Market Overview

Some Highlights from MGM Resort's Q4 Earnings Conference Call

Related MGM
Earnings Preview: McDonald's, Coca-Cola, And Chipotle Report Q1
Possible Palace Mass Market Gains Lead Aegis To Boost Estimates On Wynn

Below are some highlights MGM Resorts (NYSE: MGM) Q4 earnings conference call:

  • Best EBITDA quarter and year in five years.
  • myVEGAS social gaming app has also been a great success.
    • #1 casino app in the iTunes App Store.
    • myVEGAS has proven ability to convert its player to consumers of Las Vegas resorts.
    • 80,000 myVEGAS players visited an MGM property in 2013.
  • Las Vegas, MGM China, and CityCenter drove revenues that were up 10% year-over-year and EBITDA grew 21%.
    • CityCenter reported $93 million and $316 million for the quarter and year respectively. Bests for both.
    • Aria fourth quarter EBITDA was $77 million, up 42% year-over-year.
  • Regional properties were negatively impacted by severe weather and other market pressures
    • 2 percent revenue decline during the quarter.
    • Excited about the opportunity for a downtown revitalization project in Springfield. Awaiting a decision and awarding of that license this year.
  • Fourth quarter Strip REVPAR increased by 1% year-over-year, slightly better than guidance.
    • Able to book more in the quarter for the quarter convention room nights which allowed MGM to drive room rates.
    • Expects REVPAR to be up approx. 10% year-over-year.
  • For the full year, we continue to expect to see our convention mix increase by about 100 basis points to approximately 15.5%, 16%.
    • Which is beginning to approach prior peak levels.
  • During the fourth quarter, MGM spent approximately $127 million in capital related to our domestic operations.
    • Full year 2013 CapEx related to domestic operations was approximately $324 million, in line with guidance.
  • Construction underway of 2nd resort in the world's largest gaming market, Cotai.
    • Completed the deep piling and the majority of the conventional piling and site work.
    • Began work on the basement substructure.
    • MGM Cotai opens early 2016.

Posted-In: Earnings News


Related Articles (MGM)

View Comments and Join the Discussion!