MGM Resorts International is one of the world's largest gaming firms. The company's 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, Mandalay Bay, and the new T-Mobile Arena. MGM Resorts International 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 to MGM Resorts International back in 2010 to better reflect its family of hotel brands and its expanding global presence.
The company's two main reportable segments are based on the regions in which it operates: Domestic Resorts and MGM China. MGM Resorts International's China operations consist of the MGM Macau resort and casino. Domestic Resorts accounted for more than 75% of sales in fiscal 2016, while MGM China accounted for 20%.
Sales and Marketing
MGM Resorts International spent about $171 million on advertising during fiscal 2016. The company advertises on the radio, television, internet, billboards, and in newspapers and magazines in selected cities throughout the US and overseas. MGM Resorts International 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.
During fiscal 2016 the company's revenue increased compared to fiscal 2015.
MGM Resorts International reported $9.46 billion in revenue for fiscal 2016, up from $9.19 billion the prior fiscal year.
MGM Resorts International suffered a net loss in fiscal 2015. However, the company rebounded to report net income of $1.1 billion in fiscal 2016, largely due to decreased operating expenses.
Cash provided by operating activities was $1.5 billion in fiscal 2016 compared to $1 billion in fiscal 2015.
MGM Resorts International 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 International has also been actively pursuing development opportunities in markets such as Maryland and Massachusetts.
In 2016 MGM Resorts International opened the new 20,000 seat T-Mobile arena in Las Vegas. The company hopes to attract a large number of high-profile concerts and sporting events. The long-term plan is to lure a NHL or NBA team to Las Vegas.
The company also spun off its MGM Growth Properties subsidiary during 2016 as a real estate investment trust.
Mergers and Acquisitions
In 2016 MGM Resorts International acquired Borgata Hotel Casino & Spa in Atlantic City, New Jersey from Boyd Gaming Corporation for about $900 million. The acquisition added to the company’s growing presence in the mid-Atlantic and Northeast United States.