Gambling giant has revealed that it has operating cash and cash investments of $3.9billion.
US.- MGM Resorts International has said it is well capitalised to weather the Coronavirus storm following the sale of MGM Grand and Mandalay Bay. The company has revealed that operating cash and cash investments total US$3.9billion.
In an update on the financial impact of Coronavirus, MGM’s Acting CEO and President, Bill Hornbuckle, said recent activation of the company’s asset-light “MGM 2020” plan, which has included the January sale of both MGM Grand and a sizeable stake in the real estate investment trust that holds Mandalay Bay, has placed it in a strong position to deal with the crisis.
“At MGM Resorts, we are committed to doing our part to mitigate the spread of COVID-19, including the closure of our properties across the United States,” Hornbuckle said, noting that the MGM Grand and Mandalay Bay transactions has resulted on a pre-tax gain of US$1.5billion.
“While this will undoubtedly have a significant negative effect on our business in the near term, we are well-positioned to emerge from the current crisis in light of our strong liquidity position and valuable asset portfolio. With the continued execution of the MGM 2020 plan, as well as the implementation of aggressive cost savings initiatives, we believe the Company will be able to manage its expenses while navigating this unprecedented event. We are currently making very difficult decisions but believe these will be in the best interest of the Company long term,” he added.
MGM revealed group-wide net revenues were down 10 per cent year-on-year through January and February due to the 15-day closure of its Macau resorts, MGM Cotai and MGM Macau.
Meanwhile, Las Vegas Strip Resorts Adjusted Property EBITDAR was up 24 per cenrt and Regional Operations Adjusted Property EBITDAR up 42 per cent over the prior year two-month period.
“The Company believes its strong liquidity position, valuable unencumbered assets and aggressive cost reduction initiatives will enable it to fund its current obligations for the foreseeable future,” MGM said.
“While the Company is unable to predict when the properties will re-open, the Company continues to believe that it will be able to weather this downturn and ultimately rebound from the impacts of the current crisis.”