It's not your imagination -- MGM Resorts International (formerly MGM MIRAGE) 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 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.
The company's two main reportable segments are based on the regions in which it operates: wholly-owned domestic resorts and MGM China. MGM China's operations consist of the MGM Macau resort and casino. Wholly-owned domestic resorts accounted for more than 70% of sales in fiscal 2015 while MGM China accounted for 24%.
Sales and Marketing
MGM Resorts spent about $156 million on advertising during fiscal 2015. 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.
During fiscal 2015 the company's revenue decreased by $891.9 million compared to the prior fiscal period.
MGM Resorts suffered a net loss in fiscal 2015. Its net loss increased by $297.8 million compared to the net loss the company reported in fiscal 2014.
However, the company still ended fiscal 2015 with more than $1 billion in cash on hand.
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.
In 2016 MGM Resorts 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 has plans to spin off its MGM Growth Properties subsidiary during 2016 as a real estate investment trust.
Founder Kirk Kerkorian owns more than 20% of the firm. Tracinda Corporation owns about 18% of the company.
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.)