2021 Q4 and Full Year Financials Signal Success for MGM Resorts
Despite the challenges posed by the ongoing COVID-19 pandemic, MGM Resorts International did well for itself last year, thanks in no small measure to strong leisure travel demand and the resurgence of gaming.
The company just revealed its fourth-quarter and full-year financial results for 2021, and in some areas, managed to even outperform its own pre-pandemic profit margins.
Overall revenue at MGM Resorts’ Las Vegas properties was shown to have risen above both 2019 and 2020 fourth-quarter levels, according to Travel Weekly.
Figures were bolstered due to the inclusion of a full quarter of operating 100 percent of the Aria and Vdara hotels, located at CityCenter. Previously, MGM Resorts had held 50 percent ownership of the resort complex, but bought out partner company Infinity World in September of last year.
Revenue at the company’s other Las Vegas Strip properties came in at five percent above 2019’s final quarter. Nevada’s removal of COVID-19 restrictions and capacity limits in June 2021, and the resurgence of travel after vaccines had been made widely available contributed to the Sin City resorts’ comeback.
“We had a very strong end to a great year,” MGM Resorts CEO and President Bill Hornbuckle said during an earnings call with investors on Wednesday. “Our Strip and regional margins remained very strong in the fourth quarter.”
Consolidated net revenues of $3.1 billion in 2021’s fourth quarter exceeded the company’s third-quarter net revenue of $2.7 billion and the second quarters’ $2.3 billion.
2021’s fourth quarter brought a net income of $131 million, while MGM had experienced a net loss of $448 million in the fourth quarter of 2020.
The company’s Nevada casinos saw record revenues from gaming last year, exceeding $1 billion in December for the tenth consecutive month. Gaming revenue in 2021’s fourth quarter reached $541 million, a $201 million increase over the same period in 2020.
Fourth-quarter earnings for MGM’s China operations were far less impressive. Its net revenue came in at $315 million, an increase of three percent over 2020, but a 57 percent drop from 2019 figures. Hornbuckle said that Macau’s ongoing entry restrictions and the dearth of international travel to China amid the pandemic are hindering the area’s recovery.
“Our record fourth-quarter results are a testament to our talented team across the globe, our sharpened focus on operational efficiency and the proven resiliency of demand for the service and experiences that we provide at MGM Resorts,” Hornbuckle said. “The strategic milestones we achieved in 2021 position us for further success in 2022, and we remain excited about our long-term opportunities.”