MGM Resorts International, an established brand in the gaming and hospitality space, has released a financial report for 2021, one about Q4 and one for the entire year of 2021. Both of them mark a significant improvement over the past year.
In 2021, the company had a consolidated net revenue of $9.7bn, which is a roughly 88% increase compared to the prior year. Its net income was $1.3bn, which is nothing to scoff at, especially compared to the $1bn net loss the company sustained in 2020.
As for Q4 of 2021, MGM Resorts International set another record, and its magnitude was a major contributing force to its year-round financial track record. At this point, the company brought in a $3.1bn worth of consolidated net revenue. Compared to the same Q4 period of 2020, this makes for a whopping 105% increase.
The disappointing results of 2020 can be attributed to restrictions and temporary closures, much of which are no longer in effect. Bill Hornbuckle, President and CEO of MGM Resorts International believes the record Q4 results of 2021 were due to operational efficiency, the contribution of talented team members from all over the world, and a constant demand for the company’s services.
Effectively, this puts the company in a great position to pursue further successes and other long-term opportunities in 2022, one of which is the US iGaming market leadership through BetMGM. In fact, this is one of the best leading brands in iGaming, and it can be found among the list of the best NY betting apps.
The CEO also revealed that expanding into other regions is on the company’s radar as well, particularly in Japan. Driving sustainable growth remains the core objective. The end customers have plenty of things to look forward to, including a newly launched MGM Rewards program focusing on the streamlined experience.
The company’s Q4 period of 2021 was characterized by a record cash flow and margins observed across its several Las Vegas Strip properties. The numbers not only rivaled the ones from the pre-pandemic days; in fact, they exceeded them by a substantial margin. MGM’s Strip properties generated $1.8bn in revenue – compared from the same Q4 period in 2020, that’s a record 277% increase and a 26% increase from Q4 2019.
As for the regional operations, they reported a 51% increase in revenue compared to the last year. In concrete numbers, this totals at $900m. Despite the not-overly-optimistic predictions for 2021, the US’ gaming and tourism industries recovered significantly. In particular, casinos in Nevada brought in record numbers.
According to the claims of Jonathan Halkyard, treasurer and CFO at MGM Resorts International, the company generated a $1.75bn return for its shareholders. Allegedly, this was due to strategic investments and share repurchases, all of which fall in line with the company’s vision to position itself as the world’s best gaming entertainment entity.
The CFO wants to highlight its commitment to maximizing its long-term value to shareholders. The key priorities can be summarized as investing in targeted growth opportunities, returning revenue to shareholders, and maintaining a strong balance sheet.
As for the company’s future, there are many recent developments it’s eyeing to complete, among which is an agreement to sell the entire equity interests of The Mirage for an estimated sum of $1bn. The lucky buyer is an affiliate of Seminole Hard Rock Entertainment. The sale is expected to be closed in the second half of the ongoing year.
In January, the company publicized the details of its investment into BetMGM, the total of which stands at $450m. The platform’s launch in New York went according to plan; thus, the expected net operational revenue now sits at $1.3bn plus, exceeding 2022’s initial forecast of $1bn.