MGM Resorts reports Q2 revenue fall
MGM Resorts International has reported a drop in Q2 revenue of 7.6%, falling to $2.39bn compared to $2.58bn for the same period in 2014.
MGM China’s Q2 net revenue also decreased year-on-year, down 33% to $557m.
MGM Resorts CEO and chairman Jim Murren announced a new profit growth plan alongside the earnings report.
He said: “We are focused on positioning the company for future growth, and are pleased to announce the implementation of our profit growth plan to further enhance our business practices and profitability.”
Murren also noted the operator’s growth in wholly owned adjusted property EBITDA, up 11% on the prior year quarter to $458m, attributing this rise to “growth at our Las Vegas and regional resorts”.
Adjusted property EBITDA for Bellagio fell $11.8m from the second quarter of 2014, but rose for many of the operator’s other properties, including Mandalay Bay and The Mirage.
Murren recently denied that The Mirage, located on the Las Vegas Strip, was up for sale.
The operator’s wholly owned United States resorts experienced a rise in net revenue of 4% on the same quarter last year, up from $1.64bn to $1.7bn, while it reported a room revenue increase of 6% and a rise of 3% in revenue from food and beverage sales.
MGM Resorts’ report links this rise in food and beverage revenue to the recent boxing match between Floyd Mayweather and Manny Pacquiao, held on 2 May at the MGM Grand Garden Arena.
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