DESTRON, INC.

It's not your imagination -- MGM Resorts International (formerly MGM MIRAGE) is one of the world's largest gaming firms. The company's more than 15 partially or wholly owned properties include some of the biggest names on the Las Vegas Strip, including MGM Grand, The Mirage, and the Monte Carlo, as well as Luxor, Bellagio, and Mandalay Bay. MGM Resorts also owns or has a stake in other casinos in Nevada, as well as in Michigan (MGM Grand Detroit) and Mississippi (Beau Rivage). Internationally, it operates in China and Dubai. The company changed its name from MGM MIRAGE in 2010 to better reflect its family of hotel brands and its expanding global presence.

Geographic Reach

MGM Resorts owns a little more than half of its assets in China, through its 51%-owned MGM China, which completed a $1.4 billion IPO in 2011. MGM Resorts is also developing Bellagio, MGM Grand, and Skylofts hotels in Dubai that are expected to open in 2013. A joint venture hotel in Shanghai is also set to open in 2015. Despite these plans, the company still earns the majority of revenues from its Las Vegas operations. Analysts fault MGM for its US-heavy portfolio, and for entering the Chinese market relatively late in the game compared to rivals such as Las Vegas Sands and Wynn Resorts.

Operations

The company has two reportable segments that are based on the regions in which it operates: wholly owned domestic resorts and MGM China. MGM Resorts currently operates 15 wholly owned resorts in the US.  MGM China's operations consist of the MGM Macau resort and casino.

Sales and Marketing

MGM Resorts spent about $153 million on advertising during fiscal 2013. The company advertises on the radio, television, internet, billboards, and in newspapers and magazines in selected cities throughout the US and overseas. MGM Resorts also use direct mail and social media to reach out to past guests and potential customers. The company advertises through regional marketing offices located in major cities.

Financial Performance

In fiscal 2013 the company’s revenues increased by 7% compared to fiscal 2012. The increase came from increased gaming revenues and a bump in business at the company's resorts in China.

Despite the increase in revenue during fiscal 2013, the company posted a net loss of $156 million, caused by high operating costs, interest expenses, and charges related to debt. The net loss of $156 million was an improvement of 91% compared to the net loss of $1.7 billion in fiscal 2012.

Cash flow increased in by more than $400 million during fiscal 2013 compared to the previous fiscal period.

Strategy

MGM Resorts continues to make significant investments in its resorts through newly remodeled hotel rooms, restaurants, entertainment and nightlife offerings, as well as other new features and amenities. In Macau, the company plans to spend approximately $2.9 billion to develop a resort and casino featuring approximately 1,600 hotel rooms, 500 gaming tables, and up to 2,500 slots. MGM Resorts has also been actively pursuing development opportunities in markets such as Maryland and Massachusetts.

Ownership

Founder Kirk Kerkorian owns more than 20% of the firm. Tracinda Corporation owns about 18% of the company.

Company Background

MGM Resorts was formed when MGM Grand acquired Mirage Resorts in 2000. The company shot to the top of the gaming world in 2005 when it acquired rival Mandalay Resort Group for $7.9 billion. However, Harrah's Entertainment surpassed MGM Resorts after it merged with Caesars. (Harrah's later changed its name to Caesars Entertainment.)

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DESTRON, INC.


3799 Las Vegas Blvd S
Las Vegas, NV 89109-4319
Phone: 1 (702) 891-3333
Fax: 1 (702) 8911114
www.lv.mgmgrand.com

STATS


  • Employer Type: Unknown
  • Pres: Al Faccinto
  • Senior Marketing Executive: Craig Robinson
  • Executive Secretary To Vice President Of Entertainment: Leslie Trubey

Major Office Locations

  • Las Vegas, NV

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