MGM Resorts exceeds expectations in Q3 despite domestic revenue fall
MGM Resorts International saw consolidated net revenue increase 7% year-on-year to $3bn for Q3.
However, net revenue decreased 2% at the operator’s domestic resorts to $2.2bn and 3% on a same-store basis.
These percentages exclude contributions from MGM Springfield, which opened on 24 August.
The pre-opening expenses of that resort, however, added $31m of expenses, with MGM Resorts' operating income down 20% to $435m – also affected by continued disruption at Park MGM and a fall in revenue at the operator’s Las Vegas Strip resorts.
Net income attributable to MGM Resorts fell 3%to $143m, while domestic resorts suffered a 12% year-on-year decrease in adjusted property EBITDA to $627m.
A positive was MGM China, which saw operating income rise 27% to $52m and achieved a 7% increase in adjusted property EBITDA to $130m, as a result of the opening of MGM Cotai.
CityCenter saw adjusted EBITDA from resort operations of $85m, a 20% fall.
Jim Murren, Chairman and CEO of MGM Resorts, said: "Our third quarter operating performance exceeded our expectations despite the tough year-on-year comparison, resulting from robust casino business and an exceptionally strong event calendar last year.
"We remain highly focused on our strategic priorities, including maximising the performance of our portfolio of premier properties, driving growth in free cash flow and delivering on our capital allocation strategy. Overall, we remain confident that we will deliver on our 2020 goals."