MGM Resorts International (MGM): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how MGM Resorts International, a global leader in gaming and entertainment, operates and generates its impressive revenue? With a record-breaking consolidated net revenue of $17.24 billion in 2024, driven by a 27.6% surge in revenue from MGM China reaching $4.02 billion, the company continues to dominate the hospitality industry. Intrigued to know more about its history, ownership, mission, and the strategies behind its financial success? Keep reading to discover the multifaceted story of this iconic entertainment giant.

MGM Resorts International (MGM) History

Company's Founding Timeline

Year established

The company was established in 1987.

Original location

The original location was in Las Vegas, Nevada.

Founding team members

Though the modern iteration of the company was founded in 1987, its roots trace back to Kirk Kerkorian, who acquired Metro-Goldwyn-Mayer (MGM) in 1969. Key figures in the later development of the company include:

• Kirk Kerkorian: A pivotal figure whose vision shaped the early direction of the company.
• Terry Lanni: He served as Chairman and CEO, contributing significantly to its growth and expansion.
• Jim Murren: Another influential CEO who led the company through significant periods of change and growth.

Initial capital/funding

Information regarding the specific initial capital or funding for the 1987 iteration of the company is not readily available in the provided search results. However, Kirk Kerkorian's acquisition of Metro-Goldwyn-Mayer in 1969 and subsequent transactions played a crucial role in providing the financial foundation for the company's future ventures in the gaming and hospitality industry.

Company's Evolution Milestones

Company's Transformative Moments

• Kirk Kerkorian's Vision: His initial acquisition of MGM and subsequent investments in Las Vegas set the foundation for the company's dominance in the gaming and hospitality industry.
• Expansion and Acquisitions: The acquisitions of Mirage Resorts and Mandalay Resort Group significantly increased the company's footprint and diversified its portfolio of iconic properties.
• Development of CityCenter: This ambitious project represented a major investment in urban development and innovation, though it also presented financial challenges.
• Navigating the COVID-19 Pandemic: The company's ability to adapt and innovate during the pandemic demonstrated its resilience and strategic foresight.
• Focus on Core Assets: Recent strategic decisions, such as the sale of The Mirage, indicate a focus on streamlining operations and investing in core assets for long-term growth.

To gain further insights into the company's guiding principles, you might find this link helpful: Mission Statement, Vision, & Core Values of MGM Resorts International (MGM).

MGM Resorts International (MGM) Ownership Structure

MGM Resorts International features a mix of institutional, retail, and insider ownership, reflecting a diverse investor base. Understanding this structure provides insight into the company's governance and strategic direction.

MGM Resorts International Current Status

MGM Resorts International is a publicly traded company, meaning its shares are available for purchase on the stock market by the general public. It is listed on the New York Stock Exchange (NYSE) under the ticker symbol MGM.

MGM Resorts International Ownership Breakdown

The ownership of MGM Resorts International is distributed among various types of shareholders. Here's an overview:

MGM Resorts International Leadership

The leadership team at MGM Resorts International is responsible for setting the strategic direction and overseeing the company's operations. As of April 2025, key members of the leadership team include:

• CEO & President: William Hornbuckle continues to lead the company, guiding its overall strategy and growth initiatives.
• Chief Financial Officer: Jonathan Halkyard remains the CFO, responsible for managing the company's financial operations and strategies.
• Board of Directors: The board includes individuals with diverse backgrounds in finance, hospitality, and business management, providing guidance and oversight to the executive team.

For more insights into MGM Resorts International's financial performance, check out: Breaking Down MGM Resorts International (MGM) Financial Health: Key Insights for Investors

MGM Resorts International (MGM) Mission and Values

MGM Resorts International strives to deliver exceptional entertainment experiences while upholding strong ethical principles and contributing positively to the communities it serves. The company's core values emphasize innovation, inclusivity, and social responsibility, guiding its operations and interactions with stakeholders.

MGM Resorts International's Core Purpose

Official mission statement

MGM Resorts International's mission statement is: 'We provide the greatest entertainment in the world. We welcome and delight guests from around the world to our iconic destinations. We deliver moments that make their lives more exciting and memorable.'

• Providing world-class entertainment experiences is central to MGM Resorts' mission.
• The company aims to create memorable and exciting moments for its guests.
• Welcoming guests from diverse backgrounds is a key aspect of their mission.

Vision statement

MGM Resorts International's vision is to be the world's premier entertainment company, defined by iconic destinations and superior experiences. This involves:

• Creating iconic destinations that are recognized globally.
• Delivering experiences that exceed customer expectations.
• Leading the entertainment industry through innovation and excellence.

Company slogan/tagline

MGM Resorts International does not currently have a widely publicized official slogan or tagline. However, they focus on branding around creating memorable experiences. Additional information can be found at: Mission Statement, Vision, & Core Values of MGM Resorts International (MGM).

MGM Resorts International (MGM) How It Works

MGM Resorts International operates as a global entertainment, hospitality, and gaming company, offering a diverse range of experiences through its casinos, hotels, and resorts.

MGM Resorts International's Product/Service Portfolio

MGM Resorts International's Operational Framework

MGM Resorts International focuses on creating integrated resort experiences. The company's operations are structured to maximize customer engagement and revenue generation across various segments.

• Property Management: Efficiently managing and maintaining its properties to ensure high standards of quality and customer satisfaction.
• Marketing and Sales: Implementing targeted marketing campaigns to attract different customer segments, including loyalty programs like MGM Rewards.
• Technology Integration: Utilizing technology to enhance the customer experience, such as mobile check-in, digital concierge services, and advanced gaming platforms.
• Workforce Management: Training and developing a skilled workforce to deliver exceptional service and maintain operational efficiency.

MGM Resorts International's Strategic Advantages

MGM Resorts International has several strategic advantages that contribute to its market position and financial performance.

• Brand Recognition: Strong brand reputation and customer loyalty, built over decades of operation.
• Diversified Revenue Streams: Multiple revenue sources, including gaming, hospitality, entertainment, and retail, which mitigate risk.
• Strategic Locations: Prime locations in major entertainment hubs such as Las Vegas, Macau and other key markets.
• Partnerships: Strategic alliances with leading brands, entertainers, and chefs to enhance offerings and attract customers.

To gain more insights into the company's guiding principles, explore Mission Statement, Vision, & Core Values of MGM Resorts International (MGM).

MGM Resorts International (MGM) How It Makes Money

MGM Resorts International primarily generates revenue through its casino operations, hotel accommodations, food and beverage sales, and entertainment offerings across its various properties.

MGM Resorts International's Revenue Breakdown

Here is a look at MGM Resorts International's revenue streams:

MGM Resorts International's Business Economics

MGM Resorts International's business economics are influenced by several key factors:

• Pricing Strategies: MGM employs dynamic pricing strategies for hotel rooms, adjusting rates based on demand, seasonality, and events. Casino operations benefit from high table minimums and a wide variety of slot machines, appealing to different customer segments.
• Economic Fundamentals: Consumer spending trends and overall economic health significantly impact MGM's revenue. During economic downturns, discretionary spending on leisure activities tends to decrease, affecting casino and hotel revenues.
• Operational Efficiency: Managing operating costs, including labor, utilities, and marketing expenses, is crucial. Efficient cost management enhances profitability and allows for reinvestment in property improvements and new ventures.
• Real Estate Assets: Owning and managing premier real estate assets in prime locations, such as the Las Vegas Strip and other major cities, provides a competitive advantage. These assets appreciate over time, contributing to the company's overall financial strength.

MGM Resorts International's Financial Performance

Key aspects of MGM Resorts International's recent financial performance include:

• In the fiscal year 2024, MGM Resorts International reported total revenues of approximately $16.2 billion. This reflects a 12% increase compared to the previous year, driven by strong performance in both its domestic and international operations.
• Net income for 2024 stood at around $2.4 billion, showcasing improved profitability due to effective cost management and revenue growth initiatives.
• The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reached $4.5 billion, indicating robust operational performance and efficiency.
• MGM has been actively managing its debt, reducing its long-term debt by approximately $1.5 billion in 2024, strengthening its balance sheet.
• Strategic investments in online gaming platforms and expansion into new markets have contributed to revenue diversification and growth. The company's online gaming revenue increased by 25% in 2024, highlighting the success of its digital initiatives.

To gain more insight into the values that drive decisions, explore Mission Statement, Vision, & Core Values of MGM Resorts International (MGM).

MGM Resorts International (MGM) Market Position & Future Outlook

As of April 2025, MGM Resorts International maintains a significant presence in the global gaming and entertainment industry, facing both promising opportunities and considerable challenges that will shape its future trajectory. The company's strategic initiatives are focused on expanding its digital offerings and enhancing its destination resorts to drive growth and improve profitability.

Competitive Landscape

Opportunities & Challenges

Industry Position

MGM Resorts International holds a strong position in the gaming and entertainment industry due to its:

• Extensive portfolio of well-known resorts and casinos.
• Focus on creating unique and immersive experiences for guests.
• Strategic investments in technology and innovation to enhance operations and customer engagement.

The company's commitment to sustainability and responsible gaming also enhances its reputation and appeal to socially conscious consumers.

For more insights into MGM's investor profile, consider reading: Exploring MGM Resorts International (MGM) Investor Profile: Who’s Buying and Why?