MGM Climbs 147 Spots, Surpassing Industry Giants in Forbes Global 2000 Ranking

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Last updated: June 21, 2023

On the most current Forbes Global 2000 list, MGM Resorts International, which trades as MGM on the New York Stock Exchange, holds the top position among gaming firms. The owner of well-known properties like the Bellagio in Las Vegas has claimed the 596th position on the esteemed list. MGM has climbed 147 spots since last year’s rankings, surpassing prestigious companies in other industries including Colgate-Palmolive, Blackstone (the owner of Bellagio’s real estate), and Southwest Airlines. Notably, Las Vegas Sands’ competitor MGM has done better than them, coming in roughly 700 positions ahead of them.

Sales, earnings, assets, and market value are the four main parameters used to analyze and rank the world’s top corporations for the Forbes Global 2000 list. The list includes publicly listed businesses from 58 different nations, with the United States dominating with 611 businesses and China coming in second with 346 Global 2000 businesses.

MGM Outperforms Las Vegas Sands, Securing 596th Position on Esteemed List

MGM got the fifth slot and Sands the seventeenth in the specialized area of lodging, dining, and recreation. However, Sands is far larger than MGM Resorts International, which manages the Cosmopolitan, when measured only by market capitalization.

Following the COVID-19 outbreak, MGM encountered major difficulties similar to other casino operators, with its gambling locations in Las Vegas, Macau, and its regional portfolio suffering protracted closures. CEO Bill Hornbuckle and CFO Jonathan Halkyard effectively guided MGM through a number of capital-generating transactions. The outcome is that the business now has a stronger balance sheet and a more focused investment thesis, such as the planned purchase of Entain, earning it a redemption narrative.

Strong Balance Sheet and Strategic Initiatives Propel MGM’s Resurgence in Gaming Sector

Carlo Santarelli, an analyst at Deutsche Bank, voiced optimism about MGM’s chances for the future. While the business must make some capital investments to complete projects in New York and Japan, he pointed out that its present cash flows and balance sheet position it to keep returning capital to shareholders through share buybacks. Santarelli gave MGM shares a “buy” rating and a $58 price target, implying a possible 40% increase from the stock’s closing price on June 8.

It’s important to note that there are just a few gaming firms on the Forbes Global 2000 list. The next-highest-ranked company having exposure to the gambling business after MGM is VICI Properties, which is placed 758th overall. The largest owner of casino real estate in the US and MGM’s major landlord is VICI Properties. Only Galaxy Entertainment, one of the Macau concessionaires, joins MGM and Sands on the list; Melco Resorts & Entertainment, SJM Holdings, and Wynn Resorts did not. Another domestic casino operator, Caesars Entertainment, came in at number 1,280.

The parent firm of FanDuel, Flutter Entertainment, is among the additional gaming companies included on the Forbes Global 2000 list. Flutter Entertainment rose impressively by 239 spots to take the 1,077th rank overall. Aristocrat Leisure, a well-known maker of slot machines, moved up 33 spots from the 2022 rankings to take up position 1,6111. JPMorgan Chase, Saudi Aramco, and three state-run Chinese banks dominated the top five positions on the Forbes Global 2000 list.

In conclusion, MGM Resorts International’s exceptional placement among gaming firms on the Forbes Global 2000 list speaks volumes about its resiliency and ability to navigate through difficult circumstances. MGM is well-positioned to keep generating wealth for shareholders and enhancing its position in the global gaming sector thanks to strategic initiatives and a strong financial sheet.