About Destron, Inc.
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, Circus Circus, New York-New York, Mandalay Bay, and the new T-Mobile Arena. MGM Resorts also operates regional properties in a handful of other US states, including the MGM Grand Detroit and the Borgata in Atlantic City, New Jersey, among others. Internationally, MGM Resorts operates in Macau, an autonomous Chinese territory famed for gambling. Revenue comes from gambling, room reservations, food and drinks, entertainment, and retail operations.
MGM Resorts' hotels boast a combined 49,000 rooms. Domestic properties on the Las Vegas strip and other regional locations include more than 41,000 rooms, and its CityCenter joint venture, a mixed-use development in Las Vegas, has another 5,500. Its hotels in Macau have nearly 2,000 rooms. The company's properties altogether host more than 2.5 million square feet of casino space, more than 31,000 slot machines, and some 2,000 gaming tables.
Casino operations generate nearly half the company's total revenue, while hotel rooms generate about 20%, and food and drink bring in approximately 15%. Other revenue-generators include entertainment and retail holdings.
The company operates and manages its hotels, which are owned by MGM Growth Properties, an affiliated real-estate investment trust.
MGM Resorts' reportable segments are based on the geographic regions in which it operates. Domestic Resorts, including Las Vegas strip resorts and regional operations, account for nearly 75% of sales, while MGM China accounts for about 20%. (A corporate segment occupies the remainder.)
The company has nine properties on the Las Vegas strip. It has another six in the US, in Maryland, Massachusetts, Michigan, Mississippi, and New Jersey. MGM also owns 50% of the CityCenter in Las Vegas, which it manages for a fee, and is expanding in Ohio with MGM Northfield Park and in New York with Empire City.
MGM Resorts' China operations consist of two sites in Macau: MGM Macau resort and casino and MGM Cotai, a casino, hotel, and entertainment resort on the Cotai strip, China's equivalent of the Las Vegas strip.
Sales and Marketing
MGM Resorts advertises on the radio, television, internet, billboards, and in newspapers and magazines in selected cities throughout the US and overseas. MGM Resorts also uses direct mail and social media to target past guests and potential customers. The company advertises through regional marketing offices located in major cities.
The firm encourages customers to keep their total gaming and entertainment spending at its casino resorts through its customer loyalty program, M life Rewards. The tiered program allows customers to qualify for benefits across participating resorts in both gaming and non-gaming areas. It also offers the Golden Lion Club for gaming-focused customers, in addition to M life Rewards, at MGM China.
Advertising expenses exceeded $300 million in 2018 and reached nearly $225 million in 2017.
MGM Resorts International has for the most part grown its revenue year-over-year in recent years. The company's net income during the most recent five-year period ending 2018 has been more sporadic — up one year and down the next. Fiscal 2017 was something of a breakthrough for earnings, with acquisitions and a major tax gain fueling record profits that year.
Overall revenue for 2018 increased 9% compared to 2017 due primarily to the openings of MGM Cotai and MGM Springfield in 2018. Specifically, 2018 revenue grew to a whopping $11.8 billion on the back of full-year contributions from the Macau market, where gaming revenue increased 14% compared to 2017, primarily as a result of growth on the Cotai Strip.
MGM Resorts posted profits of $467 million in 2018, down from record profits of nearly $2 billion in 2017 when the company benefited from an exceptional item, recording a $1.4 billion tax benefit relating to the 2017 US Tax Cuts and Jobs Act.
At the end of 2018 MGM Resorts had $1.5 billion in cash and cash equivalents. Cash from operations was $1.7 billion. Cash used in investing activities was $2.1 billion, an increase from the prior year as a result of its Northfield acquisition. Cash provided by financing activities was $389.2 billion.
MGM Resorts International in 2019 announced the implementation of the MGM 2020 plan to reduce costs, improve efficiencies, and drive revenue growth. The MGM 2020 plan is a company-wide initiative aimed to create a more centralized organizational structure and lay the groundwork for a digital transformation, through key investments in technology. As part of MGM 2020 the company cut more than 1,000 jobs at its properties in 2019. The plan is expected to boost earnings before interest, taxes, depreciation and amortization by $200 million by the end of 2020 and another $100 million by the end of 2021.
In addition to increasing margins and maximizing profitability, the company wants to establish new relationships with professional sports leagues and teams to expand sports wagering after a US ban on such betting in most states was lifted in 2018. MGM Resorts has also expressed interest in developing a resort in Japan, where the government recently passed legislation allowing the construction of three casino resorts.
In 2018 the company expanded internationally and domestically when it opened two new major properties. It opened MGM Cotai, an integrated casino, hotel, and entertainment resort on the Cotai Strip in Macau in February of that year, and MGM Springfield in Springfield, Massachusetts in August.
Mergers and Acquisitions
In 2019 MGM Resorts acquired Empire City Casino's race track and casino in Yonkers, New York, just 15 miles north of Manhattan's Times Square, for approximately $864 million. The purchase gives MGM a fourth property in the Northeast; it previously opened its MGM Springfield resort casino in Massachusetts in 2018. Representatives from MGM say the Empire City deal is designed to tap into the underserved New York market, and will complement the MGM Springfield market.
MGM is also in the final stages of buying Hard Rock Rocksino Northfield Park in Ohio for $1 billion. It plans to re-brand the property MGM Northfield Park.
Billionaire Kirk Kerkorian purchased a stake in famed movie studio Metro-Goldwyn-Mayer (formed 1924) for just over $80 million in 1970. Around the same time, he began acquiring property in Las Vegas and started construction on the city's largest hotel.
Financial difficulties led Kerkorian to sell his new hotel, but he retained the rights to the MGM Grand name and logo. Kerkorian founded MGM Grand, Inc. in 1986 and took the company public in 1987. In 1993 Kerkorian and company unveiled Las Vegas' MGM Grand, a $1.1 billion complex featuring a theme park and, at the time, the largest casino on the planet. The project was a success and spawned plans for expansion.
In a landmark deal, MGM Grand bought rival Mirage Resorts for $6.4 billion (including $2 billion in debt) in 2000 and became one of the top gaming companies in the world. The purchase of Mirage Resorts allowed MGM Grand to add a string of opulent casinos to its collection, including Las Vegas strip properties Bellagio and The Mirage. After the deal closed, MGM Grand changed its name to MGM MIRAGE.
The company opened MGM Grand Macau in China in 2007. In 2010 MGM MIRAGE changed its name to MGM Resorts International to emphasize the brand's global scope.
3799 LAS VEGAS BLVD S
Las Vegas, NV 89109-4319
Phone: 1 (702) 891-1111
Employer Type: Privately Owned
Senior Vice President of Europe and Middle East Marketing: Magdy Gayed
Senior Vice President: Debi Nutton
Senior Vice President Of Community Affairs And Administration: Juliette T Okotie-eboh
Employees (This Location): 30
Employees (All Locations): 243
Las Vegas, NV