MGM Resorts reports Q3 results
The company said that consolidated net revenues increased 7% while net revenues fell 2%.
US.- MGM Resorts International has reported its financial results for the third quarter ended September 30. While consolidated net revenues increased, operating income and net income fell when compared to the prior year.
The company revealed that operating income was US$435 million at domestic resorts, approximately US$100 million less when compared to the US$545 million registered in the previous year’s quarter. The current quarter suffered the impact of MGM Springfield preopening expenses worth US$31 million, rebranding at Park MGM and a decrease in casino and non-casino revenues at the Company’s Las Vegas Strip resorts.
Net income was US$143 million, US$5 million less than the US$148 million registered in the same period in 2017. However, consolidated net revenues increased 7% to US$3 billion, and net revenues fell 2% at the company’s domestic resorts to US$2.2 billion. Domestic Resorts Adjusted Property EBITDA decreased 12% to US$627 million in the third quarter of 2018 and decreased 13% on a same-store basis.
Our third quarter operating performance exceeded our expectations despite the tough year on year comparison, resulting from robust casino business and an exceptionally strong event calendar last year.” said Jim Murren, Chairman and CEO of MGM Resorts International. “During the quarter, we successfully opened MGM Springfield, which has been well received by our customers. Earlier this month, we also officially opened the NoMad Hotel at Park MGM, which will help expand our customer reach. We remain highly focused on our strategic priorities, including maximising the performance of our portfolio of premier properties, driving growth in free cash flow and delivering on our capital allocation strategy.”
“We expect to deliver positive results in the fourth quarter at our Las Vegas Strip resorts with net revenues up slightly and Las Vegas Strip REVPAR up one to 2%. We also expect Las Vegas Strip Adjusted Property EBITDA margins to be flat to up slightly. These projected results are in line with our previously stated full year guidance. Heading into 2019, the completion of Park MGM and NoMad, the expanded MGM Grand convention space, and a better backdrop in group business position us well in Las Vegas. We will also benefit from a full year of operations at MGM Springfield,” he concluded.
