MGM Resorts first quarter results were off the charts
During the first quarter of 2017, MGM Resorts profits nearly tripled thanks to the National Harbor casino and Atlantic City’s Borgata.
US.- MGM Resorts International reported major financial jumps during the first quarter of the year, compared to the same period of 2016. Net income was almost tripled year to year as it reached US$253 million, overall revenue rose 22 percent and operating income 57 percent.
Last Thursday, MGM reported that overall revenue for the first quarter reached US$2.7 billion, jumping 22 percent in comparison to the same period of last year. Meanwhile operating income rose 57 percent to US$497 million and net income almost tripled its 2016 comparison, after reaching US$253 million.
The great results reported by the company were mostly based in the contribution made bythe National Harbor casino in Maryland and the recently aquired 50 percent share of the Borgata, in Atlantic City. Said properties boosted MGM’s results that, if said businesses were to be excluded, would’ve only reported a 6 percent rise in domestic revenue. Both resorts added US$173 million and US$100 million respectively to the total 29 percent revenue increase to US$2.1 billion in domestic enterprises.
The company’s business in Macau, MGM China, reached US$502 million in revenue (7 percent higher), and US$73 million in operating income (55 percent better). This improvement was connected to a major rise in main fllor table games’ win rate.
On the analyst call, CEO Jim Murren celebrated that National Harbor has captured 30 percent of Maryland’s casino market in a short period of time. He also explained that its tables win per unit per day was over US$5,800, and said that poker tables are “running ahead of our (MGM’s) expectations.”
The second quarter of 2017 will be “one of the toughest comparisons we have this year”, Murren said. He explained that, in 2016, table games hold was higher than normal but insisted that MGM’s good projections for the year are still the same.
