About Mirage Resorts, Incorporated
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, Park MGM, as well as Luxor, Bellagio, 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 casino, room reservations, food and drinks, entertainment, and retail operations.
MGM Resorts' hotels boast a combined approximately 45,000 rooms. Domestic properties on the Las Vegas strip and other regional locations include nearly 37,700 rooms, and its CityCenter joint venture, a mixed-use development in Las Vegas, has another some 5,500. Its hotels in Macau have about 1,970 rooms. The company's properties altogether host approximately 2.5 million square feet of casino space, about 34,500 slot machines, and more than 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 about 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. MGM owns approximately 55% of MGM China, which owns MGM Grand Paradise.
The company's headquarters is located in Las Vegas, Nevada.
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 were about 255 million in 2019, 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. Overall, net revenue increased 40% from 2015-2019.
Consolidated net revenues in 2019 increased 10% compared to 2018 due primarily to continued ramp-up of operations at MGM Cotai following its opening in February 2018, a full year of operating results at MGM Springfield, which opened in August 2018, the acquisition of Empire City in January 2019, a full year of operating results at MGM Northfield Park, which MGP acquired in July 2018, and an increase in revenues as a result of the ramp-up of operations at Park MGM, partially offset by a decrease in casino revenues at certain of our other Las Vegas Strip Resorts.
MGM Resorts posted profits of $2.0 in 2019, down from record profits of nearly $467 million in 2018, due to higher revenue.
At the end of 2019, MGM Resorts had $2.3 billion in cash and cash equivalents. Cash from operations was $1.8 billion. Cash provided in investing activities was $3.5 billion, primarily for capital expenditures. Cash used by financing activities was $4.5 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.
As part of its transformation, MGM Resorts divests its Las Vegas Strip properties, including Circus Circus and its flagship, MGM Grand. MGM Resorts will enter two attractive markets in New York and Ohio.
As part of the second phase of MGM 2020 Plan, MGM plan to invest in its digital transformation to drive customer-centric strategy for revenue growth. In addition, MGM Resorts continued to focus on key growth opportunities to develop an integrated resort in Japan and also continued investments in sports betting through its venture, Roar Digital LLC.
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 $850 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 $1.06 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.
3600 Las Vegas Blvd S
Las Vegas, NV 89109-4303
Phone: 1 (702) 791-7111
Employer Type: Privately Owned
Executive Vice President: Jessica Guarino
Departament Manager: Mario Jacques
Senior Vice President: Bryan Wright
Employees (This Location): 100
Employees (All Locations): 25,900
Las Vegas, NV
Bullhead City, AZ