MGM Resorts Net Revenue in Second Quarter Down 91% From 2019
MGM Resorts International has reported a 91% drop in second-quarter consolidated net revenue compared to the same time period from 2019, with casinos closed for most of the three-month period because of the global coronavirus pandemic.
The company’s overall consolidated net revenue from April through June this year was $290 million, compared to $3.223 billion for Q2 in 2019. The figure for MGM’s Las Vegas Strip resorts was down 90% – $151 million in 2020 compared to $1.466 billion last year. The story was similar for MGM’s regional operations, consisting of eight properties nationwide, which were also down 90% in year-over-year Q2 comparisons (MGM’s operations in China, down by 95%, accounted for the overall 91% dropoff being higher than the American revenue figures).
The company reported a consolidated operating loss of $1 billion in Q2 compared to an operating income of $371 million in Q2 of 2019. MGM reported the figures in its Q2 Earning Presentation.
Like every other casino company, MGM Resorts saw its facilities closed for a couple of months as the magnitude of the COVID-19 spread in America became apparent. MGM’s regional casinos began to reopen on May 25 when Gold Strike Tunica in Mississippi got back underway, followed by another property in the state, Beau Rivage. Five MGM properties in Las Vegas reopened in June with three more doing so in July. Mirage and Park MGM in Las Vegas have not reopened.
This week, William J. Hornbuckle was named the CEO and president of MGM Resorts International. he had served in those roles for a few months in an acting capacity. Former Chairman and CEO Jim Murren stepped down this year.
"As we look ahead, we believe the long-term fundamentals of our business and the broader industry remain intact,” Hornbuckle said of the financial situation in a company news release issued Thursday. “However, the near term operating environment will remain challenging and unpredictable as COVID-19 case trends, health and safety protocols, and travel restrictions continue to heavily impact our business.”
In January, MGM Resorts netted $8.2 billion by selling the MGM Grand and Mandalay Bay in Las Vegas to a joint venture of MGM Growth Properties and Blackstone Real Estate Income Trust.
MGM Overall Activity Continues
As a whole, MGM and its subsidiaries had some notable gaming activity even with brick-and-mortar casinos shut down.
The BetMGM online casino was the market share leader in New Jersey iGaming for each of the three months in the second quarter of 2020, the company report said based on data from Eilers & Krejcik Gaming.
In January, BetMGM joined the ranks of West Virginia online sportsbooks, partnering with The Greenbrier to become the third operator to offer the product in the state in the past 12 months.
BetMGM also offers online sports betting in Colorado, Indiana, Nevada and New Jersey and plans to launch online casino and poker in West Virginia in August.