MGM Resorts has recently announced selling two of its Las Vegas properties including the Bellagio and Circus Circus. And even though the resorts total revenue for 2018 neared $11.7 billion. MGM’s casinos alone turned around $5.7 billion during 2018, constituting 49% of the resort’s total revenue that year.
MGM’s numbers look great on paper yet their declining share of Las Vegas properties affected their overall earnings.
According to Forbes, “In 2018, Las Vegas Strip, Regional Properties, Macau contributed 49%, 25%, and 21% of total revenues for MGM, respectively.”
It is worth mentioning that MGM operates 66,000 square feet of gaming space including 842 slot machines and 56 gaming tables.
Forbes also reported that over the last year, food & beverage revenues “have observed a consistent 8% growth, driven by new outlet openings at Park MGM.”
With MGM’s recent investment into Sydell Group and after selling the Bellagio and Circus Circus, financial experts are anticipating that the renowned resort is growing its non-casino business, positioning itself as a hotel company rather than a casino operator in Las Vegas.
MGM’s food & beverage revenues are made up of food & beverage sales and lease payments from these contracts.
About MGM International
MGM Resorts International is a holding company that owns and operates casino resorts in two segments; domestic resorts, and MGM China. MGM’s operations include hotel, food and beverage, entertainments, and other non-gaming amenities.
MGM resort dates back to the late 1960s after it was founded by Krik Kerkorian, one of the most successful businessmen of his generation and regarded as one of Las Vegas early pioneers. At the time it was built in 1962 MGM was the largest hotel in the world at the time.
In 2000, long after Kerkorian had left the business, MGM Grand, Inc., the holding company acquired Mirage Resorts in what was the largest transaction of its kind in the gaming industry at that time.
“The new company, named MGM MIRAGE, acquired Mandalay Resort Group in 2005 and retained the MGM MIRAGE name until 2010 when the Company was renamed MGM Resorts International.” MGM Resorts.
The resort mentions on their website that they aim at creating spaces that allow their guests to immerse themselves in the experience through beautiful architecture, compelling design or surprising elements that create whimsy and delight, culminating in inviting spaces that bring people together.”