MGM Resorts International saw a significant boost in its earnings for the year 2022 with a revenue of $13.1 billion, a surge of 36% from the previous year’s $9.7 billion. This figure encompasses the financial results of several properties, including the newly acquired Cosmopolitan in Las Vegas, and the full-year operations of Aria and Vdara. Additionally, the company saw a successful sale of the Mirage to Hard Rock International, fetching $1.1 billion.
The company’s net income saw a slight rise in 2022, totaling $1.5 billion compared to $1.4 billion the previous year. However, operating income decreased to $1.4 billion, compared to the previous year’s $2.3 billion. This drop was attributed to an increase in non-cash expenses, higher rent costs, and offsetting gains from real estate transactions and the sale of the Mirage.
CEO Hornbuckle Underlines Positive Outlook for 2023
CEO Bill Hornbuckle expressed his confidence in the strength of the business and highlighted the positive outlook for 2023, which is being propelled by a thriving schedule of events domestically, the quick return to profitability of MGM China year-to-date, and the continued progress of BetMGM in 2023.
He further added: “We achieved our fifth consecutive quarter of record-breaking Las Vegas Strip Resorts Adjusted Property EBITDAR in the fourth quarter. What we accomplished in 2022 is nothing short of remarkable, and is a testament to our strategic plan, scale, brand strength, talented team, loyalty program, and the diverse geographies and channels in which we operate.”
MGM Resorts saw a 27% increase in net revenues for its Las Vegas Strip Resorts in the fourth quarter, reaching $2.3 billion compared to $1.8 billion the previous year. The growth was due to the inclusion of The Cosmopolitan, increased business volume and travel, and recovery from the pandemic.
CFO Halkyard Highlights Successful Share Buyback Program
According to CFO and treasurer of MGM Resorts, Jonathan Halkyard, the company achieved exceptional results in the fourth quarter and remains optimistic in its outlook for the year. He also highlighted the company’s focus on free cash flow and the belief that MGM presents a compelling yield, particularly when considering the value of its share price for excess cash and ownership of MGM China and BetMGM.
The statement further noted the success of MGM’s share buyback program, which has returned capital to shareholders through the repurchase of 4 million shares for $164 million year-to-date and 76 million shares in 2022, totaling approximately $4.7 billion since 2021. Additionally, the Board of Directors has authorized an additional $2 billion for future share buybacks.