MGM struggles domestically in Q2
MGM Resorts International’s operating income at domestic resorts dropped 13% year-on-year to $449m for the second quarter of 2018.
Net revenue at domestic resorts did increase by 3% to $2.2bn, with revenue per room increasing by 3% at the company’s Las Vegas Strip resorts.
Adjusted property EBITDA at domestic resorts was $626m, a 5% decrease, although last year’s figure benefited from a $36m property tax settlement with fellow operator Borgata.
MGM China fared better, recording $561m for the quarter, an increase of 32%, with MGM benefiting from the opening of its Cotai resort in February, which contributed $185m in revenue. Operating income plateaued at $46m..
MGM CEO and Chairman Jim Murren said: “Our second quarter came in better than we expected and we made significant progress to capitalise on future growth opportunities in sports betting and Japan.
“Earlier this week, we announced major alliances with GVC, Boyd Gaming and the NBA to cement our leadership position in the developing sports betting market in the US. Further, the recent passage of Japan’s Integrated Resort Implementation Act is another historic milestone, and we believe we are well positioned in that market.”
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