LAS VEGAS (KTNV) — Big events like the inaugural Formula 1 Las Vegas Grand Prix have fueled record profits for MGM Resorts International.
On Tuesday, the company announced their Fourth Quarter 2023 and Full Year 2023 results.
When looking at Las Vegas Strip resorts in the fourth quarter, the resorts brought in $2.4 billion in net revenues, compared to $2.3 billion at the same time last year. When looking at the yearly revenue, Las Vegas Strip resorts brought in $8.8 billion in 2023, compared to $8.4 billion in 2022, an increase of 5%.
Those numbers are new records for the company.
"Our Las Vegas Strip resorts and MGM China set new all-time records for full year and fourth quarter Adjusted Property EBITDA," said Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts. "Our premium positioning and offerings in Las Vegas enable us to capture incremental project. during major events such as the inaugural Formula 1 race and our first Super Bowl. 2024 is off to a winning start with the launch of our Marriott relationship as well as opportunities to increase our convention room nights and international mix."
While the final numbers are still rolling in for Super Bowl week, Hornbuckle said he's expecting big revenue from The Big Game.
"The game weekend is typically a strong event for MGM Resorts but having the game in town amplified those results dramatically," Hornbuckle said. "We had thousands of people in all of our ballrooms, in the MGM Grand Garden, enjoying the game and enjoying the festivities. It was a really successful, universal event. Las Vegas showed up and I think we did a tremendous job hosting it."
BetMGM launched a newly-designed sports betting app in Nevada ahead of the Super Bowl. According to BetMGM, between the company's 28 operational markets, during the Super Bowl, they saw a 72% increase in new customers, 30% increase in Big Game bets, and 51% increase in the number of women betting on the Super Bowl.
When it comes to adjustments for Formula 1, Hornbuckle said they're going to be more cautious about operations outside of the premium properties along the track.
"The South Strip, we'd probably treat that like a normal weekend moving forward because of the lack of activation there," Hornbuckle explained.
RELATED LINK: Formula 1 was highest-grossing weekend ever for MGM Resorts, according to CFO
Hornbuckle was also asked about what the company plans to do if the Oakland A's end up moving to Las Vegas.
"For us, obviously, the place to invest capital, first and foremost, if in fact that all happens, is MGM. I mean, it's our brand. It's our namesake. It's on the corner of Las Vegas Boulevard and Trop. It would literally be adjacent to the stadium and it needs some love," Hornbuckle said. "It's a 30-year-old property. We're going to reinvest in the rooms this year. We've got some new show concepts. We've done a few restaurants but the front of the property, as you get closer to Las Vegas Boulevard, needs some attention and some reprogramming."
Hornbuckle added they're waiting to see what happens next before moving forward with any planning.
"I have to believe in the next 30-60 days, we should find out more. I've been shown three versions of it now, in terms of where it will actually sit on the site and how it will connect," Hornbuckle said. "Once it settles in, we'll get serious about what we might want to do and how we might want to communicate with it in terms of pedestrian traffic, etc."
As for the outlook in 2024, Hornbuckle said several new initiatives, including the partnership with Marriott, the Mandalay Bay Convention Center being refreshed, and international inbound flights continuing to recover from the pandemic, are predicted to lead to record profits again by the end of the year.
