MGM remains upbeat despite losses

The fourth quarter results for MGM Resorts drew the curtain across a year to forget for the big American operator.

It also heralded a rallying call from CEO Bill Hornbuckle, who demonstrated defiance against the pandemic and optimism for the future.

“We remain confident in the long-term recovery of our business,” he said. “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.”

He noted improvements in the last quarter of the financial year, led by the drive in sports betting and MGM’s igaming venture that saw the group gain market share in the year.

That did not disguise the fact that net revenues in the quarter fell 53 per cent to $1.5bn and there was an operating loss of $343m compared with $3bn in the comparative quarter. The net loss was $448m compared with a profit of $2bn.

The consolidated net revenues were down 60 per cent to $5.2bn with a net loss of $1bn, including a $1.56bn gain related to the MGM Grand Las Vegas and Mandalay Bay real estate transaction. MGM China saw revenues down 66 per cent compared with the previous year’s positive $657m.