Driven by the temporary suspension of the Company's domestic and Macau casino operations

MGM Resorts reports 29% drop in revenues for first quarter of 2020

Revenue from MGM’s Las Vegas Strip resorts dropped 21%, while MGM China showed the biggest decline — 63%.
2020-05-01
Reading time 3:01 min
MGM Resorts’ revenue fell 29.1% to $2.25bn for the first quarter of 2019 due to the effects of the pandemic, but the operator’s profits skyrocketed due to sales of two of its properties, MGM Grand and Mandalay Bay.

"The year started strong with results ahead of expectations, however the COVID-19 pandemic resulted in the closure of our properties which had a material negative impact on our first quarter results," said Bill Hornbuckle, Acting CEO and President of MGM Resorts.

MGM announced in March it would close its properties in response to the coronavirus outbreak. That decision came before Gov. Steve Sisolak's order closing all gaming venues in Nevada, and the company says it has to spend about $270 million per month while its U.S. resorts stay closed.

"It is still premature to predict the opening dates of our domestic properties," acting Hornbuckle said in a release. "In the meantime, we are collaborating with public health officials, experts in epidemiology and biosafety, and both state and federal government to come up with a set of protocols that will help deliver a safe, secure environment for our employees and guests."

First Quarter 2020 Financial Highlights:

"During this unprecedented crisis MGM Resorts maintains a strong liquidity position. We have benefitted from the Bellagio, MGM Grand Las Vegas, and Circus Circus Las Vegas real estate transactions, which generated approximately $6.9 billion of cash. In addition to $4.6 billion of cash on the balance sheet as of March 31, 2020, excluding MGP and MGM China and adjusted for the recent bond offering, the Company also has access to $1.4 billion of additional liquidity upon the redemption of its operating partnership units in MGP," said Paul Salem, Chairman of MGM Resorts. 

Las Vegas Strip Resorts

  • Net revenues decreased 21% compared to the prior year quarter to $1.1 billion. Excluding Circus Circus Las Vegas, which was sold in December 2019, net revenues decreased 17% compared to the prior year quarter;

  • Table Games Hold Adjusted Las Vegas Strip Resorts Net Revenues(3) decreased 20% compared to the prior year quarter to $1.1 billion and decreased 17% excluding Circus Circus Las Vegas;

  • REVPAR(4) increased 3.3% compared to the prior year quarter. Excluding Circus Circus Las Vegas, REVPAR decreased 3.3% compared to the prior year quarter;

  • Adjusted Property EBITDAR of $268 million, a 34% decrease compared to $404 million in the prior year quarter. Excluding Circus Circus Las Vegas, Adjusted Property EBITDAR decreased 32% compared to the prior year quarter;

  • Adjusted Property EBITDAR increased 24% for the first two months of the quarter compared to the same period in the prior year quarter, and when excluding Circus Circus Las Vegas, increased 27% for the first two months of the quarter compared to the same period in the prior year quarter;

  • Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR(2) of $273 million a 33% decrease compared to the prior year quarter. Excluding Circus Circus Las Vegas, Table Games Hold Adjusted Las Vegas Strip Resorts Adjusted Property EBITDAR decreased 31% compared to the prior year quarter; and

  • Adjusted Property EBITDAR margin of 23.6%, a 466 basis point decrease compared to the prior year quarter. Excluding Circus Circus Las Vegas, margins decreased 497 basis points compared to the prior year quarter.

    Regional Operations

     

  • Net revenues decreased 10% compared to the prior year quarter to $726 million, the current quarter included $57 million in net revenues from MGM Northfield Park's operations, which were acquired from MGP on April 1, 2019;

  • Adjusted Property EBITDAR decreased 28% compared the prior year quarter to $152 million;

  • Adjusted Property EBITDAR increased 42% for the first two months of the quarter compared to the same period in the prior year quarter, and when excluding Empire City and MGM Northfield Park, increased 26% for the first two months of the quarter compared to the same period in the prior year quarter; and

  • Adjusted Property EBITDAR margin of 20.9% in the current quarter, a 544 basis point decrease compared to the prior year quarter.


MGM China

  • Net revenues decreased 63% compared to the prior year quarter to $272 million;

  • VIP Table Games Hold Adjusted MGM China Net Revenues(3) decreased 61% compared to the prior year quarter to $275 million;

  • Adjusted Property EBITDAR loss of $22 million compared to Adjusted Property EBITDAR of $193 million in the prior year quarter; and

  • VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR(2) loss of $17 million compared to VIP Table Games Hold Adjusted MGM China Adjusted Property EBITDAR of $177 million in the prior year quarter.

 

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