The company has posted negative financial results, but the new CEO and president says he remains excited about a Japan IR opportunity in Osaka.
Macau.- MGM Resorts posted financial results for the second quarter of 2020, showing a 91 per cent fall in net revenue compared to the same period in 2019, and an EBITDAR loss of US$492 million.
The firm said results were “primarily driven by the temporary suspension of the company’s domestic casino operations, continued travel restrictions in Macau, restrictions on the number of table games allowed to operate in Macau, and on the number of seats available at each table at both the company’s domestic and Macau properties” as well as other social distancing measures that made it difficult for the casino to make profit.
Including the firm’s Cotai and Macau casinos, net revenues decreased 95 per cent compared to to Q2 2019, to US$33 million. EBITDAR showed a US$116 million loss, compared to earnings of US$173 million in the same period last year.
The company said the fall in earnings was due to a “decline in visitation to Macau to near zero during the quarter”.
VIP table games turnover was US$450 million in the quarter, 96 per cent less than in 2019, and the main gaming floor reported US$66 million in the same period, 97 per cent below last year.
Bill Hornbuckle, new CEO and President of MGM Resorts, said: “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.”
“We remain excited about our integrated resort opportunity in Osaka, expanding our footprint in Macau.”