The Lion Roars Back: MGM Resorts FY21 Revenue Rockets
MGM Resorts International came roaring back to life in 2021 with an operating profit of US$2.28 billion (£1.68bn/€2bn), compared to a loss of US$642.4 million (£473.6m/€565.9m) the previous year.
Revenue for the 12 months to December 31, 2021 totalled US$9.68 billion (£7.13bn/€8.52bn) up nearly 90 per cent on the US$5.16 billion (£3.8bn/€4.54bn) of FY2020.
MGM’s Casino revenue increased, almost 87 per cent, year-on-year, to US$5.36 billion (£3.95bn/€4.72bn); while Rooms revenue was up 103.5 per cent to US$1.69 billion (£1.24bn/€1.48bn) — reflecting the return to near-normal trading conditions, despite the ongoing trials and tribulations of Covid19.
As customers poured back to hotels and casinos to enjoy the physical retail delights of gaming floors, shops, bars and restaurants, Food and Beverage revenue near doubled to US$1.39 billion (£1.02bn/€1.22bn), as did Entertainment and Retail revenue to US$1.01 billion (£744.65m/€889.75m).
MGM operations on the world-famous Strip in Las Vegas, alone, generated revenue of US$4.74 billion (£3.49bn/€4.17bn) — an increase of 111 per cent, year-on-year.
The group’s Regional revenue surged 72.5 per cent to US$3.39 billion (£2.49bn/€2.98bn) and MGM China revenue–despite fourth quarter travel bans into Macau–was up, overall, almost 85 per cent, pulling in the equivalent of US$1.21 billion (£892m/€1.06bn).
Although the entertainment giant failed to acquire the UK-based Omni-channel Entain in a twin pronged campaign during the year (first through the eponymous parent company, then via its DraftKings subsidiary), MGM President and Chief Executive Bill Hornbuckle was in ebullient, hard-charging mood, when unveiling FY21 results.
“The strategic milestones we [have] achieved position us for further success in 2022,” said the MGM boss. “We remain excited about our long-term opportunities, including: leading the US sports betting and iGaming market through BetMGM; pursuing expansion, such as the [Osaka prefecture] Japan integrated resort, and reinvesting in our core business to drive sustainable growth.”
In another major development during 2021, MGM took over operations of The Cosmopolitan in Vegas in September, paying the new owners, the Cherng Family Trust, who bought it from private equity firm Blackstone, US$1.63 billion (£1.2bn/€1.43bn) for the privilege.
Added Hornbuckle: “As part of these efforts, we are proud to have recently launched our new loyalty program, MGM Rewards, which offers an enhanced and further streamlined experience to millions of our members worldwide.”
With results like these, surely, meat and mood music to the market too.