1.1bn. This was partially thanks to tax reforms instigated by the Trump Administration during the final months of 2017, which benefitted the company to the tune of $1.4bn.
Adjusted property EBITDA from MGM’s US resorts increased 22% year-on-year during 2017 to $2.5bn.
MGM China’s full-year operating income dropped 24% year-on-year from a full year 2016 high of $225m to $194m during 2017.
Looking ahead to 2018, Murren added: “We look forward to another rewarding year in 2018. MGM COTAI, Macau’s most technologically advanced resort opened its doors last week. This year, we will also welcome MGM Springfield in the third quarter, the completion of Park MGM and NoMad by the end of the year, and celebrate many more new and creative ways to entertain our guests at our destinations worldwide.”
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