MGM Resorts Releases Financial Results
Las Vegas-based casino operator MGM Resorts International released its fourth-quarter and year-end financial results on Wednesday. According to the data collected by the company, its regional casinos, which include MGM Springfield will help it through its recovery.
The regional category is outperforming, leading to long-term benefits for the MGM brand, which experienced significant losses due to the coronavirus pandemic and it is not the only one.
The company told investors that revenues at the regional operations were down 34% in the forth-quarter. At the same time last year, the revenue was $595 million. For the Vegas Strip resorts in particular, net revenues were down 66% compared with the same time last year to $480 million.
The revenue decrease is only natural since Las Vegas properties are driving the MGM business.
As for the MGM’s China operations, they went down 58% compared to the prior year quarter to $305 million.
The decline is due to the global pandemic that hit Last Vegas very hard since the business there relies mostly on tourism and casino visits.
MGM Casino Business Overview
The financial report gave a vaster overview of the whole MGM business. No particular numbers were issued regarding MGM Springfield, which had to work with reduced capacity and from earlier this month, with reduced working hours.
For the whole of the fiscal year, MGM reported that net revenues at its regional properties decreased 45% compared to the prior year, to $2 billion.
Net revenues decreased at the Vegas Strip properties as well, to 61% compared to previous year, to $2.2 billion. MGM China net revenues decreased 77% to $657 million.
The CEO and president of MGM Resorts International, Bill Hornbuckle, said in a news release: “We remain confident in the long-term recovery of our business. We have strengthened our operational foundation through cost efficiencies that position us for sustainable growth, as solutions to the public health crisis accelerate and restrictions continue to ease.”
Meanwhile MGM reported a significant loss per share of 92 cents in the quarter, compared to earnings per share of $3.91 at the same time last year.
For the full year, MGM reported a loss per share of $2.02, compared to diluted earnings per share of $3.88 in 2019.
Shares of the company — MGM on the New York Stock Exchange — fell by about 1.5% in after-hours trading to $35.86 a share.
In January the company met a serious obstacle in its expansion plan when it announced it would no longer pursue Entain’s acquisition. The US casino giant made several attempts to sign the deal with the UK company late last year and in early 2021, but after the latest offer was rejected, MGM seemed to have lost interest.
Source: “MGM Resorts, parent of Springfield casino, says regional casinos are leading its recovery”, Mass Live, February 11, 2021