MGM Resorts: Good start in 2023
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MGM Resorts started optimally in 2023 and was able to achieve enormous sales in the first quarter. The US gambling group recently announced this by press release. Thanks to the recovered gambling market in the United States, the company was able to take around $ 2.85 billion (USD) in the first four months of the current year. Compared to the previous year’s quarter, this corresponds to growth of 73 percent.
Most of the income from casinos
MGM Resorts is active worldwide as one of the big players in the gambling industry. However, the primary focus is still on the home market in the USA. Especially Las Vegas plays an essential role for business activities. This is also reflected in the sales figures of the first quarter of 2023. The gambling group generated around $ 1.66 billion in the well-known metropolis. The second most important market in Macau, on the other hand, dropped only $ 286 million.
As can be seen from the official press release, the 1.42 billion USD of the turnover generated to the international casino area. MGM generated a total of $ 557 million through the hotels and the general overnight business. Meanwhile, the catering segment flushed 492 million and the entertainment and trade sector 371 million in the coffers of the gambling group.
MGM cited the contradictory US gambling marketthe long time through the Effects of Corona pandemic was scoured. Since the relapse of the restrictive security and protective measures, the demand for gambling offers in the United States has increased enormously. Even during the week, it is diligently played in the US casinos. This ensures proper sales at MGM and other industry players.
Las Vegas as a ghost town. The gambling industry in the United States had to fight enormously during the Corona Lockdown phases. In Las Vegas in particular, the dimensions of the pandemic were clearly felt. The US gambling metropolis was like a ghost town for several months. The local casinos were not allowed to receive guests and essential tourism came to a standstill due to the international travel restrictions.
MGM with a new corporate strategy
the flourishing gaming market in the USA MGM did not name the only reason for the strong first quarter in the current year. Also the Structural changes in the companythat are based on a new strategy, according to the group, are responsible for the good business figures.
For example, his own real estate branch MGM Growth Properties was recently sold to real estate developer Vici Properties. The deal was an important step of the new strategy to To slim gambling group in the long run.
Bill Hornbuckle, CEO from MGM Resorts, explains:
“By selling our real estate division to Vici Properties, we have achieved another milestone in our asset light strategy, which in the long run should simplify our corporate structure and strengthen our liquidity. At the same time, we have the opportunity to invest capital in other projects. ”– Bill Hornbuckle, CEO von MGM Resorts, Official press release from MGM Resorts
The strategic realignment and the associated good business situation are responsible for the fact that MGM resorts are Could drastically reduce net desire. In the first quarter of 2021, this was still $ 332 million. In this year it is only $ 18 million.
Growth through expansion
Although it could not be better at the moment, MGM Resorts does not seem to want to rest on the current wave of success. So the group is always on the Search for new growth and expansion options. The announcement recently made headlines that MGM submitted a purchase offer to the Swedish online gambling provider LeoVegas. There is a sum of 577 million $ in the room.
With the takeover, MGM is planning, his Strengthen presence on the European market. As industry media recently reported, LeoVegas has been flirting with a sale for a long time. Accordingly, MGM has entered open doors to the Swedish gaming company with its advance. As both corporations announced, the negotiations should be completed by the end of the year.
With a Integrated casino in Japan MGM Resorts has another hot iron in the fire. The huge project in the Prefecture of Osaka has been in the planning and development phase for some time. However, the first groundbreaking is still pending. However, the billion -dollar building project is to be further specified in the coming months.
Important hurdle. MGM Resorts claimed to submit important documents to the Japanese central government in the past week and thus took another hurdle in the construction project. However, when work will begin is still in the stars.