MGM reports Q2 financial results
The company said that its second-quarter results came in better than they expected.
US.- MGM Resorts International reported the financial results for the second quarter ending June 30th. Operating income at domestic resorts fell 13 per cent year-on-year to US$449 million during the three-month period.
Despite the underwhelming operating income results, net revenue at domestic resorts managed to increase three per cent to US$2.2 billion, and revenue per room rose three per cent at the Las Vegas Strip resorts. Adjusted property EBITDA at domestic resorts was US$626 million, which represents a five per cent decrease, even though last year’s numbers were boosted by a US$36 million property tax settlement with Borgata.
On the other hand, MGM China posted US$561 million for the three-month period – or an impressive 32 per cent increase – and operating profit stood at US$46 million.
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.”
“We believe our continued focus on maximizing our margins, the near-term completion of our development pipeline, and our ability to accretively sell assets to MGM Growth Properties will further accelerate our free cash flow generation. We are confident that we will continue to execute on our long-term strategies and deliver value to our shareholders, as evidenced by the nearly US$600 million in share repurchases we made during the quarter.”
