MGM Resorts Q2 revenue down 91%

By Violeta Prockyte

MGM Resorts announced the group’s financial results for Q2 2020. The group’s revenue for the three months ending on June 30 was $289.8m, a significant 91% drop from $3.2bn in 2019. Casino contributed the most to the revenue and brought in $163.6m, which is a significant drop from $1.5bn the previous year. Consolidated operating loss was $1bn, compared to the $371m operating income in 2019. MGM Resorts suffered a net loss of $857m, while the prior year saw the group’s net income at $43m. The group stated: “During the second quarter, we continued to take proactive steps to further bolster our already strong liquidity position.” 

Casino revenue in Las Vegas Strip Resorts decreased by 80% for Q2 with table games at $149m, compared to $851m in 2019. Net revenue was $151m, 90% less than Q2 last year. Adjusted property EBITDAR loss was $104m, compared to positive EBITDAR of $418m the previous year. 

H1 for the group saw revenue of $2.5bn for 2020, compared to $6.4bn the previous year, a drop of 70%.

MGM China Holdings Limited announced the group’s total revenue for the first half of 2020 was HKD2.4bn ($309.6m), while adjusted EBITDA was negative HKD1bn. The group’s revenue was greatly impacted by the COVID-19 pandemic and the travel restrictions it poses, and low visitation levels resulted in 20% occupancy for the group. 

Gross gaming revenue in Macau fell by 77% compared to the previous year. Revenue for MGM MACAU stands at HKD$1.3bn, with a negative adjusted EBITDA of approximately HKD356.9m. Macau’s visitation fell by 80%.  MGM COTAI recorded revenue of HKD1.1bn and negative adjusted EBITDA was HKD651.5m. 

For Q2, MGM China earned HKD257.3m, compared to HKD5.54bn in 2019, resulting in 95% drop in net revenue. VIP Table Games earned $32m, a 96% decline compared to the last year. 

Despite the negative impact, “the Group maintained a healthy financial position.” The group’s total liquidity is HKD11.4bn, “comprised of cash and cash equivalent and undrawn revolver.” 

Hubert Wang, president & chief operating officer of MGM China stated the group feel remains optimistic about the re-opening borders and easing of travel restrictions. He said: "While we focus to contain our costs, we are rolling out programs to drive traffic and prepare for gradual recovery. We are confident about the prospects of Macau gaming and hospitality market in a longer term." 

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