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MGM Resorts International's (MGM, Financials) stock rose 17% to $40.23 as of 1:56 p.m. EST Thursday after the company reported record financial performance in 2024, fueled by gains in gaming, hospitality, and digital operations.
With positive EBITDA expected, BetMGM predicts $2.4 billion to $2.5 billion in income for 2025, a $250 million annual improvement. LeoVegas targets $1 billion in long term income, while MGM's digital operations rose 15% in Q4. With record full-year adjusted EBITDA, Macau operations saw a 4% revenue rise year over year.
With the Cosmopolitan integration into MGM Rewards, the Delano redesign to W Las Vegas under its Marriott alliance, and Tipico's U.S. sports betting integration slated by mid-2025 MGM is growing its presence. Globally, the business is expanding to Brazil and Europe in order to increase its online footprint.
Notwithstanding great success, experts are wary about growing promotional expenditure in digital gambling, possible tax rises, and the lack of the Super Bowl in Las Vegas in 2025, which would affect income comparisons. Renovations at MGM Grand might possibly cause short disturbance. The business has found, however, $150 million in EBITDA efficiencies65% from cost-cutting initiatives.
While Las Vegas has near-term difficulties, MGM's digital development, strategic alliances, and operational effectiveness set it for long-term progress.
This article first appeared on GuruFocus.