MGM first quarter revenue down 27% as Vegas casinos continue to struggle

MGM Resorts International on Wednesday reported financial results for the quarter ended March 31, 2021.

Consolidated net revenues of $1.6 billion, a decrease of 27% compared to the prior year quarter. While the prior year quarter was negatively affected by property closures for a portion of the quarter, the current quarter was negatively affected by midweek property and hotel closures, lower business volume and travel activity and ongoing operational restrictions due to the pandemic primarily at its Las Vegas Strip Resorts;

Consolidated operating loss was $247 million compared to consolidated operating income of $1.3 billion in the prior year quarter, which included a $1.5 billion gain related to the MGM Grand Las Vegas and Mandalay Bay real estate transaction;

Net loss attributable to MGM Resorts of $332 million compared to net income attributable to MGM Resorts of $807 million in the prior year quarter, which included the $1.5 billion gain discussed above; Diluted loss per share of $0.69 in the current quarter compared to diluted earnings per share of $1.64 in the prior year quarter;

Adjusted diluted earnings per share was a loss per share of $0.68 in the current quarter compared to an Adjusted EPS loss per share of $0.45 in the prior year quarter; and consolidated adjusted EBITDAR of $218 million in the current quarter.

Bill Hornbuckle, Chief Executive Officer and President of MGM Resorts International, commented. "Consumer demand strengthened at our domestic properties, and the significant changes we've made to our operating model have positioned us to capitalize on the recovery. Our regional properties achieved record first quarter Adjusted Property EBITDAR and Adjusted Property EBITDAR margins. Las Vegas operating results improved sequentially, leisure demand is improving, and we now have a tangible path to bring conventions and entertainment back at scale. MGM China continued to outperform the broader Macau market's gradual pace of recovery."

"We are also deeply focused on our long-term goals including investing in digital to drive deeper customer engagement and BetMGM, our U.S. sports betting and iGaming venture, which continues to impress as the leading operator in U.S. iGaming and the top three operator in U.S. online sports betting. Our future is bright."

Las Vegas Strip Resorts

• Net revenues of $545 million, a decrease of 52% compared to the prior year quarter due to the pandemic and related operational restrictions as well as midweek property and hotel closures at certain properties;
• Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) of $544 million, a decrease of 52% compared to the prior year quarter;
• Adjusted Property EBITDAR(2)  of $108 million compared to $268 million in the prior year quarter, a 60% decline;
• Adjusted Property EBITDAR margin(2) of 19.8% in the current quarter, compared to 23.6% in the prior year quarter; and
• Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) decreased 61% to $107 million compared to $273 million in the prior year quarter.

Regional Operations

Net revenues of $711 million, a decrease of 2% compared to the prior year quarter due to the pandemic and related operational restrictions as well as hotel closures at certain properties.

Adjusted Property EBITDAR of $242 million compared to $152 million in the prior year quarter, an increase of 59%, due to an increase in casino revenues and realized benefits of the Company's cost saving initiatives; and qdjusted property EBITDAR margin of 34% in the current quarter, a 1,311 basis point increase compared to the prior year quarter.

MGM China

Net revenues of $296 million, an increase of 9% compared to the prior year quarter as the prior year quarter was negatively affected by property closures and was more significantly impacted by travel restrictions to Macau than in the current quarter.