Gaming giant MGM reports Q1 results

MGM Resorts International has reported the company’s financial results for the quarter ended March 31, 2020.

Consolidated net revenues decreased 29 per cent compared to the prior year quarter to $2.3bn, primarily driven by the temporary suspension of the company’s domestic and Macau casino operations and continued travel restrictions which resulted in a 63 per cent decrease in net revenues at MGM China. 

Consolidated operating income increased to $1.3bn compared to $370m in the prior year quarter. The current year quarter included a $1.5bn gain related to the MGM Grand Las Vegas and Mandalay Bay real estate transaction.

“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.

“It is still premature to predict the opening dates of our domestic properties. 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.

“We are aggressively managing our cash outflows and strengthening our liquidity position to make certain that despite a lack of revenue, we are able to advance our longer term strategic initiatives such as a new integrated resort in Japan, growing our business in Macau and establishing a leading presence in sports betting and online gaming. With premier assets in most of the markets in which we operate, we are confident we will emerge from the crisis in a strong position.”